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  • 1.Presented at National Alliance to End Homelessness2011 National Conference on Ending HomelessnessJuly 15, 2011 Philadelphia Housing Trust Fund

2. Build a Coalition

  • In 2003, community leaders and stakeholders saw acritical juncture in citys affordable housing crisis and ability to foster sustainable neighborhood revitalization.
  • Coalition led by Philadelphia Association of Community Development Corporations (PACDC), with more than110 organizations
  • Support from the City administration, City Council andState legislators

3. Make the Case with the Facts

  • Almost 130,000 households in Philadelphia (1 out of 5) have annual incomes below $20,000 and pay more than they can afford on housing
  • Nearly 60,000 more affordable units of rental housing are needed in Philadelphia to meet the housing crisis
  • Federal investment in affordable housing is decreasing
  • Existing resources inadequate to meet the need
  • Leveraging opportunities going unutilized

Funding support from:William Penn Foundation Fannie Mae Foundation Samuel S. Fels Fund Local Initiatives Support Corp. A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood RevitalizationWhite Paper Release, October 2003 4. Make the Case with the Facts As Philadelphias federal entitlement funding has contracted, amount of money the City has been ableto invest in housing production has fallen by more than 60%. 5. Make a Proposal

  • Coalition made specific recommendations about:
  • What to fund: housing production and preservation
  • Administering agency
  • Allocation process and oversight
  • Potential revenue sources

A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood RevitalizationWhite Paper Release, October 2003 6. Understand the Legislative Nuances

  • PAs 1992 state law (Act 137) allows counties to set up own Housing Trust Funds via surcharge on deed and mortgage recording fee. 51 of 67 counties have Funds
  • Counties defined as of the first class (i.e. Philadelphia) were not included in the Act 137 enabling legislation
  • Advocates worked for State authorizing legislation in 2005for first class cities and counties
  • Allowed for increase of fees charged by recorder of deeds, with at least 85% to be set aside to fund affordable housing efforts (15% administration)


  • Local Ordinance -Bill No. 050059
  • Authorized fee collection and specified amounts,e.g. $57 for recording mortgages
  • Specified income guidelines for households that would benefit:
      • 50% of program funds for households at or below 30% of AMI
      • 50% of program funds for households between 30% and 115% of AMI
    • Established guidelines for Oversight Board

Understand the Legislative Nuances 8. Housing Trust Fund Created

  • Established September, 2005
  • Resources can be used to:
  • Increase production of affordable housing for sale or rental
  • Increase accessibility of new and existing affordable housing to physically disabled occupants and increase supply of visitable housing
  • Preserve affordable housing, including but not limited to grants for basic systems repair or improvement of owner-occupied homes,for adaptive modification or for targeted improvement of facades
  • Prevent or reduce homelessness, including but not limited to emergency assistance to prevent and/or end homelessness or near homelessness by maintaining households in their own residences when eviction is imminent through rent and mortgage arrearage

9. Uses

  • 50% of program funds for new housing production
  • 50% of program funds for housing preservation,home repair and homelessness prevention

10. Income Requirements

  • 50% of program funds targeted to very low-income families and individuals earning at or below 30% of AMI
  • 50% of program funds targeted to low- to moderate-income households earning between 30% and 115% of AMI

11. Administration

  • Proposed yearly expenditures detailed in Citys annualConsolidated Plan
  • Plan s ubmitted to City Council for approval
  • Funds awarded through open, competitive process
  • Up to 15 percent City administrativecosts as allowed by state enablinglegislation

12. HTF Oversight Board

  • Chair of Oversight Board is OHCD Director
  • 3 City Council representatives
  • Redevelopment Authority, Housing Authority, and Deputy Mayor for Economic Development
  • 4 community organization members represent CDCs, disability community

Administered by Citys Office of Housing & Community Development (OHCD) 13. Monthly Deed and Mortgage Recording Fee Revenue FY06-FY11July 05 September November January 06 March May July 06 September November January 07 March May July 07 September November January 08 March May July 08 September November January 09 March May July 09 September November January 10 March May July 10 September November January 11 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 14. Comparison: FY 2006 and FY 2011 Philadelphia HTF Program/Activity FY 2006 Budget FY 2011 Budget Neighborhood-Based Homeownership Production 1,000,000 0 Homeownership New Construction Program 1,500,000 0 Neighborhood-Based Rental Production 3,500,000 3,187,000 Basic Systems Repair Program 1,247,000 700,000 Targeted Housing Preservation Program 1,465,000 200,000 Homeownership Rehabilitation Program 354,000 0 Adaptive Modifications Program 220,000 1,504,000 Rental Assistance 661,000 0 Homelessness Prevention Programs 489,000 784,000 City Administration 1,725,000 1,125,000 Total 12,161,000 7,500,000 15.

  • FY 2011 Allocation Summary
    • Mortgage Assistance
      • Annual Allocation $595,000
    • Rental Assistance (Pathways to Housing)
      • Annual Allocation$189,000
      • Rental Assistance Program Balance $252,000
  • Total $1,036,000
  • Leverages in other funding$6.9 million

Contributions to Address Homelessness 16.

  • Homelessness Prevention Allocation for Office of Supportive Housings Mortgage Assistance Program
  • Percent of Housing Trust Fund annual collections (based on amount collected)
  • Allocation - $595,000
  • Used HTF funds for mortgage assistance since ineligible under HPRP

Contributions to Address Homelessness 17.

  • Results:
  • 234 households averted foreclosure
  • $363,905 in direct financial assistance provided
  • Cost of providing emergency shelter would have beenmore than $1 million(based on average length of stay of 80 days x $35 per person per day*)

* Office of Supportive Housing shelter per diem Homelessness Prevention Mortgage Assistance Program 18.

  • Rental Assistance Housing First Program through Pathways to Housing provides permanent supportive housing for 125 chronically homeless individuals
  • Must have diagnosed severe mental illness (Axis 1)
  • More than have schizophrenia
  • have depression
  • Just under have psychotic disorder

Contributions to Address Homelessness 19.

    • 88% of those housed remain housed
    • Comparing 12 months prior to admission and 12 months after housing
      • Shelter episodes decreased by 88%
      • Acute mental health hospitalization, either voluntaryor not, decreased by 70%
      • Philadelphia Prison System episodes decreased by 50%

Rental Assistance - Pathways 20.

  • Leveraged Funding:
    • 2008 & 2009 McKinney bonus project for housing subsidies awarded
    • 2010 McKinney request for 50 unit expansion
    • Services fully funded by City Department of Behavioral Health (Medicaid billable)
    • Annual cost approx. $3.2 million (approx. $1 million housing, balance is services)
    • HTF allocation supports housing costs not eligible/covered by HUD

Rental Assistance - Pathways 21.

  • Rental Assistance Family Demonstration Program FY 2007 Special Allocation ($1 million)
    • Three years of sliding scale rental assistance for 40 familiesfrom transitional housing with employment-focused case management

Contributions to Address Homelessness 22.

    • Outcomes:
    • 40 families participating
      • 6 negative discharges
    • 85% (34) are stably housed