Housing for People with Mental Illness Presentation to NAMI Convention Andrew Sperling Ann O’Hara David Miller June 19, 2005

2 Housing Needs and Housing Affordability

3 Priced Out in  New Priced Out in to be published in June 2005 Non-elderly people with disabilities are three times more likely to have incomes at or below 30% of AMI than households without disabilities In 2003, 51% of 1 person non-elderly disabled households in U.S. had incomes below 30 AMI In 2004, average 1 bedroom rents nationally still higher than SSI monthly income  Key findings in Priced Out in 2002 SSI income = 18% AMI Average 1 bedroom rent = 105% of SSI

4 SSI Income Median Income 50 % of Median Income 18 % of Median Income (SSI)

5 HUD Housing Needs Data  HUD reports to Congress on “Worst Case” Housing Needs Paying more than 50% of income for housing Living in substandard housing Both conditions  5 million households have “worst case” housing needs  1.4 million are people with disabilities receiving SSI  People with disabilities more likely to have both “worst case” conditions

6 Housing Affordability and SSI  Average rent = $600+  SSI = $585  30 percent of SSI = $175  Monthly rent or operating subsidy is essential for people with SSI to obtain affordable housing

7 Your Community’s Affordable Housing System

8 Key Subsidy Programs  Public and Assisted Housing (500,000 units are now “elderly only”)  Section 811 Supportive Housing for Persons with Disabilities Program  Section 8 Housing Choice Voucher Program  McKinney-Vento Homeless Assistance Programs

9 Section 811 Program

10 Section 811 Develops supportive housing through a capital advance component (30,000 units) Also provides a monthly project subsidy for these capital units through a “one-stop” application process Provides tenant-based rental assistance through the Section 8 Mainstream Voucher program (12,000 vouchers)

11 Administration’s 2006 Budget Proposal for Section 811  Cuts 811 funding by 50% (from $238 million to $120 million)  No cuts in “companion” Section 202 Elderly program  Section 811 budget proposal would eliminate the housing development component of the program (compared to 1,030 units in 2005 NOFA)  Proposal only funds renewal of PRACs and tenant based vouchers  Any remaining ’06 funding would be for tenant based vouchers

12 Section 811 NAMI Position Paper  Restore program funding to 2004 level of $249 million  Maintain and improve the housing development component of Section 811  Eliminate outdated bureaucratic requirements which restrict leveraging of other funds with Section 811 capital  No expansion of the tenant based Mainstream voucher program because of serious mis- management issues at HUD

13 Section 8 Housing Choice Voucher Program

14 New Legislation Proposes to End Section 8 Housing Choice Voucher Program  S. 771 and H.R (drafted by HUD) propose New Flexible Voucher Program proposed  Proposal would cause seriously harm to people with disabilities  New TAC study shows disproportionate impact of Flexible Voucher Program on people with disabilities FVP would end targeting of vouchers to people with disabilities at or below 30% of AMI Non-elderly people with disabilities are three times more likely to be at or below 30% of AMI than people without disabilities (ACS – 2003)

15 Summary of Flexible Voucher Proposal  HCV currently targets 75% of vouchers to people at or below 30% of AMI – This targeting would be eliminated  Expands voucher eligibility to households at 80% of AMI  PHA flexibility on priority activities – similar to a block grant  Participants could be required to pay higher rents  Disability-specific preferences would be permitted  Eliminates valuable civil rights and programmatic protections for people with disabilities  Eliminates 50,000 vouchers set-aside by Congress for people with disabilities affected by “elderly only” designation

16 Section 105 Protections  Section 105 of bill (S. 771) appears to protect people with disabilities  Allows current elderly and disabled voucher holders continue to receive assistance under current rules until January 1, 2009  Allows PHAs to implement new rules for new voucher holders with disabilities before January 1, 2009

17 Disability Vouchers  62,000 vouchers set-aside for people with disabilities 50,000 1 year vouchers funded from Section 8 12,000 5 year vouchers funded from Section 811 under the Mainstream Program  Congress mandated that these vouchers continue to be provided to people with disabilities upon turnover  Many PHAs are not aware of these requirements  HUD Notice issued February 1, 2005  More information at  Opening Doors Issue #25

18 Disability Vouchers  Awarded primarily to PHAs between  Includes: Section 8 vouchers in conjunction with “elderly only” public housing Section 8 vouchers in conjunction with “elderly only” HUD assisted housing Section 8 Mainstream vouchers (1 year contracts) Section 8 Mainstream vouchers (5 year contracts funded from Section 811)

19 HUD McKinney-Vento Homeless Programs  Programs only for people who are already homeless Shelter Plus Care Supportive Housing Program (SHP) Section 8 SRO Program  Emphasis on paying for permanent housing rather than services  New emphasis on assisting chronically homeless people  Samaritan Initiative will develop new permanent housing for people who are chronically homeless  Definition: Unaccompanied adult who has been continuously homeless for more than 1 year or had at least 4 episodes of homelessness in the past 3 years

20 Other Important Housing Issues  Housing Planning HUD Consolidated Plan controls HOME and CDBG funding HUD Public Housing Agency Plan controls Section 8 and public housing funds Qualified Allocation Plan controls awards of Low Income Housing Tax Credits

21 What You Can Do  State and local housing officials need to hear from you!  Members of Congress need to hear from you!  Educate yourself on affordable housing issues and programs  Become a housing advocate in your community and your state  Organize disability advocates around a specific objective Section 811 budget Section 8 vouchers set-aside for people with disabilities  Have a clear strategy and action steps  Use TAC’s publications and website (