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2017/11/15 Council Agenda Packet
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2017/11/15 Council Agenda Packet
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Council Agenda Packet
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11/15/2017
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This cost burdened data is from the U.S. Census Bureau's 2014 Comprehensive Housing Affordability Strategy survey, <br /> the most recent year for this data. It is safe to assume that in 2017 these numbers are actually higher as rents have <br /> increased dramatically and wages have remained relatively flat. <br /> EVERETT SEPTEMBER MULTIFAMILY <br /> MEDIAN RENT, 2013-2017 <br /> $1,600 $1,542 <br /> _ $1,500 $1,443 A' <br /> o $1,400 $1284 $1,347 <br /> cc $1,300 - <br /> $1,190 <br /> ;7: $1,200 %CHANGE FROM 2013-2017:29.6% <br /> $1,100 <br /> $1,000 <br /> 2013 2014 2015 2016 2017 <br /> Source:Zillow Rent Index(ZRI) <br /> The private market cannot build new income restricted homes that serve households with incomes below 50%AMI. <br /> It is a matter of numbers and not an unwillingness to help. Affordable housing is defined as housing costs at no more <br /> than 30%of total household income. At rents equal to 30%of an income equal to or below 50%AMI, a private <br /> market owner cannot make enough money to cover operating costs of the building, repayment of any loans and a <br /> reasonable profit. This "market sector" is thus left to nonprofit affordable housing developers that, by the nature of <br /> the product they are trying to build, must rely on public financing for at least part of the cost of the development. <br /> Affordable housing projects serving households with incomes less than 50%AMI typically have a very complicated <br /> capital stack of public and private financing from multiple sources. This speaks to the difficulty of securing enough <br /> low cost financing to serve very low income households. Financing for a typical project often looks similar to this for <br /> New Century Village in Everett: <br /> New Century village - Everett <br /> S%,aaa,onta -- —— — <br /> Sponsor Loa r S 518,097 <br /> 85,000,0001111111 Sponsor Equity 5 283,663 <br /> *Sponsor Loan <br /> $4,030,000 I Sponsor Equity --_-- <br /> Private BarkLoan S 715:000 <br /> Private Bank Loan <br /> $3,644,940 <br /> Ir FederalCDBG Fe,3eral(D&5 5 325,633 <br /> 004000 s County OF (S7urt, HTF 5 329,549 <br /> It State HTF State HU S 620,000 <br /> $2.60124440 aro tax credits <br /> 4e.tax credts S 2,418,000 <br /> Total $ 5,269,442 <br /> Capita Stack <br /> New Ceraurr•Yillare las 25.1mne-rest="xted banes 3.3fora-3.%Ahil <br /> )t,if.. icadsani 1.2fnru ){,..i.101eiS icere ssfamilies <br /> "tii ciiJc en,veterans,arra thaw with chronic ental F2nera,arnar,3 ethers <br />
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