Income inequality is a big topic of conversation in DC and for good reason. The gap between rich and poor in the District is the third highest among the nation’s largest cities, just behind Atlanta and Boston. While some residents are doing very well in DC’s information-based and high-skill economy, those without advanced education are falling further and further behind, and their kids will likely, too. The recently approved minimum wage increase is a critical step, but it alone will not be sufficient to ensure residents have living wage work and can benefit from the District’s prosperity.
The budget for fiscal year (FY) 2015 offers the mayor and DC Council a chance to take other steps to reduce income inequality and increase opportunity, through investments in affordable housing, education, health care, job assistance, and targeted tax reductions.
Over the next month, DCFPI will highlight budget actions that would reduce DC’s widening income inequality. Today’s District’s Dime zeroes in on housing and homelessness.
- Invest in permanent supportive housing (PSH) and implement best practices to reach those most in need. DCFPI is part of a growing campaign of residents and organizations who want to end chronic homelessness in DC. Providing housing and supportive services to chronically homeless residents — who typically suffer from life-threatening health conditions and/or severe mental illness — is a proven model to reduce homelessness and save money. To start ending chronic homelessness, the DC Interagency Council on Homelessness calls for a $38 million set-aside from the Housing Production Trust Fund and $13 million in operating subsidies and services in FY 2015. Additionally, the District should ensure that housing is prioritized for the most vulnerable and that residents do not have to meet certain requirements before being housed.
- Invest in programs for homeless youth to help give children a safe place to stay and the tools to succeed independently. Nearly 300 youth seeking emergency shelter were turned away in February 2013, and youth homelessness can lead to chronic homelessness as an adult. A $10 million investment will expand street outreach to build relationships with homeless youth and encourage them to seek help, increase the number of shelter beds and families who house youth for short periods of time, and expand family reunification services.
- Make homeless services a year-round priority. DC focuses on housing homeless families when temperatures drop below freezing. This creates a crush of demand each year from November through March. Having resources available year-round can avoid this crush and improve the flow of families through the homeless services system into stable housing.
- Expand rapid re-housing to cover more individuals. Rapid re-housing moves people out of shelter quickly and into housing with short-term rental assistance and supportive services, but currently only serves families and veterans other than a small pilot program for singles. An investment of $5.8 million for rapid re-housing could help end homelessness for at least 270 homeless individuals.
- Enhance DC’s housing production trust fund. The trust fund is DC’s main source for affordable housing construction and preservation. It receives a portion of deed recordation and deed transfer taxes, but those funds are not sufficient to keep DC on track with DC’s goal of creating 10,000 new affordable housing units by 2020. A $50 million addition would bring the trust fund to nearly $100 million and create over 1,300 units.
- Help more tenants purchase their buildings. DC’s First Right Purchase program has preserved nearly 1,400 affordable homes for low- and moderate-income residents since 2002. It is DC’s key anti-displacement tool. Yet funds haven’t been sufficient to meet the need of tenants seeking assistance to purchase their building when it’s put up for sale. A $20 million set-aside could support nearly 300 units for first right purchase in FY 2015.
- Create more rent subsidies for very low-income families. The Local Rent Supplement Program makes housing affordable to residents with very low-incomes, or a family of three earning $29,000 a year. The program has two components: tenant based vouchers that can be deployed quickly and can help families needing larger apartments, and project/sponsor based vouchers that typically serve individuals and smaller families. A $10 million investment split between both programs could create 830 affordable housing opportunities.
Stay tuned to the District’s Dime in the upcoming weeks to learn more about DCFPI’s FY 2015 budget priorities.
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