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Trump 2019 Budget Slashes Aid for Families Struggling to Pay Rent

February 12, 2018

by DOUGLAS RICE, Senior Policy Analyst, Center on Budget and Policy Priorities

At a time when a historically high number of low-income households are struggling to BudgetCutpay rent and make ends meet, President Trump’s fiscal year 2019 budget proposes the most radical retrenchment of federal aid for such families since the U.S. Housing Act was first enacted in 1937.

The Trump budget would slash aid that helps millions of low-income working families with children, seniors, and others afford decent, stable homes. The cuts are particularly striking in light of the new, Republican-driven tax law that will mainly benefit the wealthy and corporations and that’s expected to add $1.5 trillion to deficits over ten years.

 

hud-protest-trumpOverall, the President requests $41.2 billion for Department of Housing and Urban Development (HUD) programs in 2019, $6.8 billion (or 14.2 percent) below the 2017 level, not counting losses due to inflation, and even further below what policymakers will likely approve for 2018. (The figures presented throughout this post include adjustments outlined in the Administration’s budget “addendum.”)

Cuts would hit a range of programs that provide critical aid to some of the nation’s most vulnerable people. For instance, the budget would:

 

 

  • Cancel Housing Choice Vouchers for about 200,000 low-income households, 9 Sec 8 Cutspercent of the number the program now serves. The budget requests $18.6 billion to renew vouchers that families are currently using. This is $900 million less than HUD estimates will be needed to renew vouchers in 2018, and nearly $1.9 billion less than will be required in 2019 due to rent inflation and other factors, based on CBPP estimates. The cuts would hit extremely low-income seniors, people with disabilities, and working families with children hard, undercut communities’ efforts to reduce homelessness, and undermine the housing stability that children need to thrive.

 

  • Cut public housing funding by $3.0 billion, or 47 percent, compared to 2017, not Ben Carson Cutscounting losses due to inflation. Public housing already faces more than $26 billion in repair needs such as fixing leaky roofs or replacing outdated heating systems and electrical wiring. Rather than proposing a realistic strategy for preserving this critical source of affordable housing — which has been a federal obligation since the program was created in 1937 — the Administration simply directs states and localities to fill the gap. Such massive cuts, which would follow upon deep cuts that have already been made since 2010, would further jeopardize the health and safety of public housing’s 2.2 million residents — a majority of whom are elderly or have disabilities — and sharply accelerate the loss of affordable units.

 

  • Eliminate the HOME Investment Partnerships, Community Development Block Grant (CDBG), and Choice Neighborhoods programs, which give flexible aid to low-income rural and urban communities. Altogether, low-income communities No HUD Cutswould lose more than $4.1 billion a year to improve basic infrastructure like streets and water and sewer lines, provide life-enriching services to youth and seniors, build and rehabilitate affordable housing for low-income residents, and promote economic development.

 

 

  • Eliminate the National Housing Trust Fund, which Fannie Mae and Freddie Mac currently fund through fees and which provided $219 million in 2017 towards state and local efforts to develop affordable rental housing for those who struggle most to pay the rent and make ends meet.

HUD BldgThe President’s budget proposes to reduce rental aid in other ways, too: it seeks congressional approval to make sweeping policy changes that would, among other things, sharply raise rents on nearly all assisted residents who are not elderly or disabled, and allow work requirements that would put many at risk of eviction and loss of rental assistance, thereby undermining the programs’ core purpose of helping low-income families rent decent housing at an affordable cost. (More on HUD’s work requirement proposal is here.)

 

These devastating cuts and policy changes would be imposed at a time when the number and share of low-income households facing severe challenges remain at historic highs, HUD Tenantsafter more than a decade of unprecedented growth driven in part by the failure of federal aid programs to keep pace with the problem. Since 2001, the number of renter households with what HUD calls “worst-case housing needs” — meaning renters with incomes below half the local median who don’t have housing assistance and pay more than half of their income for rent or live in severely substandard housing — has risen 66 percent, while the number receiving rental aid has grown only marginally.

 

HUD Secretary Ben Carson has spoken persuasively about the importance of having a stable, affordable home. In speaking about HUD’s efforts to help homeless people move from the street into a home, for example, he said:

We make sure a person gets [a] permanent place to stay — a safe place they won’t have to worry about losing every day. It’s amazing how such a haven can comfort and restore. It lends a sense of control to the individual, rebuilding their dignity and self-worth, which are essential cornerstones to self-improvement.

Under the President’s 2019 budget proposal, however, even fewer people will share the benefits of a stable, affordable home.

THE IMPACT ON CALIFORNIACalifornia

Housing Choice Vouchers cut                       -27,887

Public Housing funding cut                  -$96,238,030

HOME funding cut                                 -$129,203,619

CDBG funding cut                                  -$356,887,970

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The Coalition For Economic Survival (CES) urges a NO vote on Measure S, on the March 7, 2017 Los Angeles City ballot

February 13, 2017

CES believes Measure S threatens to delay or stop projects that would otherwise provide affordable housing, and housing for homeless people.no-on-s

Measure S puts a two-year moratorium on development projects requiring certain zoning or height exemptions, and permanently prohibits developments requiring a general plan amendment. Thus, it could stop projects that would provide permanent supportive housing for people that are homeless – housing that voters approved with the passage of Measure HHH last November.

Clearly, there is a great need for government action to protect neighborhoods and much more action is needed to preserve our existing rent controlled and affordable housing stock. In fact, this lack of action at City Hall, no doubt, opened the door for Measure S to make it to the ballot.

measures-blocksMeasure S does have some good provisions. The City should be updating community plans. Obviously, in response to Measure S, the City Council just voted to back an effort to update community plans more frequently.

Additionally, developers should not be allowed to select environmental impact report consultants for their projects.

But, it is our belief that Measure S is a sledgehammer approach that does not provide a solution. In fact, it may make matters worse.

Measure S is not the answer and should be voted down.

Measure S

Does Not Stop Ellis Act evictions

Does Not Stop condo conversions

Does Not Stop rent controlled housing being demolished. In fact no-sit may led to the destruction of rent controlled buildings.

Does Not Create new affordable housing

Does Not Stop big developers from donating to elected officials

Measure S DOES Stop Affordable Housing from Being Built

 

Measure S would provide an incentive to developer to destroy more rent controlled buildings. 

A two year moratorium on development targeted in Measure S could steer developers towards  other  types of development such as more demolitions and conversions of rent controlled housing to condos resulting in further displacement of low and moderate income renters.

The Measure S moratorium, and its permanent prohibition on the City’s ability to issue general plan amendments, will be stop the building of affordable housing. Although the backers of Measure S claim to exempt affordable housing, Measure S does not actually exempt all 100% affordable housing projects from its reach, and would effectively stop 90% of city-sponsored affordable housing projects.

It is for these reasons CES Urges You to Vote NO on Measure S!

Affordable Housing Shortage Needs Long-Term Solution

January 5, 2017

jewish-journal-logo

Tuesday, January 5, 2017 – by BILL BOYARSKY

The growing shortage of affordable rental housing in Los Angeles is reaching crisis affhsgcheck1proportions among a group too often ignored — poor, elderly Jews fearing eviction or unaffordable rent increases.

They’ve found the plight of older people is not what we want to imagine. We’d like to think of seniors surrounded by supportive family, bolstered by Medicare, savings and investments, secure in the last years of their lives. Rather, their lives too often fit the description attributed to the late actress Bette Davis: “Old age ain’t no place for sissies.”

Death and estrangement may have taken spouses, children and other relatives. Illness and medical bills, beyond Medicare limits, may have drained savings, which also may have been looted by crooked insurance sales people, greedy relatives or unethical financial advisers. Many are disabled, receiving monthly disability payments that have not been adjusted for los-angelesinflation for more than 30 years. Some are Holocaust survivors, never fully recovered from their terrible experiences. The poor are hardest hit, of course. But others feel the strain of living on fixed incomes, which may have seemed sufficient on retirement day but now are not.

The rental housing shortage has a special resonance for Jewish seniors who often want to live in Jewish neighborhoods, close to friends, synagogues and kosher stores.

Larry Gross, executive director of the Coalition for Economic Survival, is a longpreservationaffhsgtime advocate for tenant rights. I’ve been interviewing him on the issue for more than 20 years. I asked him about the housing shortage, as it affected Jews and non-Jews alike. “Our crisis is not just a crisis, it is a catastrophe,” he said.   Los Angeles, he said, “has the distinction of being No. 1 in the nation” when it comes to high rents. “About 64 percent of renters pay unaffordable rent, paying more than 60 percent of their income for rent.” Angelenos, he said, would need to have a family income of $80,000 a year for an average two-bedroom apartment.

Gross said, “Regardless of who you are and where you live, if you live in a rent-controlled unit, you have a target on your back.”

CLICK TO READ FULL ARTICLE

Coalition for Economic Survival Calls for Restricting Airbnb in Rent Controlled Buildings in LA Times Article

January 3, 2017

la_times

Monday, January 3, 2017

From Immigration to Short-Term Housing to Street Vendors, L.A. City Hall Faces a Heavy Agenda

by Dakota Smith

Airbnb rules

The City Council is expected to finally pass a law to regulate short-term housing rentals.airbnb-sign

Despite the widespread popularity of companies like Airbnb, it’s still illegal in much of Los Angeles to rent out a residence for less than 30 days at a time, according to planning department officials.

Airbnb critics argue home-sharing companies cannibalize rental housing and changes the character of neighborhoods by filling apartments with travelers.

Under the proposal being considered by the council, housing covered by the city’s Rent Stabilization Ordinance — believed to be about 80% of the city’s rental stock — couldn’t be rented out on home-sharing companies.

Larry Gross, executive director of the Coalition for Economic Survival, said home-sharing companies are hurting L.A.’s stock of affordable housing. “They must be restricted,” Gross said of Airbnb.

Click to Read Full Article

CES Tenant Victory As Los Angeles City Council Gives Final Approval to Tenant Buyout Protection Law

December 15, 2016
joeltestifyingbuyout

CES Affordable Housing Lead Organizer Joel Montano testifies before the City Council prior to the vote.

On December 14, 2016, the Los Angeles City Council voted unanimously to adopt the Tenant Buyout Protection Ordinance. This was a culmination of months of effort by the Coalition for Economic Survival (CES) to win passage of this necessary tenant protection.

The need for the law came out of the growing tactics being used by unscrupulous landlords attempting to coerce tenants living in rent controlled units to move by offering them “cash for keys.” This then allows the landlord the ability to jack up rents once the tenant vacates the unit.

In addition, landlords are using these buyouts to avoid having to go through the Ellis Act Eviction Process or filing a Tenant Habitability Plan, two programs that provide tenants some safeguards against abuse. By avoiding these processes landlords can obtain higher rents without paying correct relocation amounts, providing tenants the legal amount of time to move, providing tenants temporary relocation housing while the building is being renovated, being limited in raising rents and being prohibited from re-renting the units for 5 years, depending on what their intentions are for the property.

cash-for-keysCES Affordable Housing Lead Organizer Joel Montano, testifying before the City Council prior to the vote stated, “Many tenants don’t know they rights, believe they have no choice and opt to take the money and leave. The longer you delay, the more tenants will be illegally forced out of their homes. We urge your vote to pass this ordinance today.”

LA City Council Member Gilbert Cedillo, who chairs the Council Housing Committee, was instrumental in guiding the proposal, developed by Los Angeles Housing + Community Development Department (HCIDLA), thought the Council to its eventual adoption.

The new law will do the following:

  • Require that landlords provide tenants with a written disclosure notice of the tenant’s rights under the Rent Stabilization Ordinance (RSO) with regard to eviction and relocation assistance, including contact information for the HCIDLA landlord/tenant hotline.
  • Allow tenants to rescind buyout agreements for any reason for up to 30 days after the agreements are fully executed.
  • Further provide that agreements that do not satisfy the stipulated requirements may be rescinded by the tenant at any time.
  • Require that landlords file copies of all buyout agreements with HCIDLA.
  • Provide tenants with an affirmative defense to an unlawful detainer and a civil remedy for actual damages and civil penalties against landlords who fail to comply with the buyout agreement regulations.

Coalition for Economic Survival Blasts Appointment of Ben Carson as HUD Secretary

December 5, 2016

The Coalition for Economic Survival (CES) has expressed deep concern and outrage at President-Elect Donald Trump’s selection of Ben Carson to be the new Secretary of the ben-carson-hud-pickDepartment of Housing and Urban Development (HUD). CES does not believe Carson has the knowledge, experience, ability, compassion or commitment to the goals of HUD to lead the nation’s housing agency.

Over the last 4 decades, CES has been the leading organization in the Los Angeles area that has provided outreach, education and organizing assistance to tenants living in HUD subsidized housing in an effort to preserve this important and significant number of affordable housing units.

HUD oversees federal rental assistance programs that serve over 5 million of the country’s lowest income households, as well as administers tens of billions of dollars in community development, disaster recovery, and homeless assistance funding, enforces fair housing laws and acts as one of the largest mortgage insurers in the world. HUD plays a critical role in alleviating poverty, stabilizing and revitalizing communities, increasing the educational attainment and incomes of low-income families, and providing safe, affordable homes to deeply poor elderly or disabled families.

trump-carsonBut by his own admission, Carson has stated that he “feels he has no government experience, he’s never run a federal agency. The last thing he would want to do was take a position that could cripple the presidency,” when his name was suggest to head the Department of Health and Human Services.

Carson’s aide, Armstrong Williams, has stated recently, “He’s never run an agency and it’s a lot to ask. He’s a neophyte and that’s not his strength,”

Carson has been deeply critical of social welfare programs. He has characterized the country’s safety net of cash assistance, housing allowances and social services as a failure that perpetuates dependence on government.

He is known for offering provocative commentary on a wide range of issues, including comparing the modern American government to Nazi Germany in a March 2014 interview with Breitbart, and saying at the Voter Values Summit in 2013 that Obamacare is “the worst thing that has happened in this nation since slavery.”

In a 2015 opinion for The Washington Times, Carson compared an Obama administration’s “Affirmatively Furthering Fair Housing” regulation to “the failure of school busing” because it would place affordable housing “primarily in wealthier neighborhoods with few current minority residents.

The regulation is designed to end decades-old segregation by offering affluent areas incentives to build affordable housing. Critics, including Carson, called it government hud-tenantsoverreach.

CES Executive Director Larry Gross said, “Ben Carson is totally unqualified to be HUD Secretary. HUD is among the most important federal agencies tasked with ensuring compliance with the Fair Housing Act, and creating affordable, preventing housing discrimination and ensuring inclusive communities. Ben Carson has shown a complete disregard and open hostility to government efforts to confront racist and discriminatory practices in the housing industry.”

Gross further stated, “The appointment of Ben Carson indicates that Donald Trump and his admiration has a complete disregard for tenants’ rights and an absolute lack of commitment to ensuring America’s poor will have a roof over their heads that is decent and that is one they can afford. This clearly is not a holiday present low-income HUD tenants wanted.”

CES Testifies in Support of Tenant Protection Buyout Program Proposal

August 18, 2016

In response the growing tactic of unscrupulous landlords attempting to coerce tenants living in rent controlled units to move by offering them “cash for keys,” the Los Angeles City Council Housing Committee considered a Tenant Protection Buyout Program proposal on August 17, 2016.

Hsg Comm Buyout

Testifying (left to right) CES Member & Los Feliz Tenant Facing Landlord ‘Cash for Keys’ demands Mark Voyce and CES Director of Organizing Carlos Aguilar

The Los Angeles Housing + Community Development Department (HCIDLA) presented their proposal to amend the Rent Stabilization Ordinance to prevent tenants from entering into buyout agreements without a full understanding of their rights. The proposal is based on a similar program adopted by the City of Santa Monica.

The Coalition for Economic Survival (CES) and tenants currently facing landlord pressure to sign buyout agreements testified in support of the buyout proposal.

Landlords are using these buyouts to get tenants out without having to go through the Ellis Act Eviction Process or filing a Tenant Habitability Plan, two programs that protect tenants against abuse. By avoiding these processes landlords can obtain higher rents without paying correct relocation amounts, providing tenants the legal amount of time to move, providing tenants temporary relocation housing while the building is being renovated, being limited in raising rents and being prohibited from re-renting the units for 5 years, depending on what their intentions are for the property.

CES Director of Organizing Carlos Aguilar told the Committee, “While Ellis Act evictions spread throughout the city, we have seen an additional trend that greatly concerns us. Landlords are even bolder using more illegal tactics and offering cash for keys to get tenants out.”

Aguilar also said, For the most part, low income, immigrants and non-English speaking tenants are targeted for the lower illegal amounts. Many tenants don’t know they rights and believe they have no choice but taking the money and leaving.”

cash-for-keys

LA City Council Member David Ryu in a letter to the Committee stated, “The Rent Stabilization Ordinance was created to protect residents from excessive rent increases and limit reason for evictions. Yet, landlords will often offer “voluntary” buyout agreements to avoid these protections and skirt the law. As the real estate market has recovered, developers have been taking advantage of these “cash for keys” buyout tactics more frequently.”

The proposal would do the following:

  • Create a definition for a Buyout Agreement and Buyout Offer.
  • Require that landlords provide tenants with a written disclosure notice of the tenant’s rights under the RSO with regard to eviction and relocation assistance, including contact information for the HCIDLA landlord/tenant hotline.
  • Allow tenants to rescind buyout agreements for any reason for up to 30 days after the agreements are fully executed.
  • Further provide that the tenant may rescind agreements that do not satisfy the stipulated requirements at any time.
  • Require that landlords file copies of all buyout agreements with HCIDLA’s Rent Stabilization Division.
  • Provide tenants with an affirmative defense to an unlawful detainer and a civil remedy for actual damages and civil penalties against landlords who fail to comply with the buyout agreement regulations.

The Housing Committee adopted the proposal and moved it to the full City Council for approval.

 

Click Here to Listen to CES’ Carlos Aguilar Tenant Buyout Testimony.

 

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