From Advocacy to Action with the Savannah Affordable Housing Fund

Why this investment?

Housing costs in Savannah have consistently outpaced incomes over the past 30 years, leaving 40 percent of households unable to afford quality housing. Recognizing the crisis, Mayor Van R. Johnson and the Savannah City Council appointed 40 citizens to the Housing Savannah Task Force in 2020. Their mission was clear: identify and assess the housing needs of Savannah residents to inform actionable recommendations to enhance housing availability, accessibility, and affordability, regardless of income levels. This year-long assessment culminated in the Housing Savannah Action Plan (HSAP), published in 2021, which charts a 10-year roadmap encompassing five key strategies and over 40 targeted actions to transform Savannah’s housing landscape. 

One crucial aspect highlighted in the Action Plan was the undercapitalization of the Savannah Affordable Housing Fund (SAHF), which had been created in 2011 and initially funded by the City in 2012 with $150,000. The Housing Savannah Task Force recommended that the City manager significantly increase its investment in the SAHF beginning in 2022. City Manager Joseph A. Melder recommended, and the Mayor and Aldermen approved, jumpstarting the City's HSAP support with $7 million in general funds from ARPA revenue replacement, as part of the FY 2022 budget. This was enough to cover the initial four years of City investment recommended by the Action Plan. In 2023 and 2024, the City reaffirmed its commitment by allocating an additional $2 million and $2.5 million, respectively, from general funds to the SAHF—$500,000 more per year than called for in the Action Plan.

What is this investment?

The HSAP aims to increase and sustain the number of Savannah households with housing assistance from 500 to 1,500 annually over a decade. Acknowledging the unmet needs of older homeowners in need of housing repairs, first-time homebuyers, renters, and people and families experiencing homelessness, the HSAP supports efforts to develop new housing, preserve and repair existing housing, prevent eviction and homelessness, and support homebuying. The Plan calls for at least $100 million in funding annually by 2032 to achieve these goals.

The Housing Savannah Task Force proposed boosting ongoing local investments for the SAHF to $11 million yearly from 2022 to 2032, with 55 percent from the City, 18 percent from the County, and 27 percent from businesses and philanthropists. The City also utilizes about $1.5 million annually from HUD CDBG/HOME funds for housing that is not part of the SAHF. Considering that each local dollar typically generates an average of $7 in additional private investment, the combined $12.5 million yearly allocation is expected to leverage at least $87.5 million annually from traditional private and public sector housing investments by 2032.

The Savannah Affordable Housing Fund is managed by the Community Housing Services Agency, Inc. (CHSA), a 35-year-old nonprofit and community development financial institution (CDFI). To further community education and meet the fundraising goals of the Action Plan, Housing Savannah, Inc. was established in 2022. The targeted approach for leveraging fundraising efforts from different sectors allows for diverse contributions. Some donors, for instance, will specify the intended use of their investments such as two hospitals that have established first time homebuyer programs that provide down payment and closing cost assistance to their low-wage staff. Other contributors have earmarked their funds for aiding elderly homeowners in repairing their homes, or supporting increasing affordable housing options for low-income renters and individuals experiencing homelessness. 

The HSAP Investment Dashboard, published by the City’s Housing Services Department, openly presents all investments. In 2023, the largest fund amounts went towards homeless shelter and home buying assistance, followed by single-family home construction and home repairs. In 2023, the largest City/SAHF investments went towards housing for persons experiencing homelessness and home buying assistance, followed by single-family home construction, owner occupied home repairs, and rental property assistance.

Centering equity in the program

When it comes to prioritizing equity in the Savannah Affordable Housing Fund, Fretty says, “That’s just in our DNA as a city and as an organization. ARPA didn’t create that sense of awareness or the need, it was already there.” This foundation of centering equity was created by City and community action. In 2020, Mayor Van R. Johnson established REAL Savannah, the Racial Equity and Leadership Task Force, focused on identifying systemic and structural barriers caused by racism. The REAL Task Force, chaired by former Mayor Otis S. Johnson, embraced the work of the Housing Savannah Task Force and endorsed its Action Plan as part of REAL’s undertakings to address the racial disparities within the City’s affordability crisis. It is of note that in 2011 former Mayor Otis S. Johnson, along with then Alderman Van R. Johnson and other members of the City Council, established the Savannah Affordable Housing Fund. Support for improved housing, neighborhoods, and equity from one city council to the next has been a longstanding Savannah attribute.

Like most housing initiatives, the Housing Savannah Action Plan targets its programs based on income, but Fretty explains that the programs are predominantly reaching the City’s African American population, which has the greatest housing needs. For example, approximately 89 percent of homebuyer participants are African American and about 82 percent are females, with the average homebuyer income of about $50,000 annually. This program provides secondary gap financing of approximately $32,000 that enables first time homebuyers to secure primary purchased loans averaging about $180,000 from banks and mortgage companies. For the home improvement programs, approximately 96 percent of homeowner participants are African Americans and about 82 percent are female, with an average homeowner income of about $26,000 annually. Most homeowners, due largely to low incomes, cannot afford bank loans for essential repairs like roof replacements. The program offers financial assistance to cover these and other qualified expenses. Additionally, the program helps finance construction of affordable single-family homes on vacant lots in older, predominately African American neighborhoods. Notably, 100 percent of these homes are constructed by minority contractors, emphasizing Savannah’s commitment to diversity and inclusion in their housing initiatives.

Outcomes to date

During the first two years following the adoption of the Housing Savannah Action Plan in October 2021, Savannah housing partners are exceeding several key goals. The Action Plan called for the City to invest $2.5 million in the SAHF in 2022-2023. The City was able to instead invest $9 million, securing another $3 million from private donors—the largest contributions provided by the GALVAN Foundation and Georgia Ports Authority. 

Overall, the 2022-2023 HSAP funding goals called for $7 million of City/SAHF investments and $49 million of leveraged investments for a total of $56 million. Actual City/SAHF investments reached $21.5 million and leveraged investments linked to City/SAHF investments reached $37 million for a $58.5 million total investment, surpassing the HSAP goal by $2.5 million. 

These 2022-2023 investments are helping improve housing for 1,262 households, 62 households above the HSAP goal. This includes helping 383 homeowners repair their homes; 99 home buyers purchase their first homes; financing the construction of 38 new homes; helping finance the renovation construction of 104 apartments providing security deposit and rent assistance to 504 renters, developing 66 new homes for persons experiencing homelessness; and acquiring 68 vacant properties for housing development.

The City plans to exceed its SAHF allocations called for in the HSAP by at least $500,000 annually. It invested another $2.5 million in 2024 and aims to invest an additional $3 million in 2025 with City Council approval. Halfway through 2024, City/SAHF investments have totaled $3.1 million and leveraged $16.8 million for a total investment of $19.9 million that is helping improve housing for 373 households. It expects to exceed 2024 HSAP goals of a $40 million investment to help 750 households.

Toward transformative change

The adoption of the Housing Savannah Action Plan by the City Council in 2021 has significantly boosted City and private investments in the Savannah Affordable Housing Fund, starting with a $7 million initial investment of ARPA revenue replacement funds in 2022. As a result, the City and its housing partners are on a path to achieving the plan’s ambitious goals, which include raising over $100 million annually for affordable and workforce housing and assisting more than 1,500 households each year by 2023. The beneficiaries of this investment will include individuals and families experiencing homelessness, renters, homeowners, and first-time homebuyers. Planned projects range from repairing or constructing individual homes to developing large parcels of land with affordable and workforce housing for both rent and purchase. The Housing Savannah Action Plan aims to help 850 households with $48 million in investments for 2025. As Savannah moves forward, their concerted efforts serve as a testament to the power of community collaboration and strategic investments to create lasting impacts in housing accessibility and affordability.