Housing Trust Funds

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Housing Trust Funds

• Mary E. Brooks
• Housing Trust Fund Project
• Center for Community Change
• 1113 Cougar Court
• Frazier Park, CA 93225
• 661-245-0318
• mbrooks_at_communitychange.org

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Housing Trust Funds advancing how we fund
affordable housing

• Securing dedicated sources of public revenue.

• Committing that revenue to support critical
  housing needs.

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Today there are 600 housing trust funds
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There are 38 states with housing trust funds
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Homeless Trust Funds
Homeless trust funds have been created in
Washington Nebraska New Jersey Georgia
Wisconsin Dade County, FL Kalamazoo City
County, MI and counties in Missouri.

• Other housing trust funds commit some resources
  to address the needs of the homeless population.
• Ten year plans to end homelessness are connecting
  to housing trust funds.

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How Housing Trust Funds Work
Legislation or Ordinance
Establishes the Housing Trust Fund
Administration Agency or Department Oversight
Board
Dedicated Revenue Sources Taxes or Fees Program
Generated Revenue Interest Earned Other Revenues
Programs Distribution of Funds Program
Requirements Eligible Applicants Eligible Uses
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Administration

• Virtually all housing trust funds are
  administered by staff of a public agency or
  department.

• Most housing trust funds have some kind of
  oversight board.
• They may be either decision-making or advisory
  boards.
• These boards are appointed and have broad
  representation from the affordable housing
  community.

• Administrative costs can be paid from trust
  fund revenues or other public funds.

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Programs

• Funds are awarded either through a request for
  proposal process a notification of funding
  availability or direct funding of specific
  programs.
• Funds are available either as grants or loans
  and/or other sources of financing.
• The application process may be combined with
  other available sources of affordable housing
  funds, such as HOME, CDBG, etc.

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Program Requirements

• Eligible Applicants nonprofit developers,
  for-profit developers, housing authorities,
  governments, Native American tribes, etc.
• Eligible Uses acquisition, new construction,
  rehabilitation, predevelopment costs, housing
  related services, operating costs, capacity
  building, rental assistance, foreclosure
  assistance, etc.

• Application Requirements income targeting to
  control who benefits, long term affordability,
  accessibility, leveraging, etc.

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States CommitPublic Revenue Sources
Real estate transfer tax Florida, Hawaii,
Illinois, Maine, Nebraska, Nevada, New Jersey,
South Carolina, Vermont Interest from escrow
accounts Connecticut, Maryland, Minnesota,
Washington, Wisconsin Document recording
fees Delaware, Illinois, Kentucky, Missouri,
Ohio, Washington Lottery earnings Oregon

Interest from Unclaimed, Unnamed Property
Fund Arizona Bond and fee revenues Kansas,
Nevada, New Hampshire Capital budget
funds Washington

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State Housing Trust Fund Revenues
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Top State Housing Trust Funds

• Florida Documentary stamp tax
• New Jersey Real estate transfer tax
• District of Columbia Deed recordation transfer
  tax
• Illinois Real estate transfer tax
• Washington Capitol budget
• New Jersey SN Bonds backed by traffic fines
• Ohio Document recording fee
• Arizona Unnamed, unclaimed property fund
• Illinois RS Document recording fee

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Cities and Counties CommitDozens of New Revenue
Sources

• document recording fees
• real estate excise tax
• sale of government owned land
• condominium conversion fees
• contributions from tax-exempt mortgage revenue
  bond projects
• hotel/motel taxes
• filing fees property sales disclosure forms
• building permit fees
• real estate transfer taxes
• impact fee on new commercial construction
• tax increment revenues

• parking garage proceeds
• restaurant tax
• inclusionary zoning in-lieu fees
• property tax
• sales tax
• court settlements
• casino revenues

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City Housing Trust Funds Revenue Generated
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County Housing Trust FundsRevenues Generated
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Why Dedicate Public Revenues to Affordable Housing

• Affordable housing is fundamental to the health
  of any city.
• The private market cannot respond to homes that
  require subsidies.
• Affordable housing needs are constant as long as
  wages continue to lag behind.
• Affordable housing requires long-term planning
  and investment.

• Affordable housing cannot be dependent on budget
  surpluses.

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States with Enabling Legislation
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California and Iowa Fund Local Housing Trust
Funds

• California voters approve bond initiative that
  includes 25 million for local housing trust
  funds.

Iowa passes legislation committing 800,000 to
local housing trust funds.
Affordable housing in California
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PennsylvaniaAct 137

• Enables county
• commissioners to double
• recording fees for deeds
• and mortgages.
• At least 85 must be set
• aside in a separate account.
• Funds must be used to support affordable housing
  efforts in the county.
• 15 may be used for administrative costs
  associated with affordable housing.

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Washington Enables Local Housing Trust Funds

• Washington HB2060 authorizes an increase in the
  document recording fee charged by counties.

• 60 of the funds stay with counties and 40 goes
  into state fund for operating and maintenance
  costs of housing serving very low income persons.
  
• 27 counties have responded

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Washington D.C. Housing Production Trust Fund

• Created in 2001 with revenues from the deed and
  recordation taxes.
• More than 5,000 units have been supported.
• 40 goes to very low income households.

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Ohio Housing Trust Fund

• Dedicates the recordation fee for states trust
  fund, capped at 50 million annual revenue.
• A majority of the funds serve those earning no
  more than 50 of the area median income.
• In FY2005 home repair of 1,972 units
  supportive services with housing for 5,632
  persons down payment assistance for 289
  households and construction of 977 homes.

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Illinois Affordable Housing Trust Fund

• Created in 1989 and receives 50 of the states
  real estate transfer tax revenues providing as
  much as 60 million annually.

• Funds new construction and rehabilitation down
  payment/closing cost program owner-occupied
  rehab program and multi-family projects.

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Washington Housing Trust Fund

• Created in 1987 to fill the gap created by
  diminishing federal funds.
• Has invested more than 420 million in housing
  creating 26,500 homes.

Bryant House

• Leveraged more than 1,660 million in private
  and public sector support.

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Missouri Housing Trust Fund

• Created in 1994. Receives document recording
  fee revenue of approximately 6 million each
  year.
• Uses a consolidated application form for the
  Housing Trust Fund, HOME funds, and other MHDC
  fund balances.

• Addresses housing needs of those earning no more
  than 50 of area median income with half of the
  funds serving 25 of ami.
• Last year, they assisted more than 200 housing
  programs.

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South Carolina Housing Trust Fund

• Commits 16 million a year to
• Emergency repair
• Owner occupied rehabilitation
• Homeownership
• Acquisition
• Rental
• Supportive housing and
• Group homes.

• Collects revenues from the state real estate
  transfer tax.

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Arizona Housing Trust Fund

• Created in 1988 with revenues from the 35 of the
  states unnamed, unclaimed property fund.
• Since 1998, the Fund has received 55 of the fund
  contingent on the additional funds being
  dedicated to rural areas of the state.

The Fund receives about 20 million annually in
dedicated revenues.
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Vermonts Housing and Conservation Board

• Dual purpose of supporting affordable housing
  and conserving open space and agricultural lands.

• Funded through a dedicated portion of the
  Property transfer tax and Capital Bond funds,
  along with General Fund surpluses.
• Celebrating its 20th anniversary
• 200 million in grants and loans
• More than 1,200 projects in 220 towns
• 750 million leveraged from other private and
  public sources
• 8,500 units of affordable housing created and/or
  preserved.

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Housing Trust Funds

• Mary E. Brooks
• Housing Trust Fund Project
• Center for Community Change
• 1113 Cougar Court
• Frazier Park, CA 93225
• 661-245-0318
• mbrooks_at_communitychange.org

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Chicago Creates Low Income Housing Trust Fund

• All funding supports households earning 30 of
  area median income or less.

A majority of the funds provide rental assistance.
Funds also support homeless initiatives and
essential services.
Chicago Department of Housing
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Illinois Rental Housing Support Program

• Grants to local administering agencies to provide
  subsidies to landlords that will make housing
  units affordable.
• Grants to developers to provide long-term
  operating support for housing.
• Units must serve extremely and severely low
  income households.
• At least 10 must serve long term operating
  support and 20 to rural areas.

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New Jersey Special Needs Housing Trust Fund

• Funded with 200 million commitment of bonds
  backed by proceeds from moving motor vehicle
  surcharges.
• Funds are used to develop permanent supportive
  and other housing for persons with special needs.

• Its goal is to help create 10,000 new
  meaningful affordable housing alternatives.

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Nebraska Homeless Assistance Program

• Combines NHAP and HUDs Emergency Shelter Grant
  Program.
• In 2004, the Program provided nearly 2,500,000
  from NHAP and another 300,000 from ESGP.
• Programs support housing, crisis centers, youth
  services, temporary housing, and much more.

About NHAP
History, Purpose Funding Priorities of Nebraska Homeless Assistance Program
History of Nebraska Commission on Housing Homelessness
Continuums of Care
Hunger Homeless Week
Funding, Application for Funding, and Reporting
Nebraska's Plan to Address Homelessness
Rental Housing Search
Useful Links

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Georgia Trust Fund for the Homeless

• Provided 900,000 to supplement Shelter Plus Care
  
• funds from HUD.
• Supported the development of Progressive Hope
  House (a 70-bed substance abuse treatment
  facility).
• Made staff support available to develop a State
• continuum of Care Plan, resulting 9.2 million
  dollars
• in funding for 28 projects
• state-wide.
• Advanced the states system
• of permanent supported
• housing for persons with
• disabilities, especially those
• with long homelessness.

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Dade County, Florida Homeless Trust

• Created in 1993 to increase the availability of
  housing and services to the homeless population.
• Approximately 37 million a year food and
  beverage tax (11 million) HUD funding (20
  million) state and private sector contributions.
• Partners with Community Partnership for Homeless
  creating Homeless Assistance Centers.

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Washington Homelessness Housing and Assistance
Program

• 45 million annually from document recording fees
  (HB 2163 and HB 1359)
• 60 stays with counties for ten year plan
  implementation 40 goes to the states
  Homelessness Grant Assistance Program
• Ten counties will implement projects to reduce
  homelessness demonstrating systems change through
  integration with criminal justice, social
  service, health, and other state and local
  systems and
• In 2007, will introduce peer-to-peer assistance
  model among HGAP awardees.

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St. Louis County, MissouriHomeless Service
Program

• The Emergency Shelter Hotline.
• Referrals to emergency shelter,
  rent/mortgage/utility assistance, or other
  service referrals.
• The Hotline is jointly funded by the City of
  Saint Louis and Saint Louis County.
• A course of action to return them to permanent
  housing and independence.

• Six social service agencies administer grants
  conduct classes identify available, affordable
  housing and follow-up with families to prevent
  housing crisis.

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Active and emerging housing trust fund campaigns
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Housing trust funds give affordable housing a new
face

• Recognize that the most critical housing needs
  must be addressed.
• Incorporate sustainable housing principles
  accessibility, long-term affordability, green
  housing.

• Leverage funding (15-10) bringing in
  additional resources to Louisville.

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Housing is good for the Economy

• The argument shifts

Lee County, Florida documented that the need for
more affordable housing costs the County more
than 249 million annually!

• The economic impact of Philadelphias trust fund
  is expected to reach
• Nearly 2,600 jobs statewide each year.
• 80 million in wages every year.
• Increased city and state taxes.

NAHB documents 1,000 multi-family homes generates
1,000 full time jobs, 33.5 million in wages,
and 17.8 million in tax revenues and fees.
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Economic Benefits of aColorado Housing Trust Fund

• An investment of 26.5 million would produce
• More than 3,200 new jobs each year.
• More than 334 million of economic activity each
  year.
• Formerly rent-burdened households will have an
  average of 2,460 of annual income per household
  to spend.
• New economic activity will generate more than
  26 million of annual tax revenues.

An Investment in Colorados Future
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Housing is Good for Communities

• Education
• Higher school-mobility rates affect the entire
  system and cause the most harm to children whose
  families have low incomes.
• Housing instability can have a direct impact on
  a childs education.
• Frequent moves can have a negative effect on
  school achievement.

• Health
• Pest infestation is known to cause asthma.
• Substandard electrical problems are a danger to
  children.
• Lead poisoning leads to a decrease in IQs.
• Children living in inadequate housing have
  increased hospitalizations and respiratory
  infections.

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Reframing the Affordable Housing Debate

• Affordable housing is at the heart of a healthy
  community.
• Connect housing to other issues wages,
  health, education.
• Its not about the money its about
  priorities.

We Need the People Who Need Affordable Housing
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Another rent increase. Another new
neighborhood. Another year behind in school.
HousingMinnesota www.HousingMinnesota.org
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The Sustainability of Housing Trust Funds

• An on-going government commitment of public
  funds.
• A community-based process to create and sustain
  the fund.
• A component of housing policy that drives
  innovation and cooperation.
• A flexible model that can adapt to changing
  market conditions.