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Impact of St. Paul's Area Housing Closure on Affordable Housing in Norfolk

This study examines the closure of St. Paul's public housing communities in Norfolk and its impact on affordable housing. It discusses eviction rates, housing market data, demographics, and the challenges faced by low-income individuals in accessing affordable housing.

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Impact of St. Paul's Area Housing Closure on Affordable Housing in Norfolk

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  1. THE IMPACT OF THE CLOSURE OF THE ST. PAUL’S AREA PUBLIC HOUSING COMMUNITIES ON AFFORDABLE HOUSING IN NORFOLK

  2. WHO WE ARE • Legal Aid Society of Eastern Virginia is a non-profit law firm that represents low-income Virginians at no cost in civil matters • We are a firm of twenty-one attorneys and cover all of eastern Virginia, from the Upper Peninsula to the Eastern Shore • Our service area has a poverty population of 200,000 persons • Or about 1 attorney for every 9,523 low-income persons

  3. EVICTION RATES IN NORFOLK Norfolk is number 6in the nation for evictions, with a 8.65% eviction rate. • There were 4,318 evictions in Norfolk in 2016. • That amounts to 11.83 households evicted every day. • 8.65 in 100 renter homes are evicted each year. All data from: Eviction Lab, Princeton University, www.evictionlab.org.

  4. Comparison of eviction rates in 2016 Comparison of eviction rates over time 1 Norfolk Norfolk 2 United States United States

  5. Norfolk 2016 11.8 EVICTIONS PER DAY 8.65% EVICTION RATE CENSUS DEMOGRAPHICS

  6. Causes of Eviction • Low wages • Lack of affordable housing • Lack of access to legal assistance

  7. Norfolk, Virginia Housing Market • Average weighted rent for combined market-rate and affordable units is: $998 • Upper Tier units: $1,375 • 28% of the rental market is Upper Tier • Source 2017, RPRG Absorption Study of Norfolk market • Note, NRHA is promoting a later study that evaluates the entire region, not just Norfolk and the region has a more elastic market than Norfolk, • CNI Application, Attachment 32

  8. In July 2016, 506 vacancies citywide • In July 2016, 275 of the 506 vacant units were in the Upper Tier • Norfolk adds 547 households a year • Source, 2016 RPRG Absorption Study

  9. Assumptions of the Absorption Study • The Absorption Study assumes new building and a vibrant Low-Income Housing Tax Credit “LIHTC” market • LIHTC market severely undercut by the 2018 tax reform which lowered corporate income tax • There are serious questions as to the viability of this incentive post-tax reform • For example, see NY Times Article of Jan. 18, 2018, “Tax Overhaul is a Blow to Affordable Housing Efforts.”

  10. Who Accesses Public Housing and Housing Choice Vouchers in Norfolk? • Public Housing • 97% African American • 49% Families • 12% Disabled, non-elderly • 6% Elderly, no disability • 12% Elderly, disability • 15% Non-disabled, non-elderly, no children • 6% Other • Housing Choice Voucher • 93% African American • 38% Families • 20% Disabled, non-elderly • 6% Elderly, no disability • 14% Elderly, disability • 14% Non-disabled, non-elderly, no children • 8% Other Source: HUD, https://pic.hud.gov/pic/RCRPublic/rcrmain.asp

  11. Public Housing Supply • NRHA is closing and converting almost all of its traditional Low Income Public Housing which reduces the supply of affordable housing in Norfolk • Diggs Town, Grandy Village are converting to Rental Demonstration Program which results in a net loss of subsidized units • Closure and demolition of Calvert Square, Young’s Terrace and Tidewater Gardens (St. Paul’s Area) – loss of 1,674 units

  12. Demolition of the St. Paul’s Communities • 1,674 units combined (Tidewater Park, Calvert Square, Young’s Terrace) • 618 units for Tidewater Gardens • 197 phase one units

  13. Long-term Replacement Housing • 600-700 units in the revitalized St. Paul’s area will be subsidized • A net loss of about a 1,000 public housing units • Vouchers are not an adequate replacement as the city lacks the rental units

  14. Demographics of St. Paul’s Public Housing Communities • 1,674 units • 3,680 bedrooms • 4,174 official population count • 2,215 children • Predominately African-American • Source, NRHA FOIA Request October 2017

  15. Housing Choice Vouchers Cannot Accommodate the Housing Needs of Norfolk • Upper Tier units are not accessible to voucher holders because they are above HUD guidelines in allowable price ($1,095 for a two-bedroom) • This is 28% of rental market in Norfolk • The housing stock itself cannot accommodate demand – low vacancy rate in Norfolk – less than 1% citywide • No Source of Income protections for renters – Landlords can refuse to rent to people who are in the HCV program • Source, Absorption Study

  16. Length of Time Voucher Holders Have to Find a Home • According to NRHA’s WRITTEN documents, 60 days, with two possible 30 day extensions, for a total possible time of 120 days. • The two possible 30-day extensions are given on a case by case basis -Source, NRHA, “Making Smooth Moves”

  17. Relocation Assistance • Loans for security deposit, utility deposits • Payment of utility connection fees, moving costs Source: NRHA, “Relocation Program”

  18. “Build First, Build Early” • Snyder Lot & Police Station Lots– 44 replacement units available by 2021 • Red Carpet Lot – 22 replacement units available by 2022 • Transit Area Senior – 25 replacement units by 2023 • Transit Area Family – 33 replacement units by 2023 • Tidewater Gardens I & II – 47 replacement units by 2024 Source, CNI Grant Application, Ex. G

  19. NRHA Waitlists Voucher waitlist: 2761 General public housing waitlist: 1000 Diggs Town: 577 Banks at Berkley: 406 Source: NRHA, FOIA Request, April 2018

  20. Housing Choice Vouchers Enforce Historic Segregation Patterns

  21. Mapping Sources • Redlining map: Mapping Inequality, Redlining in New Deal America, https://dsl.richmond.edu/panorama/redlining/#loc=12/36.8733/-76.1509&opacity=0.8&city=norfolk-va • Voucher dispersion map: Where Voucher Households Live in the 50 Largest Metropolitan Areas, Center on Budget and Policy Priorities • https://www.cbpp.org/research/housing/interactive-map-where-voucher-households-live-in-the-50-largest-metropolitan-areas

  22. Do people have a right to stay in Norfolk?

  23. 125 St. Paul’s Blvd., Ste. 400 Norfolk, VA 23510 (757) 627-5423 www.laseva.org

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