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For Immediate Release
Wednesday, September 19, 2018
HUD’s Rental Assistance Demonstration Program is a Proven Means of Securing the Future of the Nation’s Public Housing Stock
Washington, D.C. – Today, U.S. Department of Housing and Urban Development Secretary Ben Carson and Federal Housing Commissioner Brian Montgomery joined the Housing Authority of the City of Austin, its development partners Atlantic | Pacific Communities and Madhouse Development Services, and the Austin community to celebrate the groundbreaking of HACA’s most recent redevelopment of one of its public housing properties, Goodrich Place, which also represents the 100,000th public housing unit being converted through HUD’s Rental Assistance Demonstration program.
In recognition of this important milestone, Sunia Zaterman, Executive Director of the Council of Large Public Housing Authorities and Patrick Costigan, Strategic Advisor to the RAD Collaborative, issued the following statement:
Today we are celebrating an important milestone addressing the critical need for affordable housing by enabling housing authorities to convert public housing to more stable long-term Section 8 based contracts that will serve PHAs and residents for years to come.
Through the Rental Assistance Demonstration program, agencies across the country can leverage private financing to complete capital improvements needed to preserve and improve the public housing stock, without giving up control of the asset. RAD engenders creative local partnerships, stimulates ongoing economic activity, and leads to improved housing quality for low-income seniors and families.
As we celebrate the 100,000th RAD unit, it’s clear that we have proof of concept. To give PHAs greater certainty, HUD’s program should be permanent with unlimited opportunity for conversions to agencies meeting the requirements.
Congratulations to HUD at this significant juncture, and to HACA and the residents of Goodrich Place who will soon have access to improved units in one of Austin’s highest opportunity neighborhoods.
About the Council of Large Public Housing Authorities
The Council of Large Public Housing Authorities is a national non-profit organization that works to preserve and improve public and affordable housing through advocacy, research, policy analysis and public education. CLPHA’s 70 members represent virtually every major metropolitan area in the country. Together they manage 40 percent of the nation’s public housing program; administer 26 percent of the Housing Choice Voucher program; and operate a wide array of other housing programs. Learn more at clpha.org and on Twitter @CLPHA.
About the RAD Collaborative
The Council of Large Public Housing Authorities (CLPHA)—with the support of the National Equity Fund (NEF), HAI Group, Reno & Cavanaugh, and CF Housing Group—organized the RAD Collaborative for interested Public Housing Authorities, their partners and residents using the Rental Assistance Demonstration to preserve and revitalize public housing properties. Our focus also includes extending RAD to multifamily housing at risk of being lost from the affordable inventory--including Rent Supp, RAP, Mod Rehab and Section 202 PRAC properties. Learn more at radcollaborative.org and on Twitter @SucceedwithRAD.
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Statement From Council of Large Public Housing
Authorities Executive Director Sunia Zaterman
Washington, DC – “The Council of Large Public Housing Authorities (CLPHA), representing more than 70 of the country’s largest and most innovative housing authorities, is calling on Congress to reject the Trump Administration’s FY18 budget, which proposes to slash $6.2 billion in funding to the Department of Housing and Urban Development (HUD), including $2 billion in cuts to public housing. If realized, the draconian cuts included in this budget would not only have severe and cumulative effects on public and affordable housing programs across the country, but it would also shred the safety net of other public assistance programs on which many low-income Americans rely.
“The Trump Administration’s full FY18 budget proposal, released today, Tuesday, May 23, would devastate HUD programs that are currently helping over 1.2 million households that reside in public housing, including families, seniors, persons with disabilities, and close to 800,000 children. The budget targets America’s most vulnerable citizens with drastic cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and Temporary Assistance for Needy Families (TANF), while also slashing disability benefits and student loan and education programs, thereby crippling essential support systems affecting many of the residents we serve in low-income housing.
“The Administration’s dramatic HUD reductions come at a time when the federal government should actually be investing in public housing as part of the nation’s infrastructure, as such investment generates economic growth, creates jobs, bolsters productivity, and generates tax revenue for localities.
“The budget proposes $628 million for the Public Housing Capital Fund compared to $1.942 billion in FY17; $3.9 billion for the Public Housing Operating Fund compared to $4.4 billion in FY17; $17.584 billion for Section 8 voucher renewals compared to $18.355 billion in FY17; and $1.55 billion for administrative fees compared to $1.65 billion in FY17.
“Everyone should be alarmed by the magnitude of these proposed cuts -- the Public Housing Capital Fund alone sustains a cut of over 67 percent. The irony of this particular cut is that it not only undermines basic health and safety improvements, it also makes it virtually impossible to leverage private investment, which HUD claims is a major policy priority.
“Another example is the proposed $771 million reduction to the Housing Choice Voucher program, which provides housing vouchers to needy families. These budget reductions, coupled with rising rents and inflation, will result in the loss of hundreds of thousands of vouchers and threaten currently-housed families with homelessness.
“CLPHA and the nation’s largest public housing authorities are asking members of Congress to reject the cuts proposed by the Trump Administration, as they will significantly harm our most vulnerable citizens and undermine our already significant public investment in this affordable housing stock.”
The Council of Large Public Housing Authorities (CLPHA), representing more than 70 of the country’s largest and most innovative housing authorities, calls on the Administration and Congress to reject the draconian proposal to slash more than $6 billion in funding to the Department of Housing and Urban Development (HUD), including $2 billion in cuts to public housing.
There are over 1.2 million households currently residing in public housing. Seniors and persons with disabilities constitute over half of all residents, and there are over 600,000 children residing in public housing. Public housing cuts will fall directly on the shoulders of residents currently residing in public housing and reduce opportunities for millions of families languishing on waiting lists across the country.
The public housing capital fund provides modernization and rehabilitation funding for the 1.2 million unit public housing portfolio. The reported cut to the capital fund of $1.3 billion represents close to a 70% reduction from last year’s funding level. These proposed cuts will dramatically accelerate the current estimated loss of 10,000 to 12,000 public housing units already lost annually due to chronic underfunding.
The public housing operating fund covers day-to-day operational and maintenance expenses not covered by resident rents. The reported cut to the operating fund of $600 million is a 13% percent reduction from last year, and approximately 72% of what is needed. This funding level will have a devastating impact on the ability to operate and maintain this housing and severely endanger the health, wellbeing, and safety of our most vulnerable children, families, and seniors reliant on housing assistance.
These cuts directly contradict the findings of the congressionally-mandated 2010 HUD study on the backlog of public housing capital repair needs estimated at $26 billion and annual accruing capital needs estimated at $3.4 billion. HUD’s budget does not come close to meeting the annual need and contributes to the growing backlog need.
The tenant based rental assistance program which provides housing vouchers to needy families will also experience a $300 million reduction according to the reports on the budget. This cut coupled with rising rents and inflation will result in the loss of hundreds of thousands of vouchers and threaten currently housed families with homelessness.
We call on the Administration and Congress to reject these draconian cuts that will harm our most vulnerable citizens and undermine our already significant public investment in this affordable housing stock.
From CBS 13 Sacramento:
Sacramento city and county leaders may be one step closer to navigating the homelessness crisis. An affordable housing plan meant to get people off the streets will create 2,000 units during a five-year plan.
On Tuesday, the Sacramento County Board of Supervisors and Sacramento City Council approved a joint agreement. The city and county will need to finalize an affordable housing plan within 180 days of the agreement going into effect.
While it may appear to be the beginning, the Sacramento Housing and Redevelopment Agency (SHRA) said the proposal is not in the infancy stages.
"We are moving forward with all of our energy and time and resources," said La Shelle Dozier, executive director of SHRA.
Dozier said there are units already in the pipeline.
Read CBS 13 Sacramento's article "Sacramento leaders agree on creating hundreds of affordable units for the unhoused," featuring the Sacramento Housing & Redevelopment Agency.
The Vancouver Housing Authority held a grand opening ceremony Wednesday for an apartment building for youth who are unhoused or have just left foster care. Watch the video news story on FOX 12 Oregon's website.
From the Chicago Housing Authority's press release:
The Chicago Housing Authority partnered with the national non-profit Operation Warm for the 16th year Saturday at the UIC Forum, handing out 5,000 new winter coats to more than 2,000 families with children living in public housing and participants of the Housing Choice Voucher (HCV) program.
In addition to receiving a coat, kids were able to choose from 12,000 new books to take home courtesy of the National Book Foundation and HUD’s Book Rich Environments Initiative. There was also a resource fair with 30 organizations offering services and giveaways to pre-registered families.
CHA’s partnership with Operation Warm has resulted in a total of 121,000 coats being distributed to 35,000 families over 16 years.
Angela Hurlock, Chairwoman of the CHA Board of Commissioners, said: “As a volunteer for many neighborhood, family and educational causes, and as a volunteer teacher, I am thrilled to see CHA participate in these philanthropic causes. But it’s also a challenge, as the needs are great. That’s why partnerships like this one with Operation Warm are so vital.”
Silver Sponsors for the 16th annual Operation Warm were: Molina Healthcare, ComEd and T-Mobile/Assurance Wireless. Bronze Sponsors were: Aetna, AT&T, Nan McKay & Associates, CVR, BCBSIL, Old National Bank, Pepsico and RSM.
Thirty organizations participated in the Service Fair. Among the highlights:
Pepsico distributed bags of grocery products
- Chicago Department of Public Health provided free COVID-19 and flu vaccinations/boosters
- League of Women Voters registered people to vote
- The City Clerk’s Office provided onsite City Key card services
- City Colleges of Chicago provided information on how CHA residents can attend for free.
- Shea Moisture distributed free personal care products.
- Sister agencies Chicago Public Schools, Chicago Public Library, After School Matters and Chicago Park District participated.
- CHA’s Digital Inclusion team promoted affordable internet access along with sponsors AT&T and T-Mobile.
- CHA’s WORC office promoted workforce and resident-owned business programs and initiatives.
Gwenetta Simmons has attended Operation Warm for several years. She is often among the first registrants.
“It helps that I don’t have to go out in the cold in November to get his coat,” said Simmons, who got her sixth-grader a new coat this year. “And he loves the books.”
From the Chicago Housing Authority's press release:
Samantha Stokes grew up one of four children living under the roof of hard-working parents. Ends didn’t always meet, and she remembers being evicted as a child – something she vowed never to experience as an adult.
Which is why Stokes says she is lucky to be the first Chicago Housing Authority resident to close on a home in the CHA’s new Down Payment Assistance (DPA) program, which helps residents and qualified low-income applicants achieve their homeownership dreams by offering a forgivable grant of up to $20,000.
Stokes, a case manager, closed on Oct. 4 and became the first homeowner in her family. “It really didn’t hit me until the keys were in my hand and I walked in and thought: ‘This is mine, finally.’”
CHA CEO Tracey Scott said homeownership is one way for residents to achieve the agency’s mission of helping families unlock their economic power – by lifting them out of poverty and creating generational wealth that reinvigorates communities.
Scott added: “When families who live in subsidized housing become homeowners, it creates more opportunities for people from our waitlists to access housing. The new Down Payment Assistance program is another innovative tool that CHA is using to achieve our goals.”
The DPA program is CHA’s second homeownership offering. In 2002, CHA launched Choose to Own (CTO), which allows qualified residents to use their CHA subsidy toward a mortgage for up to 15 years. Since its onset, CTO participants have purchased more than 800 homes in the City of Chicago.
To qualify for the new DPA program, which is in the form of a 10-year, forgivable grant up to $20,000, participants must earn no more than 80 percent of the Area Media Income (AMI) and be first-time homebuyers. Participants in the DPA program graduate from CHA subsidy assistance and move into the agency’s Alumni Network, where they receive ongoing coaching and support.
DPA Program Manager Jimmy Stewart said the program targets families who are eligible for a homebuying loan and are ready to take the next step.
“Many of our participants are afraid to take that next step,” he said. “While they can afford the mortgage, it’s a high amount for them. So when you combine the grant assistance that we offer with other down payment assistance programs out there, it can be a substantial amount that can make it more affordable and they can feel confident that they can pay the mortgage on that home.”
Stokes, a single mother who had previously lived on a Housing Choice Voucher (HCV), said: “I’m a little more than low-income, and there aren’t a lot of resources out there for this group of people. We don’t qualify for certain benefits, but we do need some assistance. That’s where the DPA comes in handy. You just need that little bit of push and assistance that will help you get to where you want to be in life.”
She applied for the grant in late August and was approved within a month.
One of the joys so far has been seeing her 14-year-old daughter’s face when she saw her new home for the first time.
“She was excited, running through and opening up all the doors, running in the backyard - she’s never had a backyard before,” Stokes said. “She’s excited about having a washer and dryer in the home instead of going to the laundromat. It’s a bigger space to move around in, three bedrooms instead of two. She’s happy.”
Now, Stokes is telling family and friends that they too can become homeowners.
“My brother is looking into it, family, friends, coworkers,” she said. “One of my friends said, ‘I just passed your house - it looked great!’ So, I am assisting her and letting her know too that it’s not just those who live in CHA – but anyone can apply as long as you meet the qualifications.”
Stokes considers it a great honor to be the first-ever participant of the DPA program.
“I appreciate it every day. Every single day. I just can’t believe I’m a homeowner now.”
From CommonWealth Beacon:
The state's public housing infrastructure is, to put it lightly, strained. And it didn’t get that way by accident.
“The way I talk about it is that it’s not that you have a bowl that has some holes in it – it’s that our housing system in America is built to be a sieve,” Kenzie Bok, the new head of the Boston Housing Authority, said on The Codcast. “It is built with holes because if it didn’t have holes, if we actually provided the basic decent affordable housing for everybody, then you wouldn’t be able to keep such elevated rents in the market. And you just have to acknowledge that contradiction, because if you don’t, you won’t understand why we are where we are.”
Bok, a former city councilor, intellectual historian, and affordable housing and housing justice advocate, took the helm of New England’s largest public housing authority this spring. At 34, she is one of the youngest to hold the post, and her tenure kicked off with historic waitlists, decades of disinvestment in state public housing, a decarbonization mandate, and a market-wide housing squeeze across the state.
The Boston native says she, and her team, are up for the challenge.
“I had this really strong sense growing up that the city does not happen by accident,” Bok said. “That it is really the work of people doing it.”
Read CommonWealth Beacon's article "Kenzie Bok says Boston housing shortage no accident."