We’re thrilled to inform you that today, the DC Council voted to invest in Housing for All and Neighborhood Based Economic Development! Thanks to months of continued advocacy, the Council unanimously agreed to pass a revised budget proposed by Chairman Kwame R. Brown, including nearly $25 million investment to the Continuum of Housing. We applaud Chairman Brown and Committee on Housing and Workforce Development Chair Michael Brown for their leadership on this budget.

You made this win happen!
We faced an uphill battle, with growing need for affordable housing, proposed funding cuts, and uncertainty how the DC Council would respond. Over the last few months, many of you sent emails, talked to Councilmembers, walked around the Wilson Building, came to the Housing for All Town Halls, and kept the pressure on the Council to show the importance of these programs.  The impact was clear.  Councilmembers now understand the programs better than they did before and consider them a top priority.

We will continue our advocacy as the Council considers the Budget Support Act which will be voted on June 5. The BSA includes all the legislation that supports the budget, including the priorities for future revenue.

Come celebrate today’s success with us!
Join CNHED on Wednesday May 23 from 4:30 – 6:30 pm at our office (1432 U Street NW 1^st Floor Rear Annex) as we celebrate our victory! We want to show our appreciation to all of the people who made this win happen with food, drinks, and merriment.

Housing for All supporters gather before today's budget vote

Restorations and investments for the Continuum of Housing in the Fiscal Year 2013 budget:

•         $18 million to the Housing Production Trust Fund:At the last moment, Chairman Brown’s proposed budget included $18 million dollars for the Trust Fund from the sale of a city building in Ward 6.  During today’s session, Councilmembers Graham, Evans, Barry, Bowser, Michael Brown and Kwame Brown all highlighted the value of the Trust Fund, and celebrated restoring the funding. Councilmember Bowser credited the renaissance on Georgia Avenue to the Trust Fund, and highlighted the hundreds of Trust Fund units in Ward 4 alone.

•         $4 million to the Local Rent Supplement Program to provide additional tenant-based vouchers: The Council has showed great concern about the increase in family homelessness and lack of permanent housing solutions. These additional funds will allow the city to move families out of shelter and into permanent housing.

•         $2.5 million to the Home Purchase Assistance Program (HPAP): The Committee on Housing and Workforce Development recommended a $2.5 million which was adopted in the budget.  An additional $2.9 million is on the priority list for funding if the city sees additional revenue.  With these combined funds, HPAP will not have to reduce the number of people served in 2013.

Tomorrow, the DC Council will vote on the city budget.  Even though it’s only a day away, it’s unclear how the Council will vote on the parts of the budget that impact affordable housing. Throughout the past week there has been a lot of media coverage about the state of housing in DC: the city is losing low-cost rental housing, numbers of homeless families have increased dramatically, and housing and gentrification are a major concern in the Ward 5 election.

The affordability of housing to lower income and long-term District residents is clearly an area of major concern around the city. The Fiscal Year 2013 budget presents some opportunities to turn the tide and invest in affordable housing programs, which we hope the Council will adopt. You can send them an email saying you hope they’ll vote for housing tomorrow: click here. 

Let’s take a look at what we hope for tomorrow:

The Local Rent Supplement Program is in need of additional funds to meet the housing needs of DC’s lowest income residents. Councilmember Michael Brown has supported our recommendation that $6 million be added to the Local Rent Supplement Program to meet the immediate housing needs in the family shelter system, and to develop housing that will meet that need in the long term. Chairman Kwame Brown has indicated his support for the program, but has not committed to any amount. We are hopeful that the Council will use $6 million in the Fiscal Year 2013 budget to increase the capacity of LRSP to meet the housing needs of very low income residents.

The Housing Production Trust Fund, which is the key tool for developing and preserving affordable housing, still faces a $20 million loss. The Trust Fund is being used to pay for the ongoing cost of the Local Rent Supplement Program, a tactic started last year, which moves money dedicated to one housing program to pay for another. This is an unsustainable situation which jeopardizes the future of the Trust Fund.

In addition, $18 million that was cut from the Housing Production Trust Fund last year was promised funding if the city had additional funds throughout the year. Although the city has had a surplus every quarter of 2012, the city has not allocated any of it to the Trust Fund.

We are hopeful that in the Fiscal Year 2013 budget, the Council will commit to fully funding the Housing Production Trust Fund so it can fulfill its mission. In addition, we will continue to call on the Council to restore funds cut in 2012.

 The Home Purchase Assistance Program faced a loss of $5 million in this budget. Councilmember Michael Brown, chair of the Committee on Housing and Workforce Development, with the support of Councilmember Mendelson, has identified $2.5 million which has been committed to HPAP in his committee.  In addition, the remaining funds are listed on the Mayor’s recommended programs to receive funding in the future if the city sees additional revenue. We are hopeful that the Council will support the $2.5 million recommendation for HPAP in the Fiscal Year 2013 budget, and commit to restoring the program to last year’s level in future revenue. 

Affordable housing in the District is disappearing, and programs to help low- and moderate-income residents afford housing in DC are dwindling. One of the affordable housing programs at risk in this year’s budget, thanks largely to federal budget cuts, is the Home Purchase Assistance Program (HPAP), which has helped 13,000 low-income renters become homeowners in DC.

HPAP has a track record of success, a credit to the non-profit housing organizations that administer the program. In addition to financial assistance, HPAP recipients also receive intensive financial and homebuyer education, preparing them for the responsibilities and challenges of homeownership.

Even through the housing crisis, HPAP recipients only have a 2% foreclosure rate. And HPAP has helped maintain diversity in changing neighborhoods like LeDroit Park, Columbia Heights, and Logan Circle.  HPAP assistance has been a key tool in supporting new homeowners in the District, even as the city has lost the majority of its low-cost rental and ownership housing since 2000, according to the DC Fiscal Policy Institute.

How does HPAP work? HPAP is the District’s homegrown downpayment assistance program which provides up to $44,000 for first-time, low- and moderate-income home buyers. HPAP acts as a second mortgage. Recipients begin paying their loan down starting in year five of owning their home and make monthly payments over a 40-year period instead of the traditional 30-year period, making the payments more affordable. As HPAP recipients repay their loans, the city recoups the cost, which currently generates $2 million in repayment every year.

Although beloved by politicians and residents alike, HPAP has dwindled since 2008. The program in FY13 is slated to be only a third of its size only five years ago. As a result, the number of people who can use the program has fallen. And this year, the decrease will impact about 100 families. According the DHCD, last year the program served 246 families, next year it will serve around 150.

The city has used federal funding to maintain the HPAP program, relying heavily in recent years on stimulus dollars, but this year, federal funds are not available to fill the gap. The federal Department of Housing and Urban Development’s grant programs that have also funded HPAP also dwindled; its HOME program shrank 37% in 2012, and its Community Development Block Grants (CDBG) dwindled by 12%.

Also, the 2010 Census made DC is eligible for less CDBG funding, since the city has fewer high poverty areas than in previous years. All of these combined losses have left few funds available for housing programs like HPAP.

In April, more than a dozen HPAP recipients attended the DHCD budget oversight hearing to advocate for the program that has helped them become District homeowners. Attendees highlighted the diversity of residents impacted by the program.

Elizabeth Palmberg purchased her home with an HPAP loan, only to be diagnosed with lymphoma soon after. She has been able to afford her mortgage despite her health struggles; “the HPAP program helped me to be able to still buy my condo, and now every month as I write my mortgage check, I am grateful to be building equity which will give me stability against shocks that life might send my way in the future.”

Bernice Joseph was able to purchase her home in Logan Circle in 2002 and has no plans of leaving the neighborhood. She loves the convenience, and believes that HPAP has had a huge impact on her family and her educational opportunities. “Without this program I do not know where I would be.  But I do know I would not be in my neighborhood, the one that is so dear to my heart, the one where I have put down roots, and the one where I have lived for the past 21 years. I have raised all four of my kids in DC. Without the stable price of my mortgage, I would not be able to afford to go back to school. I definitely could not afford my classes if I had to pay market-rate rent.”

The value of homeownership of course extends beyond the individual. Homeowners pay property tax back to the city and provide an anchor for communities. Homeownership is an indicator of success for families and kids across the country and one of the most important wealth-building tools in our country, especially in communities of color and low-income communities. A 2003 study found that housing wealth accounted for 77% of all low income household’s wealth.

HPAP has supported District residents and communities by encouraging homeownership, neighborhood stability, and equity building. This year, the program will become even weaker after years of reductions. The DC government should encourage residents to become homeowners, to invest in their communities and themselves by supporting the HPAP program with local funds.

Sarah Scruggs contributed to this blogpost, it can also be found at http://greatergreaterwashington.org/

Check out our new video, the Amazing Incredible Disappearing Housing Budget! It’s an easy-to-understand version of the proposed cuts in affordable housing.

This week, we tweeted at the DC Council our vision of Housing for All!  We got lots of great pictures from around the city. You can see the best of our pictures and tweets here.

And here are a few for you to enjoy!

On Wednesday April 18 at the City Council  Committee on Housing and Workforce Development Fy 13 budget oversight hearing   District residents testified  urging   City Council to notice the apparent flaws in the Mayor’s budget proposal and restore cuts that  would prevent the city from addressing the housing crisis. One testimony that stuck out was Nathan Smith, ward 8 resident and future homeowner. Dismissing the idea of government handouts,  Nathan offers insight about the work that goes into owning a home through the HPAP program. His testimony can be found below.

Testimony of: Nathan Smith, Ward 8 Resident and Future DC Homeowner

My name is Nathan Smith and I have lived in Washington for fifty years, most of the time I love it. I went to Cardozo and the School Without Walls. I’ve lived on Capitol Hill, Elvan’s Road (in Anacostia), and currently at Fairfax Village. Once (before 9-11) ours was the most open and pleasant city on the east coast. I miss that a lot.

 I’ve been a member of the Home Buyers Club for many years, learning everything I can in preparation for the day I will buy a home. Others here today either have or will speak to the ways home ownership benefits the community:

• reduced crime,

• increased property values,

• better education

• and, oddly enough, increased political participation (as we are demonstrating by our presence before you).

These are (and should be) important policy priorities, receiving the attention of, and funded by, the City.However, the continuum of affordable housing, which is vital to creating and sustaining these positive outcomes, has been stripped of resources.Promises of funding have instead become inconvenient liabilities, passed off until better times.These so called better times will never come if we do not invest in our communities today. Encouraging and assisting home ownership is a venture which will lead to substantial return. Almost every government dollar spent can be recovered by appropriately administered programs.

Training and information provided by organizations like MANNA and HPAP (the Home Purchase Assistance Program) help people become capable and responsible home owners.In ten years of existence MANNA has helped one thousand home owners realize their dream.Opening a relatively small door in the housing market and allowing a few moderate income families to purchase, where and when they otherwise could not, makes a friendlier and more diverse city. Everybody benefits.

Houses are not handed out for free. Each home buyer earns his or her opportunity to purchase, but without funds none of these programs would exist. I came to speak about self-interests, not only mine, but yours, and everyone who wants to own a home in the District of Columbia.

Put yourself in the place of a potential home buyer and ask:

What would I want?

What am I working toward?

To get out of poverty, to pay for my children’s education; these things and more would be possible with the equity accumulated in my home.

I want to live in the city where I was born and grew up.

I count it a privilege and an honor to live in a city known around the world as the seat of government for a free people.

I want to know that anyone can live here and that the City helps make it possible.

I can’t stress the importance of affordable housing programs enough.Without guidance and assistance, I and many others would not have an opportunity to purchase in the District. MANNA and HPAP provide help and incentive for those who seek them.

Don’t force these successful programs to scramble for crumbs from a shrinking financial pie.Don’t let shortsightedness threaten programs that have and will continue to benefit the city for many years to come.

Please restore funding for all programs in the continuum of affordable housing, including those encouraging home ownership. Investing in people, helping them to succeed, is certain to benefit the city immediately and in the future.

Thank you.

As we continue the stride towards filling the need for  affordable housing, we need more people, like Nathan,  to become active by telling their personal stories. City Council needs to hear our voice and know that we’re no longer going to settle for “crumbs”.

A diverse array of  housing advocates from across the District gathered last Wednesday April 18 to testify at the City Council  Committee on Housing and Workforce Development Fy 13 budget oversight hearing. 

Testimony of Clara Velasquez

Hello I am Clara Velasquez and I live in Jubilee Housing.  I live at 1630 Fuller Street NW in Ward 1. I have personally benefited from the Housing Production Trust Fund. It helped to rebuild my building, The Mozart. Because of the Trust Fund I am able to live in a clean and safe place that I can call home. I am very very happy because it is a nice building and we have a good neighborhood. I ask you to commit to fully funding the Housing Production Trust Fund so that other people can have what I have.

I was so happy to have this benefit because that way I can sleep without worry.  Because so many people on the street don’t have anything or anywhere to sleep. I am thankful to have somewhere safe to sleep and spend my days. Many people knock at my door and ask where they can live and not spend a lot of money in DC. They ask for a place where they can sleep and cook and have something for children when they come home from school to study and do homework. Because of the proposed cuts to the budget, I would have to answer “Nowhere.” There aren’t many places for them to go and without more money it will only get worse. They cry. Tears flow from their eyes, but there is no help. Many people. They ask and I can’t answer.  We need more money for affordable housing so all the people on the waiting list can live in places like Jubilee. Please realize this is a real, everyday struggle for us.

Rent is very expensive for me and for other seniors. I have to pay most of my monthly income on rent. What happens if I get sick? How can we make sure we have food and other things if we have to pay so much for rent? We need more rental assistance for seniors.

Especially for seniors, we need a place where we can live. We do not want to be in nursing homes, we want somewhere where we can afford to live.  All these people have a place they can sleep, feel secure, eat and are not in fear of being thrown out of their home and on the street, wondering what they will eat or sleep tomorrow. For us seniors, it is very difficult. We have to stick together and check on each other. We need to live on the mercy of others. Not many people pay attention to seniors because they think we cannot sustain ourselves, but we really do need help from others, especially housing. It is the most important thing we need right now.

I have this one wish. My desire is for the many other people who don’t have anything to have what I have. I hope the DC Council think about all the families, children and seniors who don’t have somewhere to stay.  We need to provide them with housing that is safe and affordable. You need to commit to funding the Housing Production Trust fund and finding these people a home right now. Thank you for your attention to listen to me and other seniors and my neighbors. We need somewhere to spend the night. Don’t forget about us.

Hundreds of DC residents descended on the John A. Wilson Building to protest the $25 million in cuts to affordable housing programs and call on the DC Council to recognize the dire need for low-to-moderate income housing in the District. Their demands echo thousands more who voted affordable housing as the number one issue facing the District at Mayor Gray’s One City Summit in February.

Attendees were treated to a magic show, the Amazing Incredible Disappearing Housing Budget. Housing for All organizer Elizabeth Falcon demonstrated how funds from affordable housing programs were disappearing from the DC budget. DC faces a $25 million loss in affordable housing programs from the  Housing Production Trust Fund ($20 million) and the Home Purchase Assistance Program ($5 million).  In addition, programs which help low income people who are homeless or at risk of homelessness with low-cost housing and needed services have been funded at a level that will not allow them to serve any additional people.

At the same time,  DC faces growing housing need. Under-investment in affordable housing, and dramatic loss of low cost housing in the open market have led to record numbers of families on the street and residents with a severe housing cost burden. Currently, 400 families – which means 800 kids – are temporarily housed in DC General and hotels and nearly 50,000 families spend the majority of their income on rent.

DC’s affordable housing programs have a proven track record moving people out of homelessness, helping maintain job stability and educational success, and helping low-income people become homeowners. Residents who have benefited from these housing programs stood up to advocate for the programs that have changed their lives.

Robert Cooke, HPAP recipient

Robert Cooke purchased his home a year ago using the Home Purchase Assistance Program with the support of Manna Inc. Robert is disabled and on a fixed income. He highlighted the benefits of homeownership to himself and the city where he is now paying property taxes and repaying his HPAP loan.  “Owning a home and the road I took through Manna has really changed my life for the better. As a result of Manna’s homebuyers club, which is a part of Manna’s affordable home ownership services and the city’s home purchase assistance program known as HPAP, I was able to become a homeowner. Without these two things I don’t know where I would be.” Robert argued that others should be able to fulfill his same dream of homeownership.

Brian Adams is a resident of Jubilee Housing in Ward 1. Jubilee Housing just completed renovations on many of their Adams Morgan properties which serve low income residents with housing and supportive services financed by the Housing Production Trust Fund. In addition, many of their units are made affordable to residents through the Local Rent Supplement Program. Brian explained how these programs changed his life.  “The Rent Supplement Program helped me subsidize my rent to make it affordable for me to stay in that apartment. Without that, I could be right back out in the street because I was once homeless for two years. I don’t have any intention of going back out there.”

Councilmember Michael Brown addresses the crowd

Protesters were joined by Councilmembers sympathetic to their concerns including Councilmember Brown, Councilmember Alexander, Councilmember Graham, Councilmember Barry.  Michael Brown,  At-Large Councilmember and chair of the Committee on Housing encouraged the residents to keep up the pressure on the Council; “You’re the folks that are going to make the difference as we go through this budget cycle with all the emails you’re going to send about restoring the housing trust fund.”

Click on the picture above for a slide show from the rally. See what people were saying on Twitter. 

This blog entry can also be found on Greater Greater Washington.

The Housing Production Trust Fund, DC’s premier tool for producing and preserving affordable housing, is nearing extinction. Facing 2 years of cuts from Mayor Gray totaling $38 million, and apathy toward undoing this decision from the DC Council, the Trust Fund is dwindling into irrelevance.

The Trust Fund has created over 7000 homes in its 10-year history, and 1000 more are in various stages of development. But this year’s proposed budget only leaves enough for 170 units to be built next year. By 2016, that number will fall to only 36. A Trust Fund that can only produce a few dozen units is no longer a Housing Production Trust Fund.

The city has seen big changes over the life of the Trust Fund, but today the Trust Fund’s mission is more important than ever. In the last 10 years, DC has finally crossed the mythical population mark of 600,000 residents, and has become a destination for young professionals.

Neighborhoods like Columbia Heights and H Street have seen makeovers so dramatic their own mothers might not recognize them. It’s no secret that these changes have had a mixed impact on longtime and low-income residents.

Over the last decade, the has city lost 20,000 units of low-cost housing. In fact, Brookings’ analysis of the population data shows that affluent residents increased as the population of low income residents fell. To put it another way, higher-income people moved into lower-income people’s apartments.

Preserving affordable housing is one of the mandates of the Housing Production Trust Fund. The Trust Fund is meant to preserve low- and moderate-income families’ ability to stay in their homes and communities as neighborhoods change. The Trust Fund has done this successfully all over the city.

Tucked within some of DC’s most rapidly changing neighborhoods are buildings that have long-term affordability locked in because of their funding from the Housing Production Trust Fund. In Mount Pleasant there is the St. Dennis, in Logan Circle there is the Norwood and in Petworth there is Three Tree Flats. The current residents and future low-income tenants of these buildings get the benefits of the new grocery stores, upgraded libraries, and all the other amenities that are making DC a place where so many people want to live.

The other goal of the Trust Fund is to produce new high-quality affordable housing.SOME, a 40-year-old nonprofit that provides a wide range of services to DC’s homeless population, has been doing this with great success, most recently in Wards 7 and 8. They have purchased, gutted, and rehabbed vacant, decrepit buildings around the wards, and are turning them into 250 high-quality homes for currently homeless individuals.

These refurbished buildings include a thoughtful mixture of housing needs (including emergency shelter beds in buildings with single-room occupancy and efficiency units) as well as social needs such as a rooftop deck, with elevator access, for a new senior building.

Unfortunately, these types of projects will no longer be possible if the cuts to the Trust Fund continue. By not taking it seriously enough, the city risks losing its only locally-funded tool for remaking derelict property into vibrant community assets, and for helping long time residents stay in place.