2A17EEEF2419FA198725875700589F5D Hearing Summary CLICS/CLICS2021A/commsumm.nsf PUBLICBILL SUMMARY For AFFORDABLE HOUSING NEEDS AND GAPSINTERIM COMMITTEE AFFORDABLE HOUSING TRANSFORMATIONAL TASK FORCEDate Sep 21, 2021 Location Old Supreme Court Affordable Housing Needs and Gaps - Committee Discussion Only Attachment Tag File Name http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/6565A5EAD7AC...$File/doh_ahttf_presentationAttachmentB.pdf?OpenElement doh_ahttf_presentationAttachmentB.pdf 10:08:04 AM The committee came back to order. 10:23:03 AM Krisin Toombs, Andrew Paredes, and Connor Everson, representing DOLA Division of Housing, provided a presentation about affordable housing needs and gaps (Attachment B). Kristin Toombs, Director Office of Homeless Initiatives, discussed the main cause of homelessness. Ms. Tooms stated the vision for the office is for all Coloradans to have a safe and stable place to live. She said that homelessness should be brief and rare, and no one should be left behind. Ms. Toombs discussed recent trends for homelessness in Colorado and the country, such as a lack affordable housing, health challenges, and systemic inequities creating issues. She indicated that 40 percent of homeless individuals have a disabling condition and/or have behavioral health or medical needs. In addition, she shared that people of color, LGBTQ, and disabled individuals face system inequities. 10:28:21 AM Ms. Toombs indicated that there is a correlation between cost of housing and homelessness. There was a discussion about early indicators of homelessness, gathering data, and extrapolating data. Ms. Toombs shared that the number of people experiencing homelessness has doubled since the start of the pandemic, according to Point in Time studies from January 2021. She stated that people are coming to Denver to seek shelter. She explained the Yearly Point in Time studies which counts the number of people experiencing homelessness by contacting homelss individuals in the community throughout the course of one day. 10:35:30 AM Ms. Toombs presented that homelessness is dynamic with about 18 to 20 percent of individuals chronically homeless. She indicated that incoming homeless individuals typically replace outgoing homeless individuals. 10:36:25 AM Ms. Toombs talked about proven solutions to end homelessness and highlighted a successful program in Fremont County housing veterans. She stated that state, federal, and local resources made housing possible and shared that the community was aware of the need, pulled partners together, and did what was necessary. She suggested that this may not be happening throughout Colorado due do the complex needs of each community and limited resources. 10:38:50 AM Ms. Toombs discussed data related to homelessness. 10:40:08 AM Andrew Paredes, Director of Housing Finance and Sustainability at DOLA, provided information about federal and state stimulus funds available for housing. He stated that $500 million is available: $400 million for affordable housing through recommendations from the Affordable Housing Transformational Task Force; $98.5 million to DOLA Division of Housing through House Bill 21-1329; and $1.5 million for the Eviction Legal Defense Fund. Mr. Paredes indicated that additional funds include $305 million for Emergency Rental Assistance; $175 million to the Homeowner Assistance Fund; and $66 million for homeless families, those at risk for homelessness, or other vulnerable populations. 10:42:59 AM Mr. Paredes provided additional details about the $66 million related to homeless individuals. He indicated that $41 million will be distributed to local municipalities, while DOLA Division of Housing will use $25 million to create additional housing for those with the lowest incomes. 10:43:50 AM Mr. Paredes talked about Senate Bill 21-242. He indicated that $30 million will be used for housing units, rental assistance, and services to support families that are experiencing homelessness or are at risk of homelessness. Mr. Paredes mentioned that funds may be used for non profits or locals to acquire assets to repurpose for housing. He also talked about $15 million being provided directely to DOLA Division of Housing for direct support to those not able to access other assistance programs. Mr. Paredes mentioned that a notice of funds available was released September 3 for local goernments, nonprofits, and for profit developers to identify housing assets to purchase and put into service. He said that $50 million is available and that applicants may also apply for services or direct rental assistance. Mr. Paredes shared that applications are due October 15 and the 15th of each month thereafter. He stated that the division's goal is a 60 to 90 day turnaround for decisions on applications and indicated that the program will allow nonprofits and local governments to compete with market rate developers. 10:47:03 AM Mr. Paredes indicated that funds used to buy housing or provide permanent supportive housing will allow applicants to quickly acquire a property and take the next steps in developing the property, including seeking approvals for zoning, variance, and financing. He said that funds may be paid back within four years. If need be, he said that the asset may be used to provide another type of housing or may be sold to return the money to the fund. There was a discussion about work with local governments. Mr. Paredes suggest that funds may speed up the process and allow different approaches to affordable housing. 10:51:19 AM Mr. Paredes discussed House Bill 21-1271, including $12 million to incentivize local governments to review and rewrite land use code, including technical assistance. He stated that communities may also use funds to make proactive changes and apply for grants for new affordable housing or other community benefits, such as parks. 10:54:08 AM The task force continued to discuss funding for affordable housing. 10:57:00 AM There was a discussion about using funds effectively. DOLA representatives indicated that local communities received ARPA funds, however these funds may be used for other items besides housing. DOLA staff indicated that Division of Housing staff in various regions throughout the state are helping communities determine how to spend funds. Mr. Paredes indicated that project applications require information about supports for a project, both funding and communitywide. He went on to say that smaller communities may have less funding and more community support. 11:02:44 AM The task force discussed the amount of funds that must be used on COVID-19. The Divisision of Housing will look at federal regulations and get back with the task force. 11:05:35 AM There was a discussion about long term projects. 11:08:05 AM Mr. Paredes talked about a pipeline of projects and how development works and is long-term. He said that land is usually acquired five to six years prior to the build date, with existing properties acquired one to two years prior. Mr. Parades stated that as a general rule, assets are leveraged in many forms to build projects. He said that communities looking for properties or vacant land to fill a housing need could take three to four months to find a suitable build site and to buy the propert. He shared that once propoerty is purchased anvironmental and soil tests usually need to be done before a site may be considered suitable for a project. After testing, Mr. Paredes indicated that developers look at the number of units and the cost to create a financial portfolio to fund the project. He state that most developers apply for LIHTC, with applications for grants and other funding taking up to a year or two. 11:12:25 AM The task force discussed the report that will be created as a result of their work. The discussion included additional information needs, such as a backlog of development created by the pandemic and the development process. 11:14:11 AM Connor Everson, representing DOLA talked about affordable housing needs. He talked about a variety of needs, including more housing, sustainable houaing, and housing that is in good condition. Mr. Everson indicated that one third of Coloradans are housing cost burdened. He went on to discuss severely cost burdened households, those with only a few dollars left after paying for housing. He said that that group needs the most affordable housing. Mr. Everson stated that the majority of severly cost burdened households are in the workforce in low wage occupations, followed by those with a fixed income, such as sniors or disabled individuals. 11:19:43 AM Mr. Everson continued to talk about cost burdened households. He mentioned that the most vulnerable group are renters. 11:21:49 AM Mr. Everson talked about trends during the COVID-19 pandemic, including more impacts on lower income households, as well as younger households. He stated that racial and ethnic minorities are three times more likely to be behind on rent. 11:22:50 AM Mr. Everson talked about how affordable housing is an issue throughout the state. He stated that many households are renting beyone their income. He indicated that the number of apartments costing $600 or less has dropped by over half in the last 6 years. Task force members asked Mr. Everson for additional data on the cost of homes and rentals. 11:26:28 AM Mr. Everson stated stated that there has been an increase in housing for moderate, middle, and high income families between 2010 and 2019. However, he indicated that there was less housing for lower income families in the same time period. 11:27:51 AM There was a discussion about proven solutions related to homelessness. The task force discussed federal funds, which typically meet about 10 percent of the need, according to Ms. Toombs. 11:30:59 AM The task force discussed the rise in homeless in Denver. Ms. Toombs indicated that anecdotally, individuals are saying that Denver is the only place to go. Ms. Toombs will look for more data on this issue. The task force talked about a presentation from the State Demographer with regard to where folks are moving. 11:32:17 AM The task force discussed housing-related relief funding related to current AARPA funds. 11:34:37 AM There was a discussion about rental income post pandemic. Mr. Everson stated that rents are increasing. The task force discussed data trends and housing surveys. 11:37:11 AM Cris White, representing CHFA, stated that a statewide assessment will be completed in the near future. He indicated, though, that the survey and data will not be complete for use by the task force. 11:39:35 AM The task force discussed meeting both long term and urgent needs. The Division of Housing talked about their work on rental assistance and supporting communities in acquiring properties for long term and near future needs. DOLA staff stated that needs are often complex and require onging support, rather than just short term. 11:44:46 AM The task force talked about the need for mulitple efforts. 11:45:28 AM The committee took a lunch break.