Louisville’s Affordable Housing

Trust Fund

Rachel M. Hurst

Director of Public Relations, Community Education, & Advocacy

The Coalition for the Homeless, Inc.

GOAL: Create a local Affordable Housing Trust Fund generating $10 million in dedicated public revenue annually to meet the housing needs of the working poor, disabled and elderly below 50% median income.

Why do we need an Affordable Housing Trust Fund?

o Federal funds are dwindling. Community Development Block Grant funds are being cut every year at the federal level. Additionally, cuts in the funding for Section 8 will lose 1,793 vouchers in Kentucky. We cannot continue to be reliant on federal funds to house our working poor and our fragile populations.

o “The ladder is broken.” –Brookings Institute study

Homeless Services Utilization: Louisville 2005

POPULATION CATEGORY 2005 count 2004 count 2003 count 2002 count

Number of persons using homeless services

11,251 11,006 11,032 10,451

Single Adults (male) 6,907 6,327 6,184 5,780

Single Adults (female) 2,326 1,989 1,969 1,688

Adults in Families 617 640 721 618

Children in Families 911 1,108 1,065 1,063

Unaccompanied Youths 490 942* 1,093* 1,302*

Number of households 561 551 590 553

FACT: More homeless people in shelters in Louisville are working, and working for very low wages. 28% of homeless adults in Louisville shelters are working.

Twice as many working homeless persons earn $5.99 or less/hr.

Sheltered homeless earning $10.00/hr largest increase--8.9%.

Disabled individuals (SSI recipients) can afford no more than $169 for rent; however, Fair Market Rent for one bedroom is $438.

Jefferson County’s Housing Wage is $10.83/hour. (http://www.nlihc.org/oor2005/)

FACT: People accessing Louisville homeless services are increasingly likely to have completed high school or even college.

EDUCATION January 2006

January 2005

graduated from high school 30.1% 21.4%

college diploma 7.7% 7.1%

What’s the Cost of Homelessness?

Reno, NV - 2 police officers$100,000/each, 2 people, 1 yrER, hospital, law enforcement studied“We spent $1 m not to do anything about him.”

Permanent Supportive Housing Significantly

Reduces City Expenses

Univ. of PA: impact of PSH for CH on use of public services in NY

PSH = reduction in services use of $16,281 unit/year ($40,000 vs. $23,719)

Annual housing unit cost = $995/unit/year

shelter use, hospitals, corrections, services4600 h. people with severe MI

3 Principles of Louisville Affordable Housing Trust Fund

1) Controlled locally by a decision-making board that guarantees consumer and advocate representation.

2) Mandated to serve the lowest-income population: 50% AMI and below, with half set aside for 30% AMI and below.

3) Funded through a dedicated, ongoing public revenue source. The need requires a $10 million annual commitment.

Income

In 2005, the poverty line for a family of four was $19,971 (CJ, Sept. 20, 2006)

50% of Median Income for Louisville Metro is $21,667 (2005 ACS)

54% of households with income below 50% median pay over 50% of income on housing costs (2005 ACS)

Poverty in the Louisville Metro 2000

African American Population Louisville Metro 2000

Percent of All Families Headed by a Single Mother, Louisville Metro 2000

Renters with excessive cost burdens (more than 30% of income on rent and utilities combined), 2000

Students with Housing Related MovesFree, Reduced, or Paid Lunch StatusJCPS (2002-03)

78%

5%

17%

Free

Reduced

Paid

Economic and Community Impact of Affordable Housing Trust Fund

National Association of Home Builders:

every 100 units of housing will generate

each year: 45-65 new jobs $2.2 million -$2.8 million in income to

local businesses $384,000-498,000 in local tax revenue

The needed $10 million annually in dedicated public revenue for the AHTF

will create in Louisville each year:

653 - 943 new jobs $31.9 million - $40.6 million in

income to local business $5.6 million – $7.2 million in local

tax revenueNAHB data and creating average of 145 units with each $1m in

dedicated public revenue (KY AHTF average), with leveraging at the

lowest estimate of 6:1 (can be as much as 13:1; KY AHTF is 7:1)

Affordable Housing Attracts and Sustains Businesses 12 of the 20 fastest-growing occupations in

Louisville region have employees who cannot afford a 2-bedroom apartment (childcare worker, home health aide, preschool teacher, janitor, and retail salesperson).

Affordable housing is essential to attracting big

business to Metro Louisville. Availability of affordable housing major criterion for re-location. Require stable, convenient housing for employees near their work sites.

Louisville can’t afford to pass up this economic opportunity:$10 million in dedicated ongoing public revenue for theLouisville Affordable Housing Trust Fund.

Difference to Louisville between $10 m and $1 min annual dedicated ongoing public revenue is

$97.8 million - $170.2 million MORE in economic impact:

$5.4 million more generated in economic growth $54 million – $117 million more in add’l real revenue 588 – 849 additional new jobs created $28.7 million - $36.6 million more income for local businesses $5 million - $6.5 million more in local tax revenue $4.7 million more received by for-profit homebuilders1,305 more units of affordable housing

# on waiting lists for subsidized housing is now the same as the current number of households being served: more than 13,000.

Homeless persons are skewed towards ELI. 10% of moderately low-income hh (51-80% AMI) have

affordable housing needs, according to Louisville census, but:

54% of our very low income hh (50% AMI or below) live in extremely unaffordable housing & at immediate risk of homelessness.

41,000 people with greatest need, highest priority.

AHTF Program special concerns: highly targeted to prevent homelessness

all AHTF for 50% AMI and below (very low income);set-aside for 30% AMI and below (extremely low income).

AHTF Program special concerns: Housing-related services & case management should be named as an eligible activity for AHTF funds.

Sustainable housing for some people takes a system of ongoing support – case management.

limits landlord-tenant issues, & foreclosure and eviction rates.

Funds for services and case management have sharply decreased, yet the need in Louisville is increasing.

#1 barrier identified by homeless service providers in Louisville is lack of case management resources.

Federal housing funds Louisville cannot access each year because we cannot provide required case management.

Louisville’s poverty rate nearly twice the national average: 22% vs. 12.7%

Our poverty is segregated and concentrated: old city boundaries of Louisville is 3rd in nation just behind New Orleans. 14th Jefferson County.

Now is the time to create what we really need-build on the current momentum and consensus.

AHTF Revenue special concerns: Greater than average funding critical to address Louisville’s higher poverty rate and homelessness: $10 million/year in dedicated ongoing public revenue is a priority.

For more information, contact:

Rachel M. HurstDirector of Public Relations, Community Education, & Advocacy

The Coalition for the Homeless, Inc.1115 S. 4th St. 3rd FloorLouisville, KY 40203502-589-0190 x14rmhurst@bellsouth.net