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Open the door to the affordable housing trust fund
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Open the door to the affordable housing trust fund

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Powerpoint accompanying workshop session from the Homeless and Housing Coalition of Kentucky's 2013 conference. Rachel Hurst, Louisville AHTF. …

Powerpoint accompanying workshop session from the Homeless and Housing Coalition of Kentucky's 2013 conference. Rachel Hurst, Louisville AHTF.
Critical affordable housing needs are increasing in Kentucky. Representatives from Louisville, Lexington, and
Kentucky Housing Corporation discuss how the AFTF program helps in the development of affordable housing in
their communities.

Published in: Business, Real Estate

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  • YOU may benefit, personally or organizationally, but we’re here because this impacts you and we’re going to give you an opportunity to stand with us and make a lasting change for the future of Louisville.
  • The Housing Trust Fund is founded on the principal that a place to call home opens the door to opportunity, and that the whole community does better when everyone has a decent place to call home. LMCO Created the LAHTF as a private nonprofit to receive/disburse monies to organizations to address housing needs
  • Unfortunately, The Louisville Affordable Housing Trust Fund still lacks the key component that defines all housing trust funds – a source of dedicated ongoing public revenue. The LAHTF was awarded $1 million in 2006 to capitalize the fund until dedicated ongoing public revenue could be established by further ordinance. In 2008, Metro Council established by ordinance a goal of $10 million annually in dedicated ongoing public revenue for the LAHTF. In 2011, Mayor Greg Fischer allocated an additional $100,000 in “matching” funds for the LAHTF, and directed $250,000 in National Mortgage Settlement funds to the LAHTF. Though this initial funding is a positive step, to effectively address housing need in Louisville Metro the LAHTF requires a dedicated revenue source. The Board of Directors recommends an increase to the insurance premium tax as that dedicated source. With a 1% increase in the insurance premium tax, Louisville will establish an estimated $9.7 million annually in dedicated public revenue for the LAHTF to help struggling families and individuals. As authorized in KRS 136.320, 136.330, and 304.49-220, with revenues going to the City’s general fund. Health insurance is not taxed in the non-urban services district. With a 1% increase in the insurance premium tax the average homeowner’s insurance cost would increase by $7.60 annually; the average automobile insurance would increase by $7.52. That’s about 63¢ a month, or combined, about the cost of a 2-liter of soda.
  • Transcript

    • 1. Louisville MetroAffordableHousing TrustFund, Inc.Overview, needs,and callto action
    • 2. Agenda for this presentation1. LAHTF background, needs, and proposedsolution2. Questions ( __ minutes), & after3. What can you do? What commitments willyou make?
    • 3. What is the LAHTF?• Established by the LouisvilleMetro Council in 2008• Louisville Metro CountyOrdinance 40.41- 45 (2008)• Receives/disburses moneyto orgs that can solve thehousing crisis• Nearly 700 HTF’s in USInvests public funds inhousing our communityneeds:– for people on fixed incomeslike seniors and peoplewith serious disabilities;– for young families startingout;– for working people whosewages are not enough tolive in Metro Louisville.
    • 4. 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 invacant/abandoned propertiesrehab– need for dedicated publicrevenue
    • 5. What is affordable?• Housing is affordable when youspend less than 30% of yourmonthly income on housing andutilities combined.Is there a need in Louisville?
    • 6. 91,999 families = 4 YUM! Centers
    • 7. Source: MHC 2012 State of Metro Housing Report analysis of Jefferson County Public Schools data.
    • 8. National Low Income Housing Coalition (2011) analysis of 2009 AmericanCommunity Survey data for Kentucky’s Congressional District 3 reports 91,999households live in unaffordable housing in Louisville; 106,496 of totalhouseholds are renters; 48,227 of those in unaffordable housing are renters.The number of homeowners in unaffordable housing is calculated as thedifference between 106,496 and 48,227 (48,300).
    • 9. Metropolitan Housing Coalition analysis of 2010 U.S. Census Bureau data as reported in the 2011 report Louisville’sForeclosure Recovery: Understanding and Responding to the Impact of Foreclosure Sales.
    • 10. SSI and the cost of housing in LouisvilleSSI monthlyincome19% ofincome toutilities11% ofincomeremainingfor housingFairMarketRent% of incomeSSI-onlyhouseholdmust spendto afford FMRand utilities1 person $ 674 $ 128 $ 74 $ 506(efficiency)86% ofincome2 people $1,011 $ 192 $ 111 $ 585 (1 BR)to$ 694 (2 BR)68.8%to79.6%of income
    • 11. Who benefits whenhousing is affordable? Businesses Schoolchildren Hardworkingfamilies Businesses andnonprofits thatcreate high-qualityaffordable housing Neighborhoods
    • 12. Economic Impact of $1m investmentin affordable housing in LouisvilleYear 1:$6.5m + 112 local jobssupported:• $5.8m local incomegenerated for residents(in business ownerincome, wages, salaries)• $596K local tax revenuegeneratedYear 2 & beyond:(annual ongoing effectwhen the homes areoccupied)$3m + 44 local jobssupported:• $2.67m local incomegenerated• $387K local tax revenuegenerated
    • 13. Community problemsassociated with affordablehousing crisis•Academic performance•School absenteeism•Preventable mental and physicalhealth problems•Family dynamics•Foreclosure•Vacant and abandoned properties•Increased crime•Loss of affordable insurance•Devalued home values
    • 14. Louisville AHTF solutions to theaffordable housing crisis1. Revolving loan fund for rehab ofvacant and abandoned propertiesfor affordable housing re-use2. Establish dedicated ongoing publicrevenue source
    • 15. Solution:Enact 1% increase ininsurance premiumtax for LAHTF• LAHTF still lacks the key componentthat defines all HTF’s – a source ofdedicated ongoing public revenue• The city of Louisville may take actionnow to help hardworking families– by enacting a 1% insurance premiumtax increase– by March 14, 2013– as the source of ongoing dedicatedpublic revenue for the LAHTF.• 63¢ a month raises $9.7 million annuallyfor homes for struggling families• $10 million annually needed (MetroCouncil, Task Forces, advocates, andLMCO 40.43)
    • 16. WhatwillYOU do?Ways to help build communitymomentum:To get $10m annually foraffordable housing,we need __ more votes:• 2/28 rally• Fill the chambers 2/14, 2/28,3/14• Contact your Metro Councilmember & voice support: 574-1100• Collect postcards• Letters to the Editor, mediaoutreach
    • 17. • 1469 S 4thSt, 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: louisvillehousingtrustLouisville MetroAffordableHousing Trust Fund, Inc.