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Preservation
Preservation activities relate to preserving the existing affordable housing stock in a community. The largest concern with preservation often relates to multi family properties and community structures that carry historic or sentimental value. In multi family development, there has been a decline in the development of multi family units that serve the lowest income households and reductions in rental assistance that maintain rents below 30% of a households income. As a result, the preservation of existing properties which carry both affordable rents and rental assistance is vital as they units are difficult, if not impossible, to replace. Other properties which carry a historic or sentimental value can be preserved and utilized for housing development. Typical candidates include school buildings, nursing homes, mixed use buildings in downtown, etc.
Multi Family Housing Project based subsidies can be lost for a variety of reasons but largely hinge on the expiration of the original agreements which end income and rent restrictions. Proactive efforts by the community can result in the preservation of units as highlighted with the example of Channel View Apartments described below. The role of the HRA/Community can be to monitor the units and react if necessary to preserve units. Many units are preserved through acquisition by a nonprofit entity. Nonprofits and Community Action Agencies such as Three Rivers Community Action, Inc. and the Southwest Minnesota Housing Partnership have successfully preserved these units.
There were no other properties listed in the study at immediate risk for conversion. The following table outlines data through the Housing Preservation Project which outlines details on the Low Income Housing Tax Credit (LIHTC) units in the community so the community can monitor these units.
Most of the affordable developments within the community still have a substantial number of years on their restrictions. Northbridge has reached the end of their 15 year tax credit restrictions but has a 20 year agreement through Rural Development.
Trailside Apartments and Townhomes Three Rivers Community Action, Inc. is currently working on the acquisition and preservation of Trailside Apartments and Townhomes which was formerly the Channel View Apartments, a 110 unit building. Major rehabilitation is needed on the project as well as a restructuring of the rent. Based on data from the Maxfield Study, the following is the layout of the existing project:
Channel View Townhomes – General Occupancy Affordable (1 of 30 vacant 3.3%) 18 Two Bedroom 12 Three Bedroom
Channel View Townhomes – General Occupancy Market Rate (4 of 30 vacant 13.3%) 6 One Bedroom 24 Two Bedroom
Channel View Apartments – Senior Affordable (3 of 50 vacant 6%) 49 One Bedroom 1 Two Bedroom (manager)
In addition to the rehabilitation, one major change the project will undergo is the transition of the 30 general occupancy market rate units into 30 tax credit units. The housing study found the highest vacancy rates among market rate units at 10.4%. This was also true for Channel View where market rate units faced the highest vacancy rates at 13.3% with 4 of the 30 units available at the time of the study. The subsidized vacancy rate at the time of the study was 5.8%. If you strictly take into account the City of Albert Lea only, vacancy rates were 3.8% for subsidized units.
Rental Registration and Inspection Programs Communities across the state have adopted local standards that assist in addressing the dilapidated condition of some homes in their communities to create a safe and healthy living environment for families. Communities have adopted varying levels of standards so there are numerous models throughout the state that the community can utilize in determining what, if anything should be adopted locally. Some communities utilize basic standards such as the Fire Code. Other communities have adopted a Crime Free Multi Housing Program which is a three pronged approach partnership between property owners and local police. The program has three phases including management training, a security assessment, and resident training. A final approach includes the establishment of minimum standards related to rental units in a community.
A key element for some communities in implementing these standards is to create resources that make it feasible for owners to complete necessary upgrades. These are primarily through resources such as the Small Cities Development Program, Rental Rehabilitation Loan Program and HOME Rental Rehabilitation Program. Both the Rental Rehab Loan Program and the HOME Rental Rehab Program are offered through Semcac. |