The Big Picture: Housing Policy Update Presented by Jeremy Rosen, Executive Director, National Policy and Advocacy Council on Homelessness. (202)

The Big Picture: Housing Policy Update Key messages: –U.S. affordable housing crisis continues. –Being made worse by economy / foreclosures. –Economy / foreclosure is driving an increase in family homelessness. –Federal response gets a grade of incomplete so far. –This presentation will focus on “the good news.”

The Big Picture: Housing Policy Update Two key issues for this session: –Family Unification Program (FUP) Section 8 vouchers –National Housing Trust Fund Ask me later –Neighborhood Stabilization (foreclosure) –HUD-VASH Section 8 vouchers for disabled homeless veterans

Family Unification Program (FUP) What is FUP? –Section 8 vouchers for families, used specifically to prevent families from losing their children to the foster care system or to reunify children who have been in foster care with their parent(s). –Section 8 vouchers for youth aging out of foster care, time limited to 18 months, so that youth can have stable housing as they transition to independence.

Family Unification Program (FUP) Why is FUP so important? –Preventing family separation due primarily to housing is vital to child well-being. –Without stable housing, far too many youth aging out of foster care go directly to a homeless shelter. –Cost effective: The average family involved with child welfare has 2.7 children. Foster care for those children costs $46,000 per year; FUP voucher plus services costs $13,000. Could save $2 billion / year nationwide.

Family Unification Program (FUP) Last year, advocates obtained $20 million in new FUP funding. First new money since Any day now, HUD will release a nationwide application for approximately 3,000 new FUP vouchers. Application must come jointly from Public Housing Agency and local child welfare agency. Vouchers will hopefully be awarded very early in 2009.

National Housing Trust Fund NHTF has been a long standing goal of affordable housing advocates (there are over 300 state and local trust funds). NHTF concept – Get federal money, outside of the HUD budget, to pay for production, preservation, and rehabilitation of 1.5 million units of affordable housing over 10 years. Key concept – dedicated source of funds.

National Housing Trust Fund After nearly 10 years of trying, legislation finally passed in Summer, Money to be taken from Fannie Mae and Freddie Mac – a % of their “new business purchases.” Delayed implementation – money would begin to flow in Fall, – more would come in 2010, 2011, and beyond. Money would go to states and in turn from states to developers of affordable housing.

National Housing Trust Fund 75% of money would have to be spent on the lowest income people (at or below 30% of area median income). Key concerns: –Not enough $$$. –Fannie and Freddie have been taken over by new federal regulator – we are hopeful that by Fall of 2009 the regulator will allow them to make payments into the NHTF. –Politics - “slush fund for liberal groups.”