Learning Center
Plans & pricing Sign in
Sign Out

Affordable Housing Trust Fund


 Affordable Housing
         Trust Fund
                     Rachel M. Hurst
      Director of Public Relations,
Community Education, & Advocacy
The Coalition for the Homeless, Inc.
GOAL: Create a local Affordable Housing Trust Fund generating $10
million in dedicated public revenue annually to meet the housing needs
of the working poor, disabled and elderly below 50% median income.
Why do we need an Affordable
Housing Trust Fund?
o   Federal funds are dwindling.                Community
    Development Block Grant funds are being cut every year
    at the federal level. Additionally, cuts in the funding for
    Section 8 will lose 1,793 vouchers in Kentucky. We
    cannot continue to be reliant on federal funds to house
    our working poor and our fragile populations.

o   “The ladder is broken.” –Brookings Institute
Homeless Services Utilization:
Louisville 2005
POPULATION CATEGORY       2005 count   2004 count   2003 count   2002 count

Number of persons using   11,251       11,006       11,032       10,451
  homeless services

Single Adults (male)      6,907        6,327        6,184        5,780

Single Adults (female)    2,326        1,989        1,969        1,688

Adults in Families          617          640          721          618

Children in Families        911        1,108        1,065        1,063

Unaccompanied Youths        490         942*        1,093*       1,302*

Number of households        561          551          590          553
FACT: More homeless people in
shelters in Louisville are working,
and working for very low wages.
   28% of homeless adults in Louisville shelters are working.

   Twice as many working homeless persons earn $5.99 or

   Sheltered homeless earning $10.00/hr largest increase--8.9%.

   Disabled individuals (SSI recipients) can afford no
    more than $169 for rent; however, Fair Market Rent for
    one bedroom is $438.

   Jefferson County’s Housing Wage is $10.83/hour.
FACT: People accessing
Louisville homeless services are
increasingly likely to have
completed high school or even
EDUCATION                    January January
                               2006    2005
graduated from high school   30.1%   21.4%

college diploma               7.7%    7.1%
     What’s the Cost of
Reno, NV - 2 police officers
$100,000/each,   2 people, 1 yr
ER, hospital, law enforcement
“We spent $1 m not to do
anything about him.”
Permanent Supportive
 Housing Significantly
Reduces City Expenses
 Univ. of PA: impact of PSH for CH on use of public
                   services in NY
PSH = reduction in services use of $16,281
unit/year ($40,000 vs. $23,719)

Annual   housing unit cost = $995/unit/year

shelter use, hospitals, corrections, services
4600 h. people with severe MI
3 Principles of Louisville
Affordable Housing Trust Fund
1)   Controlled locally by a decision-making
     board that guarantees consumer and
     advocate representation.
2)   Mandated to serve the lowest-income
     population: 50% AMI and below, with half
     set aside for 30% AMI and below.
3)   Funded through a dedicated, ongoing
     public revenue source. The need requires
     a $10 million annual commitment.
   In 2005, the poverty line for a family of four
    was $19,971 (CJ, Sept. 20, 2006)
   50% of Median Income for Louisville Metro is
    $21,667 (2005 ACS)
   54% of households with income below 50%
    median pay over 50% of income on housing
    costs (2005 ACS)
Poverty in the Louisville Metro 2000
African American Population
Louisville Metro 2000
Percent of All Families Headed by a Single Mother,
Louisville Metro 2000
Renters with excessive cost burdens (more than 30% of
income on rent and utilities combined), 2000
Students with
Housing Related Moves
Free, Reduced, or Paid Lunch Status
JCPS (2002-03)






Economic and Community Impact
of Affordable Housing Trust Fund
    National Association of Home Builders:
    every 100 units of housing will generate
                   each year:
   45-65 new jobs
   $2.2 million -$2.8 million in income to
    local businesses
   $384,000-498,000 in local tax revenue
     The needed $10 million annually in
   dedicated public revenue for the AHTF
     will create in Louisville each year:
 653  - 943 new jobs
 $31.9 million - $40.6 million in
  income to local business
 $5.6 million – $7.2 million in local
  tax revenue
NAHB data and creating average of 145 units with each $1m in
dedicated public revenue (KY AHTF average), with leveraging at the
lowest estimate of 6:1 (can be as much as 13:1; KY AHTF is 7:1)
Affordable Housing Attracts
and Sustains Businesses
   12 of the 20 fastest-growing occupations in
    Louisville region have employees who cannot afford
    a 2-bedroom apartment (childcare worker, home health
    aide, preschool teacher, janitor, and retail salesperson).

   Affordable housing is essential to attracting big
    business to Metro Louisville. Availability of
    affordable housing major criterion for re-location.
    Require stable, convenient housing for employees
    near their work sites.
Louisville can’t afford to pass up this
economic opportunity:
$10 million in dedicated ongoing public revenue for the
Louisville Affordable Housing Trust Fund.

      Difference to Louisville between $10 m and $1 m
       in annual dedicated ongoing public revenue is
    $97.8 million - $170.2 million MORE
           in economic impact:
$5.4 million more generated in economic growth
$54 million – $117 million more in add’l real revenue
588 – 849 additional new jobs created
$28.7 million - $36.6 million more income for local
$5 million - $6.5 million more in local tax revenue
$4.7 million more received by for-profit homebuilders
1,305 more units of affordable housing
AHTF Program special concerns:
highly targeted to prevent homelessness

all AHTF for 50% AMI and below (very low income);
set-aside for 30% AMI and below (extremely low income).
   # on waiting lists for subsidized housing is now the same
    as the current number of households being served: more
    than 13,000.
   Homeless persons are skewed towards ELI.
   10% of moderately low-income hh (51-80% AMI) have
    affordable housing needs, according to Louisville
    census, but:
   54% of our very low income hh (50% AMI or below)
    live in extremely unaffordable housing & at
    immediate risk of homelessness.
   41,000 people with greatest need, highest priority.
AHTF Program special concerns:
 Housing-related services & case management should be
named as an eligible activity for AHTF funds.
    Sustainable housing for some people takes a system of ongoing
                      support – case management.
   limits landlord-tenant issues, & foreclosure and eviction

   Funds for services and case management have sharply
    decreased, yet the need in Louisville is increasing.

   #1 barrier identified by homeless service providers
    in Louisville is lack of case management resources.

   Federal housing funds Louisville cannot access each
    year because we cannot provide required case
AHTF Revenue special concerns:
Greater than average funding critical to address Louisville’s
higher poverty rate and homelessness: $10 million/year in
dedicated ongoing public revenue is a priority.

   Louisville’s poverty rate nearly twice the
    national average: 22% vs. 12.7%
   Our poverty is segregated and concentrated:
    old city boundaries of Louisville is 3rd in
    nation just behind New Orleans. 14th
    Jefferson County.
   Now is the time to create what we really
    need-build on the current momentum and
 For more information, contact:

Rachel M. Hurst
Director of Public Relations, Community Education, & Advocacy
The Coalition for the Homeless, Inc.
1115 S. 4th St. 3rd Floor
Louisville, KY 40203
502-589-0190 x14

To top