lo 1 A CASE STUDY IN BUILDING ENERGY STAR® QUALIFIED AFFORDABLE HOUSING IN NORTH CAROLINA ENERGY STAR - . ,V j This case study describes how the North Carolina Housing Finance Agency is promoting the development of more energy efficient properties that meet ENERGY STAR guidelines through its Housing Tax Credit Program. It describes the costs and benefits of incorporating ENERGY STAR, the key steps that the Agency has taken, and the lessons learned from this experience. The case study highlights the Carousel Place development including its ENERGY STAR features, its local ENERGY STAR partners, costs and benefits, and lessons learned. Overview The North Carolina Housing Finance Agency (NCHFA or the Agency) is a self-supporting public agency. The Agency's mission is to create affordable housing opportunities for North Carolinians whose needs are not met by the market. To this end, the Agency responds to the housing needs of individuals in ways that strengthen communities, invests in quality housing that improves the lives of residents, and promotes long-term solutions. Affordable housing that uses energy efficiently and reduces utility costs is a key priority within the Agency's larger mission. The Agency provides financing through the sale of tax-exempt bonds and management of federal and state housing tax credit programs, the federal HOME Program, the state Housing Trust Fund, and other programs. The Agency offers low-cost mortgages and down-payment assistance for first-time home buyers, finances affordable homes and apartments developed by local governments, nonprofit organizations, and private owners, and finances the development of housing for people with special needs and the rehabilitation of substandard owner-occupied homes. The Agency has begun to incorporate ENERGY STAR into its affordable housing programs, which fits into its overall organizational goal of providing high quality housing. NCHFA Highlights for 2006 ¦ Real Estate Financing Delivered: $730 million ¦ Number of Families Assisted with Rent Subsidy: 24,020 ¦ Number of Affordable Housing Units Financed: 6,900 ¦ Number of First-time Homebuyer Homes Financed: 2,870 ¦ Number of Rental Units Developed: 2,350 ¦ Number of Affordable Housing Units Preserved: 1,380 ¦ Number of Supportive Housing Units Developed: 290 » Percentage of Rental Units Affordable <60% AMI: 100% ¦ Percentage of Rental Units Affordable <50% AMI: 88% ¦ Percentage of Rental Units Affordable <30% AMI: 34% ¦ Number of Construction Jobs Generated: 7,000 ¦ Amount of State and Local Tax Revenues Produced: $68 million Feature Program: Housing Credit Program One of the major programs offered by NCHFA is the Housing Credit Program, which encourages the construction and rehabilitation of quality rental housing that is affordable for low-income families and elderly persons by providing a 10-year federal tax credit. Owners of Housing Credit properties agree to maintain the units as affordable housing for 15 to 30 years, in return for federal tax credits that offset part of the cost of developing the housing. Through their architectural and site requirements, NCHFA's goal is to produce Housing Credit developments that are compatible in appearance to market-rate ------- Project Profile: Carousel Place Project Description Carousel Place is an ENERGY STAR qualified, two-story, 55-unit apartment building. There are 40 one-bedroom units and 15 two- bedroom units ranging from 617 sq. ft. to 941 sq. ft. Construction on the building was completed at the end of August 2007. The Housing Authority of the City of Raleigh achieved 100% qualified occupancy of the building as of the end of November 2007. Occupancy at the senior building is limited to low-income persons age 55 and older. All units will be targeted to persons earning 60% of area median income or less with 20% of the units more deeply targeted to persons making 40% of area median income or less, and an additional 25% of the units more deeply targeted to persons earning 30% of area median income or less. Carousel Place was constructed on a 2.16-acre tract of land located on the site of the Chavis Heights Housing Communities. The Senior Housing Center is part of a larger revitalization effort by the Raleigh Housing Authority (RHA) and Capitol Area Developments to replace an outdated, dilapidated public housing complex, Chavis Heights, with a new mixed income community. Located in southeast Raleigh, North Carolina, the site features, in addition to Carousel Place, 40 one-bedroom villa style apartments, 46 two-bedroom town homes, 27 two- and three-bedroom triplex units, a community building, on- site management and maintenance facilities, and a park. Community amenities include a large multi-purpose room, a community kitchen, a library/sitting social room, a TV room, an exercise room, a computer center, resident laundry and storage areas, covered porch areas for gathering and socials, rocking chairs, a garden area, an enclosed courtyard with fountain, and sidewalks around the building and community. The other housing on site includes a mixture of public housing and market-rate units. The rents are structured as follows: Rents for Carousel Place #of Bedrooms %of Project # of Units Monthly Rent* Utility Allowance Adjusted Rent 30% Units 1 BR 22% 12 $402.00 $70.00 $332.00 2 BR 4% 2 $483.00 $84.00 $399.00 Total 25% 14 40% Units 1 BR 16% 9 $537.00 $70.00 $467.00 2 BR 4% 2 $644.00 $84.00 $560.00 Total 20% 11 60% Units 1 BR 35% 19 $664.00 $70.00 $594.00 2 BR 20% 11 $808.00 $84.00 $724.00 Total 55% 30 ------- |