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					                              The President’s Fiscal Year 2010 (FY 10) Budget and
                                                 Its Impact on Supportive Housing

CSH welcomes the President’s Fiscal Year 2010 (FY 10) federal budget details, which were
released on May 7. The FY 10 budget provides significant new funding across many federal
agencies that will help the production and operation of permanent supportive housing.

This document highlights portions of the budget that affect or may affect permanent housing for
the most vulnerable low-income Americans. Readers will notice both the length and breadth of
programs listed below. While CSH welcomes the opportunity to work across agencies and to
assist our partners in doing so, we recognize that strong leadership is needed to effectively
coordinate the many federal agencies’ response to homelessness in America.

Through our advocacy work, we will educate and attempt to convince Members of Congress to
meet or exceed the President’s request for programs that fund investments in supportive housing.
In addition, we look forward to working with new leaders at the U.S. Interagency Council on
Homelessness (ICH) to develop a more coordinated federal response and plan to end
homelessness in America.

Department of Housing and Urban Development
McKinney-Vento Homeless Assistance Grants
FY 08 Enacted: $1.586 billion
FY 09 Enacted: $1.677 billion
FY 10 President’ Budget: $1.794 billion
CSH Request: $2.2 billion

The President’s budget requests an increase of $117 million for the McKinney-Vento account.
While this is a more substantial increase than recent budgets have provided, it will fall short in
meeting the widely-shared goal of producing 15,000 new permanent housing units. CSH
estimates the President’s budget proposal would provide enough funds for roughly 5,000 new
units (approximately the same number likely to be produced under the FY 09 funding level).
Much of the proposed budget increase will be needed to cover the rising cost of renewing
existing permanent housing contracts.

Recently CSH helped lead advocacy efforts on a Senate Dear Colleague letter championed by
Senators Jack Reed and Mel Martinez requesting the Appropriations Committee provide $2.2
billion – sufficient funding for 15,000 new units through the McKinney-Vento program. 23
Senators signed the letter.

Corporation for Supportive Housing:
The President’s FY 10 Budget Request and Supportive Housing                        May 2009          1
National Housing Trust Fund
FY 09 Enacted: $0
FY 10 President’s Budget: $1 billion mandatory appropriation

CSH was a founding member of the National Housing Trust Fund (NHTF) campaign. Under the
Housing and Economic Recovery Act that passed in 2008 and created the Fund, a portion of the
value of Fannie Mae and Freddie Mac’s new business will be transferred to the NHTF.
Unfortunately, due to concerns about Fannie and Freddie’s financial stability, payments to the
NHTF have been suspended.

As the Campaign continues to work with Congress to establish new lines of dedicated funding,
we are grateful the Administration’s budget proposes $1 billion in initial capitalization of the
NHTF. This funding is being provided as a mandatory appropriation, meaning that it must be
approved by legislation originating in one of the authorizing committees, rather than the
Appropriations Committee.

Section 8 Housing Choice Vouchers
FY 09 Enacted: $ 16.82 billion
FY 10 President’s Budget: $17.84 billion

FY 09 Enacted Set Aside for VA Supportive Housing Vouchers (VASH): $75 million
FY 10 President’s Budget: $0

FY 09 Enacted Set Aside for Family Unification Vouchers (FUP): $20 million
FY 10 President’s Budget: $0

The Administration’s request of $17.84 billion for Section 8 vouchers is estimated to be enough
to renew the approximately 2.03 million vouchers being utilized at the end of 2008. Although
the President’s budget does not explicitly call for any new vouchers, several proposed changes
allow it to assert that more families will be served.

The Budget proposes to lift the cap on the number of vouchers a Housing Authority may issue.
In other words, PHAs will be encouraged to serve as many families as possible with the funds
provided and will not be subject to “overleasing.” To further fund additional vouchers being
allocated, HUD will not recapture unused voucher funds to the federal treasury as it has done in
years passed; rather, these funds will be reallocated to PHAs that are able to spend the funds by
leasing additional vouchers. CSH supports these proposed changes and believes they will
improve program administration. Whether this new mechanism will result in more families
being served in 2010 is not a certainty; the actual change in voucher holders remains to be seen.

The Project-Based Section 8 Account is proposed to be increased by $1 billion to $8.1 billion in
FY 10. This funding should be sufficient to provide 12-month renewals for Section 8 contracts,
and will place this account on much firmer footing than it has been in the past.

Corporation for Supportive Housing:
The President’s FY 10 Budget Request and Supportive Housing                      May 2009          2
HOPE VI/Choice Neighborhoods Initiative
FY 09 Enacted Funding for the HOPE VI Program: $120 million
FY 10 President’s Budget for HOPE VI: $0
FY 10 President’s Budget for Choice Neighborhoods: $250 million

The President’s budget again suggests the elimination of the HOPE VI program, but unlike
previous years proposes a new “Choice Neighborhoods Initiative” -- a more comprehensive
program to revitalize neighborhoods. CSH will monitor progress on developing this program
and try to identify opportunities to integrate supportive housing in these neighborhoods.

The Administration intends to propose legislation to more comprehensively outline the new
program, but according to budget documents it will provide grants for the transformation and
preservation of public and assisted housing, as well as affordable housing and community
development in surrounding neighborhoods. The program will also implement rent and work
incentives to help public and assisted housing residents access jobs and move to self-sufficiency.
HUD will work with other Federal agencies, including the Departments of Education,
Transportation, Health and Human Services, and the Environmental Protection Agency, to
leverage additional resources.

Potential grantees would include non-profit intermediaries and private firms, as well as
governments and public housing agencies.

Other HUD Programs
FY 09 Enacted: $310 Million
FY 10 President’s Budget: $310 Million

Section 202 – Housing for the Elderly
FY 09 Enacted: $765 million
FY 10 President’s Budget: $765 million

Section 811 – Housing for Persons with Disabilities
FY 09 Enacted: $250 million
FY 10 President’s Budget: $250 million

Public Housing Capital Fund
FY 09 Enacted: $2.45 billion
FY 10 President’s Budget: $2.24*
* Note - $4 billion was provided earlier this year as part of the American Recovery and Reinvestment Act

Corporation for Supportive Housing:
The President’s FY 10 Budget Request and Supportive Housing                                    May 2009    3
Department of Health and Human Services (HHS)
SAMHSA Competitive Grants
FY 09 Enacted: $75 million
FY 10 President’s Budget: $75 million
CSH Request: $120 million

PATH Program
FY 09 Enacted: $60 million
FY 10 President’s Budget: $68 million
CSH Request: $75 million

Recognizing supportive services are the linchpin to effectively running permanent supportive
housing and ending homelessness for people with disabilities, CSH is again partnering with
several other organizations to increase services funding in the HHS Budget. We focus both on a
competitive grant program, which is divided between two Centers at SAMHSA, and the PATH
program, which distributes funds by formula to states.

The President’s request would provide level funding from the FY 09 amount allocated in last
year’s appropriation bill. The proposed budget would fund only 29 new grants for services in
supportive housing or other treatment services for homeless people – far short of the number of
grants needed to help communities provide services in new supportive housing projects that will
be opening in the next year. CSH and our partners are urging Congress to provide $120
million in SAMHSA competitive homeless grants ($45 million more than in FY 09). This
funding is for essential mental health and substance use treatment services linked to permanent
supportive housing for chronically homeless individuals and families and other programs
targeted to homeless families, youth and individuals. These grants are particularly important at a
time when budget crises limit the capacity of states and local governments to fund these services.

PATH grants receive a substantial increase from $60 million to $68 million in the President’s
budget. HHS anticipates serving an additional 11,000 individuals facing homelessness with
theses funds. CSH is urging $75 million in funding to build on the President’s request and to
ensure that those states that have received the minimum formula allocation for several years can
expand access to services.

Department of Justice
Second Chance Act
FY 09 Enacted: $25 million
FY 10 President’s Request: $100

CSH is very pleased to see a proposed $100 million investment in the Second Chance Act –
legislation CSH advocated for to help reduce recidivism and help ex-offenders transition back
into communities. A portion of these grants may be used for housing. The proposed $100
million will support offender reentry programs and research, including adult and juvenile
offender demonstration projects and mentoring grants to nonprofit organizations. The Office of

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The President’s FY 10 Budget Request and Supportive Housing                      May 2009       4
Justice Programs at the Department of Justice will coordinate this initiative with the Department
of Labor's Employment and Training Administration, which is also requesting funding for
activities under the Second Chance Act.

Department of Treasury
CDFI Program
FY 09 Enacted: $52.2 million
FY 10 President’s Request: $113.6 million

Capital Magnet Fund (CMF)
FY 09 Enacted: $0
FY 10 President’s Request: $80 million

The President’s budget requests a significant increase in the CDFI Fund, which houses both the
CDFI Program, as well as a newly created Capital Magnet Fund. CSH is a Community
Development Financial Institution, which makes the organization eligible to apply for grants
from the Treasury Department’s CDFI program. CSH meets the program goals through our
lending activities – primarily applying CDFI funds to provide small project initiation loans to
organizations looking to develop permanent supportive housing.

In addition to increased funding for the CDFI program, the Budget proposes to waive the current
3-year, $5 million award cap for 2010, and also proposes to suspend the 1:1 matching
requirement. As a strong competitor for this competition, CSH welcomes these proposals.

The Capital Magnet Fund (CMF) is a newly authorized program that will be administered by the
CDFI Fund beginning in FY 2010, and is proposed to receive an initial $80 million
capitalization. The CMF was created at the same time as the National Housing Trust Fund and
with the same funding stream from Fannie Mae and Freddie Mac. The purpose of the CMF is to
increase capital investment for the development, preservation, rehabilitation, or the purchase of
affordable housing for low-, very low-, and extremely low-income families, and related
economic development activities.

Department of Labor
Homeless Veterans Reintegration Program
FY 09 Enacted: $26 million
FY 10 President’s Budget: $35 million

The Homeless Veterans' Reintegration Program (HVRP) provides grants to States or other public
entities, as well as to non-profits. Grant awards enable grantees to operate employment
programs to reach out to homeless veterans and help them become employed.

For additional information, please contact Jordan Press, CSH’s Director of Federal Policy at or 202/393-1079.

Corporation for Supportive Housing:
The President’s FY 10 Budget Request and Supportive Housing                              May 2009   5

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