HOME Line :: Organizing :: Public Policy

Federal

Support adequate funding for Project-Based Section 8 contracts

Encourage Minnesota's congressional delegation to work together to ensure our state is adequately housed

Support the Section 8 Voucher Program

Support the National Housing Trust Fund


State


Dedicated funding: Housing Solutions Act

Oppose cuts to Minnesota's Renters Credit


Local


Dedicated funding for the Minneapolis Affordable Housing Trust Fund

 

Federal Policy


At the federal level, HOME line is an active participant in national policy issues.

Support adequate funding for Project-Based Section 8 contracts

We are very concerned about an emerging crisis in the project-based Section 8 program administered by the Department of Housing and Urban Development (HUD), which could lead to massive displacement of low income families and the loss of hundreds of thousands of thousands of affordable apartments. This matter must be addressed by passage of a supplemental appropriation of $2.4 billion during FY 2008, either from funds currently available under the FY 2008 budget resolution or from an emergency supplemental appropriation.

 

The project-based Section 8 program houses 1.3 million American households, most of whom are elderly and/or disabled. Under this program, private property owners partner with the government to provide housing to these vulnerable, low income families, who pay 30% of their income on rent; the government pays the difference to the owners, averaging more than twice what these low income tenants can afford. More than 1.1 million of these families are assisted by contracts which are subject to annual appropriation by Congress. For the entire history of the Section 8 program, Congress has voted sufficient funds to ensure renewal or funding of each contract for one year.


Unfortunately, for FY 2007 and 2008, the Administration underestimated its needs for this program, resulting in an inadequate appropriation in both FY 2007 ($5.9 billion) and FY 2008 ($6.14 billion). As a result, HUD was unable to meet its contractual obligations for annual renewals as early as July 2007, resulting in late payments to many owners. To avert catastrophe, HUD resorted to emergency stop-gap measures, transferring funds from other accounts and asking owners to sign one year contracts funded for only 3- or 4- months at a time. This approach has left owners and their lenders (including HUD insured mortgagees) with little guarantee that they can maintain their properties, and continue to provide affordable housing.

 

On November 16, 2007, HUD acknowledged to the House Financial Services Committee that the amount needed to fully fund all Section 8 contracts for one year is $2.0 billion more than the amount appropriated for FY 2008. Current projections for the 2008 shortfall have risen to $2.4 billion. As a result, according to HUD staff, HUD is “short funding” all contracts renewed during FY 2008, with all contracts expected to run out of funds in October. In the absence of a supplemental appropriation, HUD could be forced to cut off funds under existing contracts later this year. This could occur if HUD again miscalculates monthly needs (as occurred in 2007), or if there is a Continuing Resolution for 2009 based on the inadequate FY 2008 level. The Administration’s request for FY 2009 will not address this $2.4 billion shortfall and would not be available in time in the event of a CR.

 

A sudden funding cutoff by HUD would have disastrous consequences. Since HUD Section 8 payments average more than two-thirds the actual cost of operating these apartments and servicing debt, a funding cutoff would force many owners with to seek overnight rent increases of 300% to 400% to tens of thousands of low income families to avert bankruptcy, causing massive displacement. Worse, HUD’s November 16 letter states that there are currently no protections (such as notice of funding cutoffs to owners or tenants or provision of rent vouchers) in place whatsoever to protect residents from such a catastrophe.


In addition, unless Congress fully funds this program, owners of 500,000 apartments located in market areas where Section 8 contracts are below market rents in their areas could opt out of their Section 8 contracts as soon as they are able, due to the new funding uncertainty, according to the National Housing Trust and other industry representatives.


Accordingly, we urge Congress to pass a supplemental appropriation of $2.4 billion as soon as possible during FY 2008, in addition to the Administration’s request for FY 2009.

 

For more information, contact Eric Hauge @ 612.728.5770 x119.

 

 

The Minnesota Federal Affordable Housing Coalition (MnFHAC)

Please click here to access the most recent Minnesota Federal Housing Action Coalition conference call.


For more information, please visit the MnFHAC website.

 

 

 

Preserving the Section 8 Voucher Program

Background

The Section 8 voucher program allows tenants to pay 30% of their income for rent. Differing from the project based Section 8 HOME Line has organized, tenants get a voucher and then find a landlord who will participate in the program. While the Section 8 voucher program would benefit from more participation from landlords, it is still a cost effective program involving the the private market. This program helps to de-concentrate poverty and is an important piece in the affordable housing picture which has enjoyed wide bipartisan support for over thirty years.

 

This year, Section 8 Vouchers are again threatened in the budget process. Additionally, there are more threats coming from HUD, which has proposed a bill that would drastically reduce the effectiveness of the Section 8 program. For details on the proposals, please visit the Center on Budget and Policy Priorities or the National Low Income Housing Coalition.

 

HOME Line is working in coalition with other local advocacy groups to prevent cuts to the budget as well as preserving the integrity of the program for the low income tenants who rely on it. If you would like to be part of this Minnesota Federal Housing Action Coalition, e-mail Linda or call 612 728-5770 x106.

 

One of the key methods to effectively preserve Section 8 vouchers is to organize residents affected so they have a role in the process. If you are a Section 8 voucher holder and are concerned about what is happening, HOME Line wants to work with you.

 

Current events

 

Throughout spring and summer 2007, several Twin Cities Metro area housing authorities are opening their section 8 voucher waiting lists. Below are several media stories reporting on the openings, which overwhelemed housing authorities when thousands of low-income Minnesotans requsted applications.


What can you do?


National Housing Trust Fund

Background

With over 80 million Americans living in unaffordable or substandard housing, it is clear that federal government needs to be reengaged in promoting housing that meets the needs of low and middle income renters.

The National Housing Trust Fund is the first meaningful attempt to produce affordable housing in the United States since production of low income housing was largely de-funded at the federal level in 1987. This bill would also provide money for the preservation of affordable housing that is at risk.

HOME Line has been active at the federal level garnering support and advocating for the establishment of the National Housing Trust Fund, a source of revenue for the production, preservation and rehabilitation of affordable housing.

For more background information on the campaign, click here.

What can you do?

 

State Policy

 

Housing Solutions Act

 

HOME Line is a supporter of the Housing Solutions Act (HSA), a proposal that would provide dedicated funding in the state of Minnesota for a wide variety of affordable housing programs. For more information, please check the HSA website or call us: Eric @ 612-728-5770 x119.

 

 

Oppose cuts to Minnesota's Renters Credit

 

Call TODAY to Oppose 21% Cut in Renters’ Credit (action alert from Minnesota Budget Project)

 

The Renters’ Credit is an important tool for tax fairness in Minnesota. It provides an average credit of $536 to over 271,000 low- and moderate-income households with high housing costs. Of the households receiving the Renters’ Credit, 29% include seniors and/or people with severe disabilities.

 

In his budget, Governor Pawlenty proposes to cut the Renters’ Credit by 21%. The average credit would be cut by $119.

The Governor’s budget asks low-income people, persons with disabilities, seniors and other vulnerable populations to shoulder too much of the responsibility for solving the state’s budget deficit. The Legislature must take a different path.

The Legislature is making decisions right now about how they will solve the state’s budget shortfall. They must hear from Minnesotans: Reject the Governor’s proposal to cut the Renters’ Credit.

 

If your Senator or Representative is on the tax committee, please call him or her. Otherwise, please call the chairs of the tax committee and legislative leadership. If you are not sure who represents you in the Minnesota legislature, find out at http://geo.commissions.leg.state.mn.us/districts/start.html

 

House Tax Committee:
Chair: Rep. Ann Lenczewski, 296-4218
Joe Atkins, 296-4192
Laura Brod, 296-4229
Lyndon Carlson, 296-4255
Jim Davnie, 296-0173
Chris DeLaForest, 296-4231
Randy Demmer, 296-9236
David Dill, 296-2190
Ron Erhardt, 296-4363
Debra Hilstrom, 296-3709
Mike Jaros, 296-4246
Lyle Koenen, 296-4346
Paul Kohls, 296-4282
Morrie Lanning, 296-5515
John Lesch, 296-4224
Tina Liebling, 296-0573
Paul Marquart, 296-6829
Joe Mullery, 296-4262
Erik Paulsen, 296-7449
Tom Rukavina, 296-0170
Loren Solberg, 296-2365
Cy Thao, 296-5158
Tom Tillberry, 296-5510
Kurt Zellers, 296-5502

 

Senate Tax Committee:
Chair: Tom Bakk, Cook, 296-8881
Scott Dibble, Minneapolis, 296-4191
Debbie Johnson, Ham Lake, 296-3219
Keith Langseth, Glyndon, 296-3205
Dan Larson, Bloomington, 297-8061
Warren Limmer, Maple Grove, 296-2159
John Marty, Roseville, 296-5645
Mee Moua, St. Paul, 296-5285
Julianne Ortman, Chanhassen, 296-4837
Larry Pogemiller, Minneapolis, 296-7809
David Senjem, Rochester, 296-3903
Katie Sieben, Newport, 297-8060
Rod Skoe, Clearbrook, 296-4196

House and Senate Leadership:
Speaker of the House: Representative Margaret Anderson Kelliher, 296-0171
Senate Majority Leader: Senator Larry Pogemiller, Minneapolis, 296-7809

 

All phone numbers are (651) area code.

 

For additional information on the Renters’ Credit, please see www.mncn.org/bp/renterscredit.htm or contact Nan Madden, Minnesota Budget Project, 651-642-1904 ext. 230, nan@mncn.org

 

 

Local Policy

 

Minneapolis Affordable Housing Coalition

 

HOME Line is a supporter of the Minneapolis Affordable Housing Coalition's efforts to dedicate funding for the city of Minneapolis Affordable Housint Trust Fund. More information to come.