Tag: HUD

Affordability, housing, Renters

Big Rent Increases Are Coming For Some Affordable Housing Residents
Bellwether Housing's Anchor Flats building in South Lake Union
Bellwether Housing, whose properties include the Anchor Flats apartment building in South Lake Union, is limiting rent increases this year. Image via Bellwether Housing

By Katie Wilson

It’s no secret that rents are rising. Landlords are making up for lost time after pandemic-era rent freezes, and passing inflation-driven cost increases on to tenants. After a brief exodus from urban areas, many renters who left have now returned. Climbing interest rates are forcing potential homebuyers to wait, crowding the rental market.

With all these pressures driving up market-rate rents, it must feel great to live in an affordable, rent-restricted apartment right now. Right?

Maybe not. A quiet wave of large rent hikes is coming. For some, it’s already here. Earlier this month, seniors at a building operated by Mercy Housing in Bellingham hit the streets to protest a 9 percent rent increase that left some residents owing more than 60 percent of their monthly income to their nonprofit landlord—twice as much as the US Department of Housing and Urban Development (HUD)’s definition of “affordable” housing.

Every April, HUD releases income and rent limits for certain types of affordable housing, based on area median income. Once upon a time, these limits might rise in King County by 1 or 2 percent a year, but starting in 2017, the annual increase jumped as high as 7 percent. The pandemic briefly slowed this ascent, but the increase announced this April is truly startling: In HUD’s calculation, King County’s median family income rose by 16.3 percent from 2021 to 2022. That means rents at properties governed by HUD’s formulas may also rise by 16.3 percent this year—or even more, if a unit wasn’t already priced at its upper limit.

Of course, the fact that King County’s median household is now pulling in $134,600 instead of $115,700 doesn’t mean that lower-income households suddenly have more money to spend on rent. Seniors and people with disabilities living on fixed incomes, working families earning near the minimum wage—they’re not getting raises like that. Therein lies the problem.

Although many types of affordable housing are protected from large rent increases, many buildings financed with federal low income housing tax credits (LIHTC) and tax-exempt bonds are not. The same is true for most units whose rents are restricted through state and local multifamily tax exemptions (MFTE) and programs like incentive zoning and Seattle’s Mandatory Housing Affordability program.

When the HUD limits began rising sharply several years ago, the city of Seattle changed the rules for new MFTE units so that maximum rents wouldn’t go up more than 4.5 percent a year. That change has kept rent hikes within reason for more than 200 units so far, but tenants living in older MFTE units—about 5,600—are subject to the escalating HUD limits.

That’s how Fatima ended up with a rent increase of over $600 a month. (We’ve changed the names of renters to protect their privacy).

More than a year ago, Fatima moved into an MFTE unit in North Seattle thanks to a rapid rehousing program run by a domestic violence organization. (Rapid rehousing is a form of temporary rent subsidy that helps low-income renters pay for housing). The rent was $1,500 for a 2-bedroom—significantly less than the going rent for the area, possibly because there weren’t many takers during the pandemic slump. 

Fatima’s housing advocate said the building’s owners assured her the rent wouldn’t go up by much—$100, or maybe $300. When they got the final lease papers, they were shocked: The new rent was more than $2,100 a month, an increase of more than 40 percent.

Fatima said her landlord assured her that the rent wouldn’t go up drastically. After the rapid rehousing support ended, she was selected for an emergency housing voucher, a federal COVID relief program similar to Section 8 (now known as Housing Choice) that pays for a portion of a tenant’s rent.

Fatima’s housing advocate said the building’s owners assured her the rent wouldn’t go up by much—$100, or maybe $300. When they got the final lease papers, they were shocked: The new rent was more than $2,100 a month, an increase of more than 40 percent.

“We said, hold on, you told us it wouldn’t be that much. They said, you know, it’s based on the market,” said the housing advocate. “That put it over the [rent] limit for her voucher.” 

This week, Fatima’s landlord agreed to lower her rent to fit her voucher limit, allowing her to stay in her home. But not every renter is able to negotiate that kind of agreement.

Seniors on fixed incomes are an especially vulnerable group. King County’s area median income has been rising faster than social security payments for some time now. When the rent rises beyond seniors’ means, “we simply have nowhere else to go,” said Sarah, who lives in a senior housing complex in Seattle.

Sarah’s building was financed through the federal LIHTC program, and up until four years ago, it was run by a nonprofit. “Rent increases were minimal, and management was responsive to tenants’ needs,” she said. Then a national for-profit company bought the building. By that time, many tenants were also voucher holders, seeking out lower-cost units as market-rate rents rose beyond what their vouchers would cover. The corporation quickly showed itself to be all business.

“A tenant association begun under previous ownership was not allowed to use common rooms for meetings,” said Sarah, and a manager threatened to evict a tenant who started a Facebook group for residents. The corporation also tried to require electronic rent payments, until residents pointed out that this is illegal in Seattle.

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Now some tenants are facing rent increases of $175 a month, surpassing some residents’ voucher limits. “Because some voucher holders have disabilities involving psychological difficulties, this situation caused much anguish,” said Sarah. “All tenants, including those with vouchers, know that buildings like ours are their only answer—they are shut out of market-rate housing and waiting lists for low-income apartments are years long.”

Not every resident of affordable housing is in trouble. Programs that receive federal operating funds typically limit the amount of rent tenants must pay to 30 percent of the person’s income; this includes many buildings owned and managed by the King County Housing Authority and the Seattle Housing Authority. Housing Choice voucher holders are similarly protected—as long as they live in units with rent low enough that a voucher will pay for them. Many nonprofit housing providers also receive operating funds from other sources that come with limits on rent hikes.

“The city of Seattle is a funder in most of our buildings,” said Michelle House, director of compliance at Community Roots Housing. “This year, Seattle restricted [rent increases] to 4.2 percent. We did follow that guideline for most of our apartments.”

Susan Boyd, CEO of Bellwether Housing, says that rent increases at their properties depend “on the building and which entities regulate the building, if any.” But Bellwether made a decision this year to limit rent hikes to an average of 3 percent.

“Notwithstanding ever-increasing rents in the market and significant inflation in operation costs, this will be the first year since 2019 that we have raised rents at all. We are very careful to ensure that our residents do not get overwhelmed by steep rent increases, regardless of what is happening with the HUD rent levels,” she said.

Continue reading “Big Rent Increases Are Coming For Some Affordable Housing Residents” →

homelessness, King County

In a Move With Potential Funding Consequences, King County Won’t Count Homeless Population This Year

King County Regional Homelessness Authority logoBy Erica C. Barnett

Earlier this week, the new King County Regional Homelessness Authority announced that it will forego next year’s annual count of King County’s unsheltered homeless population, leaving the region without one major source of information about how many people are living unsheltered, and in what circumstances, for two consecutive years, after last year’s count was scuttled by the COVID pandemic.

The count, which is generally regarded as an undercount, is often used to measure whether homelessness is increasing or decreasing over time, and how; in 2020, for example, the count suggested a large increase in the number of people living in their vehicles.

In its announcement, the KCRHA said that it was not required to count the region’s homeless population this year, because the US Department of Housing and Urban Development only requires a count during odd-numbered years. “King County, like most Continuum of Care agencies”—entities, like the KCRHA, in charge of an area’s homelessness system —”received a federal waiver for the unsheltered PIT Count in 2021 because of COVID, and 2022 is not a required year.”

“For 2021, HUD allowed [continuum of care agencies, or CoCs] to skip that year due to the COVID-19 pandemic; however, this year there is no allowance to skip the [point-in-time] count if they missed last year. If the CoC did not conduct a PIT count in January 2021, then the CoC must conduct a PIT count in January 2022 to meet the CoC program requirements.” —HUD regional spokeswoman Vanessa Krueger

In fact, according to HUD regional affairs spokeswoman Vanessa Krueger, the KCRHA is required to conduct a count this year—as is every Continuum of Care (CoC) agency that skipped the count last year. By opting out, the KCRHA will fail to meet a mandatory requirement to serve as the agency that receives federal funds from HUD.

Specifically, Krueger said in an email, “CoCs are required to conduct a [point-in-time] count every other year. For 2021, HUD allowed CoCs to skip that year due to the COVID-19 pandemic; however, this year there is no allowance to skip the PIT count if they missed last year. If the CoC did not conduct a PIT count in January 2021, then the CoC must conduct a PIT count in January 2022 to meet the CoC program requirements.” (Emphasis in original.)

HUD’s website goes into greater detail about this requirement, noting that “[w]hile HUD will continue to monitor the COVID-19 situation, it does not plan on granting exceptions to the PIT count” in 2022. “CoCs should be preparing to count” this year if they received a waiver from the count last year, the website says.

According to Krueger, declining to do the mandatory count this year doesn’t mean that the KCRHA will automatically lose out on federal funding next year or risk its status as the region’s Continuum of Care. What it does mean is that HUD will knock points off the KCRHA’s score when it applies for federal funding in the future through a process called a Notice of Funding Opportunities, which could reduce its competitiveness for federal funding in the future.

The KCRHA appears to be unique among agencies across the state in declining to count the region’s homeless population after receiving an exemption from HUD last year. According to Washington State Department of Commerce Penny Thomas, “We don’t know of any other CoCs or counties that are opting out of the unsheltered count in 2022. As far as we know, everyone will do an unsheltered count.”

KCRHA spokeswoman Anne Martens acknowledged this on Tuesday, saying that the agency was aware the decision “may have docked us a point” in future competitions for federal funding. On Wednesday, the agency had updated its site to say that they have discussed the decision to forego  the count, and KCRHA spokeswoman Anne Martens said the authority would have more to share about its official correspondence with HUD soon.

But failing to participate in the annual count doesn’t just dock agencies “a point.” Agencies that don’t participate in the annual count automatically lose six points, out of a possible 200, on their annual applications for funding through an annual process now known as a Notice of Funding Opportunity (NOFO). Failing to participate in the count also makes agencies automatically ineligible for 34 possible points that require data from the count, for a total loss of at least six and up to 40 potential points. HUD uses these annual scores to determine which homeless agencies across the nation receive funding, and how much.

The KCRHA appears to be unique among agencies across the state in declining to count the region’s homeless population after receiving an exemption from HUD last year. According to Washington State Department of Commerce Penny Thomas, “We don’t know of any other CoCs or counties that are opting out of the unsheltered count in 2022. As far as we know, everyone will do an unsheltered count.”

In announcing its decision to forego the one-night count, the KCRHA raised a number of issues with the count itself, calling it an “inaccurate” representation of the region’s homeless population that relies on “what volunteers see during a few hours in the early morning, in a neighborhood that may be unfamiliar to them, recorded on a paper tally sheet, at a time when there could be heavy rain or cold.” Undercounting the region’s unsheltered homeless population, the announcement continued, could result in less funding and a reduced public sense of urgency.

Under an FAQ item titled “If the PIT Count is so inaccurate, why does HUD require it?”, the agency wrote that the count, “by default and without an alternative, has simply become a part of the regulatory environment in order to receive federal funding.”

Alison Eisinger, the director of the Seattle/King County Coalition on Homelessness, agreed that the one-night count is, by definition, an undercount of the region’s unsheltered homeless population. But she said the count, which was organized by SKCCH for 37 years before transferring to All Home, the KCRHA’s predecessor, has served a useful purpose over the years and is based in sound methodology.

“We constructed a model that effectively used multiple methods, produced quality data, and engaged over a thousand people in a meaningful way—and we leveraged the whole effort to energize our state and local advocacy,” Eisinger said. “There’s a lot to learn from our years of work, and from the attempts under All Home to experiment with other approaches.” Continue reading “In a Move With Potential Funding Consequences, King County Won’t Count Homeless Population This Year” →

Affordability, City Council, homelessness, housing, Mayor Murray

The Future of Seattle’s Shelter System is in San Francisco

SF-nav-center-entrance

San Francisco’s Navigation Center for the homeless is a promising model for Seattle—if the city decides to really embrace it.

Last month, the Seattle Human Services Department dropped several pieces of bad news in the laps of the city council’s human services committee: First, the department had failed to locate sites for all four of the sanctioned encampments Mayor Ed Murray promised as part of his “Bridging the Gap” proposal to shelter some of the city’s unsheltered homeless population, now several thousand strong. Second, ongoing sweeps of unauthorized encampments will no longer be monitored by the city’s Office of Civil Rights, which was charged with overseeing encampment removals and making sure workers comply with rules about notice and disposal of people’s tents and other possessions. And third, a planned low-barrier shelter known as the Navigation Center, to be operated by the Downtown Emergency Service Center, won’t open on schedule due to trouble locating an acceptable site for the facility. “Identifying a site has taken longer than we originally [anticipated], so we’re going to have to issue a new timeline once the site has been identified,” HSD deputy director Jason Johnson said at last month’s meeting.

The Navigation Center delay was a blow to advocates who’ve argued that Seattle needs shelter options that serve the hardest to house among the city’s growing homeless population—those who don’t use regular shelters because they have one or more of the “three P’s”—pets, partners, and possessions, which aren’t allowed in traditional shelters—or because they’ve been scared away by bad experiences in the shelter system.  Add to those three disqualifiers a fourth “P”—problems. Shelters don’t work well for people in acute mental distress, people who happen to be drunk or high, or people whose mental or emotional troubles make it difficult for them to stay in close quarters with hundreds of other people.

It’s a fairly safe bet that the city will announce the Navigation Center site sometime in January—too late to help those stuck sleeping outside in subzero temperatures during the first half of this unusually cold winter, but in time for Murray to attend the opening before his reelection campaign begins in earnest. But what do city officials really mean when they talk about “low-barrier” shelter, anyway—and what will make the Navigation Center different from other shelters DESC operates, like the Morrison Hotel downtown, which takes people in any condition on a first-come, first-served basis?

To help answer those questions, I headed south to San Francisco, where the original Navigation Center opened in the Mission District in March 2015. (The city has since opened another Navigation Center, and is working on a third; all three are temporary facilities on public land slated for eventual redevelopment.) Located in the middle of a a dreary street of Mission Street populated largely by street kids and older people just sort of hanging around, the Navigation Center stands out for its clean sidewalk, airy entryway, and woodsy, modern exterior. It looks more like the entrance to a pricey new condo building than a shelter—if that condo building  was flanked by two portable buildings painted institutional yellow, and fronted by a short but official-looking sturdy iron fence.

“It’s hard to explain that it’s never looked so good [on the street outside], but there it is,” Sam Dodge tells me as we walk through the center. Dodge is the deputy director of San Francisco’s new Department of Homelessness, and he—along with John Ouertani, the site manager—is one of the chief evangelists for the Navigation Center model. “This property is open 24 hours and is very low-threshold,” Ouertani says. “There are a few rules, but the guests pretty much come in and out as they please.” As we’re talking, a new guest comes in—a skinny young man, probably 30, staggering under some unseen weight, his head parallel to the dusty ground. A case worker steers him toward his dorm, urging him to get some sleep.

Physically, the center consists of several low portable buildings—an admissions center, a dining hall/TV room, an ADA-accessible building with showers, restrooms, and free laundry facilities, and five dorms—clustered around a central courtyard. The layout gives clients (the Navigation Center calls them “guests”) more physical room than a traditional shelter, to walk around, play with their pets—and sleep. The dorms themselves house a maximum of 15 people each, a far cry from the hundreds of bunk beds that crowd a typical shelter, and some beds are pushed together in pairs, to accommodate couples who want to sleep together. Meals are available all day and night in the common building, and showers are open 24/7, to give people a sense of autonomy and to differentiate the center from other institutional living situations that guests may have encountered and found unwelcoming or traumatic in the past.nav-center-portables

“A lot of people [the Navigation Center serves] haven’t had contact with a shelter for a very long time, but they have past memories of shelter or they’ve heard rumors on the street, and that’s kept them out,” Dodge says. “I think it’s really important that we’re telegraphing to people that ‘You are going to make this amazing life change, and it’s going to be hard and it’s going to take a lot of appointments and all this stuff, but we’re here to make it easy for you, and we want to make a tranquil environment where you can rest when you need to rest, and you can eat when you need to eat, and stay focused on the goal of ending your homelessness.” In contrast, traditional shelters typically serve meals, if they serve meals at all, at standard times, clear out sleeping areas during the day, and are anything but tranquil.

DESC director Daniel Malone says that during one of his visits to the San Francisco Navigation Center, he and his colleagues witnesses a client become “really agitated about something,” yelling and pacing around frantically. What they noticed, he says, is that the man “was basically able to blow off some steam—the physical environment there seemed to allow for him to have that moment, or that event, without really significantly affecting anybody else. And some of us from DESC observed that and immediately made the connection that if that had happened in the DESC shelter—and things like that happen in the DESC shelter all the time—he would have had a different reception, because a lot of people would have been around and wouldn’t have had the patience for that happening.

“It helped some of us feel more confident that there could be some real differences by going this route of creating a place where we weren’t just trying to squeeze in as many people as humanly possible.”

Another key difference between the Navigation Center and a traditional shelter is that the Navigation Center is truly low-barrier, welcoming people who have partners, pets, possessions—and problems. Ouertani estimates that at any given time, there are a dozen or more dogs on the property—many of them pit bulls—and says that as long as they’re vaccinated, on a leash, and don’t attack people or other dogs, they can stay. “We had about 17 pets come in within the first month and an half after we first opened up, and that’s pretty much what dictated where the guests went, because you can’t put 10 pit bulls in one dorm,” Ouertani said. People are also allowed to bring large possessions, like shopping carts, bikes, and what Dodge calls “survival stuff from the street.” (Weapons are taken at the door and stored for clients to retrieve later.) And they’re allowed to stay with partners‚ unlike typical shelters that require couples to split. (Dodge says there have been times when women, for example, or transgender people have said they felt unsafe sleeping in coed dorms, and the Navigation Center has accommodated them by making one of the five dorms single-gender). Finally, they’re allowed to stay at the center even if they’re  under the influence of drugs or alcohol—or, in most cases, even if they consume drugs or alcohol at the center. “We’re not so much focused on the drugs and alcohol,” Dodge says, “because we know those are almost a given. So if you get caught using on the property, it does not mean that you are asked to leave. That’s our time to outreach to you.”

nav-center-courtyard

Clients can’t just walk in to the Navigation Center, nor will they be able to do so in Seattle. Instead, the center seeks out new clients at encampments (often right before announced raids by San Francisco city authorities) and through groups serving homeless people from marginalized communities. “One of our [initial] ideas was that we could go and just take a whole encampment and bring them inside,” Dodge said. “And then we saw from some of our data that in taking the whole encampment, we started to preference a younger, whiter group that felt comfortable in places of conflict, so then we started to say, ‘Let’s select for some racial equity and try to balance those numbers out a little bit.'” Like the city of Seattle, San Francisco uses a race and social justice lens when designing and funding city programs. “And then we went to the Haight Ashbury [neighborhood] and worked with some of the groups up there, and said, ‘Let’s work with a younger cohort. Let’s try to preference transgender people who seem to feel unsafe in a lot of our shelter system.'” The result is a population that goes through demographic changes based on the center’s current outreach priorities. f the population looks a little too young and white, they can tweak their outreach to bring in more Latino immigrants; if it’s skewing heavily toward straight, older couples, the center can increase outreach to groups that serve LGBTQ youth.

“Part of the model is being able to experiment and try new things and collect data and analyze it and experiment again,” Dodge says.

One reason  the original Navigation Center has been so free to experiment is that it’s funded largely by private dollars, through a no-strings-attached grant from an anonymous wealthy donor; Seattle’s Navigation Center will be funded by a combination of state and local dollars.

Daniel Malone, the DESC director, says his group plans to emulate the experimental spirit of the San Francisco Navigation Center, but notes that the city will choose clients based on its own set of criteria, which will in turn be dictated, to some extent, by federal priorities. “Essentially, folks are going to [come] to us after being selected by the Human Services Department,” Malone says. Johnson, the HSD deputy director, says Navigation Center clients will be chosen by outreach workers who will “engage with an unsheltered person or couple to try to tease out what that couple might need to move from living outside to living inside”; if it seems like they’ve rejected other shelter options because of barriers like restrictions on partners and pets, “then the Navigation Center comes into play.”

nav-center-beds

Johnson says Seattle’s Navigation Center, when it opens, will still embrace “the core themes that hold true at the San Francisco Navigation Center,” but it will be uniquely Seattle.”  For example, Johnson says, people will be expected to move out of the center, and into more stable (if not permanent) housing within 30 days—an ambitious goal given that, also according to Johnson, the average shelter stay in King County is 200 days. Johnson says the San Francisco Navigation Center has “changed their model” to move people through the center in 30 days, but Dodge says that for those who are seeking stable housing (as opposed to shelter or treatment), moving through the system takes longer, about 90 days on average.

San Francisco’s Navigation Center has moved nearly 300 people into more stable housing since it opened in 2015, which is quite a feat—especially when you consider that many people enter the center with few or no prior connections to the city’s homeless “system.” That’s another thing that’s different about the Navigation Center—instead of just providing phone numbers and addresses for service providers and sending clients on their way, the center provides each client with an on-site case manager who helps them make appointments and actually show up, as well as service providers who come to the center weekly.  Of all the barriers to housing, Dodge says, the sheer number of appointments can be one of the most daunting. “At one point, we were averaging 28 appointments that someone had to make coming from the street [before getting] housing, and for some of these other cases, where you’re dealing with immigration and maybe the Veterans Administration, it’s much more.”

The most ambitious versions of San Francisco’s plan max out at about six Navigation Centers, which works out to about 450 theoretical clients at a time. The unsheltered homeless population of San Francisco is nearly 6,700, according to a 2015 count; in Seattle, it’s around 3,000. (The actual numbers are likely much higher, since those figures only represent the number of people homeless count participants actually encountered sleeping on the streets.) Johnson says Seattle has no immediate plans to start siting a second Navigation Center, and indicates that the site the city will choose won’t be a temporary use of publicly owned land, like the ones in San Francisco.  Given that a single low-barrier shelter will barely make a dent in the growing demand, many advocates point out the obvious: Seattle needs more low-income housing, and not just in the form of short-term “rapid rehousing” rental vouchers.

“I’m still trying to wrap my head around the fact that, when I got to Seattle 20 years ago, there were literally a third of the homeless people that we see now,” says Real Change director Tim Harris. “My issue with the [Navigation Center] approach is just simply that 75 beds doesn’t go all that far, given the depth of the need.”

Malone, whose organization will be charged with making the Seattle Navigation Center a success, says that “if the Navigation Center fails and doesn’t have a lot of throughput”—that is, people entering the center and exiting into housing—”then it’ll end up being a very expensive shelter, and that’s not what anyone’s looking to do.”

A final unknown: What will federal housing policy look like under the Trump Administration? Immediately after the election, housing and homelessness advocates were deeply concerned about who Trump would pick to head up the Department of Housing and Urban Development, which sets federal housing policy. (The federal government provides about 40 percent of Seattle’s budget for homeless services). Now that Trump has chosen Ben Carson, the libertarian-leaning surgeon and failed Presidential candidate, they’re looking for funding closer to home, at the state and local levels.

Council member Sally Bagshaw, who heads up the council’s health and human services committee, says that “as dire as it is, what we’re facing right now, I actually don’t think that the federal government was going to help us anyway, because of the Republican Congress. I believe firmly that what we do, and every step of progress that we make is going to be done by the city and the county, with, hopefully, some help from the state.”

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