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
• Affordability
• 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:
  • PH
  • HCVP
• 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?

 Others ?

• Determination of what wealth building process entails for ARHA residents?
  • Bank Accounts?

Questions

• 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?