Category: Resource Library

Press Release: Funding the Affordable Housing Trust Fund

  First Time Funding for Affordable Housing Trust Fund Is Important Step Forward:  Significant Dedicated Annual Funding Still Needed
 For Immediate Release:  February 7, 2019
From:  Greater Cincinnati Homeless Coalition & Affordable Housing Advocates
Contact:  Josh Spring LSW, Executive Director; 513-716-7455.
Cincinnati Mayor John Cranley and Council Member David Mann’s proposal, likely to be approved by City Council next week, to make a one-time allocation of approximately $700,000 from the city-owned Norfolk Southern Railroad into Cincinnati’s new Affordable Housing Trust Fund is a positive step forward. 
The Affordable Housing Trust Fund was created by City Council on December 12, 2018 after more than a year of advocacy and organizing by Affordable Housing Advocates (AHA) and the Greater Cincinnati Homeless Coalition. (1)  Whereas, Hamilton county is short 40,000 affordable homes, 28,000 of which are needed in the City(2), substantial dedicated annual city-revenue sources are needed for the Housing Fund.  Soon AHA and the
Homeless Coalition will publicly announce proposed sources.
 
It shows important forward movement that the Mayor and Council members will be allocating these funds to the Housing Trust Fund for the development of some safe and healthy affordable homes.   The crisis level shortage of affordable housing has compromised our neighborhoods and increased housing instability and homelessness to staggering levels.  As housing and homelessness advocates, we consider the Affordable Housing Trust Fund to be a necessary tool for fighting our City’s current affordable housing crisis.
 
Council passed the Housing Trust Fund without funding, but with a promise to legislate needed dedicated revenue sources.  If passed by City Council, this disbursement will be the first funding allocation to the Trust Fund and represents a positive step forward.  Since the passage of the Trust Fund, AHA and the Homeless Coalition have been doing the necessary research and preparation to recommend and advocate for significant, annual city revenue sources for the Housing Trust Fund.

In order to rise from this housing crisis, we must annually generate significant city revenue specifically for the Trust Fund.  AHA and the Homeless Coalition are dedicated to everyone having a safe place to call home.  We must also pass legislation that will protect people from unjust evictions and displacement for profit.  Soon, AHA and the Homeless Coalition will announce new and necessary proposed city revenue sources.

(1) Ordinance No. 364-2018, City of Cincinnati, December 12, 2018.
(2) Housing Affordability in Hamilton County, Xavier University Community Building Institute, February 2017.
Page 3, Housing Affordability in Hamilton County, Xavier University Community Building Institute, February 2017.

AHA Letter to HUD re Arts Apartments

November 21, 2018

Daniel J. Burke,
HUD, Office of Multifamily Housing
Midwest Regional Center Director,
Ralph Metcalfe Federal Building
77 West Jackson Boulevard
Chicago, IL 60604-3507

RE: Arts Apartments at Music Hall aka Richmond Village (HUD Property ID 800017160)

Dear Mr. Burke:

Affordable Housing Advocates (AHA) understands that the Arts Apartments at Music Hall, also known as Richmond Village (HUD Property ID 800017160) is under contract with potential new owners. In light of this, AHA urges the Department of Housing and Urban Development to ensure that any new owner is competent and qualified to meet the expectations of the existing Housing Assistance Payment (HAP) Contract.

Affordable Housing Advocates is a coalition of housing providers, advocates and civic groups dedicated to ensuring good, safe, accessible, affordable housing in Greater Cincinnati. We understand that preserving our existing affordable housing assets, including properties with project-based subsidies like the Arts Apartments, is a key strategy in pursuit of that mission.

It is our understanding that while the Arts Apartments was being marketed, the seller’s brokers indicated repeatedly that any existing income restrictions or affordability components could easily be vacated. Any outcome that results in the loss of 83 units of assisted housing in our community is unacceptable.

As you may know, significant local data points to the deep and prevailing need for affordable housing. Some of that data includes: in Hamilton County there is a deficit of 40,000 units of housing available to households that earn 35% of the local AMI; the number of Hamilton County households in poverty has grown by 40% since 2000; for every 100 of the lowest income households in Hamilton County, there are only 28 units of housing that are both affordable and available; and 75% of homeless families seeking emergency shelter are turned away because the family shelters are full.

Given the data and what we all know anecdotally, we simply cannot afford to lose 83 units of rent subsidized affordable housing. It is our firm belief that HUD should only approve transfer of the HAP contract to a competent and qualified buyer, ideally one with experience owning and managing HUD assisted or other affordable housing.

Today we strongly urge HUD to work with local officials and advocates to make every effort to preserve the existing HUD assisted affordable units at the Arts Apartments at Music Hall.

Sincerely,

Noam Gross-Prinz
Board President AHA

cc:        Cincinnati Mayor John Cranley, Cincinnati City Council

Recommended Eviction Prevention Policies

August, 2018
Recommended Policies for the City of Cincinnati to address eviction crisis:https://affordablehousingcincinnati.org/wp-content/uploads/2018/11/eviction-displacement-policies.pdf

  1. Good Cause Eviction: A landlord is permitted to terminate a residential tenancy only for good cause. In order to end a residential tenancy, a landlord or property manager must have one these reasons:
    a. Tenant fails to pay rent;
    b. Tenant materially violates the rental agreement or legal obligations regarding the residence;
    c. The residence will be occupied by the landlord or a family member;
    d. To perform necessary repairs necessary to make the rental residence safe and habitable and the performance of the work will make the residence temporarily uninhabitable while the work is being done;
    e. To comply with city orders to vacate the property.
    A lease provision that waives a tenant’ rights under the good cause for eviction ordinance is void and unenforceable.
  2. Pay to Stay: An owner or manager may not evict a tenant for non-payment of rent if the tenant presents to the owner or manager the full monetary amount to fulfil all current or past-due rent obligations.
  3. Personal Property Protection in Eviction: If a landlord obtains a writ of eviction, for a period of at least 30 days, the landlord must store all personal property which has not been removed by the tenant before set out. A landlord may not place outside and leave unattended personal property of an evicted tenant. The landlord must provide written notice to the tenant of where the property is stored. While the property is stored, the tenant must be given access without charge to have medically necessary things and tools and other things necessary for the tent’s trade or work. The tenant may recover all other stored things upon full payment of storage charges.
  4. Tax Abatement without Displacement: The owner of a property may not receive any form of property tax abatement, tax increment financing or any other city financial incentive, funds or pass-through funding for work on a property from which tenants were required to move without good cause within the past 24 months.
  5. No Source of Income Discrimination: The City will amend Chapter 740 of the municipal code to prohibit landlords from discrimination against applicants for rental housing because they have a rental voucher or based on their source of income, and the City will enforce the ordinance.
  6. Eviction Prevention Program: The eviction prevention program will provide up to $2000 per household to prevent eviction when tenants have a financial problem and fall behind on rent payment. Annually the City of Cincinnati will allocate $750,000 for the program from its general fund. Additional funds for the program may be obtained from other sources. It is expected that a typical amount of funds provided per household will be between $1000 and $1,500. Each year the program would prevent over 500 evictions.
  7. Funding for Legal Counsel for Tenants: Annually the City of Cincinnati will allocate $500,000 from its general fund for legal services to be provided without charge to low income tenant households. Additional funds for the program may be obtained from other sources. The lawyers would represent tenants in eviction cases and provide legal advice, as well as referral to the eviction prevention program and other services.

City of Cincinnati Eviction Prevention Fund Recommendations

Recommendations for Cincinnati eviction prevention pilot program:

In October 2018, Cincinnati allocated $227,000 for a pilot eviction prevention project.  Affordable Housing Advocates (AHA) the city’s coalition of grassroots, civic, faith-based, development, housing and planning advocates, commends the City for this positive step.

Allocation: AHA recommends that the City of Cincinnati allocate funds for the pilot eviction prevention project in a 70%/30% split: $157,000 for emergency rental assistance and $70,000 for legal representation of low income tenants.

Distribution:  

  1. For emergency rental assistance, we recommend the City execute a Request for Proposals (RFP) to select one or two Cincinnati agencies to take applications, screen tenants, pay out rental assistance funds and provide additional information, counseling and referral to tenants at risk of eviction. Agency administrative costs should be limited to no more than 10% of grants received.
  2. For legal representation, we recommend either increasing the city’s existing contract with the Legal Aid Society of Southwest Ohio, or alternately offering a Request for Proposal.

Suggested Emergency Rental Assistance Program Guidelines

Eligible tenants:

  • Household income less than 200% federal poverty rate.
  • Tenant has received a notice to leave* or an eviction complaint related to non-payment of rent.
  • Tenant can demonstrate ability to make future rental payments.
  • Landlord agrees to accept payment and not to proceed to eviction.

Assistance limits

  • Maximum payment: $2,000 per household.
  • Paid to landlord and/or court to cover back rent, fees and court costs.
  • No more than one rental assistance grant per household in a 12 month period.

* Whenever possible, the Emergency Rental Assistance program should assist tenants before eviction is filed in order to avoid court costs, eviction records and other adverse consequences for tenants.

Anticipated Results:

AHA’s 2018 analysis esitmates an average $1000 per household in emergency rental assistance or $900 in legal assistance to prevent eviction, assuming that most households participating will be over two months behind in rent. Approximately 150 families could be assisted with $157,000 in emergency rental assistance; $70,000 for legal representation would prevent about 80 evictions. Some households may need both legal representation and rental assistance to avert eviction. This pilot program would help 200 households avoid eviction in 2019.