The Big Picture: Housing Policy Update

• Presented by Jeremy Rosen, Executive Director, National Policy and Advocacy Council on Homelessness.

• (202) 714-5378

• jrosen@npach.org

• www.npach.org

The Big Picture: Housing Policy Update

• Key messages:– U.S. affordable housing crisis continues.– Being made worse by economy / foreclosures.– Economy / foreclosure is driving an increase

in family homelessness.– Federal response gets a grade of incomplete

so far.– This presentation will focus on “the good

news.”

The Big Picture: Housing Policy Update

• Two key issues for this session:– Family Unification Program (FUP) Section 8

vouchers– National Housing Trust Fund

• Ask me later– Neighborhood Stabilization (foreclosure)– HUD-VASH Section 8 vouchers for disabled

homeless veterans

Family Unification Program (FUP)

• What is FUP?– Section 8 vouchers for families, used

specifically to prevent families from losing their children to the foster care system or to reunify children who have been in foster care with their parent(s).

– Section 8 vouchers for youth aging out of foster care, time limited to 18 months, so that youth can have stable housing as they transition to independence.

Family Unification Program (FUP)

• Why is FUP so important?– Preventing family separation due primarily to

housing is vital to child well-being.– Without stable housing, far too many youth

aging out of foster care go directly to a homeless shelter.

– Cost effective:• The average family involved with child welfare has

2.7 children. Foster care for those children costs $46,000 per year; FUP voucher plus services costs $13,000. Could save $2 billion / year nationwide.

Family Unification Program (FUP)

• Last year, advocates obtained $20 million in new FUP funding. First new money since 2000.

• Any day now, HUD will release a nationwide application for approximately 3,000 new FUP vouchers.

• Application must come jointly from Public Housing Agency and local child welfare agency.

• Vouchers will hopefully be awarded very early in 2009.

National Housing Trust Fund

• NHTF has been a long standing goal of affordable housing advocates (there are over 300 state and local trust funds).

• NHTF concept – Get federal money, outside of the HUD budget, to pay for production, preservation, and rehabilitation of 1.5 million units of affordable housing over 10 years.

• Key concept – dedicated source of funds.

National Housing Trust Fund

• After nearly 10 years of trying, legislation finally passed in Summer, 2008.

• Money to be taken from Fannie Mae and Freddie Mac – a % of their “new business purchases.”

• Delayed implementation – money would begin to flow in Fall, 2009. – more would come in 2010, 2011, and beyond.

• Money would go to states and in turn from states to developers of affordable housing.

National Housing Trust Fund

• 75% of money would have to be spent on the lowest income people (at or below 30% of area median income).

• Key concerns:– Not enough $$$.– Fannie and Freddie have been taken over by

new federal regulator – we are hopeful that by Fall of 2009 the regulator will allow them to make payments into the NHTF.

– Politics - “slush fund for liberal groups.”