Monarch Housing’s Blog!

As the Monarch Housing Blog! reported on April 4, 2008, New Jersey remains the fifth most expensive state for affordable rental housing. The post last week announced the National Low Income Housing Coalition’s release of Out of Reach 2007-2008. Although we were disheartened again today with the release by our friends at the Housing and Community Development Network of New Jersey of the details about New Jersey we were pleased that they were taking the lead on making the case about the continued decline in affordability in New Jersey. As they note in their fact sheet “The hourly housing wage in New Jersey for a two-bedroom apartment at fair market rent in 2008 is $22.25. This wage has risen 42.6 percent since 2000.”

To read the full report click here.

To read the Housing and Community Development Network’s fact sheet click here.

To read the Housing and Community Development Network’s four pages of data click here.

The following is their full press release.

Affordable rental housing still “Out of Reach” in NJ
Network says report shows need for action in fifth worst state

The release of the National Low Income Housing Coalition’s “Out of Reach 2007-2008,” the annual report documenting the need for affordable housing in every state in the nation, takes on an amplified importance for New Jersey this year, according to the Housing & Community Development Network of New Jersey.

“The NLIHC’s report, which once again places New Jersey among the most difficult states in which to find affordable places to live, points up the necessity and the urgency of taking meaningful action,” said Diane Sterner, the Network’s executive director.

In the 2006-2007 NLIHC report, New Jersey was the fourth most expensive state in which to rent. According to this year’s report, things haven’t changed much, with the state in fifth place. To afford a two-bedroom apartment at fair market rent in New Jersey the tenant must have an hourly wage of at least $22.25, an almost five-percent increase from last year. Social workers, dental lab technicians, police dispatchers, home health aides, child care workers and school bus drivers, among a host of other occupations, make under $22.25 an hour in New Jersey. Only in Hawaii, California, New York and Massachusetts, is renting more expensive.

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This week the National Low Income Housing Coalition released Out of Reach 2007-2008. The trends that have undermined affordability have continued. “Out of Reach is a side-by-side comparison of wages and rents in every county, Metropolitan Area (MSAs/HMFAs), combined nonmetropolitan area and state in the United States. For each jurisdiction, the report calculates the amount of money a household must earn in order to afford a rental unit at a range of sizes (0, 1, 2, 3, and 4 bedrooms) at the area’s Fair Market Rent (FMR), based on the generally accepted affordability standard of paying no more than 30% of income for housing costs. From these calculations the hourly wage a worker must earn to afford the FMR for a two-bedroom home is derived. This figure is the Housing Wage.”

To read the full report click here.

To view data in New Jersey click here.

To view the rankings of most expensive housing wage click here.

For an overview on how to use the data click here.

This is the overview from the report on New Jersey.

New Jersey is the sixth most expensive place for renters! In New Jersey, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,157. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,857 monthly or $46,287 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $22.25.

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At long last we have a resource to find out the positions of all of the presidential candidates on housing issues. Housing2008.org is a nonpartisan forum for discussing housing issues in the 2008 Presidential election debate was launched by the National Low Income Housing Coalition. The Web site provides extensive information about the campaign and the housing views of the presidential candidates. It also collects information from users regarding what candidates say about housing on the campaign trail. If you have personal experiences regarding the 2008 campaign contact Housing2008.org with personal experiences, via e-mail [Email address: info #AT# housing2008.org - replace #AT# with @ ].

Details of the Omnibus Bill have been released. Many of the reductions proposed by the President in HUD’s Budget have been restored. To review NLIHC’s budget breakdown by category click here. This bill still needs to be approved by both the House and Senate and signed by the President.

McKinney-Vento remained at $1,586,000 up ten per cent over 2007’s funding level.

In addition, improvements included: 14,300 new vouchers will be provided to vulnerable populations, including 7,500 for Veterans Administration Supportive Housing ($75 million), 4,000 for non-elderly,disabled individuals and families ($30 million), and 2,800 for the Family Unification Program so that children will not be separated from parents ($20 million).

In addition, Housing for the Disabled: $237 million, rejecting the President’s proposal to cut the program by $112 million, maintaining last year’s level for grants to finance housing for disabled people.

The following are the details from the House Appropriations Committee web site.

HOUSING AND URBAN DEVELOPMENT: $37.6 billion, $1.4 billion above 2007 and $2 billion
more than the President’s request.

Section 8 Tenant Based Vouchers: $16.4 billion, $499 million above 2007 and $433 million above the

President’s request, to renew approximately 1.9 million vouchers currently in use. The President’s request would force between 40,000 and 80,000 families and individuals to lose their housing vouchers.

Section 8 Project Based Vouchers: $6.4 billion, $405 million above 2007 and $568 million above the President’s request, to provide affordable housing to 1.3 million low-income families and individuals.

Public Housing Operating Fund: $4.2 billion, $336 million above 2007 and $200 million above the President’s request, for administration of public housing, including routine maintenance, anti-crime activities and energy costs. This is still $800 million below the amount HUD and Public Housing Authorities have determined is necessary for 2008.

Community Development Block Grants: $3.6 billion, $117 million below 2007, but rejecting the President’s plan to cut the program by $822 million, to fund community and economic development projects in 1,180 localities.

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Tags: Advocacy, Community development, HUD, HUD-2008-Budget, NLIHC, Supportive Housing

According to the The Hill in a post entitled “Pelosi backs down in spending battle” stated that “Democratic leaders would accede to cut spending to levels demanded by President Bush in order to save 11 spending bills from a veto, said sources familiar with a meeting that took place in Pelosi’s office early Wednesday morning.”

The New York Times today in an article entitled “Democrats to Spend Bush’s Limit Their Way” confirmed this budget deal. In addition, they note that the Democrats “intended to shuffle the investment in certain programs within the spending conditions set by the president, putting more money into health care, medical research, veterans benefits, home heating programs, law enforcement and border security.”

This can and will be devastating for domestic spending. For HUD it means very likely that the new HUD budget could be reduced to match the exact amount requested by the President. Click here to view a chart of the HUD budget prepared by NLIHC.

The column FY08 Request is very likely to become the HUD budget. The President’s FY08 HUD budget request was lower than the amounts currently available to HUD; reducing FY08 spending to the levels proposed in the President’s budget would have devastating results for housing programs. For example, The CDBG funds could be reduced by $772 million from last year.

In addition, the Section 811 program for example would be reduced from $237 million to $125 million. The 2007 Section 811 awards totaled $124.9 million. The new funding level proposed by the President would be $125 million. Of this amount $95 million would be used for PRAC and Mainstream voucher renewals. The budget identified $30 million for program expansion which would include both capital and PRAC funding. In addition, off this amount $15 million was listed for “Demo on Leveraged Financing.” A portion of the allocation every year covers PRAC renewals. Thus, this would effectively eliminate the program.

The following is portion of the post form the Hill:

In the face of stiff opposition from powerful fellow Democrats, House Speaker Nancy Pelosi (Calif.) has abandoned a proposal she supported less than 24 hours ago to eliminate lawmakers’ earmarks from the omnibus spending package.

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Tags: Ending Homelessness, HUD, HUD-2008-Budget, NLIHC, Supportive Housing

The House of Representatives approved HUD’s FY2008 Budget on November 14, 2007. The final budget had been reconciled with the Senate. The Senate is expected to approve the bill this week. However, the House vote was not enough to override a Presidential veto. The vote was 270 in favor and 147 opposed. The votes against are two more than required to sustain a veto. The three negative votes from New Jersey were Congressmen Scott Garrett, Rodney Frelinghuysen and Jim Saxton.

To see all votes for and against click here.

Those opposing are similar but the not same as those who signed onto the Republican Study Committee that committed themselves to oppose all funding bills that exceed the President’s request. Congressman Scott Garrett is the only one on both lists. To view the list click here.

According to the NY Times “Senator Harry Reid of Nevada, the majority leader, said Democrats intended to gather 11 stalled spending bills into one package and halve the $22 billion difference between what Congress has approved and what President Bush has said he will accept.” The White House rejected that offer. To read the NY Times article click here.

According to National Association for County Community and Economic Development (NACCED) “Democratic leaders in both the House and Senate have not decided on an end game strategy regarding domestic spending bills, all of which face a presidential veto. They are hoping to negotiate a compromise with the administration. The president has insisted that the bills not exceed the $933 billion total he requested in his FY 2008 budget. The congressional budget resolution passed last spring provides an additional $23 billion in domestic spending above the president’s request. The likely impasse will keep Congress in session until Christmas Eve.”

The following is an overview by NACCED of the HUD Budget. To view a chart prepared by the National Low Income Housing Coalition of the budget click here.

Late last week a House-Senate Conference Committee reconciled the differences between the House and Senate versions of H.R. 3074, the $105.6 billion FY 2008 Transportation, Housing and Urban Development, and Independent Agencies appropriations bill clearing the way for its expected passage at the end of this week. The full House is scheduled to take up the bill today, with Senate consideration to come shortly thereafter. The bill, however, faces a veto threat because it exceeds the president’s budget request. The bill appropriates $38.66 billion for HUD’s housing and community development programs, $2.45 billion above the amount provided for FY 2007 and $3.1 billion above what the president requested.

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Tags: Ending Homelessness, HUD-Budget, NACCED, NLIHC, supporitve-housing, Supportive Housing

The following update on the budget situation is Washington is from the National Low Income Housing Coalition.

Capitol Hill
Memo to Members: Vol 12, No. 42, October 26, 2007

Although October 1 marked the start of FY08, Congress has not yet sent any appropriations bills to the president, who has threatened to veto domestic spending bills that exceed his budget request. The president has threatened to veto the Transportation, HUD and Related Agencies (THUD) spending bill, H.R. 3074 (see Memo, 7/27), among others. The combined bills that President Bush says he will veto exceed his total budget request of $933 billion by $23 billion.

Congressional leaders are expected to start sending FY08 appropriations bills to the president by Veterans Day on November 12. The first two spending bills - the Military Construction, Veterans Affairs, and Related Agencies bill, and the Labor, Health and Human Services (HHS), Education, and Related Agencies bill - are expected to be sent as one package. Packaging the two bills together is expected to make it harder for the president to veto. The president has said he would veto the Labor, HHS, and Education bill because it exceeds his spending request by $11 billion. The Veterans Affairs bill also exceeds the president’s request by about $4 billion, but he has not threatened to veto that bill.

The THUD bill is one of two spending bills expected to be acted upon soon after Veterans Day.

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