A Solution to Chronic
Presented by
Sandra Miyoshi
October, 2004
Homelessness
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Homeless In Hawai`i
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Beach ParksA Haven for the Homeless
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Outreach Worker Locates Her Client Finding Shelter Under a Trailer
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Size of Hawai`i’s
• 6,029 homeless persons state-wide
• Honolulu ~ 3,297• Hawai`i ~ 1,243• Maui ~ 1,153• Kaua`i ~ 336
August 2003 Point-in-Time Count
Homeless Population
SMS Hawaii Homeless Study 08/03
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A Focus on Chronic
• A subgroup that constitutes 30% to 50% of Hawaii’s homeless population
• The most visible form of homelessness; often people on the streets of our neighborhoods and communities
Homelessness
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Chronic Homelessness
• Unaccompanied individuals
• Homeless continually for a year or more or multiple episodes of homelessness over a two-year period
• Disabled by addiction, mental illness, chronic physical illness, or developmental disability
• Frequent histories of hospitalization, unstable employment, and incarceration
• Average age in the early 40’s
Characteristics of Individuals Experiencing Chronic Homelessness
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10-Year Plans toEnd Chronic Homelessness
• The U.S. Conference of Mayors and the National Association of Counties have endorsed the Bush Administration’s national goal of ending chronic homelessness in 10 years
• “We have to do more than just manage homelessness. Our objective [is] to prevent homelessness and ultimately end it.”- Mayor Richard Daley
Support for 10-Year Plans
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10-Year Plans to End Chronic Homelessness
• “Five years ago, the notion of cities having 10-year plans to end homelessness was naïve and risky. No one thought it was possible. But the new research and new technologies have created such movement and innovation on this issue that it may be naïve and risky not to have such a plan.”
- Philip Mangano, Executive Director of U.S. Interagency Council on Homelessness
Support for 10-Year Plans
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Why Focus on Chronic Homelessness?
Chronic Homelessness
This group consumes a disproportionate amount
of costly resources*
Addressing this group will free up resources for other homeless groups,
including youth/families
It is a finite problem that can be solved
This group is in great need of assistance and
special services
Chronic homelessness has a visible impact on
your community’s safety and attractiveness
Effective new technologies exist to
engage and house this population
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Chronically Homeless Consume a Disproportionate
Amount of Resources10% - 30% of the Homeless Population Consumes Over 50% of the Resources
• Individuals who are chronically homeless consume costly public resources, including:– Emergency medical services
– Psychiatric treatment
– Detox facilities
– Shelters
– Law enforcement/corrections
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There is a Solution
• Housing First is a shift in philosophy from a person needing to CHANGE to merit a home TO “everyone deserves a place to live”
• Permanent Supportive Housing (PSH) is
Housing PLUS Services
Provide the“Housing First” in
Permanent Supportive Housing
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Permanent Supportive Housing Makes “Cents”
• Solves the homeless problem
• Regular home visits by case managers help to ensure appropriate behavior and long-term residency
• Cost effective
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Permanent Supportive Housing Strategies
• Assertive Community Treatment, (ACT): multi-disciplinary clinically-based teams that engage chronically homeless people on the streets and in shelters
• Permanent Supportive Housing with easy access for homeless people who are mentally ill
• Direct access to Permanent Supportive Housing for frequent consumers of acute health systems
Proven Successful in Other Communities
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Current Housing Trends
• In the current Hawai`i market, former rentals are being sold
• Prospective renters with housing subsidies cannot find units within the affordable rent range
• A handful of nonprofit developers struggle to assemble projects with several different funding sources, each with a different set of criteria and funding cycle*
Rental Housing in Hawai`i
*It is not uncommon for there to be as many as seven different funding sources for a single project
Current Housing Trends
Oahu Number of Apartment Advertisements (Quarterly)
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
197
5
197
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197
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197
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9
198
0
198
1
198
2
198
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198
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198
5
198
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198
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198
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198
9
199
0
199
1
199
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199
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199
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199
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199
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199
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200
0
200
1
200
2
Nu
mb
er o
f A
dver
tise
men
ts
Apartments Are Not Available
SMS Research, 2003 Housing Policy Study
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Vanishing Apartment Units
Changes 1996 2002*
Hawai`i’s Resident Population
1,203,755 1,244,898 3%
ApartmentInventory
50,512 47,811 5%
*Per SMS research, population will increase 1.0-1.4% per annumSMS Research, Housing Policy Study
What Happened to the Rental Inventory?
*2004 8%
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Rising Cost of Housing
Honolulu 2 Bdrm Apartment Rent by Area(3-Quarter Rolling Average)
$700
$900
$1,100
$1,300
$1,500
$1,700
$1,900
$2,100
Dec
-90
Sep
-91
Jun-
92
Mar
-93
Dec
-93
Sep
-94
Jun-
95
Mar
-96
Dec
-96
Sep
-97
Jun-
98
Mar
-99
Dec
-99
Sep
-00
Jun-
01
Mar
-02
Dec
-02
Mon
thly
Ren
t
Honolulu Makiki Downtown
Hawaii Kai Salt Lake Waikiki
Rents Are Out of Reach
SMS Research, Housing Policy Study
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Wages & the Cost of Housing
• To afford rent on a typical 2 BR apartment in Hawai`i, a worker must earn $13.87 per hour, far above the wage earned for many occupations*
• Federal minimum wage is $5.15 per hour
• State of Hawai`i minimum wage is $6.25 per hour
*Center for Housing Policy,
Paycheck to Paycheck: Wages & the Cost of Housing in America, 2003
Affordable for Whom?
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Affordability Hits Home
• In 1992, approximately 43.7% of all renter households were ~ paying more than 30% of their income for housing
• The number of rental households paying more than 30% grew to 47.7% in 2003
Residents of Hawai`i
Average
Monthly Rent 1992 1997 2003Overall % Increase
Honolulu $864 $928 $1,014 17%
Maui $730 $850 $979 34%
Hawai`i $556 $697 $859 54%
Kaua`i $807 $830 $983 22%SMS Research, Housing Policy Study
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Most Needy Priced Out of Homes
• A disabled person living on Supplemental Security Income, (SSI - $556/mo) and renting in Hawaii would have to spend:
Honolulu: 130.4% of benefits
Hawai`i County: 110.6% of benefits
Maui County: 169.8% of benefits
Kaua`i County: 161.7% of benefits
• Average U.S. rent for 1 BR in 2002 = 105% of SSI benefits
Technical Assistance Collaborative, Inc,. Priced Out in 2002, 2003
Elderly, Disabled, & Mentally Ill
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Affordable Permanent Housing
• Affordable permanent housing units are desperately needed to end chronic homelessness and to prevent future homelessness
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Affordable Housing DevelopmentIncentives for Affordable Housing Development
• Low-Income Housing Tax Credit Program (LIHTC)
• Rental Housing Trust Fund (RHTF)
• 201 G Process for affordable housing development (development fast tracking)
• Hula Mae Multi-family revenue bond program
• HOME Investment Partnerships Program
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State Programs
• Financing tool for nonprofit and for-profit developers to construct or rehabilitate affordable housing units
• Approximately $2.14 million in Federal and $669,000 in State tax credits may be awarded each year
• HCDCH awards Federal and State tax credits to obtain dollar-for-dollar offset for up to 10 years
• Two types of tax credits: 9% competitive applied against annual LIHTC allocation and 4% non-competitive awarded with tax-exempt bond financing
Low-Income Housing Tax Credit Program (LIHTC)
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State Programs
• Equity Gap low-interest loans or grants to qualified owners and developers constructing affordable rental projects
• At least 10% of a project’s units must be affordable to families earning no more than 30% of the median family income
• Generally, all other units are affordable to families earning 50-60% and below of the area median income
• The RHTF annually receives 25% of the conveyance tax ~ $2 million to $3 million per year
Rental Housing Trust (RHTF)
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State & County Program
• Expedites processing of State and county land use approvals
• Provides exemptions from subdivision and building codes that do not contravene public health and safety
201G Affordable Housing Developments
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State Programs
• Interim and permanent financing for eligible rental housing projects at below-market interest rates through the sale of tax-exempt revenue bonds
• Ability to secure 4% low-income housing tax credits in conjunction with the Hula Mae multifamily financing
• As of June 30, 2003, the program has financed four projects with $74.7 million to stimulate the development or rehabilitation of 620 rental units, 417 of which are set aside for lower income households
• HCDCH is currently authorized to float up to $200 million
Hula Mae Multifamily Revenue Bond Program
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State Programs
• Federal HOME program is intended to expand the supply of decent, affordable, and sanitary housing
• HCDCH receives approximately $3 million in HOME funds each year from HUD and passes the funds through to the counties of Hawai`i, Kaua`I, and Maui
• HOME funds may be used for a number of purposes, but are primarily used to develop affordable rental housing
HOME Investment Partnerships Program
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Finding Land for Development
• HCDCH is in the process of identifying and assessing its land and, upon completion of that assessment, intends to make certain lands available for development
HCDCH Land Assessment
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City & County of Honolulu
• City and County of Honolulu receives approximately
$12 million per year • Land acquisition for housing is an eligible activity • New housing construction and related infrastructure
may be developed by certain types of organizations within a HUD-approved neighborhood revitalization
strategy area • Use for program operations limited by 15% cap on
public service activities • Numerous restrictions apply • City ordinance only allows use by nonprofit entities
Community Development Block Grant (CDBG)
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• City and county receive approximately $4 million
per year
• Specifically for housing development,
rehabilitation, rental assistance
• Numerous restrictions apply
• City ordinance only allows use by nonprofit entities
City & County of HonoluluHOME Investment Partnership Funds
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What Do We Need? County Breakdown of Rental Units Needed
% of Median Income
80%
Honolulu
5,330
Maui
1,260
Hawai`i
1,140
Kaua`i
610
50% 4,180 780 580 430
30% 1,620 530 380 140
Total Units 11,130 2,570 2,100 1,180
Over 5 year period, a total of 16,980 rental units are needed for people who are 80% and below the median income
SMS Research, 2003 Housing Policy Study
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We Need YOUR Help
End
