An Affordable Continuum of Housing…Key to a Better City

Coalition for Nonprofit Housing & Economic Development (CNHED)July 15, 2010

Continuum of Housing Report Release and Campaign Kickoff

What’s in the Paper Chapter I Our City, Neighborhoods and the Housing Continuum

Chapter II Affordable Housing and Housing Cost Burden

Chapter III Housing Types in the District’s Housing Continuum

Chapter IV Neighborhoods of Opportunity – Three Profiles- Columbia Heights- Congress Heights- Ivy City

Chapter V Policy Framework and Recommendations

Public Policy Framework

The Recommendations (Chapter V) are set in an overall public policy framework for: - allocation of program resources - improvement of operations

The Framework is built on three strategically linked components: - creating Neighborhoods of Opportunity - developing and Sustaining the Continuum of Affordable Housing - engaging the Network of Public and Private

Resource Partners

Neighborhoods of Opportunity

District’s Comprehensive Plan – Critical Neighborhood Housing Issues:

• Ensuring housing affordability• Fostering housing production• Conserving existing housing stock• Promoting home ownership• Housing for residents with special needs

Defining the Housing Continuum

Two Key Variables:

• Household Income

• Housing Type

Figure 1. Continuum of Household Income Groups

Housing Types Related to Household Income

3 Primary Types

• Supportive Rental Housing (with essential resident supportive services)

• Rental Housing (without supportive services)

• Homeownership

Figure 2. Continuum of Household Types by Household Income

Housing Cost Burden in the District

Threshold Definition (basis for housing assistance program eligibility)

• Burdened - Monthly Housing Costs(MHC) greater than 30 percent of Gross Household Income (GHI)

• Severely Burdened - MHC greater than 50 percent of GHI

Figure 5. District of Columbia Distribution of Housing Cost Burden

Total Households Spending More than 30% of Income for Housing: 98,400

Distribution of Housing Subsidies to Address “Burden” and Incentivize Investment

Two Basic Methods of Subsidizing Housing:

• Direct Government Outlays for Housing Assistance Programs

• Indirect Tax Subsidies

Figure 4. Housing Subsidy Distribution by Income Quintile in US - 2004

District’s Continuum of Affordable Housing Related to Program Eligibility Limits

Basic Types of Assisted Housing:

•Supportive Housing

•Assisted Rental Housing

•Assisted Homeownership

Figure 6. District of Columbia Continuum of Affordable Housing Related to Income

Eligibility Limits

Recommendations

1. Adopt and Use the Public Policy Framework to:

• Develop & Sustain Continuum of Housing

• Create & Maintain Neighborhoods of Opportunity

• Engage the Network of Public/Private Partners

2. Increase Resources for Housing Continuum

3. Strengthen Locally Funded Program Tools

4. Improve Practices and Processes

Increase Resources for Housing Continuum

• Comprehensive Housing Strategy Task Force Recommended Funding Level - $255 M ($4.26)

• Current FY 2010 Funding Level - $80 M ($1.33)

Figure 7. Share per $100 of the DC Locally Funded Budget – FY 2010

Strengthen Locally Funded Program Tools- Resources

• Housing Production Trust Fund• First Right Purchase Assistance Program• Local Rent Supplement Program• Home Purchase Assistance Program• Housing First Fund

Table 4. Proposed 5-Year Budget Increases for Affordable Housing ($ millions)

Strengthen Locally Funded Program Tools - Process

HPTF Honor Commitment to Stabilize

FRPAP Enable Tenant Ownership; Revisit Regulations With Lenders

LRSP Simultaneous Awards; Steady Funding

HPAP Stability of Funding

HFF Coordinated Production Plan; Consolidated RFP

Improve Practices & Process

• Implement Comprehensive Housing Strategy Task Force Recommendations

• Improve Financing Practices * Interagency Coordination * Role of Public Financing * Streamline Financing & Payments

• Increase Transparency• Modify Homeownership Programs

An Affordable Continuum of Housing…Key to a Better City