Louisvilles Affordable Housing Trust Fund Rachel M. Hurst Director of Public Relations, Community Education, & Advocacy The Coalition for the Homeless, Inc.

GOAL: Create a local Affordable Housing Trust Fund generating $10 million in dedicated public revenue annually to meet the housing needs of the working poor, disabled and elderly below 50% median income.

Why do we need an Affordable Housing Trust Fund? o Federal funds are dwindling. Community Development Block Grant funds are being cut every year at the federal level. Additionally, cuts in the funding for Section 8 will lose 1,793 vouchers in Kentucky. We cannot continue to be reliant on federal funds to house our working poor and our fragile populations. oThe ladder is broken. –Brookings Institute study

Homeless Services Utilization: Louisville 2005 POPULATION CATEGORY2005 count2004 count2003 count2002 count Number of persons using homeless services 11,25111,00611,03210,451 Single Adults (male)6,9076,3276,1845,780 Single Adults (female)2,3261,9891,9691,688 Adults in Families Children in Families9111,1081,0651,063 Unaccompanied Youths490942*1,093*1,302* Number of households

FACT: More homeless people in shelters in Louisville are working, and working for very low wages. 28% of homeless adults in Louisville shelters are working. Twice as many working homeless persons earn $5.99 or less/hr. Sheltered homeless earning $10.00/hr largest increase--8.9%. Disabled individuals (SSI recipients) can afford no more than $169 for rent; however, Fair Market Rent for one bedroom is $438. Jefferson Countys Housing Wage is $10.83/hour. (

FACT: People accessing Louisville homeless services are increasingly likely to have completed high school or even college. EDUCATIONJanuary 2006 January 2005 graduated from high school30.1%21.4% college diploma7.7%7.1%

Whats the Cost of Homelessness? Reno, NV - 2 police officers $100,000/each, 2 people, 1 yr ER, hospital, law enforcement studied We spent $1 m not to do anything about him.

Permanent Supportive Housing Significantly Reduces City Expenses Univ. of PA: impact of PSH for CH on use of public services in NY PSH = reduction in services use of $16,281 unit/year ($40,000 vs. $23,719) Annual housing unit cost = $995/unit/year shelter use, hospitals, corrections, services 4600 h. people with severe MI

3 Principles of Louisville Affordable Housing Trust Fund 1) Controlled locally by a decision-making board that guarantees consumer and advocate representation. 2) Mandated to serve the lowest-income population: 50% AMI and below, with half set aside for 30% AMI and below. 3) Funded through a dedicated, ongoing public revenue source. The need requires a $10 million annual commitment.

Income In 2005, the poverty line for a family of four was $19,971 (CJ, Sept. 20, 2006) 50% of Median Income for Louisville Metro is $21,667 (2005 ACS) 54% of households with income below 50% median pay over 50% of income on housing costs (2005 ACS)

Poverty in the Louisville Metro 2000

African American Population Louisville Metro 2000

Percent of All Families Headed by a Single Mother, Louisville Metro 2000

Renters with excessive cost burdens (more than 30% of income on rent and utilities combined), 2000

Students with Housing Related Moves Free, Reduced, or Paid Lunch Status JCPS ( )

Economic and Community Impact of Affordable Housing Trust Fund National Association of Home Builders: every 100 units of housing will generate each year: new jobs $2.2 million -$2.8 million in income to local businesses $384, ,000 in local tax revenue

The needed $10 million annually in dedicated public revenue for the AHTF will create in Louisville each year: new jobs $31.9 million - $40.6 million in income to local business $5.6 million – $7.2 million in local tax revenue NAHB data and creating average of 145 units with each $1m in dedicated public revenue (KY AHTF average), with leveraging at the lowest estimate of 6:1 (can be as much as 13:1; KY AHTF is 7:1)

Affordable Housing Attracts and Sustains Businesses 12 of the 20 fastest-growing occupations in Louisville region have employees who cannot afford a 2-bedroom apartment (childcare worker, home health aide, preschool teacher, janitor, and retail salesperson). Affordable housing is essential to attracting big business to Metro Louisville. Availability of affordable housing major criterion for re-location. Require stable, convenient housing for employees near their work sites.

Louisville cant afford to pass up this economic opportunity: $10 million in dedicated ongoing public revenue for the Louisville Affordable Housing Trust Fund. Difference to Louisville between $10 m and $1 m in annual dedicated ongoing public revenue is $97.8 million - $170.2 million MORE in economic impact: $5.4 million more generated in economic growth $54 million – $117 million more in addl real revenue 588 – 849 additional new jobs created $28.7 million - $36.6 million more income for local businesses $5 million - $6.5 million more in local tax revenue $4.7 million more received by for-profit homebuilders 1,305 more units of affordable housing

# on waiting lists for subsidized housing is now the same as the current number of households being served: more than 13,000. Homeless persons are skewed towards ELI. 10% of moderately low-income hh (51-80% AMI) have affordable housing needs, according to Louisville census, but: 54% of our very low income hh (50% AMI or below) live in extremely unaffordable housing & at immediate risk of homelessness. 41,000 people with greatest need, highest priority. AHTF Program special concerns: highly targeted to prevent homelessness all AHTF for 50% AMI and below (very low income); set-aside for 30% AMI and below (extremely low income).

AHTF Program special concerns: Housing-related services & case management should be named as an eligible activity for AHTF funds. Sustainable housing for some people takes a system of ongoing support – case management. limits landlord-tenant issues, & foreclosure and eviction rates. Funds for services and case management have sharply decreased, yet the need in Louisville is increasing. #1 barrier identified by homeless service providers in Louisville is lack of case management resources. Federal housing funds Louisville cannot access each year because we cannot provide required case management.

Louisvilles poverty rate nearly twice the national average: 22% vs. 12.7% Our poverty is segregated and concentrated: old city boundaries of Louisville is 3 rd in nation just behind New Orleans. 14 th Jefferson County. Now is the time to create what we really need-build on the current momentum and consensus. AHTF Revenue special concerns: Greater than average funding critical to address Louisvilles higher poverty rate and homelessness: $10 million/year in dedicated ongoing public revenue is a priority.

For more information, contact: Rachel M. Hurst Director of Public Relations, Community Education, & Advocacy The Coalition for the Homeless, Inc S. 4 th St. 3 rd Floor Louisville, KY x14