Advocates Dismayed At Governor Quinn’s Proposed Budget Cuts For Homeless Shelters
Thursday, February 23, 2012

Less that three months after the Illinois General Assembly voted to restore a 52% state funding cut for agencies providing shelter and transitional housing for people experiencing homelessness, advocates and service providers are dismayed that yesterday Illinois Governor Pat Quinn slashed this funding again as part of his fiscal year 2013 budget proposal.

A November 29, 2011 vote by the Illinois General Assembly restored a 4.7 million cut for fiscal year 2012 to more than 100 nonprofit organizations in all parts of the state funded by the Emergency and Transitional Housing Program. Governor Quinn had originally made the cut in his budget proposal earlier in the year.

The Emergency and Transitional Housing Program provides temporary housing and critical supportive services to get adults back on their feet and help prevent future instability.

During fiscal year 2011, the most recent year for which data is available, the program served 40,542 people, 30% of them below the age of 18. As in past years, however, the need for assistance was far greater than the availability, as people were turned away 45,673 times, mostly because programs were full.

“Once again, we’ll be advocating with members of the Illinois General Assembly to reject Governor Quinn’s proposed cut,” said Bob Palmer, Policy Director for Housing Action Illinois.

Last year, funded agencies were responding to the proposed cuts by reducing the number of beds they make available, reducing the number of people served and/or laying off staff who provide case management and other services. In addition, some agencies were at-risk of closing unless the cuts were restored.

When the cuts were proposed last year, advocates estimated that an additional 6,746 more people might end up on the streets as a result of the cuts.

Housing Action Illinois is a statewide coalition formed to protect and expand the availability of quality, affordable housing throughout Illinois. Their members include housing counseling agencies, homeless service providers and developers of affordable housing.

Illinois has fewer affordable and available rental units for extremely low-income
households than national average

An analysis released today shows a dramatic shortage in the number rental homes affordable and available to extremely low-income households. These renter households, often faced with excessively high housing costs, are at great risk of becoming homeless.

Jointly released by the National Low Income Housing Coalition and Housing Action Illinois, Housing Spotlight: The Shrinking Supply of Affordable Housing, shows that in Illinois there are only 28 rental homes both affordable and available for every 100 renter households considered extremely low-income, that is, earning 30% or less of the area median income. In Illinois, a family of four is extremely low-income if their annual household income is at or below $21,650.

Illinois is one of 13 states below the national level of 30 affordable and available units per 100 households at or below the extremely low-income threshold. No state in the nation has an adequate supply of affordable, available rental housing.

“These numbers counter the perception that the foreclosure crisis and decline in home values has resolved the shortage of affordable rental housing,” said Bob Palmer, Policy Director for Housing Action Illinois. “What’s actually happened is that competition for those few rental units affordable to extremely low-income households has increased and rents for these households have continued to go up.”

By comparison, the data shows that there are 102 rental homes both affordable and available for every 100 renter households considered low-income, that is, earning 80% or less of the area median income. In Illinois, a family of four is low-income if their annual household income is at or below $$57,700.

At the federal level, advocates call for funding of the National Housing Trust Fund, which would provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for those households impacted by the affordable housing shortage. Unlike other federal housing programs, the great majority of National Housing Trust Fund resources are targeted at extremely low-income households. Signed into law in 2008, the National Housing Trust Fund has not yet been funded. President Obama included $1 billion for the National Housing Trust Fund in his FY13 budget proposal, released on February 13.

“Solving the shortage of affordable rental housing is the most important homelessness prevention measure we can undertake,” said Sheila Crowley, President and CEO of the National Low Income Housing Coalition. “Investing in the National Housing Trust Fund is our best chance of ensuring affordable housing for all Americans.”

An affordable unit is one in which a household at the defined income threshold can rent without paying more than 30% of its income on housing and utility costs. A unit is affordable and available if that unit is both affordable and vacant, or is currently occupied by a household at the defined income threshold or below.

The full report is available at http://nlihc.org/doc/HousingSpotlight2-1.pdf.

Housing Action Illinois is a statewide coalition formed to protect and expand the availability of quality, affordable housing throughout Illinois. Housing Action’s more than 150 organizational members include housing counseling agencies, homeless service providers, and nonprofit developers of affordable housing.

The National Low Income Housing Coalition is dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes.