Arlington County Department of Community Planning, Housing, and - PowerPoint PPT Presentation

Arlington County Department of Community Planning, Housing, and Development AHIF Management and Internal Controls Baltimore Affordable Housing Trust Fund Commission October 22, 2019

AHIF Program Overview • Affordable Housing Master Plan – adopted in September 2015 • County is a mission-driven lender • Goal is to create and preserve committed affordable units (CAFs) affordable to families earning 40%-60% of the area median income (AMI) for 60 years • County Board has approved over 100 loans • $374 million allocated to-date, supporting approximately 7,000 CAFs 1 Community Planning, Housing and Development

AHIF Secures CAFs and Leverages Funds 700 • AHIF preserves existing 585 CAFs CAFs by extending 600 affordability 451 433 500 CAFs CAFs • AHIF creates new CAFs 401 380 368 CAFs through acquisition and CAFs CAFs 400 construction of units 300 • Every $1 million in AHIF 173 can preserve or create CAFs 200 approximately 12 CAFs and leverage $4 million 100 in outside funding 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 - Projected Existing CAFs Preserved New CAFs Financed 2 Community Planning, Housing and Development

FY 2020 AHIF Projected Sources - *$24,649,461 290 CAFs Developer Contributions affordable for 14% AHIF - ongoing funds 35% 60 years Loan Repayments & $6,694,158 Payoffs 20% $3,500,000 $341,202 $96 million in Federal CDBG outside funds Entitlement 2% AHIF - one-time funds 29% * Note: FY20 projected sources include AHIF and federal sources used for multifamily and single family development projects 3 Community Planning, Housing and Development

How do we maximize the impact of AHIF to increase the supply of affordable units? 4

Identifying Projects • Notice of Funding Availability (since FY 2018) • Applications submitted through ZoomGrants • Application review & scoring staff recommendation • Applicant notification • Staff underwriting and community process (Commission review) • County Board consideration 5 Community Planning, Housing and Development

Once County Loans are approved, how do we manage and monitor the County’s investment in the long term? 6

Portfolio Asset Management and Compliance Portfolio management protects County investments & unit affordability: • Physical inspections ensure code compliance • Occupancy monitoring confirms CAF rules are upheld • Financial and organizational Arbor Heights monitoring supports financial 198 units sustainability 7 Community Planning, Housing and Development

Portfolio Asset Management and Compliance • Financial Monitoring and Asset Management: – Analyze and verify annual residual receipt payment calculations – Analyze and monitor loan performance – Recommend loan term changes if accumulated debt is no longer supportable - this protects the property Leckey Gardens and County loan 40 units 8 Community Planning, Housing and Development

Portfolio Asset Management and Compliance • 100% of loans are in compliance with County loan agreements • 40% made payments in FY 2018 – Most other loans are deferred or properties still under construction • County funds are loans, not grants – $129M in loan repayments received to-date – 40% of loans have paid in full 9 Community Planning, Housing and Development

Internal Controls – Lessons Learned 10

Tips for Managing the Fund • Separation of duties • System integrity and fund reconciliation • Chart of accounts – revenue and expense • Tell your story! 11 Community Planning, Housing and Development

Questions? 12

A NNE V ENEZIA Housing Finance Supervisor Arlington County avenezia@arlingtonva.us 13