Philadelphia Housing Trust Fund Philadelphia Housing Trust Fund
Presented at National Alliance to End Homelessness 2011 National Conference on Ending Homelessness
July 15, 2011
Philadelphia Housing Trust FundPhiladelphia Housing Trust Fund
Philadelphia Housing Trust Fund Philadelphia Housing Trust Fund
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Build a CoalitionBuild a Coalition
In 2003, community leaders and stakeholders saw a critical juncture in city’s affordable housing crisis and ability to foster sustainable neighborhood revitalization.Coalition led by Philadelphia Association of Community Development Corporations (PACDC), with more than 110 organizations
Support from the City administration, City Council and State legislators
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Make the Case with the FactsMake the Case with the Facts
Almost 130,000 households in Philadelphia (1 out of 5) have annual incomes below $20,000 and pay more than they can afford on housing
Nearly 60,000 more affordable units of rental housing are needed in Philadelphia to meet the housing crisis
Federal investment in affordable housing is decreasingExisting resources inadequate to meet the need Leveraging opportunities going unutilized
Funding support from: William Penn FoundationFannie Mae FoundationSamuel S. Fels FundLocal Initiatives Support Corp.
“A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood Revitalization” White Paper Release, October 2003
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Make the Case with the FactsMake the Case with the Facts
As Philadelphia’s federal entitlement funding has contracted, amount of money the City has been able to invest in housing production has fallen by more than 60%.
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Make a ProposalMake a Proposal
Coalition made specific recommendations about:What to fund: housing production and preservationAdministering agencyAllocation process and oversightPotential revenue sources
“A Philadelphia Housing Trust Fund: Ensuring a Future of Affordable Housing and Neighborhood Revitalization” White Paper Release, October 2003
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Understand the Legislative NuancesUnderstand the Legislative Nuances
PA’s 1992 state law (“Act 137”) allows counties to set up own Housing Trust Funds via surcharge on deed and mortgage recording fee. 51 of 67 counties have Funds
Counties defined as “of the first class” (i.e. Philadelphia) were not included in the Act 137 enabling legislation
Advocates worked for State authorizing legislation in 2005 for “first class” cities and counties
Allowed for increase of fees charged by recorder of deeds, with at least 85% to be set aside to fund affordable housing efforts (15% administration)
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Local Ordinance - Bill No. 050059Authorized fee collection and specified amounts,
e.g. $57 for recording mortgages
Specified income guidelines for households that would benefit:
50% of program funds for households at or below 30% of AMI
50% of program funds for households between 30% and 115% of AMI
• Established guidelines for Oversight Board
Understand the Legislative NuancesUnderstand the Legislative Nuances
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Housing Trust Fund CreatedHousing Trust Fund CreatedEstablished September, 2005Resources can be used to:
Increase production of affordable housing for sale or rental
Increase accessibility of new and existing affordable housing to physically disabled occupants and increase supply of visitable housing
Preserve affordable housing, including but not limited to grants for basic systems repair or improvement of owner-occupied homes, for adaptive modification or for targeted improvement of facades
Prevent or reduce homelessness, including but not limited to emergency assistance to prevent and/or end homelessness or near homelessness by maintaining households in their own residences when eviction is imminent through rent and mortgage arrearage
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UsesUses
50% of program funds for new housing production
50% of program funds for housing preservation, home repair and homelessness prevention
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Income RequirementsIncome Requirements
50% of program funds targeted to very low-income families and individuals earning at or below 30% of AMI
50% of program funds targeted to low- to moderate-income households earning between 30% and 115% of AMI
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AdministrationAdministration
Proposed yearly expenditures detailed in City’s annual Consolidated Plan
Plan submitted to City Council for approval
Funds awarded through open, competitive process
Up to 15 percent City administrative costs as allowed by state enabling legislation
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HTF Oversight Board HTF Oversight Board
Chair of Oversight Board is OHCD Director
3 City Council representatives
Redevelopment Authority, Housing Authority, andDeputy Mayor for Economic Development
4 community organization members – represent CDCs, disability community
Administered by City’s Office of Housing & Community Development (OHCD)
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Monthly Deed and Mortgage Recording Fee Revenue FY06-FY11 Monthly Deed and Mortgage Recording Fee Revenue FY06-FY11 Ju
ly 0
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$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
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Comparison: FY 2006 and FY 2011Comparison: FY 2006 and FY 2011
Philadelphia HTF Program/ActivityFY 2006 Budget
FY 2011 Budget
Neighborhood-Based Homeownership Production 1,000,000 0
Homeownership New Construction Program 1,500,000 0
Neighborhood-Based Rental Production 3,500,000 3,187,000
Basic Systems Repair Program 1,247,000 700,000
Targeted Housing Preservation Program 1,465,000 200,000
Homeownership Rehabilitation Program 354,000 0
Adaptive Modifications Program 220,000 1,504,000
Rental Assistance 661,000 0
Homelessness Prevention Programs 489,000 784,000
City Administration 1,725,000 1,125,000
Total 12,161,000 7,500,000
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FY 2011 Allocation Summary• Mortgage Assistance
Annual Allocation $595,000
• Rental Assistance (Pathways to Housing) Annual Allocation $189,000
Rental Assistance Program Balance $252,000
Total $1,036,000
Leverages in other funding $6.9 million
Contributions to Address HomelessnessContributions to Address Homelessness
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Homelessness Prevention Allocation for Office of Supportive Housing’s Mortgage Assistance Program
Percent of Housing Trust Fund annual collections (based on amount collected)
Allocation - $595,000
Used HTF funds for mortgage assistance since ineligible under HPRP
Contributions to Address HomelessnessContributions to Address Homelessness
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Results:
234 households averted foreclosure
$363,905 in direct financial assistance provided
Cost of providing emergency shelter would have been more than $1 million (based on average length of stay of80 days x $35 per person per day*)
* Office of Supportive Housing shelter per diem
Homelessness Prevention Mortgage Assistance ProgramHomelessness Prevention Mortgage Assistance Program
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Rental Assistance – Housing First Program through Pathways to Housing provides permanent supportive housing for 125 chronically homeless individuals
Must have diagnosed severe mental illness (Axis 1)•More than ½ have schizophrenia
•¼ have depression
•Just under ¼ have psychotic disorder
Contributions to Address HomelessnessContributions to Address Homelessness
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• 88% of those housed remain housed
• Comparing 12 months prior to admission and 12 months after housing
Shelter episodes decreased by 88%
Acute mental health hospitalization, either voluntary or not, decreased by 70%
Philadelphia Prison System episodes decreased by 50%
Rental Assistance - PathwaysRental Assistance - Pathways
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Leveraged Funding:
• 2008 & 2009 McKinney bonus project for housing subsidies awarded
• 2010 McKinney request for 50 unit expansion
• Services fully funded by City Department of Behavioral Health (Medicaid billable)
• Annual cost approx. $3.2 million(approx. $1 million housing, balance is services)
• HTF allocation supports housing costs not eligible/covered by HUD
Rental Assistance - PathwaysRental Assistance - Pathways
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Rental Assistance Family Demonstration ProgramFY 2007 Special Allocation ($1 million)
• Three years of sliding scale rental assistance for 40 families from transitional housing with employment-focused case management
Contributions to Address HomelessnessContributions to Address Homelessness
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Outcomes:
• 40 families participating
6 negative discharges
• 85% (34) are stably housed
One bought a home
76% are employed
Rental Assistance Family Demonstration ProgramRental Assistance Family Demonstration Program
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Rental Assistance Family Demonstration ProgramRental Assistance Family Demonstration Program
OutcomesAverage salaries $10.62/hour
> 50% increased incomes since start of program
Average rent amount $764
Average rent paid by participants $449
June 09 analysis showed families would pay on average 71% of gross income for rent and utilities without a subsidy
Philadelphia Housing Trust Fund Philadelphia Housing Trust Fund
First 5 Years 2006-2011First 5 Years 2006-2011
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More than $45 million committed to expand and improve housing opportunities for more than 8,000 Philadelphians
Leveraged more than $234 million in additional funding, creating jobs and strengthening neighborhoods
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First 5 Years 2006-2011First 5 Years 2006-2011
Since 2006, supported the housing needs of more than 4,000 households
2,886 households earned 30% or less of AMI
1,136 households earned more than 30% of AMI
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Philadelphia’s Steps to a Housing Trust FundPhiladelphia’s Steps to a Housing Trust Fund
Create a broad-based coalition
Build the case for the need and benefits
Make a proposal
Understand the legislative nuances
Get governmental support
Stay involved
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Lessons LearnedLessons Learned
Establishing a Trust Fund takes time
Homeless advocates need to stay at the table
Advocate for a set percentage of fund to be dedicated to homeless activities
Optimally should be flexible and include housing production, prevention and rental assistance
Philadelphia Housing Trust Fund Philadelphia Housing Trust Fund
Additional InformationAdditional Information
White Paper Five Year Report State Enabling Legislation City Council Ordinance Mayoral Executive Order
http://philadelphiahousingtrustfund.org
Dainette M. Mintz, Director, Office of Supportive Housing, City of [email protected] 215-686-7106