Following
discussions and exploration over the past year, I have been working
on further policy analysis to seek a “one fits all policy” to
deal with the radical changes in the Burlington, Chittenden County,
and Vermont housing market. Part of the housing assistance needs
involves folding in populations left out of the dominant federal
programs particularly lower income senior homeowners as well as acute
housing needs of falling through the cracks in the Department of
Corrections, the Department of Mental Health, our hospitals, and the
obvious needs of the homeless.
The
lack of a unifying housing policy at all levels, the need for
State/local funding starting with the Governor's Poverty Council
recommendation for the $2 a night lodging fee as a funding source,
and finally, recognizing the value as well as limitation of current
State efforts using non-profit housing agencies—all are summarized
in a three part policy which is hereby recommended as a starting
point for discussion for all to consider and support.
Below
please find a general background piece to the short brief policy,
attached.
Prefatory
Note:
At
two major Burlington housing developments in process--311 apartments
in Sinex's Town Center and Cambrian Rise 735 apartments which total
over 1,000—not a single homeless person or very low income
household receives “affordable housing assistance” (federal very
low income limit for a family of three, $37,100).
Any
“affordable housing assistance”--30% of household income maximum
for rent—for the homeless and very low income gets drawn
almost completely from the existing Vermont pool of federal units.
The 20%+ in these two projects of “inclusionary zoning” (IZ)
apartments priced--for example at $1,200 monthly for a
2-bedroom--mostly serve middle income households which includes just
the upper range of $49,000 to $59,000 income for a family of three in
the federal “low income” schedule for Burlington metro area.
(Note
$59,000 income is about 80% of the median income for 3-person
families, the upper level for federal "affordable housing
assistance" [AHA].)
Introduction
and Larger Background
Attached
please find a draft wording of a three-part universal housing policy,
an interim “no regrets” vehicle, which directly addresses a
Burlington and State need for an “affordable housing assistance”
(AHA) program built around a $2 nightly lodging fee.
The
lack of a clear State or Burlington housing policy makes informed
discussion very difficult. A policy analyst must scramble to find
available key data in a radically changed housing market from even
three years ago. The housing market itself and needs change as the
housing market emerged from the Great Recession and building began in
earnest about 2015 while federal housing dollars stagnation over the
past decade now demands Burlington and Vermont state programming to
meet unrelenting needs.
At
the State level housing needs policies rests on data sources of 2014
and prior. Since that time in Burlington alone boasts about 3,000
apartments built or well into development which expands the rental
housing over 30% (for examples over 1,000 units alone in Burlington
Town Center and Cambrian Rise). Since 2015 the decades long 1-2%
rental vacancy rates suddenly escalated in the City and solidly
reside at or above a healthy 3-5% range of the total rental
inventory. ( For the data base of current State policies see p 9
footnote 3
http://accd.vermont.gov/sites/accdnew/files/documents/2017%20Housing%20Budget%20and%20Investments%20Report.pdf
)
Basic
housing needs in Chittenden County have shifted from a lack of supply
of housing and affordability to the single track need for “affordable
housing assistance” (AHA). “Affordable housing assistance”
means in federal and housing community language a home where rent or
ownership costs consume no more than 30% of household income. In
Vermont there are 13,000 units of “affordable housing
assistance”--about one in six renters benefiting—primarily in the
form of federal Section 8, Public Housing and “Housing Choice
Vouchers” administered by our State and local housing authorities.
Why
is Housing Different?
Housing
for Vermont families differs from food and medical care, both
entitlements ultimately guaranteed now by federal programs and
monies. Housing remains a scramble for limited “affordable housing
assistance” (AHA) and the twin need, lack of household protection
from loss of housing from changed economic circumstances also
provided in “affordable housing assistance,” i.e., a decline in
income is matched by a decreased rent. Today there are no
significant State and local AHA programs.
The
roughly 2,000 on waiting lists today in Chittenden County and
Burlington for what assistance is available testifies to that fact
that affordable housing assistance is a critical and unaddressed
need. More importantly with stagnant incomes for three decades now
and cost of housing relatively higher, housing—already the biggest
cost in the typical household budget—can no longer be ignored in
State and City human service programming. Today a new element is
added, the presence of ever increasing numbers of senior homeowners
on fixed incomes unable to age in place. Something must be done.
The
Dollar Dimensions
The
State of Vermont housing programs provide very little AHA. The 13,000
AHA units in Vermont represent a $104 million in federal funds. In
2017 other federal assistance like Community Development Block Grants
and homeownership subsidy amounted to $8.6 million. State fragmented
housing assistance initiatives—very little long term AHA—amounts
at most to $10 million.
The
attached brief “background” and three basic policies provides a
starting point for discussion and three interim policy directions
until a through State and City policy development process takes
place. We cannot even begin to address housing needs without a stable
and significant amount of funding. A City initiative might fund 5 to
15 units pilot of “affordable housing assistance” (AHA)--equal in
cost to a single professional position at City Hall. A State program,
already recommended by the Governor's Pathways from Poverty in 2016
and considered at last session, consists of a $2 nightly lodging fee
mostly paid by out-of-state visitors which would fund over 1,000
units of “affordable housing assistance” (AHA).
A
State AHA program also directly addresses a number of existing
patchwork housing efforts provided by hospitals, the prison system,
and the mental health agencies—three major government areas where
housing is being provided in the community so the key organizations
can avoid the huge financial burden of in-facility service because no
AHA is available. The Department of Mental Health, Department of
Corrections and hospitals hold individuals at great expense who only
need a place to live with AHA support at a cost of about $9,000
yearly versus $62,000 for a Vermont prisoner with hospital stays of
all type well above.
The
three policies call for:
1.
carrying out a State and City housing policy plan process
2.
starting a statewide program of “affordable housing assistance”
(AHA) employing a $2 a night lodging fee serving over 1,000 low
income households, senior homeowners and renters in need, and the
homeless
3.
continued support for housing development through “inclusionary
zoning” practice by Burlington and housing development by
non-profit housing agencies like Champlain Housing Trust and
senior/disabled houser Cathedral Corporation. Unless paired some or
all “affordable housing assistance” these programs serve almost
exclusively moderate and middle income households.
THE ATTACHMENT:
1/7/2018
Draft
A
Universal Vermont and Burlington City Housing Policy Statement
Background:
Federal
entitlement programs today insuring all households basic food
security and health care. But no Federal “affordable housing
assistance” (AHA) entitlement program exists. Federal truly
“affordable housing assistance” is limited here in Vermont to
13,000 low income and disabled rental households—about one in six
renters. Popularly known as Public Housing, Section 8 and Housing
Choice Vouchers, “affordable housing assistance” (AHA) defined
by the U.S. government means a household pays at most 30% of income
for housing with rent adjusted downward if income declines.
“Affordable housing assistance” is by design a “livable rent or
ownership” also providing “shelter security” for recipients who
know a sudden change in income does not threaten shelter loss. Truly
“affordable housing assistance” remains a huge unmet need.
There
exists no expectation the federal programs will expand to meet State
and local needs. Both homeowners and renters face housing
affordability challenge and any program must address both. The
rapidly growing number of senior homeowners on fixed income pose a
new concern as this group cannot be served by current programs. In
Burlington alone over 1,000 wait on lists for existing “affordable
housing assistance” and Cathedral Corporation serving seniors and
the disabled in Chittenden County waiting lists tops 700 applicants
seeking Federal “affordable housing assistance” or non-profit
moderate income housing.
Three
Overarching Policies for Today
Establish
a clear and comprehensive set of (City) (State) housing policies and
measurable objectives focused on the low income and the disabled
Dedicate
funds from a State $2 nightly lodging fee to create an “affordable
housing assistance” program based on need for low income seniors and families as well as disabled Vermonters (30% of household income maximum adjusted if
income declines). This program includes a homeowner component.
Advance
non-profit and other housing development public policies and
programs benefiting moderate income Vermonters.
A
base document outlining Vermont housing information and programs:
“2017 Vermont Housing Budget and Investment Report” Vermont
Department of Housing and Community Development
http://accd.vermont.gov/sites/accdnew/files/documents/2017%20Housing%20Budget%20and%20Investments%20Report.pdf