Notes and Public Comments from:
ECONOMIC ISSUE AREA MEETING #1: October 14, 2010
"Asset Enhancement for Residents and Disadvantaged Businesses"
Challenges to Resident Ownership
Resident Ability to Purchase
- Limited slots to programs
- A Landlord must be willing to sell the property
- Limitation on amount of escrow allowed
- Assets counted as income
- Credit worthiness of resident
- Down payment
- Unit size availability
- Changing qualification requirements
Factors in ARHA Homeownership Policy Decisions
- Housing Authority must determine number of participants it can afford
- ARHA must have the resources for additional participants
- Preparation of residents must be incorporated
- Recognition that Homeownership is not an answer for all
- Counseling is needed along with mutual support
- Restrictions on use of sale proceeds to preserve affordability
- Must differentiate the program rules:
- Sale of Public Housing would be a possible violation of Alexandria's Resolution 830
- Exploration of Individual Development Accounts
Feasibility of Resident Ownership
- Resident Affordability
- Is it possible in Alexandria?
- Determination of what wealth building process entails for ARHA residents?
- If resident sells, do they keep equity in home? (Yes)
- Can a voucher be used to buy outside of Alexandria? (To be researched)
- Should ARHA sell PH units?
- Will ownership become more feasible for PH residents?
Challenges to Sec 3 & W/M/DBE Participation
Obstacles to Hiring and Training Area Low Income Residents
- Skill levels needed by Contractors may be lacking in the resident population
- Rent Disincentive where rent goes up as income increases
ARHA Goals and Policies
- Business Incubators – is being considered at this time
- Resident hiring - more being sought by ARHA
- Encouraging the creation training programs regardless of whether they have the resources to hire
- Training, mentoring, apprenticeship programs
- ARHA needs to create a an internal pool of possible candidates for training
- Pool of trainees by ARHA
- ARHA can ask residents for their interest in training programs during recertification
- The Issue of measuring outcomes needs to be addressed
Obstacles to Contracting with Sec 3 & W/M/DBEs Capacity
- Short term nature of work
- Certification of workers
- Risks for ARHA
Methods to Generate Sec 3 & W/M/DBE Participation
- Networking with local resources
- Improve marketing to the business entities
- Improve the business entity marketability
- Provide support mechanism for existing businesses
- Consider Microenterprise lending
Other Questions/ Concerns
- How does ARHA deal with the liability of home businesses?
- Can residents be used to assist ARHA and have the time and work credited to community service time?
- Will ARHA Public Housing have an FSS program?
- Do we know who the minority businesses are?
- Consider Joblink Networking? Self Sufficiency?
- What if a housing authority does not make a good faith effort to contract with Sec 3 groups?
- Are HUD goals appropriate for ARHA?