Behind the Spreadsheets Social Reasons for Equitable Housing Investments

1. Behind the SpreadsheetsSocial Reasons for Equitable Housing Investments October 13, 2016 Best Western Sovereign Hotel Albany, NY Presentation by Greg Maher Leviticus 25:23 Alternative Fund, Inc.

2. Leviticus 25:23 Alternative Fund • Founded in 1983 by 27 Religious communities w/ $360,000 in investments • Mission Statement: The Leviticus Fund is motivated by faith and founded on the biblical verse of Leviticus 25:23 and its call for justice in the stewardship of economic resources. The Fund supports transformative solutions that serve low-income and vulnerable people by combining flexible capital from social impact investors and contributors with knowledge-sharing to create sustainable and affordable communities.

3. Housing as a Human Right • In 1948, the United States signed the Universal Declaration of Human Rights (UDHR), recognizing housing as a human right. • In 1966, the U.S. signed, but did not adopt, International Covenant on Economic, Social and Cultural Rights (ICESCR). NLICH 2016 Advocates Guide

4. Housing as a Human Right • As a non-adopter, U.S. only required to uphold the “object and purpose” of the treaty, but is not strictly legally bound. • The human right to adequate housing consists of seven elements: (1) security of tenure; (2) availability of services, materials, and infrastructure; (3) affordability; (4) accessibility; (5) habitability; (6) location; and (7) cultural adequacy. NLIHC 2016 Advocates Guide

5. American Poverty • Real median household income increased 5.2% between 2014 and 2015, the first annual increase in median household income since 2007. • The official poverty rate decreased by 1.2% between 2014 and 2015. • The number of people in poverty fell by 3.5 million between 2014 and 2015. U.S Census Bureau, September 2016

6. New York Poverty • NYS poverty rate was 15.6% in 2015 NY Community Action Association Report, 2016 • Supplemental Poverty Thresholds (SPT) (2011) calculates poverty threshold with five years of expenditure data and adjusts using an equivalence scale to reflect the needs of different family types and geographic differences in housing costs. U.S. Census Bureau Report, 2013 • SPT, however, does not measure child care costs appropriately and uses geographic variability only for its housing calculation. SPM also limited to relatively large geographic areas. • Economic Policy Institute

7. Costs of the Basic Three

8. Renters on the Rise • 43 million families and individuals live in rental housing, an increase of nearly 9 million households since 2005. • Largest gain in any 10-year period on record. • Share of all U.S. households that rent rose from 31 percent to 37 percent, the highest level since the mid-1960s. Report from Joint Center on Housing, 2015

9. Severely Burdened Households

10. New York Housing Burdens

11. Unaffordable Housing Hurts Adults • For most Americans, housing is their greatest monthly expense. • People with lower incomes must pay a larger percentage of income for rent or mortgage payments. • That leaves less for food, utilities, or health-related expenses. • For a homeless adult, storing medication, maintaining a healthy diet and consistently going to the doctor are much more difficult.

12. Unaffordable Housing Hurts Children • Compared to those in stable homes, children who live in unstable situations have: • Four times the rate of developmental delays • Three times the rate of emotional or behavioral problems • Twice the rate of learning disabilities Unstable Living Situations and Early Childhood Mental Health, University of Pittsburgh, 2010

13. Unavailable Housing Hurts Adult Health

14. Benefits of Stable, Affordable Housing • “We know that housing can be a platform for driving other outcomes – that housing is not just a typical market good, but a place to anchor services and where different policies central to opportunity can be overlaid.” HUD Secretary Shaun Donovan, October 26, 2009

15. Stable Housing = Better Health • Stable housing provides a foundation for individuals with chronic illness to improve their health outcomes. Some benefits include: • Consistent receipt of delivery of health care and support services. • More time to focus on meeting health needs better than those who do not have stable housing. • Healthcare providers can follow up with patients more easily when they know where patients live and how to contact them. • Johns Hopkins Center for Eliminating Cardiovascular Disparities

16. Stable Housing = Better Child Health • Children living in subsidized housing are less likely to be seriously underweight, and more likely to be food secure and classified as “well” when compared to children on the waitlist for housing support. Children’s Health Watch, Boston Medical Center

17. Homeownership Brings Added Stability • Among people of the same age, income and marital status, a person was significantly more likely to change residence in a given year if he or she was a renter rather than a homeowner. Homeowners bring stability to neighborhoods. Social Benefits of Homeownership and Stable Housing, 2012

18. People vs. Politics • A significant majority (81%) continues to believe that housing affordability is a problem in America today, according to a recent survey of housing attitudes by the MacArthur Foundation. • Housing affordability or poverty has not been discussed once during any of the primary or presidential debates.

19. What’s Needed

20. What’s Needed • In many communities local zoning laws, as applied, unduly limit denser, multi-family housing development. • This elephant in the room has contributed significantly to the crisis. • This week the White Housereleased a “Housing Development Toolkit,” which lays out a series of policies cities can adopt to improve their zoning laws and foster development.  • Inclusionary and other zoning law changes need to be pushed at the grassroots level.

21. What’s Needed • An explicit recognition of the importance of nonprofit ownership of rental housing as a long term public policy priority. • Nonprofit-owned units rarely “fall out of the affordable housing stock.” • Even with extended use agreements, for-profit owned units are at risk of loss later on. • It is imperative that grantors, state, county and city agencies, foundations, CDFIs and other stakeholders understand the importance of keeping our nonprofit owners strong.