Resources| Vol. 6, No. 13 September 2002 |
Affordable Housing as a Support for Working Families
Working families face an
increasingly tight housing market. The issue of housing is receiving more
attention as a critical support for low-income families.
Affordable housing is intrinsically linked to the well-being of working
families, including those receiving or transitioning off the Temporary
Assistance to Needy Families (TANF) program.
Housing provides stability for working families, enabling them to obtain
and keep a job.
There is some research that suggests that housing
assistance may help welfare recipients obtain and maintain jobs.
A number of states and counties utilize TANF and State Maintenance of
Effort (MOE) funds for housing benefits. TANF funds may be used to promote home
ownership, through grants or loans to eligible families.
Funds may also be used for rental subsidies for TANF families, including
“project-based” rental assistance, whereby a state or municipality may
contract with a developer or owner of rental housing to provide TANF- or
MOE-funded rental subsidies to families. It
is important to note that, under current TANF regulations, some housing
assistance provided with TANF funds may count towards families’ 60-month
lifetime TANF assistance limit.
This Resources
for Welfare Decisions identifies recent publications and electronic
information sources about affordable housing and the link between housing and
welfare reform. For more information, visit WIN’s issue page: Welfare
Reform and Housing at
Publications
and Electronic Resources
Bryson, David B. Welfare
and Housing: How Can the Housing Assistance Program Help Welfare Recipients?,
National Housing Law Project, July 2000, at http://www.nhlp.org/pubs/wandh.pdf.
Manpower Demonstration Research Corporation, Welfare,
Housing, and Employment: Learning from the Jobs-Plus Demonstration,
MDRC Policy Brief, May 2001, at
Millenial Housing Commission, Meeting Our Nation's Housing Challenges: Report of the Bipartisan
Millenial Housing Commission, May 30, 2002, at http://www.mhc.gov/mhcfinal.pdf
National Coalition for the Homeless and the National
Law Center on Homelessness and Poverty, State
TANF Programs Targeted at People Experiencing Homelessness, at
Rosenbaum, James E. and Stefanie DeLuca, Is
Housing Mobility the Key to Welfare Reform? Lessons from Chicago's Gautreaux
Program, Brookings Institution, Center on Urban and
Sard, Barbara and Tim Harrison, Increasing Use of TANF and State Matching Funds to Provide Housing
Assistance to Families Moving from Welfare to Work-2001 Supplement, Center
on Budget and Policy Priorities, December 3, 2001, at http://www.cbpp.org/12-3-01hous.pdf.
Sard, Barbara and Jeff Lubell, Federal Housing Programs Provide Employment Training Services to Current
and Former Welfare Recipients, Center on Budget and Policy Priorities,
January 6, 2000, at http://www.cbpp.org/1-6-00hous.htm.
Sard, Barbara and Jeff Lubell, The Increasing Use of TANF and State Matching Funds to Provide Housing
Assistance to Families Moving from Welfare to Work, Center on Budget and
Policy Priorities, February 2000, at www.cbpp.org/2-17-00hous.pdf.
Sard, Barbara and Shayna Strom, Funding New Welfare-to-Work Housing Vouchers Should Be a Priority for
Fiscal Year 2003, Center on Budget and Policy Priorities, September 10,
2002, at http://www.cbpp.org/8-28-02hous.htm.
Sard, Barbara and Margy Waller, Housing Strategies to Strengthen Welfare Policy and Support Working
Families, Brookings Institution, The Center on Urban and Metropolitan
Policy and the Center on Budget and Policy Priorities, April 2002, at
Smith, Courtney, Increasing
Access to Housing for Low-Income Families, National Governors Association
Center for Best Practices, April 2, 2002, at
Swartz, Rebecca, Brian Miller, Joanna Balsamo-Lilien,
and Hilary Murrish. Making Housing Work
for Working Families: Building Bridges Between the Labor Market and the
Housing Market, Hudson Institute, July 2001, at http://www.welfarereformer.org/housenewdescript.htm.
Swartz, Rebecca, and Brian Miller.
Welfare Reform and Housing.
Brookings Institution. March
2002, at http://www.brookings.edu/dybdocroot/wrb/publications/pb/pb16.pdf.
Wood, Michelle, Gretchen P. Locke, B. Hannah
Shulevitz, Diane M. Porcari, Sandra Nolan, and Jean Amendolia,
From Welfare to Work. Using HUD's Programs to Help Families in Transition
, U.S. Department of Housing and Urban Development, March 1999, at
Wright,
David J., Ingrid Gould and Michael H. Schill, Community Development Corporation and Welfare Reform: Linkages, Roles,
and Impacts, Albany, New York: Nelson
A. Rockefeller Institute of Government, and New York, New York:
New York University School of Law, Center for Real Estate and Urban
Policy, 2001, at http://www.rockinst.org/publications/press_releases/CDCReportPart1.pdf
and http://www.rockinst.org/publications/press_releases/CDCReportPart2.pdf.
Zedlewski, Sheila Rafferty. Importance of Housing Benefits to Welfare Success,
Brookings Institution, April 2002, at
Resource
Contacts
Brookings
Institution, at http://www.brookings.edu
or 202/797-6000
Center on Budget and Policy Priorities, at http://www.cbpp.org
or contact Barbara Sard at 202/408-1080
Fannie Mae
Foundation, at http://www.fanniemaefoundation.org
or 202/274-8000
Hudson
Institute, at http://www.hudson.org or
317/545-1000
Joint Center
for Housing Studies, at http://www.jchs.harvard.edu
or 617/495-7908
National
Alliance to End Homelessness, at http://www.naeh.org
or contact Sharan McDonald at 202/638-1526
National
Coalition for the Homeless, at http://www.nationalhomeless.org
or 202/737-6444
National
Housing Institute, at http://www.nhi.org/ or
973/678-9060
National Low
Income Housing Coalition, at http://www.nlihc.org
or 202/662-1530
Urban
Institute, at http://www.urban.org or
contact Martha Burt at 202/833-7200
U. S.
Conference of Mayors, at http://www.mayors.org/USCM/home.asp
or 202/ 293-7330
What
States Are Doing
New Jersey administers several programs aimed at helping
low-income working families stabilize their finances, minimize financial
crisis and, where feasible, become first-time home buyers. The Housing Subsidy
Program provides ongoing rental assistance or one-time expenses to families
that have recently left TANF for employment.
The program is designed as an incentive for working families to close
their welfare cases. Recipients
that have been working for four months and receiving a TANF benefit may choose
for a housing subsidy to be paid to their landlord in lieu of a welfare check.
This rent subsidy is likely to be worth more than the welfare benefit, and
since the program utilizes TANF MOE funds for the vouchers, the federal
60-month time clock stops. Families
contribute 40 percent of adjusted gross income and unit rents may not exceed
the HUD fair market rent. The
Social Services Program for the Homeless includes $2 million in TANF funds
allocated to augment services for working families with incomes up to 250
percent of the federal poverty level. The
non-recurring, short-term assistance does not exceed four months. The state
also wraps $4 million in TANF funding around Section 8 vouchers. The monies help clients utilize their Section 8 certificates
and funds can be used for security deposits or other moving expenses.
Notably, the program allows payments to landlords while repairs are
made to rental units for Section 8 use. For
more information, contact Barbara DeGraaf at 609/588-2160.
North Carolina
initiated the TANF-Housing Pilot Project in 1999. The Division of Social
Services accepted proposals from counties interested in using TANF funds for
housing-specific programs. Each project required community collaboration and
addressed specific needs in each locality. There were eight projects selected
to receive TANF funds to provide housing support and stability services,
including rental assistance, through tenant-based vouchers, and other
services. Some of the counties used the funds for eviction prevention or other
one-time payments to help families obtain housing. Some of the counties also
provided funds to help families afford homeownership. One of the counties used
funds for project-based rental assistance. For more information, contact David
Prince, Economic Independence Section, at 919/733-7831.
Minnesota spent
a total of $74 million in TANF funds for the Minnesota Families Affordable
Rental Investment Program (MARIF) in 2000 and 2001, and $20 million for a loan
to Habitat for Humanity in 2000. MARIF
participants are current or recent Minnesota Family Investment Program
participants in rental and supportive housing.
Developers and service delivery systems partner to provide links and/or
access to county and other community services and access to child care,
transportation, employment, and schools.
Some developers utilize HUD tax credits and some participants use HUD
subsidies to pay the rents. MFIP
clients also have other choices to help meet their housing needs:
the Emergency Assistance Program, Diversionary Assistance Program,
Family Homeless Prevention and Assistance Program; Transitional Housing and
Emergency Services Programs; and Local Intervention Grants for
Self-Sufficiency. For more information, contact Pam Reinstatler, Minnesota
Department of Human Services at 651/296-9407 or
Pennsylvania’s
TANF-funded Housing Collaboration Initiative consists of project-based
subsidies; rehabilitation; and homeownership assistance, among other benefits. The program is open to both current and former TANF
recipients. Ten percent of the
Initiative, equal to ($6 million), is devoted to expanding homeownership
through mortgage loans to families with incomes below 235 percent of the
poverty line. Four million in
TANF funds will be used to help develop new cooperative housing or to purchase
rental properties that may become unaffordable.
For more information, contact Richard Overmoyer, Department of
Community and Economic Development, at 717/720-1373 or rovermoyer@state.pa.us