Affordable Housing Bond Proposal, to be discussed at City Council, 09.June.2025

Dear Reader,

Since July of 2022, I have been advocating that the City of Worthington adopt my affordable housing proposal, modeled after Columbus’ successful program.  I believe this proposal, which is provided below in basic outline, is right for Worthington. It’s focused, pragmatic, and of immediate relevance, and therefore most likely to be supported by the general public. To me, any affordable housing initiative in Worthington needs to be, and ought to be, grounded in public support if it is to be successful long-term.

I’ve presented the proposal several times at Council meetings, and in spite of the pro-housing sentiments of Council Members, only inaction has followed.  I will try again.  This initiative, what I’m calling the “Affordable Housing Bond Proposal,” will be discussed at tomorrow night’s City Council meeting.  The Agenda item is termed “Housing Strategies,” and other Council Members may introduce ideas and proposals of their own.  Please come to the meeting, or tune in online (https://worthington.org/1885/Live-Recorded-Meetings), and share your thoughts.

You can listen to a discussion I had with Ann Fisher as a guest on her show (All Sides with Ann Fisher) about my proposal (beginning at the 15:02 mark) here: https://www.wosu.org/show/all-sides-with-ann-fisher/2023-02-10/a-look-at-affordable-housing-in-central-ohio

I first wrote about my proposal in the broader context of housing legislation and planning, here: https://davidrobinsonblog.com/2022/07/housing-related-proposals-summer-of-22/

Relatedly, I wrote about “naturally affordable” housing, what are sometimes called Cottage Courts, here: https://davidrobinsonblog.com/2019/04/cottage-courts-affordable-compatible-gentle-density-housing-in-worthington/

Thanks for your interest and consideration.  I welcome feedback now, or at anytime, here: davidwrobinsonblog@gmail.com

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Proposal to Worthington City Council, for consideration of, and support for, an Affordable Housing Bond Proposal (08.June.2025)

In order to provide the City of Worthington with the ability to financially incentivize the development, and/or redevelopment, of affordable housing, I propose that we develop and execute an affordable housing bond program, modeled after Columbus’ 2019 initiative (see below the “Notes Related to Affordable Housing Bond Proposal,” for a summary explanation of how this program would work).

By “affordable housing,” I mean projects that are developed with 30 year term, guaranteed rent levels at a prescribed percentage of AMI (e.g., 80%).

Proportionally scaled to the Columbus 2019 program, this would translate into an approximate $1.1 million issuance (annual debt service payment would be roughly $85,500, based on $1,000,000, for 20 years, at 5.75%).  My proposal is that this NOT be financed through a tax increase, but through a general debt retirement fund financed through general revenue.

Although the City could pursue this policy and issue this debt without voter approval, I believe it is important that we bring this to the voters in order to develop and establish long-term public support for this housing strategy.

I propose that we include program provisions regarding a) the timing for the use of the funds, b) a stipulation that funded projects be located only on parcels with specific zoning at the time of the public vote (e.g., AR-3, AR-4.5, SC, PUD, etc.), and c) any other qualifying descriptions and/or constraints for the use of the funds that heighten likely pubic support.

In sum, I view this proposed program as a meaningful effort to support affordable housing, structured so as to garner broad public support because funded projects would be harmonious and appropriate in scale with surrounding neighborhoods, and would likely serve broader redevelopment plans.  Action by this City Council would be a first of its kind for a central Ohio inner-ring suburb—and, if approved by the voters, and successful in its implementation, would serve as a demonstration to others of what is possible regarding this significant, topical social issue.

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Notes Related to Affordable Housing Bond Proposal, Worthington, Ohio, (orig. 08.Jan.2023, and again 10.June.2024)

The following notes are intended to provide a few data points that are relevant to City Council’s consideration of the proposed affordable housing bond program. The purpose of the proposal, in sum, is for the City of Worthington, contingent upon approval by the voters, to issue general debt bonds in order to provide a pool of capital for incentivizing the development, and/or redevelopment, of affordable housing in Worthington, Ohio. The proposed plan is inspired by, and is proportional in size to, the City of Columbus’ initial (2019) affordable housing bond financing program.

The information below get to the heart of the issue before us as policy decision makers: does the relative absence of affordable housing in our city represent a problem that we and the general Worthington public want to address, and, if so, would this proposed program represent an important beginning of our efforts to effectively respond to this problem?  Based on statements by City Council Members and the information below, I believe the answer to both these questions is Yes.  Further, bringing this issue before the voters would be a significant opportunity to engage the public, heighten awareness, and establish long-term support for sensible, forward-thinking housing policies in Worthington.

The basic information below is drawn from a market analysis prepared by Vogt Strategic Insights (as part of Homeport’s East Wilson Bridge Road proposal to the Community Improvement Corporation).

Per Vogt Strategic Insights market analysis:

• Worthington’s Primary Market Area (PMA),* has 9,750 income-eligible households (60% AMI or below, projected for 2025).  Proposed projects that are 10% or less of the “capture rate” (i.e., the size of the project relative to the total eligible households) are likely to be in high demand.  As an example, Homeport’s proposed 52 unit development had a “capture rate” of just 0.5%.
• Affordable housing vacancy in Worthington’s PMA is under 1.0%.

From Homeport’s East Wilson Bridge Road RFP:

• Homeport’s recent experience indicates empirically that there is high demand for affordable housing within Worthington’s PMA.  Homeport’s 56 unit development, Maple Meadows (planned completion fourth quarter 2022), in the Northland neighborhood of Columbus, has received extraordinary demand fro the public.  The property manager, as of 30.Sept.2022, had received ≈ 350 applications for the 56 units. 

Municipal Incentives as part of building the “Financing Stack” (per background discussions with industry leaders):

• Municipal funding (typically the third most significant element in building the “financing stack”; see below), when available, may account for ≈ 5-10% of total funding requirements (full range would be 0-15%)
• Worthington’s $1.1 million would help finance anywhere from 2-4 projects in the 30-60 unit range
• Financing Stack:
  1. LIHTC, for 9% type of tax credits, ≈ 60-70% of total capital; for 4% type of tax credits, ≈ 40-50% of total capital
  2. Primary mortgage, conventional loans, non-bank lenders, Freddie, etc.
  3. State and local funding; loans, grants; (most common is “junior” mortgage, giving city come continued influence; e.g., can extend loan if property continues as affordable)

* Basically Morse Rd. to Cleveland Ave. to Lazelle Rd. to Smoky Row; all of Worthington and surrounding areas of Columbus.

• submitted by David Robinson

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MOTION, re Affordable Housing Bond Program, ballot initiative, 17.Jan.2023

That City staff be directed to prepare an informational memo for Council outlining 1) the process for placing on the November, 2023 ballot an affordable housing bond program, and 2) the essential elements and characteristics of the program, identifying in particular key decisions that will need to be made by Council before finalizing the design of the program, e.g., a) size of bond program (e.g., $1.1 million as proportional to the Columbus program), b) source of funding for the bonds (General Fund, or additional residential tax revenue, etc.), c) applicable parcels (zoned multi-family, i.e., AR-3, AR-4.5, R-6.5, R-7.5, SC, WBC-1, and relevant PUDs, or an alternative proposal), d) types of projects (e.g., new-builds and redevelopment) , e) definition of “affordable” (e.g., 80% AMI), f) allowable/preferred forms of applying funds (mortgage/loan, grant, etc.), g) any time limits on disposition of funds, and h) any other relevant factors as determined by staff in consultation with Council. Memo is to be presented to Council within 75 days of passage of this motion, with Council making itself available in the interim for clarifying discussions as determined and requested by staff.

– David Robinson, City Council, Worthington, OH