Understanding How Public Housing Is Funded… It’s Harder Than You’d Think

Emily McDonald is a graduate student in the sociology department of George Mason University. She has been a volunteer intern for Grassroots DC since May 2016.

THE FIGHT FOR PUBLIC HOUSING IN 2016

In my time with Grassroots DC, I was given the underestimated task of tracking DCHA’s budget from the founding of Potomac Gardens on Capitol Hill until now. I began looking through HUD documents, only to find different structures of information for each year. I was able to track large budget numbers, indicating a large pullback in federal spending, but little evidence of what was appropriated specifically to DC. Rather, I found changing agreements between the federal and the local every few years with little overall consistency in the federal government fully funding the DC Housing Authority, leaving public housing residents feeling the pinch.

As a sociologist, I started to see connections between what is happening with public housing in the United States and the current social concerns of our nation as a whole. Specifically, I started to understand that the fight for public housing cannot stop with pressuring local governments to subsidize housing authorities which were created to be fully funded by the federal government, but must also take on a the 21st century conversation about neoliberalism.

HOW IS DCHA FUNDED AND GOVERNED?

For a brief background, the process of funding DCHA is a bit more complicated than a strictly local DC agency. Funds are appropriated first to the the Department of Housing and Urban Development (HUD), then to local housing authorities. The District of Columbia Housing Authority (DCHA) is an entity of HUD and an independent agency of DC local government. This means the agency is particularly susceptible to federal pullbacks depending on the current political and economic ideology of the time, but is governed by a board appointed by the DC Mayor. The DC local government then subsidizes DCHA, though the only legal responsibility to fund the agency lies with HUD and the federal government.

WHAT DOES THIS MEAN FOR PUBLIC HOUSING RESIDENTS AND ADVOCATES?

It is important to understand the pullback of federal funding as a national trend trickles down to local spending. According to a 2016 DC Fiscal Policy Institute report, DC Council funding is not only a subsidy, but a requirement for DCHA to sustain. I found the same through DCHA director Adrianne Todman’s 2016 testimony to the DC Council. She urges for DC local spending to continue as they have for the few years prior. Her testimony includes an appeal for funding that is not only to promote new programs, but a basic necessity for the agency to sustain itself. I make this distinction to say Todman is not asking for additional money to add programming to additionally benefit the district, but a subsidy without which the agency may not operate at its expected capacity.This indicates the federal funding is insufficient for operation.

The central problem is the basic capacity of DC local government in contrast to the federal budget. As the cost of living in the district increases for residents who have, quite literally, built DC local, they are left with little options for housing in the city that is their birthright. This remains particularly true for the elderly, disabled, and families with children. While DC local government is subsidizing the agency to ensure the operation continues, there is a changing landscape at the federal level that I argue requires a new form of understanding.

According to theories of neoliberalism, big institutions are broken down, then slowly discarded in pieces in the name of private rule and small tax burdens on the rich (Brown 2015). This is often masked as freedom and flexibility for agencies like DCHA. Government programs aimed to support the lower and middle classes under a capitalist system are chipped away. Public-private partnerships are emphasized to reduce the burden of government. In turn, what is traditionally a public good paid for by publicly accountable funds are privatized.

In terms of housing, The free market certainly has not shown the ability to self-produce adequate, accessible housing for all. Without the protection of dedicated public housing, the affordable housing market begins to dwindle, forcing low-income residents in the area to relocate elsewhere. According to a 2015 report by the DC Fiscal Policy Institute, since 2012, should the lowest DC residents not receive housing subsidies and reside solely in the private market, “the average rent for this group [would equal] 80 percent of average income” . . . → Read More: Understanding How Public Housing Is Funded… It’s Harder Than You’d Think

D.C. Council Passes Entrepreneurship Program for Returning Citizens… But It’s Not Funded

According to the Department of Employment Services, just five years ago, the unemployment rate in Ward 7 hovered around 19 percent. In Ward 8, it was routinely more than 20 percent. Today, the rates are 9.5 percent and 11.3 percent respectively. Ward 5, another area with stubbornly high unemployment has almost matched the overall unemployment rate in the District at 6.4 percent. This is all very good news. The bad news is that these decreases don’t seem to be reaching the District’s returning citizens.

Approximately 67,000 individuals with a prior conviction reside in the District of Columbia, that’s 10 percent of the population. (1) According to the Court Services and Offender Supervision Agency (CSOSA) the percentage of unemployed among the offender population in the District for Black Non-Hispanic segment of the population was 64 percent in 2014.

The same scarcity of educational and training opportunities that put many at risk for criminal behavior remains unchanged during and after prison. Seventy-seven percent of D.C. offenders who return from prison received no employment assistance while incarcerated, and only one-third of those stated that assistance was available to them post release. (2)

It is no wonder that returning citizens who want to provide for their families are challenged to do so. This remains true even for those who are more motivated than those in the workforce without criminal records.

The DC Reentry Task Force (DCRTF) is a reentry advocacy group of entrepreneurs, academia, reentry professionals and returning citizens. We understand the need for innovation in the development of 21st century solutions to address the barriers faced by the formerly incarcerated as they seek to re-establish themselves back into society. Which is why we’ve worked to take a lead in the discussion in supporting Bill 21-463, the Incarceration to Incorporation Entrepreneurship Program (IIEP) Act of 2015. (3)

On June 23, 2016, the Business, Consumer, and Regulatory Affairs committee voted unanimously to move the bill forward to a full council vote on June 28, 2016. The downside, though, is that the bill was passed and moved forward subject to appropriation. (4) In voicing their support at the mark-up for the legislation, Councilmember Elissa Silverman noted that she “Really thinks this is a creative approach.” She continued by saying, “This is a bill that’ll take a first step toward looking at how we address entrepreneurship issue.” Brandon Todd echoed her sentiments that, “This bill is yet another step towards helping this population attain jobs and self-sufficiency. “

While Councilmember Charles Allen praised the bill saying, “Returning citizen’s best chance at employment and a successful future … is by turning to the ability to being an entrepreneur to start their own business,” he also had his reservations. “One piece that gives me anxiety,” he said, “is just that it’s not currently funded.”

At the first reading of the bill on June 28, Councilmember David Grosso echoed Allen’s concerns “On bills that we [Council] move forward in the past that are subject to appropriation it is rather rare that they ever get funded.” He further stated, “We put programs in place that will not become effective for over an entire year.”

On the other hand, Councilmember Orange said “We’re hopeful the Mayor will send down this bill as part of her budget (in FY2018) and that it would be in fact approved.”

Councilmember Grosso’s point about bills subject to appropriation not being funded is a valid one. Dating back to 2001, the council has approved 42 legislative measures that have not funded to date, and six (6) partially funded.

It is apparent that little or no effort was put forth by the BCRA committee to get the Executive to include Bill 21-463 in her FY2017 budget. The main objective for all returning citizens and their supporters should be to get the bill funded during the FY2018 budget cycle, and correct any other language issues that could render parts of the bill subject to legal challenges in the future. Also, to ensure that the Department of Small and Local Business Development be clarified as the lead agency, and DOES act in support of this important effort. We hope to get amendments to change the legislation accordingly in the near future. Passage of the bill clearly shows that the council views entrepreneurship for the returning citizens as a viable economic development strategy. The DCRTF believes the full council supports proper funding for the bill, which will effectuate real change in the lives of our returning citizens and their families.

. . . → Read More: D.C. Council Passes Entrepreneurship Program for Returning Citizens… But It’s Not Funded

Proposed Bill to Fund DC Public Housing Repairs Raises Concerns

The Public Housing Operating Fund—the main source of revenue for public housing maintenance and repairs–pays for only 86% of the items in HUD’s budget. It looks as though the D.C. City Council may at long last be trying to make up the difference with the Public Housing Rehabilitation Amendment Act of 2016. The problem that those who advocate on behalf of public housing have with the bill is that it won’t pay for maintenance if the housing is slated for redevelopment. So if you live in Barry Farm, Kenilworth Courts, Park Morton, Highland Dwellings or Lincoln Heights–all properties scheduled for eventual redevelopment–you’re out of luck. . . . → Read More: Proposed Bill to Fund DC Public Housing Repairs Raises Concerns

Not Enough Money for Low-Income DC Residents, But Tax Cut for Wealthy Unchanged

Cross-posted from Poverty & Policy Written by Kathryn Baer

As you local readers probably know, the DC Council passed a budget for the upcoming fiscal year last week. Some changes in what the Mayor had proposed for programs that serve low-income residents.

The DC Fiscal Policy Institute’s overview of the budget confirms what I’d expected. Mostly, a bit more here, a bit more there. No more for some critical priorities. And less for at least one. (The one large, new investment it cites — for new family shelters — isn’t part of the budget proper.)

I suppose we’ll be told that the Council did its best with what it had to work with. I don’t know because I don’t know nearly enough about the funding needs and prospective impacts of every program and service the budget covers.

But I do know that the Council could have had more revenues to work with. It had only to postpone — or better yet, repeal — the tax cuts prior legislation has made automatic whenever revenues rise above the estimate used for the latest budget.

The triggers have already reduced otherwise available revenues by many millions of dollars — dollars the Council could have used to shore up under-funded programs.

So much water under the bridge. And as the Chairman, who likes those triggers says, the revenues lost from cuts not yet triggered couldn’t have been used for the new budget. But the Council could have had them to spend as early as next fiscal year — and thereafter.

All tax cuts are not created equal, of course. Some on the pending list will benefit residents who’ve got enough income to owe taxes, but not a lot.

The second cut on that list, however, is a higher threshold for the estate tax. The most recent revenue forecast indicates that it will lock in soon, DCFPI’s latest account of the trigger impacts says.

So henceforth, no assets a deceased resident leaves to heirs will be taxable until they’re worth $2 million — twice the current minimum.

As things stand now, this will be the first of two estate tax cuts. The second — and considerably larger — will raise the threshold to the same minimum as applies to the federal estate tax, currently $5.45 million.

Why the District should embrace a regressive measure gained in a crisis by Congressional Republicans who could never be elected here baffles me.

True, the Tax Revision Commission recommended parity with the federal threshold, including the ongoing upward adjustments for inflation. But the Council could have taken a pass, just as it has on the revenue-raisers in the Commission’s package.

The District will forfeit $18.8 million next fiscal year alone, according to DCFPI’s estimate. And for what?

Not so that more money can pass to charities tax free. Bequests to them are already exempt. Not so that surviving spouses will have more to live on, since what passes directly to them will also still reduce the value of what counts toward the threshold.

Not even necessarily what other heirs wind up with, since a will-maker can give them as much as $14,000* each or the equivalent every year while still alive — again reducing the value of what’s potentially taxable afterwards.

The estate tax giveaway won’t just make larger investments in programs that reduce hardships for poor and near-poor residents unnecessarily difficult. It will increase income inequality in the District by giving the rich more, as well as denying the poor supports and services that help close the income gap from the bottom.

And the gap will grow from one generation to the next in part because of the way the taxable value of assets is determined. Essentially, it’s set at their value when the person bequeathing them dies.

So heirs pay capital gains taxes when they sell the assets for more, but no tax on how much the assets’ value increased between the time they were purchased and the time inherited.

And, of course, heirs don’t have to sell them. They can pass them along to their heirs, compounding the revenue loss — and wealth at the top of the income scale.

The estate tax then is a way of partly recouping the loss and, at the same time, averting a rollback to the inordinate wealth concentration of the Robber Baron days.

The higher the threshold, the less an already-shaky control on income inequality can do. And the gap between the richest and poorest District households is already . . . → Read More: Not Enough Money for Low-Income DC Residents, But Tax Cut for Wealthy Unchanged

DC Council Votes to Lower the Legal Standard for new Family Shelters: “What’s wrong with us?”

Cross-Posted from the Washington Legal Clinic for the Homeless Written by Patricia Mullahy Fugere

Last week, the DC Council voted 9-4 against requiring that the new DC General replacement shelters have private bathrooms. Councilmember Mary Cheh introduced an amendment requiring private bathrooms for every unit, and Councilmembers McDuffie, Silverman, and Orange supported it. Councilmembers Mendelson, Grosso, Bonds, Nadeau, Evans, Todd, Allen, Alexander and May voted against Cheh’s amendment. Instead, they voted for Chairman Mendelson’s “compromise”— an amendment that mandates that just 10% of the new units have private bathrooms and that there be one family bathroom for every five units. The issue was not, as some characterized it, about whether or not to close DC General. The Mayor and Council had previously committed to closing DC General, and this bill does not speak to nor require its closure. The debate was about what the minimal legal standards should be for the six new shelters that will replace DC General. Right before the vote on Councilmember Cheh’s amendment, she grew exasperated and said “Spend a little more money for dignity and safety! What’s wrong with us?” We need to stop and think about this question before we can move forward.

We do believe that there’s something wrong with the Council’s failure to require that each shelter room have its own bathroom. Our position, that private bathrooms are necessary to protect the health, safety, and dignity of homeless families, remains unchanged. We got our marching orders from our years of working with families sheltered in communal settings, and from a recent survey we did with 53 homeless families. We heard our clients and affected community members loud and clear when they said private bathrooms are critical in shelter to protect their own and their children’s physical and emotional health and safety. The “compromise” could require 90% of families to share residential bathrooms with strangers, shifting the balance almost entirely away from the expressed needs of the affected community.

We do believe there’s something wrong with the Council’s vote last Tuesday, not only because the legislation as passed could have serious, negative repercussions for homeless families for decades to come, but because it signifies that 9 out of 13 DC Councilmembers abdicated two essential responsibilities of the legislative branch of government when they failed to listen to the needs of the affected community and failed to exercise independent decision-making to enact sound public policy.

The entire process leading up to the Council’s vote was structured in a way that excluded the voices of the affected community, from scheduling a hearing at 2PM on a weekday when parents had to pick up children from school, to refusing to allow families to testify earlier to accommodate their schedules, to an Interagency Council on Homelessness (ICH) process that didn’t include even one homeless family. When we attempted to remedy these omissions, by conveying survey results, the family input was derided as not “relevant” and we were asked if we had any “studies” or “experts” to back up what the families were saying. Our view is that the real experts on the harmful effects of shared bathrooms are the families who are living right now in shelters with shared bathrooms.

While there was broad agreement from affected community members, most advocates, and many members of the public that private bathrooms are critical in the new shelters, the Administration claimed an ever-shifting series of terrible consequences if the law required private bathrooms. And yet, in spite of repeated requests from the Council, the Administration never provided any demonstrable evidence of these consequences. Nevertheless, 9 out of 13 Council members simply took the Mayor’s word for it, at considerable expense to the health and safety of the District residents they were elected to serve. We believe there’s something wrong with that.

Our criticism is not just about bathrooms, not just about families, and not just about homelessness. It’s also about the judgments that are made and the “-isms” that bleed into conversations and decisions about policies affecting people experiencing poverty in DC. It’s about the way the Administration claimed that private bathrooms would make homeless families too “comfortable” even when their data supported the opposite conclusion. And the ease with which decision-makers put up barriers to democratic participation by homeless families. And the ease with which these families are blamed for their homelessness when institutional racism and the resulting disinvestment in poor black communities are far more powerful forces in creating homelessness in DC than any one individual’s decision-making. . . . → Read More: DC Council Votes to Lower the Legal Standard for new Family Shelters: “What’s wrong with us?”