2017 I N V E S T M E N T S A N D I M PAC T | N C H O U S I N G F I N A N C E AG E N CY
MISSION: To create affordable housing for North Carolina citizens whose needs are not met by the market PHILOSOPHY: To address a range of housing needs, to leverage funds, to emphasize partnerships, to operate efficiently
Since 1974, our Agency has financed 268,940 homes and apartments totaling $21.2 billion, increasing housing opportunities that generate needed jobs and significant revenue for North Carolina. We provide financing through the sale of tax-exempt bonds and management of federal tax credit programs, the federal HOME Program, the state Housing Trust Fund and other sources.
Cedar Terrace, Hendersonville
Through these resources and its own earnings, the Agency: offers low-cost mortgages and downpayment assistance for qualified home buyers finances affordable homes and apartments developed by local governments, nonprofit organizations and private owners finances the development of housing for people with special housing needs finances the rehabilitation of substandard owner-occupied homes offers foreclosure prevention assistance in partnership with HUD-approved housing counseling agencies statewide administers HUD rent assistance contracts for 25,000 privately owned apartments statewide
H O U S I N G I M PA C T S 1974 -2 017 Housing Financed
Supportive Housing TOTAL*
*Rental production units that also have rent assistance or preservation loans are counted once in the grand total.
Our self-supporting public agency keeps its operating costs to less than 2% of the housing financed in 2017, and maintains a AA/Aa2 bond rating. Learn more about our financial health. To learn more about our financing resources for affordable housing and how to partner with us, see Affordable Housing Is Our Business.
GOOD HOUSING IS GOOD BUSINESS AG E N CY INVESTMENTS SUPPORTED
14,040 homes & apartments
Executive Director Scott Farmer discusses the Agency’s focus and accomplishments in 2017.
$35.6 million tax revenue
In 2017, the North Carolina Housing Finance Agency financed nearly $2 billion in real estate activity, sending a half billion dollars in wages and spending throughout the state.
O U R WO R K H E L P E D
The impact was profound: thousands of North Carolinians found safe, affordable housing; small businesses and their workers saw a
8,550 home buyers
boon in business; and the state realized a significant return on its investment. North Carolina’s towns and cities also benefited. Our ongoing emphasis on publicprivate partnerships with developers, builders, local nonprofit leaders and other housing professionals revitalized struggling neighborhoods and improved 524 communities statewide from metro areas like Charlotte, Raleigh and Greensboro to more rural areas like Kannapolis, Rolesville and East Flat Rock.
3,290 homeowners* *Includes foreclosures prevented
Housing investments aren’t just about shelter. They serve as catalysts for positive longterm benefits for North Carolinians. By helping home buyers, renters and homeowners access and remain in safe, affordable homes and apartments, our financing improves education and health outcomes, enriching lives and saving public dollars. Learn more at Housing Research.
BOOSTING HOME BUY Glen Oaks, Winston-Salem
2017 was a big year for the Agency’s home buying programs. We financed more than $1 billion in mortgage activity—our highest year ever—helping 8,550 families become homeowners.
Street, our investments financed affordable homes close to jobs for workers such as city bus drivers and mechanics who were previously priced out of the market. High-cost Wake County gained affordable townhomes thanks to a partnership between the county Habitat for Humanity affiliate and NC State University, the largest HabitatUniversity collaboration in the nation.
Downpayment assistance was integral to helping North Carolinians become homeowners. The NC Home Advantage Mortgage™ helped fuel a 34% increase in the number of home buyers served last year. A special, limited $15,000 downpayment program made the difference for 2,920 lower income first-time buyers and military veterans in five counties that were hit hard during the recession. Home buyers helped include a 65-year-old Cumberland County school teacher who was able to buy her first home. We also provided downpayment and mortgage assistance through local home ownership programs statewide and partnered with a national bank to help North Carolinians in Durham and Wake counties where home prices are out of reach for many moderate-income buyers. Our financing helped 68 local government and nonprofit partners develop affordable homes that improved older communities. For example, Glen Oaks transformed a neighborhood in Winston-Salem with 41 new homes for working families close to downtown jobs, schools and retail businesses. In Fayetteville’s Faith Community on Hedgepeth
Dodd Meadows in East Flat Rock will be home to an estimated 300 children, many of them the first generation in their families to grow up in an owned home. Further positioning these and other local children for success, the neighborhood hosts a summer school food program that also provides books. The Habitat community won a 2017 Housing North Carolina Award.
2017 Home O w nersh ip I nvest ment Customers Average sales price: $148,474 Average credit score: 700 Average income: $47,864 Average age: 34 Average household size: 2.17
Partners Participating lenders: 121 Preferred real estate agents: 1,334 Home buyer education partners: 75 Lender and real estate partner education: In-person—57 sessions, 1,641 attendees Webinars—45 webinars, 2,930 attendees
ING, BUILDING COMMUNITIES East Durham natives John and Ciera found stability to raise their two kids in the Blacknall Street neighborhood where our Agency has helped finance many homes. Their home purchase secured long-term affordable housing in a city where rents are quickly outpacing wages. John recalls when he first brought the kids to see the house: “We sat down and we looked around and I said ‘we are going to be staying here!’ And [my son] looked at me and looked around, and that was a peaceful moment for us.” More than 90% of our 2017 home buyers were first-time buyers. Ansel and Englund purchased their first house together through a local partner in Greensboro and have made it home to their two young daughters. Ansel, the pastor of the neighborhood church, and Englund, a former speech therapist turned stay-at-home-mom, wanted to live in the church neighborhood and make a difference in the lives of their neighbors and congregants.
Research shows that children do better academically when their parents are homeowners. Learn more at Affordable Housing Benefits Education
Learn more about the impact of our home ownership investments at Affordable Mortgage Options.
PROTECTING HOMEOWNE Housing investments provided significant boosts to communities struggling in the aftermath of the Great Recession and recent natural disasters. After extensive hurricane and tropical storm damage in 2016, the General Assembly made a special appropriation to the NC Housing Trust Fund to kick off disaster recovery efforts for homeowners facing losses after Hurricane Matthew and Tropical Storms Julia and Hermine. At year’s end, the Agency was working with 36 partners in Eastern North Carolina to rehabilitate homes for nearly 330 families, aiding disaster-affected towns such as Fayetteville, Goldsboro and Lumberton with their recovery. This was in addition to the statewide urgent repair of 570 homes with severe health and safety hazards, such as rotting floors and lead paint. Lowincome elderly and disabled homeowners often must enter costly institutional care because their homes are not designed for people with mobility or dexterity limitations and they can’t afford to adapt or maintain their homes. Working with local partners, the Agency’s Urgent Repair Program has helped keep nearly 15,000 people in their own homes during the life of the program. Learn more at Urgent Home Repair: Quality of Life and Cost Impacts.
In 2017, urgent repair investments helped an elderly Charlotte homeowner who was able to remain in her home thanks to the repair of dangerous structural damage and a Kannapolis woman who received a ramp to help her safely enter her home. A retired factory worker in Burlington Mills was able to remain in the home where he raised his children and grandchildren thanks to repair of his bathroom’s rotten floor and accessibility modifications to his shower. A new roof and water heater, rotting floor repair and the addition of handrails to front and back porches kept a disabled veteran in his Madison County home. Learn more about the impact of our home repair investments for low-income homeowners at Rehabilitation and Repair. Aside from a natural disaster, a financial setback can be a major cause of home loss. The Agency designed and launched the NC Foreclosure Prevention Fund in 2010 using financing from the US Department of the Treasury’s Hardest Hit Fund. At year’s end, the Fund crossed the milestone of helping more than 26,000 homeowners since it was created, preserving $4.6 billion in property value in towns and cities across the state. The Fund helps homeowners struggling with mortgage payments due to job loss, reduced pay or temporary financial hardships, such as illness or death of a coborrower. The fund also assists veterans who are transitioning to civilian life. In 2017, Elaine was one of the 2,350 homeowners helped after she was on unpaid leave for three months due to breast cancer and fell behind on her mortgage. A one-time reinstatement from the Fund saved her home and gave her peace of mind during her recovery.
RS, PRESE RVING HOME OWNE RSHIP Research shows that every $1 invested in urgent repairs and accessibility modifications can save up to $19 in Medicaid and Medicare spending for seniors and people with disabilities. Learn more at Affordable Housing Benefits Health
The Fund is offered through participating HUD-approved housing counseling agencies statewide. Consumers can get assistance by calling 1-888-623-8631 or going to NCForeclosurePrevention.gov.
The Agency also manages the State Home Foreclosure Prevention Project, created by the General Assembly and funded with fees from mortgage loan servicers. This effort along with 10 grants the Agency has received over the years from the National Foreclosure Mitigation Counseling program has provided foreclosure prevention counseling for more than 90,000 homeowners facing foreclosure.
FINANCING RE NTE R OPTI Stevenson, Charlotte
With rising rents outpacing wages, the Agency’s financing of affordable apartments for working families—and seniors who often live on fixed incomes—not only fill a growing, unmet need but serve as an economic driver for many rural areas that haven’t seen much development. Housing credits and bonds awarded in 2017 will finance 3,910 apartments for seniors and working families. The Agency also responded to market challenges during the year to preserve affordable housing options in urban areas such as Charlotte and Raleigh as well as rural towns such as Jefferson and Kings Mountain. Created by the NC General Assembly in 2014 to encourage the development of Housing Credit apartments with deeper income targeting, the Workforce Housing Loan Program will provide additional financing for 28 developments in 23 counties, lowering rents in high cost areas and enabling building in lower income rural areas such as Hildebran and Swannanoa. The Agency administers the program, awarding funding along with Housing Credits. 2017 saw more than 40 Housing Credit developments built across the state, providing apartment homes in locations with amenities that foster success, such as schools and jobs. Many new developments also include easy access to medical care. Parkside Commons is in Greenville’s medical district, with one of Eastern North Carolina’s largest hospital systems less than a half mile away. The senior apartments also offer a unique adult playground to help residents stay healthy. Parkside received a 2017 Housing North Carolina Award.
Parkside Commons, Greenville
Under the Targeting program, 300 of the apartments awarded Housing Credits in 2017 will be targeted toward low-income persons with disabilities. Each year, 10–20% of all Housing Credit apartments are reserved as Targeted Units. Alicia, who needed a handicap-accessible, affordable apartment after suffering a stroke, found a home at Addington Ridge in High Point. The Agency partners with the NC Department of Health and Human Services (DHHS) on the Targeting Program. The Agency also works with DHHS on two rental assistance programs for low-income people with disabilities. Key Rental Assistance, which began in 2004, has helped more than 4,600 people with disabilities and extremely low incomes who are living in properties participating in the Targeting Program. Launched more recently, the Transitions to Community Living Voucher (TCLV) helps people with disabilities find integrated apartments to live in within their communities. TCLV is a component of the Transitions to Community Living Initiative (TCLI) operated by NC DHHS in partnership with the state’s Local Management Entities and Managed Care Organizations.
ONS, FOCUSING ON SPECIAL NE E DS Research indicates that developments financed with Housing Credits can boost property values and reduce crime rates. Learn more at Affordable Housing Benefits the Economy
Park Terrace, Winston-Salem
People with disabilities will have even more access to independent apartments in their communities thanks to the Integrated Supportive Housing Program launched by the Agency in late 2017. The program will finance apartment communities that set aside up to 20% of units for persons with disabilities. Learn more about the impact of our rental housing investments for low-income families, seniors and persons with disabilities at Affordable Rental Housing.
2017 RENTAL INVESTMENT $403.6 million in tax credit developments 43 communities 3,910 affordable apartments 6,600 jobs $19.5 million in tax revenue
To learn more about how the Agency is creating more housing opportunities for people with disabilities, see Financing Housing Solutions for People with Disabilities. Read on to discover how the stateâ€™s Housing Trust Fund is financing supportive housing options for North Carolinians with diverse special housing needs.
30 YEARS OF INNOV
Harbor House, Smithfield
A L L-T I M E R E S U LT S By maximizing publicprivate partnerships, the Agency leverages $4 in housing for every $1 invested, yielding one of the state’s best returns.
The NC Housing Trust Fund continued its 30-year history of filling housing gaps for the state’s most vulnerable citizens in 2017 by financing the construction and rehabilitation of 1,570 affordable homes and apartments for low-income seniors and families. Created by the General Assembly in 1987 to increase the supply of affordable housing for very low‐income persons, the Housing Trust Fund is administered by our Agency and overseen by the 13‐member North Carolina Housing Partnership appointed by the General Assembly. The Trust Fund is able to target deeper affordability than federal funding alone. Eighty-nine percent of those helped in 2017 earn less than half of their county’s median income, with 50% earning below 30%. The Trust Fund’s flexibility enables it to address the state’s most difficult housing problems, such as housing for veterans at risk of homelessness and emergency repairs for homes owned by people who are elderly or have a disability, preventing their costly institutionalization. The state’s only source of funding for emergency and temporary housing, the Fund has financed 32 domestic violence shelters across the state.
homes & apartments
The Trust Fund is the state’s largest source of funds for supportive housing, which helps persons who are homeless or have disabilities, children in foster care or aging out of it and adults released from correctional facilities, among others. For example, Lakeside Reserve Apartments provides permanent housing for homeless families and individuals in Wilmington.
$144.4 million tax revenue
Lakeside Reserve, Wilmington
Hope Court in Greensboro offers permanent supportive housing for formerly homeless persons, persons with disabilities and working families and helps them access life skill classes and education grants that improve employability. The development won a 2017 Housing North Carolina Award. Hope Court, Greensboro
Learn more about the impact of our supportive housing investments at Supportive Housing. Mother Teresa Villa, Charlotte
VATION, $1.2 BILLION IN HOUSING
ING TRUST FUND
Screenshot to come
Executive Director Scott Farmer looks back at 30 years of results from the North Carolina Housing Trust Fund. The Housing Trust Fund has long been a valuable resource for producing independent apartments for persons with special needs. Mother Teresa provides independent apartments in Charlotte for people who have developmental or intellectual disabilities. The development is the first phase of a planned 20-acre affordable housing campus that will eventually include senior housing and adult day care and won a 2017 Housing North Carolina Award.
The Ralph Drive Group Home provides housing and services for adults with developmental disabilities. The group home is located within a Cary neighborhood, allowing residents to receive the care and services they need while remaining part of a thriving community. Learn more about the Housing Trustâ€™s investments and results at Celebrating 30 Years of the Housing Trust Fund.
2017 NC Housi ng Pa r t nersh ip Brian Coyle, Wake Forest Scott Dedman, Asheville Roger Earnhardt, Raleigh Scott Farmer, Raleigh
The Honorable Dale Folwell, Raleigh Roy J. Helm, Jr., Huntersville Daniel W. Kornelis, Winston-Salem The Honorable Michael Lazzara, Jacksonville
Melody Underwood Smith, Raleigh Tom E. Smith, Raleigh Sallie Surface, Rich Square Rita Thuot, Gastonia
2017 INVESTME NTS Greenbrier Landing, Kinston
NC Home Advantage Mortgage™—affordable mortgages and downpayment assistance
Housing Credit Program—affordable rental housing development and rehabilitation
Mortgage Credit Certificates—tax credits up to $2,000 per year
Workforce Housing Loan Program—long-term gap financing for Housing Credit properties
Community Partners Loan Pool—downpayment assistance through local partners
Rental Production Program—long-term financing for Housing Credit properties
Self-Help Loan Pool—affordable mortgages through local partners
Targeting Program—sets aside 10–20% of all Housing Credit properties for low-income persons with disabilities
Discover our 2017 home ownership impact at Affordable Mortgage Options
Supportive Housing Development Program—emergency and permanent supportive housing for people experiencing homelessness or with unique housing needs
REHABILITATION AND REPAIR
Integrated Supportive Housing Program—apartment homes with up to 20% set aside for persons with disabilities.
Essential Single-Family Rehabilitation Loan Pool— essential and critical home rehabilitation Essential Single-Family Rehabilitation Loan Pool (Disaster Recovery)—essential and critical home rehabilitation in response to Hurricane Matthew and Tropical Storms Hermine and Julia Urgent Repair Program—emergency repairs and modifications to address imminent health and safety threats Displacement Prevention Partnership—emergency repairs and modifications for people with mobility issues Discover our 2017 home ownership impact at Rehabilitation and Repair
FORECLOSURE PREVENTION NC Foreclosure Prevention Fund—mortgage assistance for homeowners struggling due to job loss, reduced income or other temporary financial hardship State Home Foreclosure Prevention Project—free counseling and legal help for struggling homeowners
Discover our 2017 rental and supportive housing impact at Rental Housing and Supportive Housing $
RENTAL ASSISTANCE* Key Rental Assistance—help for extremely low-income people with disabilities living in Housing Credit Targeted Units Transitions to Community Living Voucher—help for persons with behavioral health disabilities to live independently in their communities. * The Agency partners with the NC Department of Health and Human Services in administering these programs.
To learn more about our financing resources for affordable housing and how to partner with us, see Affordable Housing Is Our Business.
2017 NC Housi ng Fi na nce Agenc y Boa rd of Di rectors R. Gene Davis, Jr., Raleigh, Chair Patricia G. Garrett, Surf City, Vice Chair Michael P. Ayotte, Morganton Leigh T. Brown, Harrisburg Joseph D. Crocker, Winston-Salem
Elizabeth P. Foley, Winston-Salem Paul S. Jaber, Rocky Mount James C. Kearney, Sr., Henderson Paul L. Kennedy, Shallotte M. Charles Mullen, Rocky Mount
James W. Oglesby, Asheville Chris C. Parrish, Raleigh Tom E. Smith, Raleigh
LOOKING AHE AD 2018 will undoubtedly bring many of the same challenges and opportunities that the affordable housing industry saw last year, along with some new ones, such as the impact of tax reform. While the economic outlook remains favorable for housing and mortgages, North Carolinians with lower incomes will still struggle to secure safe, affordable housing due to stagnant wages and rising housing costs, particularly in already expensive metro areas and rural areas where housing is scarce. Our Agency will continue to do the work that matters, deploying long successful existing programs along with launching a few new ones to address new housing needs. Would-be home buyers facing downpayment challenges will still get a boost from the NC Home Advantage Mortgage™, which offers up to 5% downpayment help to qualified buyers. In 2018, first-time buyers will have an even better option: the new NC 1st Home Advantage Down Payment with $8,000 downpayment help. This new product will target first-time buyers with lower incomes as well as military veterans. Struggling homeowners will continue to have access to resources that can save their homes. We are allotting an additional $4.8 million to disaster recovery efforts, providing more financing for the repair and rehabilitation of owner-occupied homes across the state that suffered damage from natural disasters. The Agency also expects to help nearly 2,000 more homeowners avoid foreclosure with the NC Foreclosure Prevention Fund while they recover from temporary financial hardships. This investment will not only keep families in their homes, but will maintain property values and preserve communities statewide. The Agency will continue to expand the supply of affordable apartment homes for low-income seniors, working families and people with disabilities through a combination of Housing Credits, bonds and funding from
the state’s Workforce Housing Loan Program. To ensure a strong rental development market, the Habitat Home, Fayetteville Agency will work alongside partners statewide to navigate through changes to Housing Credits as a result of the passage of this year’s tax reform legislation. Our provision of affordable options for people with special housing needs will expand with our new Integrated Supportive Housing Program. A collaboration between our Agency and the NC Department of Health and Human Services, the program offers interest-free loans up to $1.5 million for rental developments with up to 20% of the apartments set aside for persons with disabilities. North Carolina’s homeless veterans may see their housing options expand thanks to a new incentive program designed to recruit landlords to rent to them. The NC Housing Finance Agency is making $100,000 available to the NC Coalition to End Homelessness for the Landlord Incentive Pilot Program. Four local organizations will work with landlords, seeking reimbursement for rental losses, such as damages, unpaid rent and security deposits, as well as providing housing stability bonuses to landlords who successfully retain tenants. While the program will prioritize homeless veterans, it will work with all homeless populations at the pilot sites. The Agency will again partner with the NC Housing Coalition and Centrant Community Capital, formerly the Community Investment Corporations of the Carolinas, to bring together nearly 1,000 housing professionals on October 24-25 for the NC Affordable Housing Conference: Housing Works! To keep up with all Agency activities in 2018, subscribe to our monthly newsletter, Housing Impacts.
The NC Housing Finance Agency would like to thank our many diverse partners statewide, including rental developers, rental owners and managers, lenders, real estate agents, home builders, local governments, nonprofit organizations and our legislative partners who support Agency programs and allow citizens across North Carolina to access safe, quality housing they can afford. A special thank you to the following properties for allowing us to photograph them for this report: Addington Ridge, High Point Coldwater Ridge, Kannapolis Community Housing Solutions, Greensboro Durham Habitat for Humanity, Durham Fayetteville Area Habitat for Humanity, Fayetteville Kirkwood Crossing, High Point Ralph Drive Group Home, Cary Windridge, Roxboro Winston-Salem Habitat for Humanity, Winston-Salem
Stay connected with us at www.nchfa.com and on social media.
R. Gene Davis, Jr., Chair | Scott Farmer, Executive Director | 1-800-393-0988 or 919-877-5700 ÂŠ North Carolina Housing Finance Agency, 2018. No tax dollars were used for this publication.
2017 Investments and Impact | North Carolina Housing Finance Agency