Innovative Solutions for Addressing Homelessness in Oregon: Legislative Approaches 2017

ADDRESSING HOMELESSNESS Presented to: Georgia State Senate Study Committee on Homelessness November 7, 2017 By: Leigh Alderman, JD, MPH Senior Advisor, Georgia Health Policy Center

ADDRESSING HOMELESSNESS A growing number of states and cities more focused on homelessness State legislatures, governors and city councils Some focus on specific population (e.g., veterans or people who are chronically homeless), while others focus on all people without homes More recently some states/cities have taken a more comprehensive approach

ADDRESSING HOMELESSNESS Today s focus: Oregon Seattle California

OREGON 2017 legislative session heavy focus on housing laws Increasing Housing Supply and Incentivizing Affordability HB 2066 Affordable Housing Tax Credit HB 2377 Affordable Housing Property Tax Exemption HB 2724 Rent Guarantee Program HB 2912 Affordable Housing Land Fund HB 3175 Local Innovation and Fast Track Housing Program SB 1051 Housing Development

OREGON HB 2066 Affordable Housing Tax Credit extends time tax credit is available from 2020 to 2026; increase cap from $17 to $25 million. Applies to housing by households earning less than 80% area median income (AMI) HB 2377 Affordable Housing Property Tax Exemption authorizes city/county to adopt ordinance to give property tax exemption to newly rehabilitated or built qualified multiunit rental housing Must establish a schedule for number of years of exemption, which increases directly with the percentage of affordable units rented to households who earn at or below 120% of the AMI annually.

OREGON HB 2724 Rent Guarantee Program: pays incentives and financial assistance for unpaid rent, eviction and property damage to landlords who rent to graduates of a qualifying tenant education program Eligible tenants: Low-income (at/below 60% AMI) Face housing barriers (e.g. poor credit, criminal history or history of evictions HB 2912 Affordable Housing Land Fund: New program for loans to buy land to build affordable housing, and facilities to provide supportive services to low-income 40% of loans to organizations operating home ownership programs for low-income Complete development within 8 years of receiving loan Preserve as affordable housing minimum 30 years Interest rates may not exceed 1%

OREGON HB 3175 Local Innovation and Fast Track Housing Program (LIFT) Awards up to $38k in subsidy per affordable housing unit. (Habitat for Humanity often uses) Modified affordable so that for rental units, subsidy applies to residents earning at/below 60% AMI; and for-purchase units applies to residents earning at/below 80%AMI SB 1051 Removing Local Barriers to Housing Development: Increases supply of market rate and affordable housing by expediting permitting, and allowing religious organizations to build affordable housing on their property.

OREGON SB 5530 appropriated $25 million in lottery bonds for the preservation of affordable housing. HB 3063 establishes Fund to develop community-based housing for people with mental illness and provide other housing-related services, rental subsidies. To keep these individuals safe and stable Housing and Community Services Department, with the Oregon Health Authority shall disburse monies into this fund, and identify financing mechanisms to do so

SEATTLE Housing Levy Homelessness Prevention and Housing Stability Program 2016 - Seattle City Council Ordinance 125308 proposed, and voters approved a ballot to increase property tax levies To finance/support affordable housing for low- income households Appropriated $290 million over 7 years (2017-2023)

SEATTLE Five Programs 1. Rental Housing Program- create or preserve rental housing for people at/below 60% of median income Priority project populations Homeless, including chronically homeless Seniors and people with disabilities Low-wage workers Priority project locations Access to transit Access to opportunity (jobs, quality education, parks) Address displacement Serve resident needs (e.g., locations near senior centers for seniors)

SEATTLE Five Programs 1. Rental Housing Program (cont d) Sustainability Must leverage other public/private fund sources Encourage designs for efficient, and energy-saving operations Financing Long-term loans min 50 years Interest rates 1-3% simple interest (rate is LIHTC-dependent)

SEATTLE Five Programs 2. Operating and Maintenance - subsidy Operating support for Levy-funded buildings, supplements rents for residents at/below 30% of median income Fills gap between eligible operating and enhanced management costs, and rental income Priority to projects serving homeless, other special needs people supportive services Minimum rent payment - 30%/income

SEATTLE Five Programs 3. Homeownership Home repair grants and loans for homeowners at/below 50% of median income (MI) Purchase loan assistance to first-time home buyers at/below 80% of MI One-time mortgage loans* to prevent foreclosure for homeowners at/below 80% of MI Loans** may also be made to housing organizations that will sell homes to First-Time Homebuyers with incomes at/below 80% of MI homes have restriction on resale prices and may be sold only to eligible buyers for 50 years or longer.

SEATTLE Five Programs 3. Must complete a pre-purchase homebuyer education program Homebuyers must pay the greater of $2500, or 1% of the purchase price Annual house payments must be at least 25% of annual income Maximum assistance is $55,000 Generally, interest rate not more than 3% simple Homeownership (con td): Home purchase homebuyer eligibility

SEATTLE Five Programs 4. Acquisition/Preservation (no separate allocation for this program) Short-term loans to buy property to preserve and develop low- income housing for households at/below 80% MI 1-3% simple interest rate

SEATTLE Five Programs 5. Homelessness Prevention and Housing Stability Services Rent assistance and stability services to prevent eviction and address homelessness Eligible households must meet all: Homeless or at-risk At/below 50% MI Financial help maximum is 12 months out of 36 months Address housing barriers with housing stabilization support services and financial help Services include: housing search assistance, landlord negotiation, financial coaching, help applying for benefits, reviewing leases

CALIFORNIA CA Assembly Bill 1618: No Place Like Home Program Repurposed bond money from Proposition 63, The Mental Health Services Act The MHSA imposes a 1% tax on personal income over $1 million to finance county mental health programs Establishes and continuously appropriates the No Place Like Home Program for county mental health programs

CALIFORNIA CA Assembly Bill 1618: No Place Like Home Program Amended provisions of the Welfare & Institutions Code related to mental health services Governor approved July 2016 Unlike others framing/appropriations related to addressing behavioral health issues Housing as a means to address mental illness

CALIFORNIA CA Assembly Bill 1618: No Place Like Home Program $2 billion to be awarded to counties To buy, build, and preserve permanent supportive housing for homeless, or persons at risk for homeless living with mental illness $1.8 billion for competitive awards $200 million reserved to jumpstart program, allocated to all counties based on number of homeless in each county