Agenda - 12-04-2006-7a - Laserfiche WebLink

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Iq Chapter III: Economic Self-Sufficiency ~ Housing One of the most severe problems facing hard-working but low-income North Carolinians is fmding affordable housing. Often they must live with relatives or friends, do without necessities to pay their rent, or stay in homes that are in poor condition and sometimes even unsafe. Across North Carolina the cost of housing has risen faster than wages, putting affordable housing out of reach for thousands of families. Over 600,000 low- income families live in homes they cannot afford. Over 300,000 households pay more than half their income for housing. A family must earn at least $60,000/year to afford the average home price. According to the 2003 NC Justice Center report, "Working Hard is Still Not Enough," 20 percent of homes do not have full plumbing or are overcrowded or cost more than 30% of the family income. Of North Carolina families with children, 25 percent do not have safe, affordable, comfortable housing. Population. in homeless shelters has been increasing, with homeless children being the fastest-growing segment of this population. Women make up a disproportionate share of those who live in low-income housing. In 1998, IiUD reported that 84% of recipients of federally subsidized housing in North Carolina were in female-headed households. Elderly housing includes a high percentage of women, as females tend to outlive males and have lower incomes. In fiscal year 2000, women and children. composed 50 percent of the homeless persons in shelters receiving federal grants. One of the best ways to create affordable housing is through Housing Trust Funds (HTF's). There are currently more than 300 HTF's in cities, counties and states throughout the US. HTFs are generally distinct accounts that receive dedicated sources of public funds to support affordable housing. North Carolina's HTF received only $3 million in'the last budget cycle, and if the state has any hope of improving housing, available funding for the NC Housing Trust Fund must increase substantially. While North Carolina faces a challenge in creating affordable housing, increasing layoffs and predatory lending practices have contributed to a staggering increase in home foreclosures. In the six years between 1998 and 2004, foreclosure filings in the state have increased 189 percent, with some counties experiencing an increase of over 500 percent. In response, the revised state budget for 2004 included $1.75 million for a NC Home Protection pilot program to help people avoid home foreclosure after losing a job. Under the pilot program, homeowners who have lost their jobs owing to the State's changing economic conditions would be able to apply for a bridge loan to help pay monthly mortgage payments while they look for new employment. RECOMMENDATIONS FOR ACTION.. . • Increase funding for the North Carolina Housing Trust Fund to $50 million yearly to expand affordable housing for low-income families. • Increase funding for the Home Protection Pilot Program and support improvements to North Carolina's foreclosure program. 2006-2007 Women's DraftAgenda 15