Affordable Rental Shortage Faces Renters in NC

Raleigh, N.C. - An analysis released on February 15 by a national housing research and advocacy group shows an alarming gap between the number low income families and the number of affordable and available rental homes in North Carolina and throughout the nation. These renter households, faced with excessively high housing costs or inadequate housing circumstances, are at great risk of becoming homeless.

Jointly released by the National Low Income Housing Coalition and the North Carolina Housing Coalition, Housing Spotlight: The Shrinking Supply of Affordable Housing, shows that in North Carolina, there are only 33 rental homes both affordable and available for every 100 renter households considered extremely low income, that is, earning 30% or less of the area median income. Nationally, the data shows that while there are 9.8 million extremely low income renter households, there are only 3 million rental homes affordable and available to them, leaving 6.8 million American households without access to decent housing they can afford. No state in the nation has an adequate supply of affordable, available rental housing.

“This gap is more than just numbers on paper,” said Chris Estes, Executive Director of the North Carolina Housing Coalition, “These are families in North Carolina sleeping on couches, skipping meals, living one illness away from total disaster. It’s a recipe for homelessness.” Advocates say this housing shortage compares in scale and impact to the foreclosure crisis.

While the affordable rental housing shortage itself is dire, housing advocates point to numerous available solutions. This year marks the 25th anniversary of the North Carolina Housing Trust Fund. In those 25 years, the award-winning program has financed nearly 25,000 homes and apartments, most for very low income families. To date, the Trust Fund has created over 16,000
much-needed construction jobs and generated millions in local and state tax revenue. As the state readies itself for another contentious legislative session, housing advocates are urging lawmakers to strengthen the NC Housing Trust Fund, a program with historic bi-partisan support that can help fill the gap in affordable rental housing and strengthen communities across the state.

At the federal level, advocates call for funding of the National Housing Trust Fund, which would provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for those households impacted by the affordable housing shortage. Signed into law in 2008, the National Housing Trust Fund has not yet been funded. President Obama included $1 billion for the National Housing Trust Fund in his FY13 budget.

“Solving the shortage of affordable rental housing is the most important homelessness prevention measure we can undertake,” said Sheila Crowley, President and CEO of the National Low Income Housing Coalition. “Investing in the National Housing Trust Fund is our best chance of ensuring affordable housing for all Americans.”

The full report is available at http://nlihc.org/doc/HousingSpotlight2-1.pdf

A voice to be heard and a story to be told

Last Wednesday, the NC Housing Coalition headed to the heart of Harnett County, Lillington, North Carolina. We were on a mission to resume the Postcard Project, an ongoing initiative to convince our legislators that the NC Housing Trust Fund needs a dedicated revenue source. We believe that our legislators need to hear from those who have a safe, affordable place to call their own because of the NC Housing Trust Fund, so we went to Fairview Pointe and Fairview Manor, two housing developments built by money from the NC Housing Trust Fund.

As we approached Fairview Pointe and Fairview Manor, we were immediately taken aback by the beautiful buildings and peaceful atmosphere and could not help but notice the camaraderie among residents. At Fairview Manor, seniors gathered in the lobby to socialize and read newspapers, while children at Fairview Pointe rode bikes with their friends on the sidewalks.

The high temperatures did not stop residents from coming outside to get their pictures taken for the postcards. Not long after we set up our equipment, residents began asking questions and wanting to learn more about our project. They joined us for snacks while filling out postcards to send to Rep. David Lewis, Rep. Mike Stone, Sen. Harris Blake, Sen. Fletcher Hartsell, Sen. Bill Rabon, Sen. Bob Rucho, Sen. Tom Apodaca, and Sen. Kathy Harrington.

From single-parent families to individuals with disabilities to survivors of domestic violence, the residents of Fairview Pointe and Fairview Manor were eager to share their stories with us so that their voices could be heard by legislators. Some residents wanted to tell their legislators how they found themselves at Fairview Pointe and Fairview Manor:

"I went through domestic violence. During that emotional time, the NC Housing Trust Fund really is greatly appreciated. I am a single parent, and I am thankful for all that they do."

"I need affordable housing because I was displaced by Hurricane Katrina."

"Hopefully one day, homeless people can get off the streets, like I was at one time."

Other residents showed appreciation for the housing that they have in an effort to convince the legislators that North Carolina needs more affordable housing:

"Me and my daughter love living here. It is a very nice place to live. It is clean and safe."

"I really appreciate that people on a fixed income can find affordable, quality housing due to this trust fund."

"The affordability of nice, low-income housing is the best thing that has happened in this section of Harnett County."

Every resident's voice deserves to be heard, especially by the legislators, who are the ones that make decisions about the revenue source of the NC Housing Trust Fund. In addition, every resident's story deserves to be told. We are glad that the Postcard Project serves as a means to do both.

Check out these pictures of the residents in front of their homes, which were built by money from the NC Housing Trust Fund!

A picture is worth a thousand words…

If you read our last blog post, you learned about why the North Carolina Housing Trust Fund is necessary for providing affordable homes in our state. In short, the Housing Trust Fund helps rehabilitate and preserve the existing housing stock in North Carolina and also creates new affordable housing. However, as you know, the Trust Fund receives inadequate funding, and the focus of the Campaign for Housing Carolina is to secure a dedicated revenue source for the NC Housing Trust Fund.

We wanted to let everyone know about our recent undertaking, the Postcard Project, which showcases how the NC Housing Trust Fund has given individuals and families a place they can call their own. We created the Postcard Project because we want lawmakers to witness the past successes of the Trust Fund, and the project is an effort to show lawmakers the faces of residents whose lives have been changed from housing provided by the Trust Fund.

Here’s the lowdown on how the Postcard Project works: At the housing developments, we host a get-together for the residents. At the get-together, we take pictures of families and individuals living in the housing and put them on the postcards to send to legislators. Each person signs a postcard for every legislator in their county and for the chairs of key committees. Then, we let the residents tell their stories by writing personal messages on the cards. So far, the NC Housing Coalition has traveled across the state to the housing developments of Brookridge, Maplewood Square, Hunters Hill, and Nia Point and to construction agencies that build affordable housing, such as Weaver Cooke and Village Crossing. To date, we have mailed approximately 1,007 postcards to 59 legislators representing 14 counties with many more to come.

Also at the get-togethers, we provide snacks, drinks, and activities for the children. In addition to being an opportunity for the residents to learn more about how to ensure that more affordable housing is built, the event serves as a way to build community. It is so touching to witness the smiling faces of residents and their appreciation for their homes, and although we cannot disclose pictures of the residents, we wanted to share a couple of photos of the housing developments from our past visits.

The photo above is from the opening of Brookridge in Raleigh, NC. (Developer: DHIC)

Above: Maplewood Square in Durham, NC, is a housing development for seniors. (Developer: DHIC)

Above: Nia Point in Charlotte, NC, is a housing development for families. (Developer: Crosland)

Above: Weaver Cooke in Greensboro, NC, is a construction agency. (Developer: Weaver Cooke)

This week, the Postcard Project will take us to Lillington, North Carolina, to visit Fairview Pointe and Fairview Manor, two housing developments for families and seniors, respectively. Thanks to Mills Construction, the developer, and United Property Management for helping organize the event. Stay tuned for an update!

Why we need the NC Housing Trust Fund

Housing Trust Funds often don’t get the respect they deserve. It’s easy for someone to take them for granted, especially if one isn’t looking for housing or emergency shelter. However, affordable housing is something that improves the lives of so many people all over North Carolina. We need to more closely examine what families really need to have healthy, safe, and affordable housing. It’s especially important to do so during this time of economic recession and discussions of drastic budget cuts.

In North Carolina, legislators are in the midst of deciding how or if the Housing Trust Fund should be funded. Now’s the perfect time to take action and help them understand what a fully funded Housing Trust Fund could do for our state. I’ve heard several questions about the Housing Trust Fund, I think the answers make a clear case for why we need it to be fully funded.

Who benefits from the NC Housing Trust Fund?

The NC Housing Trust Fund provides funding for a wide range of projects and services throughout the state. All of the money allocated to the NC Housing Trust Fund goes into bricks and mortar for the projects, the North Carolina Housing Finance Agency absorbs all of the administrative costs.

The NC Housing Trust Fund provides the vital funding that so many programs need, such as: domestic violence shelters, affordable apartments for seniors, group homes for developmentally disabled youths, and transitional housing programs for the homeless. Not to mention transitional housing programs for veterans, or housing for children in foster care.

To sum up, the elderly, youth, women and children, veterans, and persons with disabilities all benefit from housing programs funded by the NC Housing Trust fund. It makes a strong impact in every community.

Why is a housing trust fund important for our state?

Right now, North Carolina has a shortage of 328,000 rental homes and apartments with incomes below 50% (and 30%) of local median income.

544,000 families in North Carolina pay more than they can afford for their rent, a 13% increase from 2000.

12,160 North Carolinians are homeless.

The Trust Fund has created 14,500 jobs

In North Carolina, the Housing Trust Fund is the only state appropriated funding source for providing permanent housing for homeless families, the elderly, or persons with disabilities. It allows seniors or persons with disabilities to continue living in their own homes through rehab and modification.

The Trust Fund needs a substantial, recurring appropriation in order to maintain its progress and continue helping families in need.

Why should we fund the NC Housing Trust Fund now?

The funding for the North Carolina’s Housing Trust fund has been volatile since its creation in 1987. It’s ranged anywhere from $20 million to $0.

This fluctuation in funding has made it difficult for affordable housing developers to have dependable funding sources. It often takes several years to plan a housing development. Local governments become hesitant to commit their municipalities’ limited resources when the Housing Trust Fund fluctuates so widely from year to year. That’s why we should take advantage of the opportunity legislators in NC have to create a dedicated revenue source in North Carolina. This would provide a way for communities to have a reliable source of funding they can count on every year.

Also, the Housing Trust Fund Study Commission, which recommended the creation of the Housing Trust Fund back in 1987, has favored creating or finding a dedicated revenue source for the Trust Fund especially one that is related to the real estate industry.

Who supports a Housing Trust Fund?

There is a broad coalition of organization that support the Housing Trust Fund. Click here to see a full list.

How can I help create a Trust Fund in North Carolina?

Call or email your state Senator today and urge him or her to support SB 462 and the NC Housing Trust Fund. You can find your legislator here. Here’s a link to a factsheet about the Housing Trust fund for some talking points. Together, we can make a great difference for families in North Carolina!