Update from CAHA

CMHA Public Housing Presented

The Cuyahoga Metropolitan Housing Authority periodically presents at the Cuyahoga Affordable Housing Alliance to update the group on the state of the agency.  It was Scott Pollock's time on Monday November 7, and he had a great deal of information on all the development taking place around the city.  From the introduction of their new headquarters in the forgotten triangle to the Woodhill Community Center ribbon cutting (pictured above) that same morning. They have ground breakings at the Lee Harvard Senior Housing, in East Cleveland and Fairfax Inter generational townhouses.  Most of these new units were made available because of the 2009 Stimulus funding or the Neighborhood Stabilization fund which was put in place after the foreclosure crisis.  CMHA was fortunate to receive millions in stimulus and other capital funding, and seem to have upgraded hundreds of homes to be more energy efficient.  They have built hundreds of new units to replace worn out housing that was taken down.  They have worked to de-concentrate poverty and make public housing more attractive to neighbors.  All the groundbreakings and ribbon cuttings seem to indicate that they got busy when the stimulus dollars came to Cleveland.

Let's roll the numbers:
CMHA Public Housing has 9,412 available units with 8,992 occupied.  There are 420 total vacant units which is the lowest since 1974.  They are modernizing 257 of those vacant units and 163 units are being turned over to others on the waiting list.  CMHA's adjusted occupancy rate is at 98.3% when taking out those units under modernization or renovation. 

The waiting list is overwhelming and huge with 11,424 people waiting for a public housing unit and 69% of those individuals are looking for a 1 bedroom apartment, and 24.6% for a 2 bedroom apartment.  They serve 16,753 individuals and 34.4% are families with children and 19.5% are seniors (which mirrors the local census demographics).  My beef with CMHA is that they have segregated 27% of their properties only available to those over 50 years old (which makes it harder for the large number of younger people to get into a subsidized unit locally).

The largest segment of public housing residents have no income at all (20.1% or 1,742) with residents relying on social security second at 19.4%, and 18.2% are employed.  17.4% of the residents have SSI as their sole source of income.  The average annual income for the population is only $7,072.  With only $7,000 annual income, it is unlikely that the average tenant has the ability to pay the market price for rent.

The massive waiting list is a symptom of the housing crisis in America.  It points to the massive number of units we need to renovate or build in order to restore stability to America's cities.   Every single person currently housed would have to leave public housing before the guy who applies today will get offered a housing unit.  At this stage, turnover in the units is anemic, because there are so few places to go.  Local rents have not come down, but wages are stagnate or falling.  People are staying put and not risking the loss of their housing.  The federal government is again talking about cutting the public housing budget.  Our local housing authority has climbed out of the days of decay and crime ridden neighborhoods.  We have a housing crisis in the United States with 11,400 people waiting for public housing and 65,000 having applied for a voucher about two months ago.  It make no sense to cut any federal dollars going to house people.  What is Congress thinking?

Brian
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In Praise of Government Employees

HUD Staff Worry About a Rise in Homelessness

In the past, when government cut housing or infrastructure, there has always been an increase in funding for hunger and emergency shelter services to offset.  The thinking was that if there is a cut to human services or mainstream programs more people will need emergency services.  In 2011 and 2012, this is not happening and funding for emergency services are at level funding or facing dramatic cuts.  While poverty is rising in the suburbs, hunger in the suburbs is on the rise, the foreclosure crisis has not abated, and we still have a high unemployment rate in Northeast Ohio, the government is cutting back.  The proposed budget has some significant cuts to public housing, vouchers, FEMA emergency food and shelter, development block grant (which can be used for housing services), HOME dollars and on and on and on.  These two trends in rising need and decreasing budgets are dangerous for Cleveland.  The 2009 stimulus dollars are going to expire in the middle of 2012, and we already saw a giant increase in shelter for families this last summer. Will we begin turning away children from shelter in the summer of 2012?  Will we be able to serve the overflow populations over the next two winters?

With all this as the backdrop, I was able to visit senor staff at HUD Washington to talk about issues that have an impact on homeless people.  The big concern is the implementation of the funding and rules changes with regard to federal allocation of HUD homeless dollars known as HEARTH (formerly McKinney Vento).  In listening to the Tea Party and even some in the Occupy Movement there is a distorted picture of government and government employees.  There is a hostility and a sector of our society who believe that government workers are living high on the hog and milking our tax dollars while doing nothing.  From Cleveland it can look as though HUD employees in Washington just don't understand.  All these new rules are going to destabilize the shelters in a time of extreme need.  We see that there does not seem to be much coordination between the homeless veterans initiatives and the homeless priorities funded by HUD.  The planning activities seem to propose lofty goals in creating permanent supportive housing for disabled individuals while we are being overwhelmed with families demanding help.  But when meeting with these "government workers" face to face, it is a very different story.

They have a genuine concern for the rise in homelessness, and they care about the stress being placed on emergency shelters in all communities.  They seem to feel powerless as HUD employees to do much because of the demands of Congress and the current political environment.  Congress passed these changes four years ago in the way HUD funds the shelters and housing programs directed at homeless people, but never passed the appropriations level to implement the goals contained in the legislation.  This puts HUD staff between a rock and a hard place.  They have these new regulations, but not enough money for the planning or the increase in administrative support to implement these changes.  They are going forward in the next two weeks with new regulations on emergency solutions funding and the definition of homelessness.  These rules will go into place while still receiving public comment.  But the rules for distributing the bulk of the homeless dollars are stuck in the pipeline.

The HUD staff are troubled that there will only be $60 million for new projects to be spread out across the United States.  All the other HUD homeless dollars will go to renew existing programs.  HUD staff want to improve the outcomes so that the limited dollars go to provide the best possible service to the millions of homeless households.  When you look these people in the eyes, the bottom line is that they do not want harm to befall the population.  They understand that the decisions made in Washington can have an impact on the shelter beds in Kalamazoo, Kansas City, and Culver City.  They care that people still do freeze to death while sleeping outside in the United States in places like Milwaukee, Memphis and Manhattan.  These people have risen through the ranks of bureaucracy because they have a skill and can balance the needs of the executive and legislative branches of government.  They see the big picture and struggle with state governments that ignore the problem and local communities which try to use their homeless dollars for other politically popular programs.  They care and realize that sometimes HUD rules make it difficult to provide assistance, such as the Cleveland policy of forcing outreach workers to get a notarized statement verifying homelessness for those living outside.  They understand that we are all working on ending homelessness, and that government is not always the best partner.

Despite what you hear from protestors, most government employees care and do their job with a great deal of skill and compassion.  There are some that have to go, but the level of corruption and ineptitude is minimal.  Despite having to work in one of the ugliest buildings in Washington and having to undergo extreme security measures making it difficult to hear from the public, the HUD staff want to help and are concerned about the rise in poverty and homelessness.  If we could figure out a way to get politics out of the way, I have faith that these guys could figure out a way for America to significantly reduce homelessness.

Brian
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The Price of Austerity

Emergency Shelter and Hunger Funds Cut by 40%

I am supposed mention good things to balance out the depression of homelessness and poverty that permeates this blog. So, the good news was that Cleveland was not listed as one of the top 10 sickest housing markets in the United States. Our friends in Dayton and Detroit are both on the list, but Cleveland was spared from the "sickest list." Now for the bad news.... There was a great deal of debate over the last month about a double dip recession, and austerity measures slowing the economy. There were many who talked about the 1937 Congressional push to cut the debt while the country was still trying to crawl out of the Great Depression. This only caused the economy to slide back into depression, and many are afraid we are facing the same thing today.

One example was the cuts to the 2011 budget, and programs that serve the very low income. Every year the shelters and the soup kitchens and food pantries divide up funds from the FEMA federal budget as part of the Emergency Food and Shelter Program (EFSP) funds. This has remained relatively stable for the last decade with a spike in dollars as part of the 2009 stimulus. This year, the shelters and hunger programs will face a 40% cut in funds. The United Way is the caretaker of these funds locally, and here is their summary of the situation:

Congress has appropriated $119,760,000 nationally to supplement the emergency food and shelter programs which represents an $80,240, 000 decrease (approximately a 40% decrease) in the amount that was allocated for phase 28. The amount of FEMA/EFSP funds awarded to Cuyahoga County for phase 29 [2011] is $572,482 which represents a $250,861 decrease in the amount that was allocated to the county in phase 28 [2010] ($823,343).

This is going to be a huge hardship for the hunger programs which received over $400,000 last year from the federal government. All of these funds are divided by formula so the shelters with the largest number of beds get the biggest allocation, and the food programs that give out the largest amount of food get the largest amount of the money. 2100 Lakeside receives a sizable amount of the dollars from the FEMA/EFSP allocation, and their residents will feel the loss.

The federal homeless dollars are relatively stable this year, but the Community Development Block Grant funds (which supports a few of the homeless programs) is facing a 30% cut over the next two years, and there are cuts coming from the State of Ohio for behavioral health programs. All of this austerity is going to hurt those who could not find help against predatory and housing bubble or those who tried in vein to find a bailout for their unemployment. At a time when food resources are stretched thin throughout the county, the federal government is cutting funds to the food pantries. At a time when more people are looking for housing in our community, the feds are cutting funds to shelters.

Brian Davis
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Budget Compromise Hits Poor People

Photo by Larry Whitted

Affordable Housing and Homeless Will Face Cuts in FY 2011 budget The details of the compromise reached last Friday night were released on Tuesday. It is striking how disproportionate the cuts are on the low income households. There were no cuts to tax breaks that are enjoyed largely by the middle and upper income folks. There is no support for generating additional revenue. The burden will fall on vulnerable populations who are facing foreclosure, those living in public housing, and the elderly or disabled who may be seeking affordable housing. The House and Senate To Vote Tomorrow and Friday. Here is the Release and summary from the National Low Income Housing Coalition:
On Thursday, April 14, the House and Senate will vote on the FY11 appropriations “deal” that was struck late last Friday between the White House and House Republicans to prevent a government shutdown. They agreed to $38.5 billion in spending cuts. On Tuesday April 12, the details of the deal became public. They include deep cuts to many HUD and rural housing programs, as well as other safety net programs. Specific cuts are listed below. And all agencies will be required to take an additional .2% cut across the board. The total cuts to HUD will be 6.4% below HUD’s FY10 budget. If you do not agree with these cuts, NLIHC invites you to please contact your Senators and Representatives TODAY and urge them to vote against the budget deal. Tell them to send the negotiators back to do a better job of resolving the budget standoff. What has been billed as a compromise does too much harm to low income Americans and asks too little of people with means. While in reality it may be too late to stop this vote, it is crucial that you make your objections known to your elected representatives. To contact your members of Congress, call the congressional switchboard at 877-210-5351. You can also go to the NLIHC website to take action. Cuts to HUD programs include: Tenant Based Rental Assistance (housing vouchers) Admin Fees: $125 million cut FUP: $15 million cut (No funding) Veterans Affairs Supportive Housing Vouchers: $25 million cut Tenant Protection vouchers: $10 million cut Public Housing Operation Fund (locally CMHA) -$149 million cut HOPE IV (Public Housing renovation and replacement fund)-$100 million cut Public Housing Capital Fund (public housing maintenance and building fund)-$456 million cut Native American Housing Block Grants -$50 million cut Community Development Fund -(funds city investment in housing, eviction help, safety, and poverty reduction) $942 million (CDBG reduced by $643 million) HOME Investment Partnerships (City, County and State funding to build housing)-$215 million cut Lead Hazard Reduction (Protection for low income residents from lead paint hazards)-$20 million cut Section 202 -(Affordable housing largely for seniors) $425 million cut Section 811 -(affordable housing largely for the disabled) $115 million cut Housing Counseling Assistance -(Pays for advocates to assist those facing foreclosure) $88 million cut (No funding) Brownfield Redevelopment -(Cleaning up abandoned industrial sites) $18 million cut (No funding) Energy Innovation Fund -$50 million cut (No funding) Cuts USDA housing programs include: Rental Assistance Program -$24 million cut Rural Housing Insurance Fund -$151 million cut Other safety net cuts LIHEAP (Heating assistance for lower income households) -$390 million cut WIC -(Women's Infant and Children food program) $504 million cut Community Health Centers (Care Alliance and Neighborhood Family Practices locally) -$600 million cut Brian Davis

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Advocate Explains the State Budget

Bill Faith Reports to CAHA

Executive Director of the Coalition on Homelessness and Housing in Ohio attended the April Cuyahoga Affordable Housing Alliance to give advocates and housing developers an update on the thinking down around housing and poverty issues in Columbus. Faith is the leading lobbyist for housing programs and maintaining state support for anti-poverty programs in Ohio.

Faith talked a great deal about the change in tone and atmosphere since November and the election of John Kasich as governor. He talked about the strange day two days after the election when the Governor elect gathered 150 lobbyists and told them that they needed to get on the bus or be run over by it. Kasich told those gathered that two presidents (Clinton and Obama) and millions of dollars could not stop him so what makes these lobbyist feel that they could stop him? It seemed as though the new Governor is unwilling to tolerate dissension or differing opinions.

Faith described in detail many of the decisions that were made down in Columbus to generate the new budget. Kasich could have closed $3.7 billion in tax loopholes to close the budget deficit, but decided against this path. Faith specifically mentioned the corporate jet tax break that could have been closed, but was left intact. There were sales tax loopholes that would have closed $4.8 billion, but that was left in place. The promises made to communities when business taxes were changed in 2005 are no longer relevant, which hurts local government. There are many structural problems within the budget that push a huge burden onto the local communities. The new Governor was opposed to any change on the revenue side of the balance sheet, and focused entirely on the expense side.

Faith mentioned the three biggest losers in the upcoming budget:

1. Local and County governments including libraries.
2. K-12 education throughout the state are big losers.
3. And Higher education takes a big hit.

Others that would be hurt by passage of the Kasich budget include the community health centers, the Consumer’s Council, and nursing homes. One of the surprising aspects of Faith’s presentation is that other health and human services programs are not harmed as badly as was anticipated in the budget. Kasich made a commitment not harm the most vulnerable, and so homeless, mentally ill, developmentally disabled are not harmed in the budget anymore than the cuts taken by every organization across the board. How young children and the huge cut to public education are not considered a vulnerable population was not explained.

There was a lot of discussion about the privatizing of the Department of Development. It looks at this point that the economic development activities will be pulled out of the department and transferred to the private JobsOhio agency. The existing agency will then be changed to the Department of Community Development and will continue to administer block grant funds, heating assistance, weatherization, the community action funding, the housing trust fund, and the shelter grant. Faith discussed the threats to the State Housing Trust fund including the unwillingness by some County recorders to send the tax dollars collected onto the state to distribute.

Faith touched briefly on the upcoming HUD budget. Since the 2011 budget had not been finalized and the House had not introduced a budget framework for 2012, there was very little information available. One positive coming out of the federal government was the new funding and attention being paid to housing within the health care community. Faith talked about waivers being sought with the Medicare program to pay for housing. It is increasingly clear that a person’s health care suffers if they do not have a stable place to live, and communities around the country are beginning to factor housing into health care plans.

Brian
Posts reflect the opinion of those who sign the entry.