January 28, 2005

In this issue:


In Delaware
West Rehoboth CLT Formed
Wanted: CLT Director
Housing Advocacy Day, March 22
Endorse the Five-Year Strategic Housing Plan for Delaware!

Nationally
Housing Vouchers Take Another Hit

West Rehoboth CLT Formed
The West Rehoboth Community Land Trust (WRCLT) is a nonprofit, community-controlled organization that will hold land in trust for the long-term benefit of the community. The WRCLT will also function as a nonprofit housing developer, rehabilitating or developing affordable housing on its land. The CLT has come out of the efforts of the Housing Committee of West Side New Beginnings (WSNB).

WRCLT has secured initial operating funds through a generous grant from the Administrative Commission for the Speer Trust (New Castle Presbytery). In the short term, the local housing committee has elected a Board of Directors for the WRCLT; worked with volunteer attorneys to prepare articles of incorporation and bylaws; created a plan for leadership development; solidified partnerships with churches, funders, builders, realtors, and other community organizations; and secured technical assistance from national organizations, including the Institute for Community Economics and Burlington Associates. The WRCLT Board is also developing a more detailed fundraising plan both for the organization and for housing development and creating an initial property acquisition strategy and housing development plan. The WRCLT is also working with a number of homeowners to help them resolve outstanding sewer bills which had previously threatened their continued residency.

A community land trust uses a ground lease and a resale formula to keep housing affordable for future homeowners, even in expensive areas. In fact, it is in volatile real estate markets that the CLT model is particularly useful.

West Side New Beginnings (WSNB) began in the late 1980s to tackle community problems of crime, drugs, and education of the children of the community. Since then, it has had numerous successes, including the construction of a community center, development of high-quality after-school and summer programs for neighborhood youth, and needed sewer and road repairs. Directed by a predominantly resident Board, WSNB’s programs serve the West Rehoboth community, particularly its children. West Side New Beginnings has a strong history of partnership with local churches and other community organizations, evidenced now in the variety of partners and supporters it has gathered for the development of a community land trust over the course of just a few months.


Wanted: CLT Director
Director sought for the West Rehoboth Community Land Trust (WRCLT), a community-based housing organization in Sussex County.

Abilities include experience and skills in housing and community development, nonprofit organization, affordable housing development and finance, work with grassroots groups, formation and maintenance of collaborative networks. EOE.

Letter of interest and resume with references by 2/9/05 to Search Committee WRCLT, P.O. Box 633, Rehoboth DE 19971.

Housing Advocacy Day, March 22
Scores of Delawareans will converge on Dover on March 22 to voice their concerns about affordable housing needs throughout the state and in their communities. Be one of us!

The Delaware Housing Coalition invites you to join us to support the Five-Year Strategic Housing Plan, allocate increased Housing Development Funds (HDF) to this coming state fiscal year, and express your views on affordable homeownership, multifamily and manufactured housing, fair housing, and other concerns.

Look for more information on Housing Advocacy Day through the Affordable Housing Bulletin and on the web at www.housingforall.org.


Endorse the Five-Year Strategic Housing Plan for Delaware
There are now over 42 endorsers of the Five-Year Strategic Plan.

Your group can become an endorser by going to the DHC website and downloading and filling out the endorsement form .

On the site, you will also find a list of the endorsers to date.


Housing Vouchers Take Another Hit
4% funding shortfall
Tenants could pay the price

Agencies administering the Housing Choice Voucher Program received word from the Department of Housing and Urban Development in a memo dated January 21 that they are, once again, going to have to figure out how to administer the program on far fewer dollars than originally expected. Agencies will experience a 4% cut in FY 2005 housing assistance payments.

“The January 21 memo is the latest in a series of actions taken by HUD to undermine the housing voucher program and the housing stability of thousand of families. With ever declining revenues, agencies that administer the program will have to require low income families to pay more for their housing or help fewer people or both. NLIHC calls on Congress to reverse this unwise and unfair course,” said Sheila Crowley, National Low Income Housing Coalition President.

In determining how to distribute the FY2005 appropriations for vouchers, HUD determined that in applying the agreed upon formula, the FY2005 appropriation was insufficient, thereby forcing a prorated 4% cut. Some housing agencies may face more than a 4% cut, while others may experience slightly less.

Unlike the FY2004 funding distribution announced last April that signaled the first major cutbacks, agencies will not be allowed to appeal their funding levels, with the memo stating that “the funding allocations provided herein are final.”

What can be done?
All who are concerned about the families and individuals who rely on the Housing Voucher program, including landlords, housing authorities, advocates and tenants, are working together on solutions to the budget shortfall that do not harm residents.

These groups will make sure that their Members of Congress are aware of the local impact of the FY05 budget shortfall even as they begin work on FY06 budget.

Background on the Housing Voucher Program
The Housing Choice Voucher program, also known as Section 8, was created under the Nixon Administration. The program has enjoyed support of Members of Congress on both sides of the aisle as a flexible, market-based way to address the gap between what families earn and what housing costs. Under the program, low income families, seniors, and people with disabilities receive vouchers to give to private landlords that generally make up the difference between 30% of the household’s income and the cost of the rental unit. The voucher program is the largest federal low income housing program.

Currently, the voucher program serves 2.05 million low income households. More than half (53%) of all voucher holders are families with children. Another 40% are seniors or people with disabilities. About 40% earn wages, while most others rely on disability or retirement income. There is a serious shortage of vouchers, and only about one quarter of eligible households receive them. Most families seeking assistance face wait of several years. In larger cities, waiting lists can be as long as 10 years. [Source: National Low Income Housing Coalition]