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CCC’s 8NW8 Building Honored as National Model for Innovative Affordable Housing Recognizing successful and innovative affordable housing projects and their leadership teams, the inaugural I. Donald Terner Prize was awarded on January 31, 2007 to Central City Concern’s (CCC) striking 8NW8 building located in the historic Pearl District of Portland, Oregon. Exemplifying the spirit of Don Terner’s work and commitment to affordable housing, 8NW8 provides 180 units of affordable, drug and alcohol-free housing. Almost 700 formerly homeless residents have lived in the building since it opened in 2004, relying on the beautiful, inspirational environment, on-site services, and supportive community of peers to positively transform their lives. The distinctive 12-story building has also transformed Portland’s downtown, linking neighborhoods fractured by an arterial road, and increasing socioeconomic diversity. Massachusetts congressman Barney Frank was the keynote speaker at a symposium and luncheon in Washington, D.C. to honor the winning teams. Traci Manning, Central City Concern Housing Director and Paul Jeffreys from SERA Architects Inc. accepted the award on behalf of the whole project team. · Central City Concern: Richard Harris, Executive Director · SERA Architects: George “Bing” Sheldon, FAIA, and Paul Jeffreys · Walsh Construction Co.: Andrew Beyer and Mark Fletcher · US Bank: David Castricano · US Bancorp Community Development Corporation: Beth Stohr · Portland Development Commission: Andy Wilch · Multnomah County: Joanne Fuller State of Oregon Housing and Community Services: Bob Repine · Housing Authority of Portland: Steve Rudman and Margaret Van Vliet · Downtown Community Housing, Inc.: Sam Galbreath “SERA Architects designed this beautiful building and that’s what people see on the outside, but the real beauty is inside,” said Richard Harris, executive Director of Central City Concern. “I can’t list all the amazing ways people find healing at 8NW8 everyday, recover and rebuild their lives and how a spirit of respect grows and extends out into the neighborhood and the Portland community.” “In terms of what it provides its residents—attractive space that nurtures a sense of community—8NW8 is heartening. But it’s also a real contribution to the urban streetscape and skyline of a city with markedly high standards. Anyone who passes by the building benefits, whether they someday draw on its services or not,” said Terner Prize Jurist John King, urban design and architecture reporter for the San Francisco Chronicle. The 8NW8 project is innovative in many ways: Volume of units. 8NW8 created 180 units of transitional and permanent affordable housing; 120 SRO units serve residents earning 30% or below AMI and 60 studio apartments serve residents earning 50% or below AMI. Unique needs served. 8NW8 meets the housing needs of people well below the poverty line, and is an Alcohol and Drug Free Community (ADFC) for residents in the earliest stages of addictions recovery. Addictive disorders are disproportionately represented among CCC’s target population and the ADFC model has proven highly effective in helping residents maintain recovery. On-site supportive health services. CCC’s Old Town Clinic is located in the commercial spaces on the first and second floors, providing primary and behavioral healthcare to homeless and low income individuals. Design and construction quality. 8NW8 was built with durable, high quality materials to prolong lifespan (100 years) and minimize potential upkeep costs. The design elements also contribute to a residential environment that inspires and motivates residents to succeed. Impact on clients. CCC housing is embedded in the continuum of agency services including primary and behavioral healthcare, employment, and addictions treatment/recovery. On-site housing support staff helps residents maintain housing stability and access needed services with other community partners, including permanent housing. Impact on the community. The project was supported by the City and Multnomah County because it enhances broader livability and urban renewal activities, directly supports Portland’s Ten Year Plan to End Homelessness, and benefits the local economy – as residents are able to stabilize and become self sufficient, they can rejoin the social and economic mainstream. Operational funding sources. 8NW8 utilizes a range of funding sources to keep units affordable including grants (McKinney, Ryan White, etc.), contracts (City and County addictions treatment and Department of Justice, etc.), Section 8 rent support, and resident’s rent. Environmental impact. 8NW8 utilized environmentally sound, high-density infill building that leveraged existing infrastructure, rehabilitated a project site degraded by the prior occupant (automotive repair facility), utilized on-site recycling during construction, and features a host of energy efficient, environmentally sound residential features. Innovative project funding. CCC partnered with the State and the City (including the Portland Development Commission) to develop 8NW8. The project’s Low Income Housing Tax Credits were ultimately purchased by the project lender (US Bank) after the first potential tax credit investor unexpectedly dropped out of the process. CCC also worked with the County to pay an advance lease on another agency-owned building, consolidating funds for CCC’s portion of 8NW8’s capital finances. “The Terner Prize showcases the leadership required to overcome the many obstacles to building affordable housing,” said Doug Abbey, Prize Chair and Founder of IHP Capital Partners. “Quality, quantity and affordability, was Don Terner’s mantra and the prize is designed to recognize innovation in design, construction, financing, impact on residents’ lives and building thriving communities.” “Gentrification in our cities is creating stiff competition for developers of affordable housing,“ said Harrison Fraker, Dean of the College of Environmental Design Berkeley. “Today we are shining a bright light on Central City Concern as a prime example of what local leaders in the field are accomplishing.” More than 80 entries were received from a wide variety of programs including rural, urban, single room occupancy, renovation, mixed income, and mixed use, rental and ownership. The five finalists were: § People’s Self-Help Housing in Guadalupe, CA § Public Initiatives Development Corporation in San Francisco, CA § Mercy Housing California in San Francisco, CA § New Economics for Women in Canoga Park, CA § Jonathan Rose Companies in Irvington, NY “Had he lived, Don would have been passionate about driving his commitment to quality affordable housing to the top of the national political agenda,” said Deirdre English, widow of Don Terner. “Since he was taken too soon, his friends and colleagues are fighting the fight without him and he would be incredibly proud of them all.” Jurists for this year’s prize were: § Elinor Bacon, president, ER Bacon Development, LLC in Washington, DC § David Baker, principal, David Baker + Partners in San Francisco, CA § John King, urban design and architecture reporter, San Francisco Chronicle § Greg Maher, VP & deputy general counsel, Local Initiatives Support Corporation in New York,NY § J. Michael Pitchford, president & CEO, Community Preservation & Development Corporation in Washington, DC § Geoffrey Wooding, AIA, principal, Goody Clancy in Boston, MA About the I. Donald Terner Prize Don Terner was a visionary and leader in the affordable housing field who tragically lost his life ten years ago in a humanitarian mission to Bosnia. This new biennale prize was created to commemorate his death and inspire projects that best exemplify his spirit and commitment to affordable housing. The Terner Prize, a biennale award recognizes successful and innovative affordable housing projects and their leadership teams. The $50,000 prize was created by colleagues, friends and family of I. Don Terner. The purpose of the prize is to spread Terner’s vision and principles by identifying best practices in the field. The Terner Prize is administered by the Center for Community Innovation at the University of California, Berkeley. For more information visit http://www-iurd.ced.berkeley.edu/cci/ternerprize/index.html. AHN Advocacy: Update on Set Aside, City Budget, Speakers Bureau Training Set Aside Update: AHN supporters participated in a Portland Development Commission (PDC) sponsored forum on income allocations for the City’s new 30% affordable housing set aside on January 24. The forum was intended to solicit community input on what income levels the set aside housing programs should serve, and what proportions should be committed to rental housing, homeownership and community facilities. AHN members advocated for the AHN-HCDC Community Recommendations, which would commit 50% of the set aside resources towards housing people at the lowest incomes (below 30%MFI) and 15-20% for home ownership programs serving working families being priced out of Portland (below 80% MFI). The Portland Development Commission is scheduled to vote on the PDC recommended income allocations on February 14th. Questions on the set aside? Contact Michael via email or at (503) 335-9884. City of Portland Budget Process Begins with Feb 22 Budget Forum: AHN is asking supporters to participate in the FY0708 City of Portland Budget process. In large part because of AHN advocacy, in the past three years the City of Portland has allocated nearly $18 million in ‘one-time’ general funds for housing, as well as $1 million in ongoing funds, and nearly $5 million in ‘one-time’ bump funds, totaling almost $24 million in crucial revenues for housing. With your help, we have an opportunity this budget cycle to secure nearly $5.2 million in ongoing funds for affordable housing! Please plan to turnout for the February 22 City Budget Forum, and help us make the $30 Million Housing Investment Fund a reality. AHN will be providing talking points for the budget forum that will be available on February 19. To get involved in City Budget advocacy, contact Michael Anderson via email or at (503) 335-9884. Community Budget Forum Join the AHN Speakers Bureau: Training on Framing, Housing Messaging Feb 15, 20 Become a member of AHN’s Speakers Bureau and help win needed resource for housing! AHN has developed a nationally recognized training on how to effectively advocate for housing. Learn values-based framing and messaging techniques that will not only prepare you AHN’s upcoming budget advocacy, but will increase your ability to communicate with and inspire elected officials, the media and fellow community members. AHN will offer our training on Framing and Housing Messaging on first on Feb 15 and again on Feb 20. The trainings will be held downtown at the office of the Coalition for a Livable Future (310 SW 4th Ave) from 6:00-8:00 pm. Light refreshments will be provided. Space is limited, so RSVP now: Contact Michael Anderson via email or at (503) 335-9884. Affordable Housing NOW! is a coalition of over 40 organizations and hundreds of individuals whose goals are to secure new resources for affordable housing for the Portland Metro area by building a movement large enough to make funding for affordable housing for people with low incomes a political priority in the Metro area. To learn more about Affordable Housing NOW!, go to: http://www.cdnportland.org/ahn.html Momentum in Salem: Hundreds Go To Capitol for Housing Alliance Lobby Day Hundreds of Housing Alliance members and supporters from across Oregon went to Salem on Tuesday, February 6 to ask for legislative support for the 2007 Housing Opportunity Agenda. Housing Alliance delegations meet with over 80 of the 90 total Oregon Representative and Senators. CDN member organizations turned out staff, board and residents to help make for the most well-attended Housing Lobby Day in recent memory. Lobby day participants focused much of their advocacy on the Housing Alliance proposal for $100 Million for Homes, a comprehensive funding package that would provide crucial resources for the preservation and development of needed rental housing, emergency rent assistance programs that prevent homelessness, permanent supportive housing for special needs populations and homeownership programs targeted to prospective first time homebuyers. Legislators were particularly impressed that the primary funding source for the $100 Million for Homes, the document recording fee (SB38), has the endorsement of over 150 organizations, municipalities and elected officials from communities throughout the state, including the Oregon Association of Realtors®. The 2007 Housing Opportunity Agenda also includes legislation to address manufactured home park closures, an effort supported by over 79 Representatives and Senators (see article below). The primary legislation for manufactured home parks is HB2600. Bill numbers for the remaining items in the 2007 Housing Opportunity Agenda, including the legislation that would address condominium conversion reform, affordable housing preservation, lifting the ban on inclusionary zoning, and allowing spending out of district for housing for urban renewal funds, have yet to be assigned. In addition to the great turnout and constituent advocacy generated by Housing Lobby Day, the 2007 Housing Opportunity Agenda was a central lobbying focus of the Community Action Directors of Oregon (CADO) lobby day Feb 2 and Interfaith Advocacy Day Feb 5 as well. The Housing Alliance brings together advocates, local governments, housing authorities, community development corporations, environmentalists, service providers, business interests and all others dedicated to increasing the resources available to meet our housing needs to support a common statewide legislative and policy agenda. To find out more about the Housing Alliance, go to: http://www.oregonhousingalliance.org/
New Legislative Package To Address Manufactured Home Park Closures in Oregon “The problem of mobile home park closures continues to be a huge concern especially in hot real estate markets such as the Portland metro area,” said State Representative Jerry Krummel as he unveiled a series of bills today. The main measure, House Bill 2600, was drafted at the request of the Manufactured Housing Landlord Tenant Coalition to expand a tax credit created by Krummel in 2005. “I really don’t view this as my bill, it belongs to the Coalition which has been negotiating ever since the 2005 Legislative Session ended to reach compromises in a number of areas,” explained Krummel. HB 2600 is one of the key components of a bigger effort by the Coalition and one of several bills emerging this year. 79 Representatives and Senators are co-sponsoring HB 2600 more than any other measure introduced so far in the 2007 legislative session. HB 2600 will have a first reading on the House Floor Tuesday February 6th which has also been targeted as a lobby day for advocates of affordable housing. In fact the Oregon Housing Alliance has put preservation of manufactured home parks on its priority list for legislative action. In the past two years, 31 parks have closed in Oregon impacting more than 1500 spaces. A dozen of those parks were in Washington County and Representative Krummel spent countless hours helping local park residents learn about the new laws and locate resources to help them move. Krummel hopes these new legislative proposals will build on the momentum from the 2005 session when House Bill 2389 received unanimous approval. That law established a $10,000 tax credit for low-income homeowners forced to move from a mobile home park, but there is a sunset at the end of 2007. HB 2600 continues the tax credit program, lifts the income requirements and makes the credits refundable to all residents affected by a park closure. This new legislation has been greeted with enthusiasm from groups representing park owners, tenants and housing advocates. “The Coalition is excited to see this tax credit bill drafted. It is a key component of a much larger package we are working on to address the manufactured home park closure issue, “noted John VanLandingham, Facilitator for the Coalition. “Representative Krummel brought the tax credit idea to us last session and we received overwhelming legislative support. The Coalition then asked Krummel to help us expand the law so it won't expire at the end of 2007 and it can be more flexible to help more Oregonians." Chuck Carpenter, Executive Director for Manufactured Housing Communities of Oregon, (MHCO) explained, “we are committed to maintaining the viability of manufactured home communities in Oregon through various pieces of legislation spearheaded by the Coalition and legislators like Representative Krummel. Manufactured Housing Communities are an integral part of the housing mix of the state of Oregon and we should ensure this housing option is available for all Oregonians.” The Executive Director of the Manufactured Home Owners of Oregon, Pat Schwoch, said “as we go around the state talking to park tenants they are excited about the new efforts to enact sensible legislation to help those who lose their homes because of park closures. MHOO is in full support of Representative Krummel’s legislation.” In addition to HB 2600, Krummel has introduced HB 2601 to create a $10 million loan fund so mobile home owners can borrow money to cover moving expenses. HB 2602 would protect park owners from having to pay back taxes on abandoned mobile homes. Krummel also worked with Representative Kim Thatcher (R-Keizer) on HB 2608 to require local governments to notify residents in mobile home parks when a land use action is pending. Under current law only the owners of real property are notified. Please help 1000 Friends of Oregon fight for Measure 37 reform Now is the time to contact your legislator and demand Measure 37 reform! Go to the following website to send a letter to your legislator http://ocn.e-actionmax.com/showalert.asp?aaid=2276 Hearings have begun on this issue and in a matter of days the Legislature will be debating and voting on a proposal to fix Measure 37. We need to make sure the new law protects individuals and communities from poorly planned subdivisions and large-scale commercial developments. Act now to make sure your Representative and Senator knows that Measure 37 is broken, you want them to fix it: *no subdivisions *no commercial developments *this is NOT what voters intended! Now is the time - the next few days are crucial. Please urge your friends and family to contact their legislators as well. This will take five minutes, and we have an opportunity to repair a two year old mistake that threatens the future of Oregon. House FY07 Resolution: Some Relief for Housing; Debate Moves to Senate From National Low Income Housing Coalition: The FY07 joint funding resolution passed by the House on January 31 includes spending increases for vouchers, public housing, project-based Section 8 and homeless assistance grants. The resolution would also fix the dysfunctional voucher funding distribution system, which has been in place since 2004 and has cost the nation 150,000 housing vouchers. The resolution is a huge victory for residents of public and assisted housing. The House voted 286-140 to pass H.J. Res. 20, the FY07 joint funding resolution. The resolution provides appropriations for all programs covered by the nine spending bills left unfinished by the last Congress, including HUD programs. The Senate is expected to take up the resolution either late in the week of February 5 or early in the week of February 12. To forestall the possibility of amendments, Senate leadership may wait until close to February 15, when the current continuing resolution expires. If any amendments to the resolution are adopted, the resolution would hev to go to a conference committee to work out differences with the House bill. Low income housing advocates working hard for the victories achieved in the bill. When the Democratic leadership announced their plan for a year-long FY07 joint funding resolution in December, they said that programs would be funded at FY06 levels, unless it could be shown that real harm would occur if increases were not provided. The resolution approved by the House provides for needed increases to the public housing ($300 million increase), voucher ($487 million increase) and project-based Section 8 ($939 million increase) accounts above FY06 levels. Without these increases, currently assisted families would have lost their housing assistance in FY07. The resolution also provides a $115 million increase for homeless assistance grants. All other programs are funded at FY06 levels, except for those that are eliminated. These include $307 million in Member earmarks from FY06 (called "economic development initiatives" in the HUD appropriations bill), Youthbuild and Neighborhood Networks. Overall, the resolution would increase the HUD budget by $1.74 billion above FY06. In addition to the policy changes to the voucher funding distribution system, the resolution would also extend HUD's Mark-to-Market program until 2007, which would otherwise sunset when the current continuing resolution expires on February 15. It also extends authorization for HOPE VI and homeless assistance programs through September 30, 2007. During the House floor debate on the resolution, considerable attention was paid to the proposed new voucher funding distribution system. Housing advocates have been seeking a new voucher funding formula since 2004 when HUD, with Congress' permission, changed the way the elements used in determining how much each housing authority would receive for its voucher program. Under the current voucher funding system, which is based on data from a three-month snapshot in 2004 plus insufficient inflation adjustments, many PHAs have gotten more than what they need for their voucher programs and many have gotten less than what they need. PHAs that have received less than what they need lost 150,000 vouchers nationwide since 2004. And, since the PHAs that got more than what they needed for vouchers could not spend this money on vouchers above their authorized cap, this money was not used on vouchers, but instead built up in the reserves of PHAs. The voucher funding system as provided in H.J. Res. 20 would distribute funds based on the most recent 12 months of voucher cost and leasing data, plus reasonable adjustments. The resolution also provides $100 million for PHAs that may be still left underfunded. During the floor debate on the resolution, House Financial Services Committee Chair Barney Frank (D-MA) entered letters from NLIHC, the Council of Large Public Housing Authorities, the National Association of Housing and Redevelopment Officials, the Public Housing Authorities Directors Association, the Center on Budget and Policy Priorities, and the National Leased Housing Association in strong support of the voucher funding system changes in the resolution into the Congressional Record. However, the Administration attempted to prevent adoption of the new funding formula by convincing some House Republicans that the proposed funding system will, as House Financial Services Subcommittee on Housing and Community Opportunity Ranking Member Judy Biggert (R-IL) said during debate on the resolution, "slash housing assistance for hundreds of families and seniors in my district and for thousands more nationwide." To which Mr. Frank responded, "What this bill does is to make sure that every appropriation is spent; and as to those agencies that might be losing an allocation, in every case they are losing money that they had not been able to spend because they did not have the authority to do it." He added, "We will not give some agencies more than they can spend and some less. We will even it out." The House floor debate on the resolution was fueled in part by a letter circulated to Representatives by House Appropriations Committee Ranking Member Jerry Lewis (R-CA) and Subcommittee on Transportation, Housing and Urban Development, and Related Agencies Ranking Member Joe Knollenberg (R-MI). On the House floor, Mr. Knollenberg said, "There is no urgent situation that needs fixing." Mr. Knollenberg also referred to a list of the 1,227 housing authorities he said will lose funding in FY07. Mr. Frank noted the hypocrisy involved when he heard, "some of my Republican colleagues leap to the defense of Section 8." Mr. Frank said, "We have been trying to defend Section 8 against attack for some time." A two-page summary of the joint funding resolution can be found at: www.nlihc.org/doc/013007summary.pdf A budget chart can be found at: www.nlihc.org/doc/013007chart.pdf
New Federal Homeless Legislation Introduced, Action Needed Bill Would Provide More Resources, Flexibility, to Assist All Homeless Populations The "Homeless Emergency Assistance and Rapid Transition to Housing Act (HEARTH), HR 840, was introduced in Congress this afternoon by Representatives Julia Carson (D-7th/IN), Geoff Davis (R-4th/KY), Barbara Lee (D-9th/CA ) and Rick Renzi (R-1st/AZ). In seeking to reauthorize and strengthen the HUD McKinney-Vento Homeless assistance programs, HEARTH respects greater decision making at the local level, more closely aligns the HUD definition of homelessness with other federal agencies, expands resources for emergency shelter and supportive services, provides a framework for greater homeless prevention activity, and allows communities the flexibly to implement a range of housing solutions... See the full Press Release here: PDF - Word Document ACTION NEEDED: · Call, write and fax your U.S. Representative and urge him or her to sign on to H.R. 840 as a co-sponsor. Please share this alert and ask community partners to support HEARTH, too. Contact information for Members of Congress may be found at www.house.gov · Add your organization (local, state, or national) to the list of HEARTH organizational endorsers by emailing Brad Paul. NPACH will maintain a current list of Congressional sponsors and organizational endorsers on its web site at www.npach.org THE MESSAGE: The HEARTH Act will help communities respond to homelessness in rural, suburban, and urban areas by providing greater flexibility and more resources. It will help make HUD homeless policy more sensitive to the needs of all people experiencing homelessness, including families and single adults, and is therefore a critical part of a broader strategy to prevent and end homelessness. KEY HEARTH ACT PROVISIONS: · Consolidates all HUD McKinney-Vento housing programs (except Emergency Shelter Grants) into one competitive program with a broad set of eligible activities, including homelessness prevention, permanent or transitional housing for any homeless population, and supportive services. This is the first time that homelessness prevention would be an eligible activity under the competitive portion of HUD's homeless assistance grants. · Codifies principles of local control over HUD homeless assistance grant funding, by writing the Continuum of Care (CoC) process into law. Without being overly prescriptive, ensures that local agencies serving all homeless populations must participate in the CoC. Allows CoC's to prioritize particular housing and services initiatives based on demonstrated need in their communities, not because of rigid "one size fits all" priorities set by HUD in Washington, D.C. · Aligns the HUD definition of who is homeless more closely with the definition used by other federal agencies by including people who are living in doubled-up situations or in hotels/motels due to lack of adequate alternatives. This change will provide communities with the flexibility to serve the people who are homeless within their borders. · Does not codify a definition of "chronic homelessness" or a set of incentives designed to end "chronic homelessness." At the same time, communities wishing to prioritize housing and services for homeless persons living on the streets are free to target dollars to that population. · Protects victims of domestic violence by prohibiting the disclosure of any information collected by a housing or social service provider that could identify them, and by permitting victims of domestic violence who may be in danger to immediately move to a safer living situation. · Requires a 25% match for all housing and supportive services, but permits the match to be met either in cash or with an in-kind contribution. · Includes administrative provisions beneficial to grantees -- requires HUD to release their annual NOFA no later than 3 months after enactment of each year's appropriations bill, ensures that HUD will make grant awards no later than 5 months after applications are due, and instructs HUD to create an official appeals process for grantees who do not receive funding. Contact: Brad Paul (202) 714-5378
The 08 Bush Budget: Less Help for People in Need; Needless Help for The Rich The Coalition for Human Needs analysis of President’s FY 2008 budget. The Bush Administration’s FY 2008 budget would make its tax cuts permanent. Between FY 2008 and FY 2017, these tax cuts will hand $739 billion to millionaires alone, and will total $3.4 trillion in lost revenue, according to the Center on Budget and Policy Priorities. In order to pay for these tax breaks for the non-needy and to increase funding for the military, the budget cuts vital services for the poor, near-poor, and middle class. A budget that puts first things first would invest in these services. The Bush budget does the opposite. The choices in the Bush budget are clear. In FY 2008, spending for education, housing, the environment, and all the other programs requiring annual appropriations will total nearly $392 billion in the Bush budget, $13 billion below the cost of keeping up with inflation. The examples below show the results of such a squeeze: hundreds of thousands of children losing health coverage and child care; hundreds of thousands of low-income seniors losing modest packages of food aid and housing assistance. In the President’s proposal for FY 2008, special education, vocational education, and higher education are all cut below FY 2006 levels. These are just a few of the failures to invest in giving people a chance to build better lives for themselves. On the other hand, in FY 2008, people with incomes of a million or more will receive $49 billion from the tax cuts enacted since 2001. The Coalition on Human Needs, working with the Emergency Campaign for America’s Priorities (ECAP), is calling upon Congress to move substantially towards meeting the nation’s needs by providing $450 billion for domestic annually appropriated programs (domestic discretionary programs, including homeland security) in its Budget Resolution for FY 2008. That would help us to invest in education and training, public health, child care, housing, and much more. Is $58 billion above the President’s figure unaffordable? Most of it could be paid for by eliminating next year’s tax cut for millionaires. The Center on Budget and Policy Priorities points out that the discretionary cuts will escalate in the next five years under the President’s proposal. In 2012, domestic discretionary programs will be cut by $34 billion, while millionaires will receive $73 billion in tax breaks. These are the wrong choices. We also strongly urge Congress to reject the President’s cuts in the State Children’s Health Insurance Program (SCHIP) and instead to provide funding adequate to ensure that all children have health insurance. Similarly, now is the time to build on the successes of the Food Stamp Program – certainly not to cut it. Congress should also restore funds to child support enforcement cut in the Deficit Reduction Act, to prevent the wrong-headed cuts in child support collectors that will, if nothing is done, result in more than $8 billion in uncollected child support over the next ten years. As more information becomes available, we will add analyses of additional programs. Fewer children with health insurance: The Bush budget would take health insurance away from children even though there were 361,000 more uninsured children in 2005 than in 2004 – the percentage growing from 10.8 percent to 11.2 percent. The proposal would reduce federal funds to states under the State Children’s Health Insurance Program (SCHIP) for children whose families have income above 200 percent of the federal poverty line. Families USA points out that a family of three with an income of $35,000 would exceed this limit, even though the cost of family insurance premiums now averages about $12,000. Unsurprisingly, according to the Kaiser Commission on Medicaid and the Uninsured, close to 10 percent of children in families with incomes between 200 percent and 300 percent of the poverty line are uninsured. The proposal would also discourage states from covering children over the age of 18. Large Medicaid cuts likely to result in reduction or loss of health care for low income people: Medicaid would be cut $13 billion over 5 years through legislative proposals, plus another $12.7 billion in administrative actions not requiring legislation. It is too soon to analyze the impact, but much of the savings appear to result from shifting costs to states. Last year, Congress rejected billions in Medicaid cuts (but did cut $27 billion over 10 years). Pressures on states, including the cuts already enacted last year, are likely to result in reduced benefits or eligibility. Fewer households with help for high energy costs: The budget cuts home energy assistance about 18 percent below this year’s expected levels (a cut of $404 million, including contingency funds), even though prices for heating and cooling have risen dramatically in the last few years. Between 2002 and the current year, the cost of heating oil has risen more than 44 percent; natural gas is up 32 percent, and electricity has increased more than 17 percent. In FY 2006, with an extra $1 billion in temporary funding, the Low Income Home Energy Assistance Program (LIHEAP) served 23 percent of eligible households, up from about 16 percent the previous year. The President’s budget will dramatically reduce the numbers served. Fewer working families with children with child care and Head Start help: 200,000 fewer children will receive child care assistance in FY 2008 compared to the numbers served in FY 2006 (2.3 million reduced to 2.1 million). The President’s budget acknowledges that by flat-funding child care assistance, the number of low income children placed in child care will continue to shrink, with still another 100,000 denied help by 2010. The number of low-income children receiving child care at reduced cost to their parents has already dropped 250,000 since 2000. The President cuts this support for working families yet again. Further, the Head Start program is funded at $6.789 billion, which does not include the additional $100 million Congress is expected to provide for the current year. The small increase is intended to avoid reductions in services or enrollment. Another year at the President’s proposed level would make the reductions more severe. Fewer low-income working families will receive Food Stamps: The Bush budget will deny Food Stamps to about 300,000 low-income working families, a loss to them of more than $600 million over 5 years – a proposal that was rightly rejected by Congress in the last two years. Fewer low-income older Americans and young children with nutrition help: The budget would eliminate the Commodity Supplemental Food Program, which provides special help to low-income older people as well as to some families with children in the WIC program. In FY 2006, this program was funded at $112 million; In FY 2005 it served an estimated 459,000 low-income elders and more than 50,000 pregnant women and young children. The Administration asserts that these seniors, mothers, and children would qualify for aid under other programs, but many would not be eligible, or would receive less aid despite very low incomes. Fewer social and community services for families, senior citizens, and children: o The Social Services Block Grant (SSBG) provides a large range of services for low-income people, including meals on wheels, child care, services for senior citizens, family counseling, etc. After years of flat funding at $1.7 billion, the President’s budget would cut it by $500 million, a massive cut. In FY 2006 SSBG was increased by $500 million to assist victims of the hurricanes. Although the needs of the hurricane survivors have not been met, neither the FY 2007 budget nor the President’s new proposal continues this funding; in effect, the budget cuts SSBG by $1 billion below the amount available in FY 2006. o The President’s budget eliminates the Community Services Block Grant, which was funded at $630 million in FY 2007. CSBG supports 1,100 community action agencies, which administer energy assistance, weatherization, Head Start, and many other services. o The budget slashes the Community Development Block Grant from $4.17 billion in FY 2006 to $3.04 billion. One hand increases Pell Grants; the other eliminates two college aid programs. The President would increase the maximum size of the Pell grant to $4,600 in FY 2008 and to $5,400 over 5 years; it is now $4,050 (and the FY 2007 budget is expected to raise that amount to $4,310). The Pell Grant increase is an extremely positive development. However, the President’s budget eliminates the Perkins loans, which are serving about 460,000 students at a cost of about $660 million. The budget also eliminates the Supplemental Educational Opportunity Grant programs, which cost $771 million in FY 2006. About half the cost of the Pell Grant expansion is paid for by ending the two other college aid programs. The budget also would increase costs to student loan lenders by $16.9 billion over 5 years. 40,000 – 80,000 rental vouchers could be eliminated: The Administration increases funding for rental vouchers for low-income tenants by one-half of one percent over the anticipated FY 2007 appropriation. That is not enough to cover inflation, and will result in a loss of at least 40,000 vouchers, the full extent depending on how many vouchers housing authorities utilize this year. This would be in addition to the 150,000 vouchers already lost since 2004. In 2005, no state had fewer than 14percent of its renters paying more than half their income on rent. In the three big states of California, New York, and Michigan, more than one-quarter of tenants paid more than half their income on rent. Adequate funding plus an important change in the formula for distributing vouchers would undo much of the earlier reduction and prevent this new cut. Less Housing for Older Americans: The Administration proposes to slash funding for housing for low-income seniors by nearly one -quarter ($747 million this year, down to $575 million in FY 2008). A similar proposal last year that was rejected by Congress would have reduced the new units built for older people by 2,000. Less Housing for People with Disabilities: The program providing housing for people with disabilities is cut from $231 million in FY 2006 to $125 million in FY 2008. Migrant and Seasonal Farmworker Job Training: The Migrant and Seasonal Farmworker Job Training program is slated for elimination in the President’s budget for the sixth consecutive year. So far Congress has declined to go along, funding the program at about $80 million in FY 2006 and FY 2007. Recent data shows that this program, aimed at training and placing the lowest-wage workers in America, helps increase their wages by an average of $9,000 per year. Funding limited for job training: The Administration is attempting to revive its Career Advancement Account proposal, providing vouchers of $3,000 a year (with a maximum of $6,000 over two years), for community college-type training programs. Funding would come from consolidating most of the Department of Labor training programs for adults and youth and putting most of the funds into these vouchers. However, the budget cuts the training programs that are being combined. Adult training under the Workforce Investment Act would decline by 17 percent even before taking inflation into account. Last year, the Center for Law and Social Policy cited evidence that the use of such vouchers with disadvantaged adults was not effective. The $3,000 voucher was judged inadequate last year, because it would not allow funding for counseling and placement services. Another year necessarily makes the funding even less adequate. Many education programs are cut: Although funding is increased for the largest source of federal dollars serving low-income children in K-12 education (Title I), many other education programs are cut. Special education (Individuals with Disabilities Education Improvement Act, or IDEA) is cut from $11.64 billion in FY 2006 to $10.69 billion. (Taking inflation into account, the cut is nearly 10 percent.) The School Improvement, Innovation and Improvement, Safe Schools and Citizenship, Indian Education, and English Language Acquisition programs are all cut. The Even Start program is eliminated. Even Start serves 50,000 families by combining early childhood education with adult literacy training and parent education (this year it is funded at $99 million). Notwithstanding the increase in Title I, overall funding for elementary, secondary and vocational education drops from $39.69 billion in FY 2006 to $38.05 billion in the President’s FY 2008 request. For more information, contact Deborah Weinstein, Executive Director, Coalition on Human Needs; (202) 223-2532; www.chn.org OCPP Report: "Single-Sales" - A Modern Robber Baron When your W-2 form arrives, think of this: Certain multistate corporations are paying much less in corporate income taxes today because Oregon has changed the way multistate firms calculate state income taxes on their profits. That means you pay more than your fair share. In 2001, Oregon began phasing in a “single-sales factor” formula. Under this formula, only in-state sales relative to all US sales matter in determining how much of a company’s profits are apportioned to and thus taxable by Oregon; it doesn’t matter how much of their property or payroll is based in Oregon. The Legislative Assembly in 2005 cut short the phase-in process and fully phased-in the “single-sales” formula for tax years starting on or after July 1, 2005. The Oregon Department of Revenue estimates that using the single-sales factor formula instead of the double-weighted sales formula is costing Oregon $77.6 million in the current 2005-07 budget cycle, and will cost another $65.6 million in the upcoming 2007-09 budget cycle. The projected decline in the cost of "single-sales" in the upcoming budget cycle is temporary. It is due primarily to a corporate kicker that will slash corporate tax payments by two-thirds this year. In subsequent budget cycles, the revenue hit from "single-sales" will return to a higher level. Read the rest of our most recent CenterPoints column, "Single-Sales" - A Modern Robber Baron, by Michael Leachman. CenterPoints is a monthly opinion column by the staff and guests of the Oregon Center for Public Policy. Reproduction of CenterPoints is encouraged provided the author and the OCPP are credited as the source. If you do reprint CenterPoints, please send us a copy for our files. Grand Opening of NHA's Trenton Terrace Feb 12 Please join Northwest Housing Alternatives and community partners invite you to the 4720 North Trenton Street, Portland Communicating with Congress: Federal Budget Advocacy Feb 15 Log in and take part in Enterprise’s ‘Communicating with Congress: Advocating Your Federal Budget Priorities’ Thursday, February 15, 2007at noon. The stakes are high for affordable housing and community development programs. Find out how the federal budget and appropriations process works and learn what is in the Administration’s proposed fiscal year 2008 budget request to Congress. Your members of Congress rely on their constituents to inform their decisions – so make sure they hear you. Learn how to build productive relationships with your elected officials to directly influence what happens in Washington, D.C. With minimal time and strategic outreach, you can help ensure that critical resources are preserved and sound policies advanced. More information at http://www.enterprisecommunity.org/training_and_events/webinars/ Portland Habitat for Humanity Offers 3 Homeownership Orientations in March Interested in Owning Your Own Home? Come to a Homeownership Application Meeting! Portland Habitat for Humanity offers affordable homeownership opportunities to families who meet the following program requirements: · Very-Low Income (30%-60% MFI) · Ability to Pay (steady income and good credit history) · Need (currently living in substandard housing) · Willingness to Partner (commit to contributing 500 hours of “sweat equity”) · Residency (Must be a U.S. citizen or permanent U.S. resident) If you qualify, we invite you to attend an upcoming Homeownership Application Meeting to learn more about our program, and pick up an application. You must attend an Application Meeting to receive a housing application. * Wednesday, March 21 at 6:00-7:30pm – English and Vietnamese At Kelly Elementary School Cafeteria 9030 SE Cooper St. (Tri-Met #14) * Saturday, March 24th at 10:30am-12:00pm - English only At Concordia University, 2811 NE Holman, Luther Hall Room L121. (Tri-Met bus #9 or parking at 27th and Holman). * Sunday, March 25th at 4:30-6:00pm English and Spanish At Concordia University, 2811 NE Holman, Luther Hall Room L121. (Tri-Met bus #9 or parking at 27th and Holman). For more information, visit our web site at www.pdxhabitat.org or contact Matina Kauffman, Family Services Manager, at (503) 287-9529 ext. 22.
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