Strategic Outlook for SHFC [DRAFT FOR DISCUSSION]
I. Why do we need a strategic outlook?
A strategic outlook helps an organization prioritize strategic actions to accomplish its mission. Unlike a strategic plan, it is not an extensive multi-year set of instructions with detailed objectives, metrics, and action steps. Instead, it is a short-term guide based on an organization’s mission and the key facts and trends presently experienced by an enterprise. This outlook is based on the current operating environment of Strategic HFC and identifies high-level strategic actions for the enterprise to pursue in support of its mission.
By adopting a strategic outlook, the Strategic HFC Board of Directors will ensure rigorous short-term direction setting as we build the enterprise capacity to develop a full-fledged strategic plan.
II. Affordable Housing in Travis County
The following findings represent the most important factual findings about Strategic HFC’s operating environment.
Finding 1: 1/3 of Travis County residents experience significant rent burdens.
Finding 2: The service experience in many affordable housing developments within Travis County does not adequately support tenant wellbeing.
Finding 3: Property and sales tax abatement is the core public power Strategic HFC’s can use to support housing affordability.
Finding 4: The Central Texas region features many peer housing finance corporations, public facility corporations, and local governments working to boost affordable housing supply.
III. Strategy Implications
The following strategic actions reflect (a) Strategic HFC’s mission to increase and preserve the supply of affordable housing in Travis County and (b) the key findings about our operating environment.
Strategic Action 1: Gain market influence to reduce rent burden and improve tenant wellbeing. Specifically, target financial participation in at least 20% of the below-median-rent County multifamily. As of today, Travis County has roughly 270,000 renter households; participation in 27,000 units would meet the 20% market influence goal. Develop tools and policy (e.g. quality-adjusted affordability-years metric, new partnership types, new development models, opportunistic “glut” acquisitions, counter-cyclical term adjustments, etc.) to make progress on portfolio growth every year.
Strategic Action 2. Define and implement mission-driven portfolio management that supports our pursuit of affordability-enhancing market influence and tenant wellbeing. A first step will be a rigorous review of our existing portfolio.
Strategic Action 3. Support peer and partner coordination within Travis County while selecting areas of Strategic HFC specialization (e.g. public workers).
Strategic Action 4. Acquire talent and vendor partners to achieve mission and implement the above strategic actions.
