Colorado Division of Housing Kathi Williams, Director

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Colorado Division of HousingKathi Williams,
Director

• Stakeholders MeetingApril 14, 2008

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Division of Housing Funding SourcesState vs.
Federal Funding
Federal Funding
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HUD Funding for the State of Colorado
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2008 Community DevelopmentBlock Grant (CDBG)
Allocation
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2008 HOME Investment Partnership Allocation
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2008 Emergency Shelter Grant (ESG) Allocation
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DOLA/Division of HousingHUD Funding Over Time
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DOLA/Division of Housing HUD Funding Percentage
Change Over Time
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Change in CDOH HOME CDBG Funding Over Time
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Federal Earmark Funds
The only funds earmarked for housing.
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HUD HOME Allocation Formula

• After set-asides, 60 of HOME funds are
  allocated to local entitlements and 40 to
  states.
• Allocations are based on six factors
• Inadequate Housing Supply
• Number of rental units occupied by poor families
  multiplied by market tightness
• Market tightness is the national vacancy rate
  divided by the participating jurisdictions
  vacancy rate
• 2. Substandard Housing
• Occupied rental units with at least 1 of 4
  issues
• Overcrowding
• Incomplete Kitchen
• Incomplete plumbing
• High rent costs (gt35 of HH income)

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HUD HOME Allocation Formula(continued)

• 3. Number of rental units built before 1950 and
  occupied by poor families
• 4. Cost of producing housing
• 5. Number of families at or below poverty level
• 6. Relative fiscal incapacity to carry out
  housing activities
• Population of jurisdiction multiplied by net per
  capita income.

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CDBG Allocation Formula

• CDBG funds must meet at least one of three
  national objectives
• Benefit to low-mod income persons
• Preventing or eliminating slum or blight, and,
• Meeting urgent need.
• 70 of CDBG funding goes to entitlement areas and
  30 to states.
• New entitlement areas decrease the funding
  available for states.
• ESG Funds are allocated using the CDBG formula.

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CDBG Allocation Formula

• CDBG uses two allocation formulas
• Formula A
• Population
• Poverty
• Overcrowded Housing
• Formula B - for states
• Population
• Poverty
• Pre 1940 Housing
• HUD uses the formula that results in the highest
  funding amount.

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Why Does Colorado Rank So Low in HUD Funding?

• High per capita income
• Ranked in top ten nationally since 2000.

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Why Does Colorado Rank So Low in HUD Funding?

• Low number of households living below poverty
  line
• 10 statewide average.
• Most housing stock built after 1950
• Only 22 of states housing stock was built prior
  to 1950

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Current Allocations and Available Funds
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Projects Funded In 2007

• Congressional District 1

• Congressional District 2

Projects highlighted in red are in entitlement
areas.
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Projects Funded in 2007

• Congressional District 3

Projects highlighted in red are in entitlement
areas.
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Projects Funded in 2007

• Congressional District 4

• Congressional District 5

Projects highlighted in red are in entitlement
areas.
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Projects Funded in 2007

• Congressional District 6

• Congressional District 7

• Statewide Projects

Projects highlighted in red are in entitlement
areas.
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Projects Funded in 2008

• Congressional District 1

• Congressional District 2

Projects highlighted in red are in entitlement
areas.
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Projects Funded in 2008

• Congressional District 3

Projects highlighted in red are in entitlement
areas.
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Projects funded in 2008

• Congressional District 4

• Congressional District 5

Projects highlighted in red are in entitlement
areas.
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Projects funded in 2008

• Congressional District 6

• Congressional District 7

Projects highlighted in red are in entitlement
areas.
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OUR COMMITMENT

• We will honor every award weve made.
• We are committed to finding funds for every
  project approved by the State Housing Board.

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Whats In The Pipeline?

• Total anticipated request of 21,374,630 to
  produce 2,743 units over the next 12 to 18
  months, an average of 7,792 per unit.
• Funding will be a competitive process from here
  forward.

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Performance Criteria for Rental Acquisition
Rehab
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Performance Criteria for Rental New Construction
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Leveraging Performance

• Leveraging
• The Division has improved its national ranking
  from 5th to 2nd since 2006
• The Divisions most recent leveraging ratio was
  12.721

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2003-2008 Policy Changes

• Saving existing projects
• Tenant-Based Rental Assistance
• Emphasize more deeply subsidized units with
  bigger gaps

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Situational Changes

• Foreclosures
• HDG funding timing
• HUD notices
• Difference between COFRS and IDIS
• Tightening of capital markets and protection of
  Tax Credit pricing

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Possible Solutions

• Increased Federal Funding
• Increased State Funding
• Housing Trust Fund/dedicated funding source
• Use of other funding sources such as Mineral
  Impact Funds
• Greater creativity in use of CDBG funds
• Increased earmark requests from HUD funding