Louisville MetroAffordable Housing Trust Fund, Inc.

Overview, needs, and call to action

Agenda for this presentation

1. LAHTF background, needs, and proposed solution

2. Questions ( __ minutes), & after

3. What can you do? What commitments will you make?

What is the LAHTF?• Established by the Louisville

Metro Council in 2008

• Louisville Metro County Ordinance 40.41- 45 (2008)

• Receives/disburses money to orgs that can solve the housing crisis

• Nearly 700 HTF’s in US

Invests public funds in housing our community needs: – for people on fixed incomes

like seniors and people with serious disabilities;

– for young families starting out;

– for working people whose wages are not enough to live in Metro Louisville.

History• 2004 – CLOUT, MHC, HFH,

others• “Open the Door” campaign• 100+ endorsers• Mayoral Task Force• 2008 & 2009 – ordinance• 2010 – board of directors• 2012 – Needs Assessment• Now

– $400K to invest in vacant/abandoned properties rehab

– need for dedicated public revenue

What is affordable?

• Housing is affordable when you spend less than 30% of your monthly income on housing and utilities combined.

Is there a need in Louisville?

91,999 families = 4 YUM! Centers

Source: MHC 2012 State of Metro Housing Report analysis of Jefferson County Public Schools data.

National Low Income Housing Coalition (2011) analysis of 2009 American Community Survey data for Kentucky’s Congressional District 3 reports 91,999 households live in unaffordable housing in Louisville; 106,496 of total households are renters; 48,227 of those in unaffordable housing are renters. The number of homeowners in unaffordable housing is calculated as the difference between 106,496 and 48,227 (48,300).

Metropolitan Housing Coalition analysis of 2010 U.S. Census Bureau data as reported in the 2011 report Louisville’s Foreclosure Recovery: Understanding and Responding to the Impact of Foreclosure Sales.

SSI and the cost of housing in Louisville

SSI monthly income

19% of income to utilities

11% of income remaining for housing

Fair Market Rent

% of income SSI-only household must spend to afford FMR and utilities

1 person $ 674 $ 128 $ 74 $ 506 (efficiency)

86% of income

2 people $1,011 $ 192 $ 111 $ 585 (1 BR) to$ 694 (2 BR)

68.8% to 79.6% of income

Who benefits when housing is affordable?

Businesses Schoolchildren Hardworking

families Businesses and

nonprofits that create high-quality affordable housing

Neighborhoods

Economic Impact of $1m investment in affordable housing in Louisville

Year 1: $6.5m + 112 local jobs

supported:• $5.8m local income

generated for residents (in business owner income, wages, salaries)

• $596K local tax revenue generated

Year 2 & beyond:(annual ongoing effect when the homes are occupied)

$3m + 44 local jobs supported:

• $2.67m local income generated

• $387K local tax revenue generated

Community problems associated with affordable housing crisis•Academic performance•School absenteeism•Preventable mental and physical health problems•Family dynamics•Foreclosure•Vacant and abandoned properties

•Increased crime•Loss of affordable insurance•Devalued home values

Louisville AHTF solutions to the affordable housing crisis

1. Revolving loan fund for rehab of vacant and abandoned properties for affordable housing re-use

2. Establish dedicated ongoing public revenue source

Solution:Enact 1% increase in insurance premium

tax for LAHTF

• LAHTF still lacks the key component that defines all HTF’s – a source of dedicated ongoing public revenue

• The city of Louisville may take action now to help hardworking families – by enacting a 1% insurance premium

tax increase – by March 14, 2013 – as the source of ongoing dedicated

public revenue for the LAHTF.

• 63¢ a month raises $9.7 million annually for homes for struggling families

• $10 million annually needed (Metro Council, Task Forces, advocates, and LMCO 40.43)

What will YOU do?

Ways to help build community momentum:

To get $10m annually for affordable housing, we need __ more votes:

• 2/28 rally• Fill the chambers 2/14, 2/28,

3/14• Contact your Metro Council

member & voice support: 574-1100

• Collect postcards• Letters to the Editor, media

outreach

• 1469 S 4th St, Suite 300, Louisville KY 40208• Rachel M. Hurst, Executive Director• 502-637-5372 office/270-869-5613 cell• rachelmhurst@gmail.com • www.louisvilleahtf.org • Facebook: louisvillehousingtrust

Louisville MetroAffordable

Housing Trust Fund, Inc.