Transcript A Housing Trust Fund for Milwaukee
A Housing Trust Fund for Milwaukee
Homelessness in Milwaukee
Milwaukee’s Homeless
• Over 2,000 persons are homeless in Milwaukee each night • Many are children • 500-800 are “chronically homeless” • Length of stay in shelters has increased dramatically
“Housing First” – a Dramatic Shift in Homeless Strategy
• Shelter System shifts to providing Housing as the Top Priority
Housing + Services = Success
• Shift will require 100s of new units of affordable housing • New Policy requires a community commitment to provide additional housing & services
Many Single Homeless Stayed in SROs – Which Have Disappeared
• The Towne Hotel • Demolished in the 1980s to make room for the Blue Federal Building
Loss of SRO’s in Milwaukee
• The Belmont Hotel • Demolished in the 1980s
Loss of SRO’s in Milwaukee
• The Randolph Hotel • The Antlers Hotel • The Plankinton Hotel • All were demolished in the Grand Ave. Mall Project
Poverty in Milwaukee Increases
Milwaukee Poverty is on the Rise
• Milw has the 12 th Highest Poverty Rate in the US
22% Live in Poverty 22%
• 125,000 Milwaukee residents live in poverty
78%
Results of Rising Poverty
78% Drop in Income Support to Inner City Families 1994-2003 Source: UWM Employment & Training Institute (Slides 4-8)
Results of Rising Poverty
22,400 left AFDC – But only 8,200 Showed Up with Employment
Results of Rising Poverty
22% Decline in Number of Families Receiving Food Stamps
Results of Rising Poverty
31% Increase in Working Single Parents who Remain Below Poverty
Results of Rising Poverty
70,000 Children Lose Income Support 1993-2000
Income Needed for Self Sufficiency
Category Housing Child Care A single working parent with two young children living in Milwaukee County would need to earn: Monthly Cost $ 658 $ 1,212 Food $ 411 Transportation $ 219 • • • $36,852 per Year or $17.72 per hour or 235% of Poverty Health Care Misc.
Total
$ 258 $ 276
$ 3,071
Source: WI Women’s Network – Self Sufficiency Standard for Wisconsin
Low Renter Incomes
• There are nearly 179,000 renter households in Milwaukee County • 39,000 renters have incomes at or below $11,364 (30% MFI) • Average renter Income in Milwaukee is $28,864 .
Housing Insecurity
• 35,800 renter households spend MORE THAN 50% of their income on housing 1 in 5 Renters Spend Half of Income on Housing
50%
Rent All Else
50%
• That’s 20% of all Milw Renter households
Housing Insecurity
• 69,800 renter households spend more than 30% of their income on rent 39% of Renters Spend Too Much for Housing
39%
• That’s 39% of all renter households
61%
Housing Insecurity Increases
• 14,000 Households live in Over Crowded conditions • Up 40% since 1990 • Up 76% since 1980
Affordable Housing Needs
Documenting Public Support
HUD Identifies Housing Needs
HUD cites the need of 28,000 housing units for Extremely Low Income Milwaukee families (Comprehensive Housing Affordability Survey – 2004)
Common Council Supports a National Housing Trust Fund
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In 2001, the Common Council unanimously supported a National Housing Trust Fund, stating…
“Expanding the number of units…would have a positive impact on the affordability of rental housing for low-income renters.”
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“The City expresses its support for …the establishment of a national trust fund to provide for the development, rehabilitation and preservation of decent, safe and affordable housing for low-income families…”
City Plan Calls for More Affordable Housing
The 2000 Consolidated Plan Submitted to HUD by the City states: • “Rental housing…for low income families is not readily available..” • “Large numbers of… families…cannot afford decent and reasonably priced rental housing” • “Structurally sound and up-to-date rental units for low income families are not available in all areas of the City…”
Mayor Barrett Predicts More Homelessness
Barrett warns of looming housing crisis By GEORGIA PABST
Posted: Sept. 29, 2004
• Cuts in federal assistance are creating a looming crisis for low income housing in Milwaukee, Mayor Tom Barrett and city Housing Authority officials said Wednesday.
• The cuts in federal housing assistance combined with an increasing poverty rate mean "the federal government is turning its back on low-income people," Barrett said.
• He predicted that will mean more people will double up with other family members, go to shelters or become homeless.
Source: Milwaukee Journal-Sentinel – September 29, 2004
Housing Trust Funds in America
Housing Trust Funds in USA
• More than 275 Housing Trust Funds in the US • Each raises between $1 Million to $15 Million each year • More than $500 Million spent Annually by US Housing Trust Funds
City Housing Trust Funds
Berkeley, California: Cupertino, California:
Housing Trust Fund Affordable Housing Fund
Los Angeles, California: Menlo Park, California:
Housing Trust Fund Below Market Rate Housing Reserve
Morgan Hill, California: Palo Alto, California:
Senior Housing Trust Fund The Housing Reserve
Sacramento, California: San Diego, California:
Housing Trust Fund Housing Trust Fund
San Francisco, California:
Office Affordable Housing Production Program; Hotel Tax Fund; and Bond Housing Program
Santa Monica, California:
Citywide Housing Trust Fund
West Hollywood, California: Aspen, Colorado:
Affordable Housing Trust Fund Housing Day Care Fund
Boulder, Colorado:
Community Housing Assistance Program and Affordable Housing Fund
Denver, Colorado:
Skyline Housing Fund
Longmont, Colorado:
Affordable Housing Fund
Telluride, Colorado: Tallahassee, Florida:
Housing Trust Fund Housing Trust Fund
Chicago, Illinois:
Low Income Housing Trust Fund
Bloomington, Indiana:
Housing Trust Fund
Fort Wayne, Indiana: Indianapolis, Indiana:
Central City Housing Trust Fund Housing Trust Fund
Lawrence, Kansas:
Housing Trust Fund
Boston, Massachusetts:
Neighborhood Housing Trust
Cambridge, Massachusetts: Ann Arbor, Michigan:
Housing Trust Fund Housing Trust Fund
St. Paul, Minnesota: St. Louis, Missouri:
STAR Program Housing Trust Fund
New Jersey:
142 COAH approved developer fee programs
Santa Fe, New Mexico:
Community Housing Trust
Greensboro, North Carolina:
VM Nussbaum Housing Partnership Fund
Columbus/Franklin County:
Affordable Housing Trust Fund
Toledo, Ohio:
Housing Fund
Portland, Oregon:
Housing Investment Fund
Charleston, South Carolina: Knoxville, Tennessee:
Housing Trust Fund Housing Trust Fund
Nashville, Tennessee: Austin, Texas:
Nashville Housing Fund, Inc.
Housing Trust Fund
San Antonio, Texas: Salt Lake City, Utah:
Housing Trust Housing Trust Fund
Burlington, Vermont: Alexandria, Virginia:
Housing Trust Fund Housing Trust Fund
Manassas, Virginia
: Manassas Housing Trust Fund, Inc.
Bainbridge Island, Washington:
Housing Trust Fund
Seattle, Washington:
Housing Assistance Funds
Washington, D.C.:
Housing Production Trust Fund
Benefits of a Housing Trust Fund
Every 100 Units of New Housing Will Provide Ongoing Benefits including… MORE… • Jobs • Tax Revenues • Revenue to the local economy (National Association of Home Builders)
YEARLY Housing Multiplier Effect
Benefits Each Year after construction 100 Units of Multi Family Housing 10 Units of Multi Family Housing
JOBS 46 5 Revenue to Local Business $2.2 Million Revenue to Local Government $498,000
Source: National Association of Home Builders
$220,000 $49,800
The Milwaukee Housing Trust Fund
A Proposal
Milwaukee’s Trust Fund Proposal
Fund Amount
Up to $15 Million Per Year
Use of Funds Length of Affordability Eligible Developers Advisory Board Administering Agency
New Construction, Rehab, SROs Rental housing + Services & Operating Costs •15 yrs – Rehab •20 Years – New Construction Nonprofit & For Profit Developers & Government agencies 13-15 members appointed by the Mayor and the Council Community Development Block Grant Agency
Income Eligibility for Renters & Homeowners
Funding Category % of County Median Income
(CMI = $62,600)
Rental Housing
(Development & Services)
Homeless & SRO
(Development & Services)
Homeowner Pjts
(Development & Services) Less than or equal to 50% CMI Less than or equal to 50% CMI •Services <=50% CMI •Development <= 80% CMI
% HTF Dollars Allocated per Category
40% 30% 30%
HTF Revenue Sources
• $1.00 Entertainment Event Surcharge Generates Up to $15 Million per year • $1.00 Real Estate Transfer Fee Increase
Where There’s a Will…There’s a Way
Other Tax Funded Building Projects
Miller Park
•
Cost:
$400 million.
•
Public financing:
$310 million •
Source
: five-county, one tenth-of-a-cent sales tax.
•
Private financing:
$90 million from the Brewers owners
The Bradley Center
•
Cost
: $90 Million •
Public Financing
: – City Revenue Bonds – City General Obligation Bonds •
Private Financing :
Pettit Family Equity
The Milwaukee Theatre
•
Cost
: $41.9 Million •
Public Financing :
– $5 million in existing Wisconsin Center District funds (derived from the hotel tax & rental car tax) – A bond issue, to be repaid with operating revenues
$530 Million in Tax Dollars
Milwaukee raised $530 Million in tax funds for Why can’t we raise $15 Million per year to House Milwaukee’s Homeless & Poor?
• Miller Park • The Bradley Center • The Milwaukee Theatre
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We Endorse the Milwaukee HTF
BroomTree Enterprise Catholic Charities – Archdiocese of Milw Center for Veteran’s Issues Community Advocates, Inc Counseling Center of Milwaukee, Inc (The) Daystar, Inc Fairness in Rural Lending Faith United Church of Christ Friedens Community Ministries, Inc Guest House of Milwaukee, Inc The Gathering of Southeast WI, Inc.
Harambee Ombudsman Project, Inc Hope House, Inc IndependenceFirst Interfaith Conference of Greater Milwaukee Layton Boulevard West Neighbors Martin Luther King Economic Development Corp.
Metropolitan Milwaukee Fair Housing Council Midtown Neighborhood Association Milwaukee Christian Center Milw Women & Poverty Public Education Initiative Milwaukee Women's Center, Inc.
My Home Your Home, Inc National Assoc. for Black Veterans Nonprofit Center of Milwaukee Northwest Side CDC
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Our Lady of Lourdes Congregation Our Savior’s Lutheran Church Peace Action – Wisconsin Plymouth Church – UCC Returning Into Mainstream Ministries Salvation Army School Sisters of Notre Dame – Global Justice & Peace Comm.
SDC Family Support Center Sojourner Truth House Select Milwaukee, Inc.
St. Benedict the Moor Parish St James Episcopal Church St. Martin de Porres MICAH Core Team The Open Gate Tippecanoe Presbyterian Church Tricorp Housing Urban Economic Development Assoc Walker's Point Youth & Family Center West End Development Corporation Wisconsin Community Service, Inc Wisconsin Partnership for Housing Development Wisconsin Province Society of Jesus (Jesuits) Women and Poverty Public Education Initiative World Community YMCA-CDC