Affordable Housing in Escambia County An Overview January 29, 2016
What is affordable housing? Housing is considered affordable when the household spends no more than 30% of its gross monthly income on housing costs, including mortgage or rent and essential utilities. This 30% rule is also known as the Brooke rule after Senator Edward W. Brooke III (R-MA), who co-authored the 1968 Fair Housing Act with Walter Mondale.
When is housing not affordable? Mortgage or rent + utilities > 30% income = housing cost burdened Mortgage or rent + utilities > 50% income = severely housing cost burdened
Renting and Affordability Low-income households that rent (as opposed to own) suffer the most severe housing cost burdens Nationwide, the supply of low-cost rental housing is declining Both nationally and locally, much of the available low-cost housing is old and located in neighborhoods with less access to jobs and services Older housing is less energy-efficient, putting an additional co$t burden on low-income families
Renting in Escambia County Total households* 116,238 Renter households* 40,820 Percentage of renter households* 35.1% Percentile of renters, compared to other counties* 86 th (High Renter County) Renters overburdened in Escambia County** 51.1% * Source: U.S. Census Bureau, 2010 Census ** Source: U.S. Census Bureau, 2013 American Community Survey
Solutions? Since the 1930s, Federal, state and local governments have created an array of programs to address the need for affordable housing. Affordability is tied to each geographic area s median household income and median housing costs. Our geographic area is the Pensacola-Ferry Pass-Brent Metropolitan Statistical Area, aka Escambia and Santa Rosa counties.
Major Housing Programs Housing Program Housing Choice Vouchers Project-Based Rental Assistance Public Housing Low Income Housing Tax Credit Community Development Block Grant Other FY 2014 Funding (Nationwide) $19.2 billion (HUD appropriation) $9.7 billion (HUD appropriation) $6.4 billion (HUD appropriation) $6.4 billion (estimated tax expenditure) $3 billion (HUD appropriation) $5.3 billion (HUD appropriation, USDA appropriation, or FHLB assessment)
Affordable Rental Units in Escambia County (non-voucher) Program Properties Units LIHTC (Tax Credits) 23 1,527 Project-Based Rental Assistance 15 1,480 Public Housing 4 603 Other 14 607 Total 43 3,247
Housing Choice Vouchers in Escambia County General (Section 8) vouchers allocated 2,288 VASH vouchers (for homeless veterans) allocated 157 Total vouchers allocated 2,445 Current lease-up rate (January 2016) 98% Attrition rate 8% Annual vouchers returned (projected) 192 Applicants on waiting list (January 2016) 1,497
Pensacola Housing s Role, Part 1 Pensacola Housing does not: Although we re happy to serve as a community resource, Pensacola Housing does not have a supervisory or oversight role in connection to the 43 affordable housing properties in Escambia County. When it comes to affordable housing, we re just another tentacle on the octopus. Applying for our programs also doesn t put low-income households on the waiting list for public housing, for project-based rental assistance, or at the tax credits. The households must approach each of those programs and properties separately. Applying for affordable housing is a lot of work!
Pensacola Housing s Role, Part 2 Pensacola Housing does: Administer the Housing Choice Voucher program throughout Escambia County, from application to program termination. Pay more than $1 million a month in Housing Assistance Payments to landlords in our community. Offer programs for low-income homeowners and prospective homeowners including the First Time Homebuyers Program, Housing Rehabilitation, and classes on homebuying and foreclosure prevention. Administer HOME, SHIP, and CDBG funds to revitalize older housing stock, eliminate blight, and address urgent needs within the community.
The Housing Choice Voucher Program Often considered the gold standard of affordable housing programs because it maximizes the participant s choice of where to live. Vouchers may be used in units in LIHTCs (tax credits), but may not be used in public housing or at multifamily affordable housing properties.
Voucher Program Eligibility Households at or below very low income levels (50% or less of area median income by household size) are eligible. At least 75% of the households admitted to the program each year must be at extremely low income levels (30% or less of area median income; or below the national poverty level). Pensacola Housing also screens for criminal background: no felony convictions for drug-related or violent crimes within the past 5 years; no registered sex offenders; no convictions for manufacturing methamphetamine.
The Waiting List Pensacola Housing accepts applications for the voucher program twice a month by phone only. Second Wednesday of each month: general applications. Second Thursday of each month: reserved for elderly and disabled applicants. Applicants self-declare household composition and income for placement on the waiting list. Elderly and disabled applicants must show proof of their age or disabled status if they applied on Thursday. Current wait is approximately 1.5-2 years.
Voucher Issuance Applicants who near the top of the waiting list are invited to an Intake Meeting. Third-party verifications of household composition and income must be provided at this time. Applicants then attend an Eligibility Briefing, at which program guidelines are reviewed. After the EB meeting, the voucher is issued.
Unit Selection Applicants select a unit and complete the landlord s application process. A unit anywhere in Escambia County may be selected. After one year on the program, participants may request that their voucher be transferred ( ported ) to another jurisdiction. Voucher-holders may select apartments, townhomes, duplexes/triplexes/quads, single-family homes, or mobile homes. Elderly and disabled applicants may select a unit in group housing, an ALF, etc., as a reasonable accommodation.
Unit Approval Pensacola Housing confirms that the selected unit is affordable, decent, safe and sanitary, and that the rent is reasonable. Affordable: the gross rent (rent plus tenant s utility costs) is below the Payment Standard; or, the tenant s housing costs are no more than 40% of their monthly gross rent (30% or less recommended). Decent, safe and sanitary : Pensacola Housing conducts a Housing Quality Standards (HQS) inspection. The unit must receive a Passed Inspection before the contract starts. Rent Reasonable: Pensacola Housing compares the unit to 3 similar, unassisted (that is, rented by non-voucher holders) rental units and ensures the rent is comparable.
HAP Contract When the unit has been confirmed, Pensacola Housing instructs the voucher holder to have utilities turned on in the head of household s name (except for utilities the landlord is including as part of the rent). The landlord and tenant execute a lease. The landlord brings a copy of the lease to Pensacola Housing, and the Housing Office and the landlord execute a Housing Assistance Payments Contract (HAP Contract).
Continued Assistance Program participants must participate in annual recertification to retain the voucher. Changes in income or composition must be reported promptly. Participants must comply with all program rules and with their lease. Court-ordered eviction from the assisted unit, or violation of program rules, may be grounds for termination of assistance. If assistance is terminated, the participant may request an informal hearing. Common causes of attrition: reaching financial self-sufficiency; voluntary return of the voucher; expiration of the voucher; death; failure to recertify; violation of the obligations of the family.
For More Information Pensacola Housing Office 420 W. Chase St 32502 (850) 858-0350 Web: www.cityofpensacola.com/129/housing Blog: www.cityofpensacola.com/blog.aspx?cid=2