Community Housing for People with Disabilities:
Integrating Affordability and Supported Living: A White Paper
By Dale DiLeo
Lack of Affordable Housing is a Barrier to Supported Living
Does The Existence of Affordable Housing in a Neighborhood Lower Property Values?
Keys to Developing Affordable Housing
Overview of an Innovative Affordable Housing Project in Florida
Recommendations for Expanding Local Affordable Housing for People with Disabilities
Resources for Affordable Housing
Appendix
Recommendations for Federal Policy Changes to Increase Affordable Housing
Other State and Local Housing Initiatives
Resources for Affordable Housing
The Florida Housing Coalition offers a number of resources related to affordable housing and people with disabilities. Some of these are highlighted.
State Housing Initiatives Partnership - SHIP Program
The State Housing Initiatives Partnership (SHIP) Program's mission is threefold: (1) provide funding to eligible local governments for the implementation of programs that create and preserve affordable housing; (2) foster public-private partnerships to create and preserve affordable housing; and, (3) encourage local governments to implement regulatory reforms and promote the development of affordable housing in their communities by using funds as an incentive for private development.
SHIP funds may be used for emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, construction and gap financing, mortgage buy-downs, acquisition of property for affordable housing, special needs housing, home ownership counseling and match for federal housing loans and grants. A minimum of 65 percent of a local government's total annual distribution of SHIP funds must be used for home ownership. A minimum of 75 percent of a local government's total annual distribution of SHIP funds must be used for construction-related activities, including rehabilitation, new construction, emergency repairs, or financing for a newly constructed or rehabilitated unit. At least 30 percent of a local government's total annual distribution of SHIP funds must be reserved for awards to very low-income persons (50% of area median income, or AMI), and an additional 30 percent of funds must be awarded to low-income persons (80% AMI). The remainder may serve any combination of very low, low or moderate-income persons (120% AMI).
Individuals, nonprofit organizations, and for-profit developers must apply to local government for funding. Each local government receives an annual allocation that is appropriated by the Florida Legislature. To participate, a local government must establish a Local Housing Assistance Program; submit and receive approval of a Local Housing Assistance Plan to the Florida Housing Finance Corporation; adopt and incorporate Local Housing Incentive Strategies; establish or amend local land development regulations, policies, and procedures in order to implement incentive strategies; submit an annual report of the housing program's accomplishments; and encourage public and private sector involvement in the form of a partnership to further program goals and reduce housing costs.
Each locally administered SHIP Program determines the process of awarding and distributing funds within its community and is required to establish selection criteria to identify eligible applicants and the application process in their local Housing Assistance Plan.
For more information: Tom Burt, Administrator, Florida Housing Finance Corporation, 227 North Bronough Street, Suite 5000, Tallahassee, FL 32301-1329; (850) 488-4197. Email: tom.burt@floridahousing.org
HUD CDBG and HOME Programs for Affordable Housing
The U.S. Department of Housing and Urban Development is the department within the federal government that is mandated by Congress to create conditions for every family to have decent and affordable housing, to ensure equal housing opportunities for all, and to strengthen and enrich the nation's communities.
Among other programs, HUD funds two key housing programs, Community Development Block Grants (CDBG) and the HOME program. Most Statewide Housing Programs received funds for both CDBG and HOME. Also, many cities, counties and other local housing agencies received either or both CDBG and HOME FY 2003 funds
HUD administers two CDBG programs. Under the CDBG Entitlement Program, HUD provides funds directly to urban counties and metropolitan cities based on a population-based formula. The CDBG Small Cities Program, administered by the Florida DCA, Bureau of Community Development, awards grants on a competitive basis to non-entitlement counties, cities, and towns in Florida.
Use of the CDBG federal funds is discretionary. They are used to build new housing, to rehabilitate existing housing, to fund home modifications so existing housing becomes accessible, to fund rental or home ownership and for rent supplements.
Use of the HOME federal funds can be for: rental properties; home down payments; rehabilitation of homes; and tenant based rental assistance, i.e., backdoor section 8 housing vouchers for rental supplements. The Florida Housing Finance Corporation (FHFC) administers the state's HOME program. (HOME, FHFC, (850) 488-4197).
The HOME tenant rental assistance is particularly critical because Congress has substantially reduced other Section 8 voucher programs. Both CDBG and HOME are "federal financial assistance" and therefore must comply with Section 504 of the Rehabilitation Act and must have 5% accessible units; people with disabilities must be given priority for the accessible units; the range of available accessible units must be comparable to the choice of non-disabled persons. Also, recipients of HOME funds cannot discriminate against a person who has a Section 8 voucher.
HUD Offices are located at the national and state levels. HUD Locator for general information: (202) 708-1422. Affordable housing information center: (800) 998-9999
HUD State Coordinators' Office (serves South Florida): José Cintrón, Director, 1320 South Dixie Highway, 5th Floor, Coral Gables, Florida 33146-2911; (305) 662-4510; fax: (305) 662-4519; e-mail: Jose_Cintron@hud.gov
HUD Jacksonville Office (serves North and Central Florida): 301 West Bay Street, Suite 2200, Jacksonville, Florida 32202; (904) 232-2627; fax: (904) 232-3759
Community Contribution Tax Credit Program (CCTCP)
The Community Contribution Tax Credit Program (CCTCP) provides $10 million each year as an incentive (50% tax credit) to encourage Florida corporations to make donations toward community development and low-income housing projects. The tax credit is easy for a business to receive. Corporations doing business anywhere in Florida that make donations to approved community development projects may receive a tax credit equal to 50 percent of the value of the donation. Businesses may take the credit on Florida corporate income tax, franchise tax, or insurance premium tax.
Businesses may donate up to $400,000 per year and take up to $200,000 in tax credit per year. Unused credits may be carried over for up to 5 years. Donations may be made in the form of cash, real estate, and equipment and/or supplies.
For more information: Burt Von Hoff, Executive Office of the Governor, Office of Tourism, Trade, and Economic Development, The Capitol, Suite 2001, Tallahassee, FL 32399-0001 Phone: 850-487-2568 Fax: 850-487-3014
Florida Affordable Housing Guarantee Program
This was created by the Florida Legislature as part of the William E. Sadowski Affordable Housing Act of 1992 for the purposes of:
• Stimulating creative private-sector lending activities to increase the supply and lower the cost of financing or refinancing eligible housing;
• Creating security mechanisms to allow lenders to sell affordable housing loans in the secondary market; and
• Encouraging affordable housing lending activities that would not have taken place or that serve persons who would not have been served but for the creation of this program.
The Guarantee Program encourages affordable housing lending activities through the issuance of guarantees on the obligations incurred in obtaining financing for affordable housing. The Guarantee Program does not provide direct funding of developments; it facilitates direct funding by reducing the lender's risk through the issuance of a guarantee.
Low-Income Emergency Home Repair Program (LEHRP)
This provides grants to local agencies administering Weatherization Assistance Programs (WAPs) to assist low-income persons, especially senior citizens and persons with disabilities, with emergency home repairs. A wide range of structural, health and safety repair assistance is available for persons with incomes at 125 percent or less of the poverty level (including TANF and SSI recipients) and includes the following: structural repair, ceiling repair, electrical repairs, adding handrails, wheelchair ramps or other accessibility items, plumbing, septic, termite treatments, etc. Preference is given to persons 60 years of age or older and persons who are physically disabled. The average level of assistance is approximately $2,000 per unit.
For more information: Norm Gempel, Planning Manager, Weatherization Programs, Bureau of Community Assistance, Florida Department of Community Affairs, 2555 Shumard Oak Blvd., Tallahassee, FL 32399-2100; (850) 488-7541.
Section 811 Supportive Housing For Persons With Disabilities
HUD provides funding to nonprofit organizations to develop rental housing with the availability of supportive services for very low-income adults with disabilities, and provides rent subsidies for the projects to help make them affordable. The program also provides project rental assistance, which covers the difference between the HUD-approved operating costs of the project and the tenants' contribution toward rent.
HUD provides interest-free capital advances and project rental assistance to nonprofit sponsors to help them finance the development of rental housing such as independent living projects, condominium units and small group homes with the availability of supportive services for persons with disabilities.
The capital advance can finance the construction, rehabilitation, or acquisition with or without rehabilitation of supportive housing. The advance does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years. Each project must have a supportive services plan.
An eligible household may consist of a single qualified person with a very low-income (within 50 percent of the median income for the area) and at least one member must be 18 years old or older and have a disability, such as a physical or developmental disability or chronic mental illness. Nonprofit organizations can apply to develop a Section 811 project if they can, among other requirements, submit a resolution that they will provide a minimum capital investment equal to 0.5 percent of the capital advance amount, up to a maximum of $10,000. Applications may be submitted to the local HUD Field Office during annual, competitive cycle.
For more information: Section 811 Supportive Housing for Persons with Disabilities (HUD Handbook 4571.2) and Supportive Housing for Persons with Disabilities, Conditional Commitment to Final Closing (HUD Handbook 4571.4) which are available on Hudclips.
Bridge Subsidies for People Moving to the Community
A successful strategy for helping people with disabilities is the development of a "bridge" rental subsidy program. Bridge rental subsidy programs use rental assistance resources - such as HOME or funding from human service agencies - to provide temporary rental assistance until a person receives a more permanent housing resource, such as a Section 8 voucher.
Bridge subsidies can help a person obtain affordable housing while they apply for and/or wait for a permanent housing subsidy. For a bridge subsidy program to be most effective, it should be modeled somewhat after the Section 8 program. For example, people using bridge subsidies usually have to pay a portion of their income toward rent (typically less than 50 percent of their income). Some bridge subsidy programs require people to pay more than they would pay in the Section 8 program as an incentive to accept the permanent Section 8 voucher when it becomes available.
In successful bridge subsidy programs, people who receive bridge subsidies are required to apply for a Section 8 voucher as soon as waiting lists are open. Owners that accept bridge subsidies are asked to agree to accept the Section 8 voucher when the tenant finally receives one. This eliminates the need to look for new housing once the Section 8 voucher is obtained and addresses a barrier that many people with disabilities face in accessing and utilizing Section 8 vouchers.
Almost all bridge subsidy programs require the rental unit to be inspected in accordance with HUD's Section 8 Housing Quality Standards. This inspection, and the landlord's willingness to accept the bridge subsidy payment (and later the Section 8 subsidy), should make it easier to replace the bridge subsidy with a Section 8 voucher, or other permanent rent subsidy, when one becomes available.
Bridge subsidy programs can also include a supportive services component that helps people with disabilities successfully obtain and maintain affordable rental housing in the community.