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William M. Rohe, Ph.D. Center for Urban and Regional Studies

The Role of Housing in Welfare Reform: The Experience of the North Carolina TANF/Housing Pilot Program. William M. Rohe, Ph.D. Center for Urban and Regional Studies University of North Carolina at Chapel Hill TANF Reauthorization and Housing Policy: Crosscutting Implications   April 12, 2002.

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William M. Rohe, Ph.D. Center for Urban and Regional Studies

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  1. The Role of Housing in Welfare Reform: The Experience of the North Carolina TANF/Housing Pilot Program William M. Rohe, Ph.D. Center for Urban and Regional Studies University of North Carolina at Chapel Hill TANF Reauthorization and Housing Policy: Crosscutting Implications   April 12, 2002

  2. Four questions: • Why were welfare agencies in N.C. interested in using TANF funds for housing? • How does the N.C. TANF/Housing Pilot work? • How does current policy constrain the use of TANF funds for housing? • What changes in federal policy are needed?

  3. Social service agencies support the use of TANF funds for housing because: • They have seen the debilitating impacts of inadequate housing. Inadequate housing includes: • Poor housing quality • Lack of affordable housing • Poorly located units • They understand that the prospect of decent housing can be a motivator

  4. Key elements of the N.C. TANF/Housing Pilot Program • Goal was to “assist as many TANF-eligible families as possible secure decent, affordable housing.”  • Competitive grant process with $3 million set- aside of TANF funds going to coalitions of welfare, housing and training organizations • Minimum 50% cash match  • Eligibility criteria include: TANF eligible families (200% of poverty level) and employed or in job training 20 hrs./week • Time frame: January 2001 – June 2002. Reauthorized through June 2003.

  5. Pilot program characteristics • Eight counties selected to participate. Grants from $217K – $472K • County coalitions included between 3 and 15 agencies • Housing activities include: • Long- term rental assistance • Short- term rental assistance • Down payment assistance (IDAs) • Housing counseling and education • Referral services • Support services include: • Job training • Transportation assistance • Childcare assistance • Conflict resolution • Substance abuse/ mental health services • Wide range of clients targeted

  6. Pilot Impacts after one year: • A total of 1,398 clients served • 386 families received rental assistance • 21 families bought homes • 16 families moved into non-subsidized units • Lasting interagency partnerships formed

  7. How does current policy constrain the use of TANF for housing? • Long term rental benefits to working families are defined as “assistance” unlike transportation and child care benefits • The definition of the work requirement in the Pilot program prohibits full-time education

  8. What changes are needed in TANF policy? • Housing assistance provided to working families should be considered “non assistance” • Allow education to substitute for the work requirement

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