Major McKinney-Vento changes proposed
NPACH's newsletter includes a reminder that in the the midst of the hurricane hullaballoo last month, Sen. Reed introduced S. 1801, a reauthorization bill that would substantially remake the McKinney-Vento homelessness relief program. McKinney-Vento is important to affordable housing because along with Emergency Shelter Grants it also funds the Continuum of Care programs: Shelter Plus Care, SRO/Mod Rehab, and the Supportive Housing program. (Further explanations of these programs here.) NLIHC posted a detailed legislative analysis of S. 1801 some weeks ago. As noted there, the bill would consolidate and relabel the housing subsidy programs.
An easily overlooked but important comment in the NLIHC analysis is that the bill would "allow HUD to renew permanent housing projects through a noncompetitive process." This might mean a resolution to the perennial problem of renewal funding for existing Continuum of Care projects. In general, residential buildings constructed with Continuum of Care funding, which serve heavily disadvantaged tenants who simply can't afford market-rate rents, have had to operate a little bit on faith. While the SRO/Mod Rehab program buildings turn to the regular Section 8 program for their operating subsidies, Supportive Housing Program projects have started with future subsidies guaranteed for as little as three years into the future, and Shelter Plus Care projects have been set up with grants covering five or ten years. At the expiration of these initial grants, the projects have depended on "renewal grants" of money from successive years' Congressional appropriations. In past years housing advocates have lobbied Congress, sometimes successfully, for separate renewal appropriations so that existing projects are not placed in competition with proposed new ones. It happens that most healthy projects have gotten their renewals, but a certain sense of precarity has attended the renewal process for some time. Currently the "Homeless Assistance Grants" section of HR 3058, the TT/HUD appropriations bill, discusses separate funding for Shelter Plus Care renewals from past years but is a little vague about whether fresh renewal money is to be appropriated in the budget currently under debate.
The prospect of a less competitive funding renewal process for these existing buildings could really be a relief to their owners, managers and tenants -- but we really don't have a lot of details yet about how the new proposal would play out.
Anyone who has heard more about either the new reauthorization proposal or the current state of renewals in HR 3058, do please drop us a note in comments below.
An easily overlooked but important comment in the NLIHC analysis is that the bill would "allow HUD to renew permanent housing projects through a noncompetitive process." This might mean a resolution to the perennial problem of renewal funding for existing Continuum of Care projects. In general, residential buildings constructed with Continuum of Care funding, which serve heavily disadvantaged tenants who simply can't afford market-rate rents, have had to operate a little bit on faith. While the SRO/Mod Rehab program buildings turn to the regular Section 8 program for their operating subsidies, Supportive Housing Program projects have started with future subsidies guaranteed for as little as three years into the future, and Shelter Plus Care projects have been set up with grants covering five or ten years. At the expiration of these initial grants, the projects have depended on "renewal grants" of money from successive years' Congressional appropriations. In past years housing advocates have lobbied Congress, sometimes successfully, for separate renewal appropriations so that existing projects are not placed in competition with proposed new ones. It happens that most healthy projects have gotten their renewals, but a certain sense of precarity has attended the renewal process for some time. Currently the "Homeless Assistance Grants" section of HR 3058, the TT/HUD appropriations bill, discusses separate funding for Shelter Plus Care renewals from past years but is a little vague about whether fresh renewal money is to be appropriated in the budget currently under debate.
The prospect of a less competitive funding renewal process for these existing buildings could really be a relief to their owners, managers and tenants -- but we really don't have a lot of details yet about how the new proposal would play out.
Anyone who has heard more about either the new reauthorization proposal or the current state of renewals in HR 3058, do please drop us a note in comments below.
posted by Martha Bridegam at 12:51 PM
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