Together with other concerned Arlington organizations and citizens, AHS asked the County Board to increase investments in affordable housing in the FY 2023 budget.
The Board responded by accepting many of our requested changes on Tuesday, April 26 when they approved the final budget. Highlights of the budget include:
Increased funding for the Affordable Housing Investment Fund (AHIF), bringing the total in the FY 2023 budget up from $16.9 million in FY 2022 to $18.7 million
The creation of two new full-time staff positions to provide additional capacity for housing development and oversight of the County’s growing committed affordable housing portfolio
$14.3 million in Housing Grant support
Additional funding for permanent supportive housing and eviction protection
As we look toward an inclusive and sustainable future for our community, AHS is pleased to see the County’s increased investment in affordable housing.
Our full letter to the County reads:
April 4, 2022
Dear Chair Cristol and Board Members,
The Alliance for Housing Solutions would like to thank you for your ongoing commitment to affordable housing and related programs in the FY2023 draft budget. The steady funding for AHIF and Housing Grants and the increase for Permanent Supportive Units are very welcome. The recent increase in FTEs for inspections and planning are strong indicators of long-term foundational support for quality and quantity in our housing portfolio and programs.
The momentum of several housing advances in the past months, from the Barcroft Apartments purchase and the large-scale Marbella Apartments project to the use of the new bonus height provision, and the inclusion of affordable units in the Pentagon City Sector Plan, demonstrate the County is building the capacity to increase the pace of growth called for in the Affordable Housing Master Plan.
These commitments build on the progress and leadership shown in this past year and through the many ways County staff and leaders supported our diverse communities during COVID and set the pace for realizing our goals. To maintain this momentum and deliver on the County’s housing and equity goals, AHS believes that investing in additional housing staff and committing to increasing AHIF funding in FY2024 and beyond are critical funding considerations for the upcoming budget. AHS shares these recommendations:
Staffing:
We are concerned, even with the recent addition of compliance and planning FTEs, that County staff may not have the time and capacity to carry out the volume and complexity of housing work in the coming year. In 2023 alone, staff will be addressing projects including Barcroft, Park Shirlington, and Crystal Houses, as well as planning processes including Plan Langston Blvd, both the Missing Middle Housing and Housing Grant studies, the Regional Fair Housing Plan, the Serrano after-action report, and the Analysis of Aging Properties. This workload raises the question: Are there enough staff and expert resources to carry out this quantity of work and at the level of excellence Arlington expects? The decision not to undertake the NOFA process this year is an indicator of the existing shortfall of time and staff.
As Arlington’s CAF portfolio grows and development deals become more complex, the County must equip staff to ensure our community has the capacity to meet the 2040 Affordable Housing Master Plan goals, while maintaining housing quality, as well as fostering innovation. To better address these many needs, we recommend that the County create a Deputy Director position for the Housing Division. This would bring additional capacity to handle the increasing number of projects and situations that require the Housing Division leadership’s attention. We hope the Manager and Board will give serious consideration to this new position.
AHIF Funding:
In addition, we know that for the FY2024 budget and beyond, AHIF funding will need to increase substantially to close the gap between the current CAF portfolio and the AHMP goals of more than 15,000 affordable units in Arlington. The Housing staff’s recent Implementation Framework states:
“…the County would likely need to finance around 440 new [CAF] units a year for the next 19 years. Currently, the cost per unit for County-funded CAF projects is between $85,000 and $112,500 per unit. The estimated resources to fund that level of production would be between $37.4 and $49.5 million annually. For reference, the average annual funding for the County Loan Fund from 2016 through 2020 was $27.4 million.”
In addition, the County’s 2020 Housing Needs Analysis found that there are over 13,000 Arlington households earning under 50% of the AMI. At present, the County has a deficit of 9,500 rental units affordable at the 50% AMI level and below.
While these are extraordinarily challenging times, Arlington also has extraordinary opportunities to achieve a new level of housing supply and affordability needed across our county. Now we must respond to these plans to advance our shared goals and the work of keeping Arlington a welcoming community for all, by leveraging the resources necessary to bring them to fruition.
Again, we thank the Board and the County Manager for your ongoing commitment to providing the range of housing necessary to sustain our community. It is our hope that Housing Equity will continue to be a high priority in the County’s work throughout this year and as we look to 2024. We appreciate your efforts to protect Arlington tenants, as well as to empower our dedicated County staff, and support our non-profit housing development partners, who are all working to fulfill our shared vision of keeping Arlington a diverse and inclusive, world-class urban community.
Sincerely,
Jenny Denney Lawson
Chair, Board of Directors
Martha Bozman
Interim Executive Director
AHC, Inc.
APAH
Coalition for Smarter Growth
Habitat for Humanity of Washington DC & NOVA
NVAHA
THRIVE
Wesley Housing
Susan English
Mary Hynes
Detta Kissel
Dave Leibson
Joan McDermott
Pat McGrady
Sueyen Rhee
Kathryn Scruggs
Daniel Weir