Fund the Fund. Investing in Pennsylvania s Communities. April 23, 2013

Transcription

1 Fund the Fund Investing in Pennsylvania s Communities April 23, 2013

2 Invest in the Housing Trust Fund Create Jobs Strengthen the rental market HTF Reduce Reduce Blight Prevent Homelessness Support Homeowners

3 Creating Jobs through Housing Investments Every $25 million invested in the housing market, in addition to providing homes for families in need, creates: up to $57 million in economic impact; up to 500 jobs; and state tax revenues of up to $2.9 million.

4 Creating Jobs through Housing Investments Every dollar invested in the housing market grows the economy. For new construction of single family homes, $1M $1.62M; 14.2 jobs; $82,000 in tax revenue. For new construction of multifamily homes, $1M $1.69M; 14.8 jobs; $86,000 in tax revenue. For rehab and remodeling, $1M $2.28M; 20 jobs; $116,000 in tax revenue.

5 Reducing Blight through Housing Investments Blighted properties cause disinvestment, lost tax revenue, and decreased property values. There are approximately 300,000 vacant properties across Pennsylvania. [H]ousing within 150 feet of an abandoned unit experienced a net decrease in sales price of $7,627. More than 40% of PA s homes are over 40 years old. Vacant property rehab, homeowner repair, and rental rehab programs all contribute to community revitalization, family stability, and jobs.

6 Supporting Homeowners through Housing Investments Even after the crash, PA s homeownership rate is still 69.5%. (2011) 17 percent of homeowners have incomes of less than $20,000 a year. (2000) 1/3 of homeowners pay more than 30% of their income for housing. (2011) More than 40% of PA s homes are over 40 years old.

7 Supporting Homeowners through Housing Investments Pre-purchase counseling means homeowners are 33% less likely to default. Home repair program prevent abandonment. Homeownership allows families with modest means to build wealth.

8 Preventing and Reducing Homelessness through Housing Investments More than 20,000 children are homeless in PA. Approximately 13% of homeless adults are veterans. The number of elderly people who are homeless is increasing. 66% of people released from prison without stable housing were re-arrested within 12 months of release, compared to 25% of those who did have housing.

9 Preventing and Reducing Homelessness through Housing Investments Most homelessness is economic people simply cannot afford a place to live. A minimum wage worker can only afford $377/month. SSI of $696/month = 99% of the average one bedroom apartment in PA. 25% of Pennsylvania households have incomes under $25,000 a year. Rental vouchers, rental rehab, and new subsidized developments bridge the gap.

10 Preventing and Reducing Homelessness through Housing Investments The chronically homeless with mental health and substance abuse problems also benefit from affordable homes. Housing First or Rapid Re-Housing reduces costly hospitalizations and other community services and allows them to recover more quickly. Massachusetts Home and Healthy for Good (Housing First) program resulted in a 74% decrease in the cost of community services provided to clients, and an overall savings of 28% after the cost of housing was factored in.

11 Strengthening the Rental Market through Housing Investments There is a shortage of 220,000 rental homes that are both affordable and available to extremely low income households (about $20,000 or less). A minimum wage worker can only afford $377/month. 51.4% of renters pay more than 30% of their income for housing.

12 Strengthening the Rental Market through Housing Investments In Pennsylvania in 2010, PHFA s Low Income Housing Tax Credit Program: Produced 69 developments, 2,544 homes (1/2 for seniors) Created 3,104 construction and 763 permanent jobs Leveraged over $200M in new private investment Rental vouchers and rental rehab programs support the private market.

13 Fund the Housing Trust Fund What is the Housing Trust Fund? An HTF is a dedicated source of revenue to expand the availability of homes within reach of low income Pennsylvanians. PA Housing Affordability and Rehabilitation Enhancement (PHARE) Fund was established in 2010, but without funding. PHARE was funded in 2012 from Marcellus Shale Impact Fees, but only for Shale counties. Statewide funding is needed to address homelessness, support low income homeowners, and expand the rental market for low wage workers and people on fixed incomes.

14 Fund the Housing Trust Fund PHARE is administered by the PA Housing Finance Agency (PHFA) with efficiency and accountability applications due June awards: $7.6M for: Rental rehab Historic rehab for rental homes Rental new construction, family, senior and homeless veterans Rental assistance for rapid rehousing Homeowner repair Homeowner new construction Housing counseling Demolition

15 Fund the Housing Trust Fund Campaign for Statewide Funding Goal: $25M annually in dedicated revenue Strategy: Build a strong and diverse statewide coalition to get the message out and create legislative support.

16 Fund the Housing Trust Fund Potential revenue sources: 1% surcharge on property insurance premiums 50 surcharge on each gallon of paint or finish sold 2% surcharge on title insurance premiums increase in recording fees new tax credit other ideas

17 Fund the Housing Trust Fund Nuts & Bolts Or What You Can Do to Move the Campaign Forward Committees: Legislative Strategy April 29, 1:00 Coalition Building May 1, 1:00 Communications May 2, 1:00

18 Fund the Housing Trust Fund Joint House and Senate hearings Pittsburgh May 29, 10:00 Reading June 6, 10:00 York June 13, 10:00 Regional Forums Local Housing and Homeless Coalitions

19 Fund the Housing Trust Fund Educating your senator and representative District visits Home Matters Day June 12, 11:00 in the Capitol Rotunda Press conference lobbying

20 Fund the Housing Trust Fund The Campaign 1) How we win 2) What we know 3) What we have done so far

21 Fund the Housing Trust Fund Housing Alliance of Pennsylvania