in statewide conference on housing & community economic development / midwest summit september...
TRANSCRIPT
![Page 1: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/1.jpg)
IN Statewide Conference on Housing & Community Economic Development / Midwest Summit
September 20, 2011
Linda CouchSenior Vice President for Policy
www.nlihc.org
![Page 2: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/2.jpg)
Last week’s Census numbers
• 46.2 million people in poverty, 2.6 more million than in 2009
• The largest number in the 52 years for which poverty estimates have been published
• One in six are poor in the United States• One in three young families with children
![Page 3: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/3.jpg)
The Gini Index
• Measure of income inequality• Ranges from 0, when everyone earns the
same• To 1, when all income goes only to one person• In 2009, U.S. Gini index was 0.468, a 20% rise
in income disparity over last 40 years• Similar to Gini indexes of the Philippines and
Mexico
![Page 4: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/4.jpg)
HUD’s Largest Programs
• Vouchers
• Public Housing
• Project-Based Section 8
![Page 5: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/5.jpg)
Housing Choice Vouchers
• 2 million vouchers in use today• Loss of 150,000 (2005 – 07)• Many improvements in the offing
House subcommittee would cut more than 40,000 voucher households from program in FY12
![Page 6: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/6.jpg)
Housing Choice Vouchers
• Section 8 Voucher Reform Act / SESA– Rent-setting and income reviews– Inspections– Enhanced vouchers– Project-basing vouchers– Other objectives? Time limits, Moving to
Work?
![Page 7: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/7.jpg)
Public Housing
• 1.1 million units, $26 billion rehabilitation backlog
• Loss of 150,000 over last 15 years, >10K a year• Choice Neighborhoods Initiative: Continue to
redevelop housing, but also focus on entire neighborhood
![Page 8: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/8.jpg)
Public Housing
• HUD’s Rental Assistance Demonstration• Authorize greater access to private capital
– Allow conversion of PH units to project-based contracts
– Choice option– Long term, renewing contracts and use restrictions
House subcommittee $$:• 16% cut to operating; 25% cut to capital
![Page 9: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/9.jpg)
Project-Based Section 8
• 1.4 million units• Loss of more than 300,000 units late 1990s,
pace of loss has slowed• Contracts with owners backed by FHA
insurance, Congress reticent to underfund but threats loom as all is on the table
![Page 10: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/10.jpg)
These three programs are critical:
• They are affordable to each household – bringing stability to households and communities
• They are deeply income targeted–Why income targeting matters:
![Page 11: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/11.jpg)
If you lined up…
Units (by affordability category) Households (by income category)0
5
10
15
20
25
30
35
40
45
6.510.0
11.67.2
15.9
7.2
6.2
11.1
Rental units and renters in the US, matched by affordability and income categories (2009)
Not Low Income
Low Income
VLI
ELI
Co
un
t (m
illio
ns
)
Source: NLIHC Tabulations of 2009 American Housing Survey
![Page 12: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/12.jpg)
The Gap
ELI VLI Low Income
(6,000,000)
(4,000,000)
(2,000,000)
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
A Comparison of Households and Units by Income Threshold* (2009)
Income Categories
Su
rplu
s (D
efic
it)
of
Aff
ord
able
Un
its
Source: Source: NLIHC Tabulations of 2009 AHS data
ELI = Extremely Low Income (<=30% AMI)VLI = Very Low Income (<=50% AMI)Low Income = (<=80% AMI)* Units are affordable within an income category if rent and utilities cost 30% or less of top threshold income. Adjusted to reflect 2008 Census guidance, may differ from previous re-sults
![Page 13: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/13.jpg)
Severe Housing Cost Burdens
• Of all renter households paying more than 50% of their income on housing
• 78% have incomes below 30% of area median in IN
• 79% have incomes below 30% AMI in OH• 76% have incomes below 30% AMI in IL• 75% have incomes below 30% AMI in KY• 73% have incomes below 30% AMI in MI
![Page 14: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/14.jpg)
“Vacancies,” “Glut of Empty Homes”
Incomes of extremely low income households are extremely low!
• Median U.S. household income is $60,000• Median HUD household income is $10,200• Just 32 affordable and available homes for
every 100 extremely low income renter households
![Page 15: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/15.jpg)
CDBG and HOME
• House subcommittee did not cut CDBG funding but would cut CDBG admin fees from 20% to 10%
• House subcommittee would cut HOME program in FY12 by 25%
• Cuts expected in Senate as well
![Page 16: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/16.jpg)
Super Committee
• Budget Control Act set up requirements for massive spending cuts over next decade
• Sets 10 years of spending caps for discretionary spending
• Anything short of $1.2 trillion in cuts enacted by 12/31/11 would be metered out in across the board cuts beginning in January 2013
![Page 17: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/17.jpg)
Tax Reform and Deficit Reduction– what will be addressed?
Low income housing tax credits• $5 billion a year• Reforms • Keep out of tax reform/deficit reduction discussion
Mortgage interest deduction reform• $100 billion a year• Top 10% of tax payers get 30% of benefit (top 32% get 72%)• On the table in deficit reduction talks as well as how and
whether gov’t should be supporting homeownership
![Page 18: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/18.jpg)
Housing Finance Reform
• U.S. take over of Fannie Mae and Freddie Mac• White House sees more limited role for feds in
future mortgage market• Agree w/White House that fed gov’t has duty to
low income households• ELI rental market is one that history (and
current data) tell us private developers will leave behind
• MF rental is ripe for public investment
![Page 19: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/19.jpg)
HUD is busy, too
• Happy to avoid Congress if possible• Small area Fair Market Rent (FMR) demonstration• Implement HEARTH Act, consolidating three McKinney-Vento
homeless assistance programs• Amend HOME rule• Streamline portability process• Allow new cross-jurisdictional consortia to administer
vouchers• Improve Section 3 education and oversight• Improve and simplify Consolidated Plan process• PHA accountability and transparency: salaries, red flags
![Page 20: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/20.jpg)
Opportunities
Sane person finds the bright side• GSE reform• Some common sense reforms generate
savings and could be implemented• Administration and many in Congress are
committed to balanced housing policy
![Page 21: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/21.jpg)
Balanced Housing Policy
• As more of us become renters
• Balanced as to favoring one form of tenure over another
• Balanced as to resources devoted to programs
![Page 22: IN Statewide Conference on Housing & Community Economic Development / Midwest Summit September 20, 2011 Linda Couch Senior Vice President for Policy](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d0d5503460f949e214d/html5/thumbnails/22.jpg)
Connect with NLIHC
• We Facebook, we Tweet, we blog!
www.nlihc.org
• Weekly newsletter, Memo to Members
• Loads of housing data, national and local