Breaking Ground - October 2001

Finding Our Way Home

520,000 Households in Ohio Cannot Afford Safe and Decent Housing

Legislative Updates

COHHIO Endorses Midwest Partners

HUD Budget Update...

Save the Date - COHHIO Conference

How to Contact & COHHIO Staff

Appeals Court Reinstates Suit by Housing Group - City Tried to Halt Low-Income Project

Action Expected Soon on the Predatory Lending Front...

ODOD Summit

Hardships in America...the Real Story of Working Families

How Do Ohio’s Wage and Salary Workers Stack Up?

Financial Services in Distressed Communities...

COHHIO Membership

Community Development Block Grant Renewal Act

We Can do This! Ending Homelessness for People with Mental Illness and/or Substance Abuse Disorders

White House Faith Based Initiative

COHHIO Seeks Your Input - Organizational Development Training Needs

YEP Members Participate in United Nations Event

Annual Tenenbaum Welfare Conference

Resources

Regional News

 

 

Finding Our Way Home
by Bill Faith
I went through the range of reactions that much of the nation went through following the catastrophic events of September 11, 2001, including shock, sadness, fear and anger. The hideous attacks hit us where we live, work and play - at home. Over the past decade, I have spent alot of time working on our issues in Washington D.C. The city really seems like a second home. My wife and I recently spent a couple of days touring supportive housing projects (and shopping) in New York. Our sister coalition in New York City had to close their offices because their communications systems were cut off from the destruction of the World Trade Center. Our neighbor state to the east was scarred by the crash. The terrorists managed to strike us deeply, at home.

The aftermath goes beyond the tremendous loss of life, the personal pain of so many and the obvious economic costs. There has already been and there be will even more consequences that affect our collective work to help Ohioans end homelessness and access affordable housing. State revenues are down, made worse following September 11th that will mean budget losses as high as $1.5 billion. Many programs including the Housing Trust Fund and homeless programs were cut in September by 6 percent and that will likely not be the end of it. Following the attacks, with the new war and concerns with biochemical attacks, federal priorities have sharply shifted, preoccupying policy makers at the expense of other domestic concerns. The outpouring of donations for immediate relief efforts was impressive, so much so that there are many reports and even more fears that donations from many private sources will sharply drop.

Our good friend, Sheila Crowley of the National Low Income Housing Coalition in Washington, described her day on September 11th. After the attacks, Sheila decided to stay at work since leaving was made virtually impossible by the mass exodus of workers from the city and the shut down of the mass transit systems. Like many of us, by the end of the day she felt a strong need to be home - to find some sanctuary in a place that was completely familiar and over which she has control - home. Sheila went on to say, “By 5 p.m., the city was empty and quiet, with very few cars and a smattering of people. Some like me were moving determinedly to our destinations. But most of the people on the street at that hour were standing about with their bags and bundles with nowhere to go. The homeless people of the 14th and K Street neighborhood, who usually blend in with the late afternoon traffic, were exposed. Their lack of sanctuary only served to make my need for sanctuary more urgent. How could anyone possibly cope last Tuesday without a home to go home to?”

Among the lessons of September 11th is how essential our sense of home is to all of us, on both personal and collective levels. The part that we all play, to build the bridge to help others find their way home, has been reinforced and seems more crucial than before. It would be a huge mistake for housing advocates to withdraw in the face of the difficulties before us. Now, more than ever, we need to reach out to our policy makers about the importance of aiding Ohioans to secure affordable housing. We succeed only if we persevere in making it possible for our fellow citizens to achieve the safety, security, and comfort in finding a place to call home.

 

 

520,000 Households in Ohio Cannot Afford Safe and Decent Housing
According to a report released by the Coalition on Homelessness and Housing in Ohio (COHHIO), in conjunction with the National Low Income Housing Coalition, low-income workers in the State of Ohio must earn more than twice the federal minimum wage or $11.37 per hour, if they are to afford rent for the average two-bedroom apartment. The report, entitled Out of Reach 2001: America’s Growing Wage ­ Rent Disparity, takes a detailed and much needed look at the ever growing disparity between rental housing costs and the minimum wage.

“Out of Reach shows all too well, that the affordable housing crisis in this country continues to worsen,” says Bill Faith, COHHIO’s Executive Director. “At a time when the Federal Government is talking about cutting all discretionary spending to the tune of eight or nine percent, more and more Americans are finding themselves on the short end of the stick so-to-speak,” Faith continued. “While the events of September 11th have forever changed our attitudes and perceptions, the fact remains that more than 5.3 million households in this country cannot afford a place to call home. This number is likely to increase if significant and comprehensive steps are not taken today. While we grieve along with the rest of the country, we, as affordable housing advocates cannot let these tragic events stop us from the task at hand. Housing is simply not affordable for far too many of our brothers and sisters.” Faith went on to say that “Things aren’t much better here in Ohio. While the most recent budget did see nearly $12 million in TANF funds earmarked for affordable housing, the Taft Administration is talking about cutting somewhere between $500 million and $1 billion in state funds to make up for lost revenues due to the economic downturn. There are over half a million households in Ohio who are forced to pay more than a third of their monthly income just for housing. This is a situation that must be addressed.”

The report goes on to find that, among other things, the number of poor, unassisted renters in this country is at an all-time high, and the number of housing units available to them is decreasing, the amount one must earn to afford a one, two, or three-bedroom apartment anywhere in the country (called the housing wage) often exceeds the minimum wage often by a factor of two or more, and low wage workers are faced with impossible demands on their ability to live in safe, decent, and affordable housing.

The situation in Ohio is no exception. According to the report:

• The housing wage (the amount one must earn) for a one-bedroom apartment in Ohio is $8.97 per hour (or 174% of the minimum wage), the housing wage in Ohio for a two-bedroom apartment is $11.37 per hour (or 221% of the minimum wage), and the housing wage for a three-bedroom apartment in Ohio is $14.56 per hour (or 283% of the minimum wage).

 

• Minimum wage workers within the State of Ohio must work at least 70 hours per week to afford rent for a one-bedroom apartment, 88 hours per week to afford rent for a two-bedroom apartment, and 113 hours per week to afford rent for a three-bedroom apartment.

 

Things appear to be getting worse. Across the board within the state’s 88 counties, the amount one must earn to afford an apartment increased from 2000. In fact, in just one year, the housing wage has increased by more than 10 percentage points. Please visit the COHHIO web page at www.cohhio.org for additional county-specific information. In addition to documenting the severity of this crisis, the report outlines some steps that could be taken at both the Federal and State levels, to make housing more affordable. At the Federal level, the report calls for a new housing production initiative, through the creation of a National Affordable Housing Trust Fund. At the State level, the report calls for the Taft Administration to develop a true affordable housing strategy that would serve as a blueprint for directing much needed resources.

As some of you probably know, Out of Reach is usually released in the first or second week of September. This year, the release was postponed as a result of the events of September 11th. Given that the world in which we live has forever changed and that thousands of Americans have lost their lives, it seems strange to be talking about an affordable housing crisis.

Prior to September 11th, there were more than 5.3 million households in this country that could not afford a place to call home. As affordable housing advocates, our job is to give a voice to the voiceless, a face to the faceless. People throughout this state depend upon us to do our job every single day. We must continue to fight the good fight. If not us, who? If not now, when?

COHHIO would like to thank local groups that helped release this report including: Akron: Michele Colopy; Canton: Kay Linear; Cincinnati: Mary Burke; Cleveland: Kate Monter Durban; Columbus: Barb Poppe; Dayton: Tina Patterson; Lorain: Sharon Kleppel; Toledo: Bob Krompac and Youngstown: George Garchar. Through the efforts of COHHIO and these local groups; Out of Reach received coverage in the Canton Repository, Columbus Dispatch, Cleveland Plain Dealer and Toledo Blade.

 

 

Legislative Updates
Economic Stimulus Package May Contain One Time Housing Spending
In light of the recession and the rise in unemployment the nation is now facing, Congress has been debating a stimulus package to provide federal assistance on a variety of fronts. Items to be included must be able to be spent within a short timeframe, less than a year. The top priorities remain unemployment insurance and health care (help with cobra payments, etc.). Then there is a second list of things that have been selected from everything that has been requested. Four influential Senators (Kerry, Reed, Sarbanes, and Leahy) sent a letter to the leadership to request that the following items be included on the second tier list: $3 billion for the HOME program, $1 billion for public housing operating costs, and $100 million for the FEMA Emergency Food and Shelter Program. This proposal would provide a substantial boost to our efforts in Ohio. The funding would be on top of existing funds for these programs which are as follows: HOME - $1.8 billion, FEMA EFSP - $140 million, and Public Housing Operating - $3.1 billion. Ohio’s share of the $3 billion for the HOME program alone would amount to over $135 million in new funding. The proposal also recommends that the match requirement for HOME be waived and that the funds should be spent "expeditiously." An important argument to include a substantial increase for the HOME program is that since tax credits and bond financing has increased, there are many projects in need of subsidy to move forward, which is certainly the case in Ohio.

Bill Would Reduce Unclaimed Funds - Could Impact Housing Loans
The Ohio Senate has been debating S.B. 93, sponsored by Senator Kevin Coughlin (R-Cuyahoga Falls) which would allow employers to keep wages under $100 owed to workers that the employer has not been able to locate. Under existing law, those employers must turn over those funds to the Ohio Department of Commerce, Unclaimed Funds section which makes efforts to locate the rightful owners of the money. In the meantime, a significant portion of those funds are used by the Ohio Housing Finance Agency for various shorter term housing development loan programs. Many of the Unclaimed Funds accounts are less than $100, so the proposal could result in a reduction of millions of dollars for housing projects. Some Senators, COHHIO and other groups have raised some concerns which has resulted in agreement on an alternative proposal to set the limit at $50 as opposed to $100 which would reduce available funds by less than $400,000. COHHIO has expressed support for the compromise.

Ohio House Bill Constrains Local Governments on Predatory Lending
On October 17th, the Ohio House passed H.B. 386, sponsored by Representative Chuck Blasdel (R-East Liverpool) which prohibits local governments from regulating the financial services industry which would leave city and county officials without a way to protect residents from predatory lenders. Proponents, which includes many financial service industry representatives from Household Finance to Bank One, stated that the only purpose is to establish that the state is the authority for issuing regulations on loan and credit companies to avoid ending up with a "patchwork" of laws established by different cities across the state. Dayton approved an ordinance this summer to protect borrowers from lenders who misled customers into signing up for harmful loans. Other cities, including Cleveland and Cincinnati, has related proposals pending. However, Ohio has yet to enact comprehensive legislation to curb predatory lending. It is clearly premature at best to prevent local governments from addressing irresponsible lending practices when the state has failed to act. COHHIO, the AARP and other consumer advocates are actively working with leaders in the legislature to introduce a comprehensive anti-predatory lending bill later this year.

 

COHHIO Endorses Midwest Partners
Midwest Partners is a coalition of six states formed to work in a coordinated and comprehensive way to ensure that the needs of vulnerable families are heard and addressed during the 2002 reauthorization of the national welfare program, Temporary Assistance for Needy Families (TANF). The states are Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin. Because of the enormous effect TANF has on the lives of many families served by our member agencies, COHHIO has joined Midwest Partners. Research by Claudia Coulton of Case Western University demonstrates what all of you who serve low income families know from common sense and direct experience: welfare reform is having an impact on families ability to get and stay housed. COHHIO will be advocating for inclusion of resources for housing remedies in TANF Reauthorization. While use of TANF Funds for housing in some forms is currently allowable, many states have not made significant use of housing options. We will be advocating for direction to states in Reauthorization to focus housing resources to families to improve their family and work stability. For further information, contact Pam Argus at COHHIO at 614/280-1984.

 

 

HUD Budget Update...
In the August edition of Breaking Ground, we reported that both the House and Senate had passed their own versions of HUD’s Fiscal Year (FY) 2002 budget. After returning from their August recess, members of Congress were to meet in Conference Committee, to iron out the differences between the two budget bills. Unfortunately, the events of September 11th have thrown the appropriations process into uncertainty.

Although conferees have now been appointed in both the House and the Senate to work out HUD appropriations, the steps from here to a passed and signed budget are still unclear. There is speculation as to how Congress will proceed. Some are of the opinion that the 13 spending bills will be considered individually; others talk about an omnibus bill or, at least, the combination of some of the individual bills into a larger package. The current fiscal year ended on October 1st, but the House and Senate have already passed a continuing resolution to keep the government in business through the end of October.

Regardless of the steps taken, Congressional appropriators and the White House continue to go back and forth about overall discretionary spending. When the mood on the hill is one of increased defense spending and natural disaster relief, other programs are likely to be facing cuts. While we have heard everything from a four percent to a nine percent cut in discretionary spending, the future is still very much up in the air. Senators and Representatives need to hear from their constituents now, that cutting already under-funded housing programs and other programs that serve low-income people is NOT the answer to a perceived budget crunch that could be solved by lifting the arbitrary budget caps.

Please contact members of the Ohio Congressional delegation, and urge them to proceed with care. While responding to this national tragedy, let’s not go so far as to hurt the very people we are charged with helping. If you need to figure out how to get in touch with your elected officials, please visit the legislative directory on the COHHIO web page (www.cohhio.org/legdirectory.html).


Save The Date
April 22-24, Columbus Marriott North

COHHIO's 2002 Annual Conference

COHHIO staff is busy planning for the 2002 conference. Please watch future issues of the newsletter or the web page for registration information.

 

 

How to Contact & COHHIO Staff
NATIONAL
National Coalition for the Homeless. Hotline:
202/775-1372 or www.nationalhomeless.org.

National Low Income Housing Coalition
www.nlihc.org

President Bush
1600 Pennsylvania Ave NW, Washington DC 20500; 202/456-1414; 202/456-2461 (fax)
president@whitehouse.gov

Senators Voinovich & DeWine
United States Senate, Washington, DC 20510
Voinovich - 202/224-3353; 202/228-1382 (f)
Voinovich - voinovich@voinovich.senate.gov
DeWine - 202/224-2315; 202/224-6519 (f)
DeWine - senator_dewine@dewine.senate.gov

Representatives
United States House of Representatives
Washington, DC 20515; 202/224-3121

STATE
Governor Taft
77 S. High St., Columbus, Ohio 43215
614/466-3555; 614/466-9354 (fax)

Ohio Senate
State House, Columbus, Ohio 43266-0604
614/644-5466 (fax-R); 614/644-1982 (fax - D)

Ohio House of Representatives
77 S. High St., Columbus, Ohio 43215
614/644-9494 (fax)

Legislative Directories are available by contacting us: COHHIO - 35 E Gay St, Ste. 210,
Columbus, OH 43215-3138; 614/280-1984; 614/463-1060 (fax); www.cohhio.org.

 

Newsletter of the Coalition on Homelessness and Housing in Ohio (COHHIO) October 2001 • Volume 6 • Issue 9. Editor: Susan Francis

COHHIO is a coalition of organizations and individuals committed to ending homelessness and to promoting decent, safe, fair, affordable housing for all, with a focus on assisting low-income people and those with special needs.

COHHIO Staff
Bill Faith, Executive Director; Pam Argus, Associate Director; Rebecca Bartholomew, AmeriCorps Program Coordinator; Kevin Blackledge, Youth Empowerment VISTA, Susan Francis, Communications Coordinator; Jowana Jenkins, OCRP VISTA; Cathy Johnston, Advocacy Coordinator; Angela Lariviere, Youth Empowerment Coordinator; Jill Russ, Section 8 Project Coordinator; Mary Scott, AmeriCorps Program Support Administrator; Rick Taylor, Housing Policy Director; Ande Ucubagabriel, Finance Director; Kurt Weidner, AmeriCorps Leader and Spencer Wells, Tenant Outreach Coordinator. 35 E. Gay St., Suite 210, Columbus, Ohio 43215-3138; 614/280-1984; 614/463-1060 (fax); cohhio@ cohhio.org; http://www.cohhio.org.

 

Appeals Court Reinstates Suit by Housing Group
City Tried to Halt Low-Income Project

Martin Stoltz, Plain Dealer Reporter
Cuyahoga Falls - A housing advocacy group scored a precedent-setting victory in federal court in a long-standing legal struggle over a low-income apartment complex proposed for Cuyahoga Falls.

The unanimous ruling of the 6th Circuit U.S. Court of Appeals in Cincinnati reversed a federal district judge’s dismissal of a discrimination case against the city. That suit, which can now proceed to trial, accuses Mayor Don Robart and residents of acting with bias against people of color and families with children.

After the city, which is 98 percent white, attempted to halt construction of the apartment complex, the Columbus-based Buckeye Community Hope Foundation nearly went bankrupt because it was disqualified from a federal housing-construction program, lost $3 million on the complex and incurred $750,000 in legal fees, said the foundation’s attorney, Edward G. Kramer.

If victorious in court, the foundation could collect those expenses and further damages for harm to its reputation.

“This is another fine mess that Mayor Robart has gotten us into,” Councilman John Schmidt, a Democrat, said. “It’s unfortunate that the mayor’s reckless actions will possibly expose the city to liability, but it really shouldn’t surprise anybody.”

The decision comes nine weeks before Robart, a Republican, faces re-election.

Robart did not return a call.

Cuyahoga Falls Law Director Virgil Arrington, who has argued the cases, also did not return a call.

Buckeye first applied in early 1996 to build 72 units on Pleasant Meadow Boulevard for people earning 60 percent or less of the area’s median wage.

In return, construction would be financed using federal low-income housing tax credits.

The city Planning Commission recommended that the complex be built, and City Council gave its approval.

The mayor, who in 1995 had supported the complex, and some residents organized a petition drive to put approval of the site plan itself on the ballot, citing concerns that the apartments would attract unsavory tenants and cause crowding in the schools.

Voters overwhelmingly rejected the site plan in a November 1996 referendum.

But the Ohio Supreme Court ruled in 1998 that the voter referendum was invalid because it dealt with an administrative action and the Ohio Constitution does not allow for referendums on issues that are “not legislative in nature.”

The complex was built after that ruling.

The 6th Circuit U.S. Court of Appeals' decision also set a “very significant” precedent for fair housing law and civil rights that would be felt nationwide, said Diane Citrino, a senior attorney with Housing Advocates Inc. in Cleveland, which brought the suit for Buckeye.

When evaluating discrimination claims, this ruling would have courts consider statements that could be viewed as either prejudiced or neutral in the way that would be “most favorable” to the party claiming discrimination, she said.

For example, a judge could not dismiss a statement that Robart made at a City Council meeting in 1999, likening the project to the same type of “social engineering that brought us busing,” the ruling said.

Reprinted with permission - Cleveland Plain Dealer.

 

 

Action Expected Soon on the Predatory Lending Front...
As you have probably heard by now, COHHIO has been actively involved in a state-wide campaign to get new anti-predatory lending/consumer protection laws on the books. Part of this campaign included a drive to collect endorsements from as many organizations throughout the state as possible. To date, we have received in excess of 225 endorsements, from nearly 60 different counties. This is great news, and they are continuing to come in. Thanks to all who have joined us as we continue to build a broad base of support.

Of the endorsements received to date, several have come from local governments from throughout the state. More specifically, the campaign has received endorsements from:

Athens County Commissioners Pickaway County Commissioners
Cuyahoga County Commissioners Scioto County Commissioners
Gallia County Commissioners Trumbull County Commissioners
Greene County Board of Commissioners Cambridge City Council
Guernsey County Commissioners Columbus City Council
Henry County Commissioners Euclid City Council
Jackson County Commissioners Hamilton City Council
Lake County Commissioner, Daniel P. Troy Springfield City Commission
Lorain County Commissioner, Mary Jo Vasi Village of Ottawa, Kenneth A. Maag, Mayor
Monroe County Commissioners

It now looks like local government support is going to be critical to making this happen. If your County Commission and/or City Council is not listed above, please encourage them to endorse our Principles for Responsible Lending. Should you need a copy of the Endorsement Form, you can download one from the COHHIO web page at: www.cohhio.org/predatoryprinciples.html.

In addition to the work on the endorsement front, it now looks like we might have a sponsor for our legislation in the Ohio House of Representatives. Representative Jon Peterson (R-Delaware) has agreed to introduce legislation based upon our Principles for Responsible Lending. The legislation is in the process of being put into bill format and should be completed in the coming weeks. Either later this month or early next month, it is expected that Representative Peterson will be circulating a "dear colleague" letter, asking other Representatives to sign on as original co-sponsors. It is important that we get as many co-sponsors as possible before the bill is actually introduced.

This is where we need your help. Please take a few minutes and contact your state representative and encourage them to support a comprehensive legislative remedy for predatory lending. Let them know that Representative Peterson is expected to introduce such a remedy sometime next month. If you need help in identifying your state representative, please visit the COHHIO web page at www.cohhio.org/legdirectory.html and take a look at the legislative directory. If you need additional information, contact Rick Taylor at COHHIO at 614/280-1984.

 

 

ODOD Summit
On November 13-16, 2001, the Office of Housing and Community Partnerships (OHCP) and the Ohio Conference of Community Development (OCCD) will co-sponsor the 2001 OHCP Summit. The summit will be held at Sawmill Creek Resort, 400 Sawmill Creek, in Huron. The purpose of the annual OHCP Summit is to provide OHCP award recipients and their affiliates with training and technical assistance regarding program administration, compliance issues and housing and community development. During the four-day summit, approximately 35 sessions will be offered, with some sessions repeating during the week. The 2001 OHCP Summit registration cost is $60 per day per participant. The cost to attend the entire four-day summit is $240. The conference fees include meals for each day a participant is registered. Registrations will be accepted on a first-come, first-served basis and sessions fill quickly, so early registration is encouraged. After September 28, 2001, registrants will be assessed a $20 late fee. No registrations will be accepted after October 26, 2001. Registrations and conference fees must be submitted to OCCD at P.O. Box 986, Cuyahoga Falls, Ohio 44223 or faxed to 330/923-0265. Questions regarding the summit sessions should be directed to Betsy Giffin, OHCP Training and Technical Assistance Manager, by phone at 614/466-2285 or via e-mail at bgiffin@odod.state.oh.us.


Hardships in America...the Real Story of Working Families
In August, the Economic Policy Institute released a report that concluded that for many families, work may not be enough to ensure a decent standard of living. Over the past several years, we have seen a fundamental shift in how policy makers view solutions to poverty. As evidenced by the effort to overhaul the welfare system, the predominant philosophy today is one of promoting employment at all costs rather than providing income supports for families. According to the report, millions of full-time, full-year workers in this country are unable to draw a paycheck large enough to afford their families’ most basic needs. The report also concludes that the antiquated federal poverty measurement is inadequate to capture anyone but the most destitute members of American society. Hardships in America: The Real Story of Working Families creates a “basic family budget,” that establishes the amount of income a family requires to afford a safe and decent standard of living. The report also examines the hardships faced by families that fail to reach these basic budget levels, only to find that safe housing, decent food, and access to adequate health and child care are out of reach.

Typically, the federal poverty line is used to determine whether or not families have incomes too low to enable them to meet basic needs. It is becoming apparent, however, that this measurement is no longer sufficient to support the needs of most if not all working families. Basic family budgets (individualized for communities and for type of family) offer a much more realistic measure of how much income it really takes for a safe and decent standard of living. According to the report:

• Basic family budgets for a two-parent, two-child family range from $27,005 a year to $52,114, depending upon the community. The national median is $33,511, roughly twice the poverty line of $17,463 for a family that size;

• Nationally, 29 percent of families with one to three children under the age of 12 fell below basic family budget levels for their communities in the late 1990’s; and

• Over two-and-a-half-times as many families fall below family budget levels as fall below the official poverty line.

The report went on to conclude that “millions of working families do not have incomes high enough to meet their basic needs, and families that fall below basic family budget levels suffer critical and serious hardships. The findings point to the conclusion that, for many families, employment is insufficient to ensure that they can make ends meet and avoid hardship. If work were the solution to poverty, then workers would be meeting their basic family budgets. But they don’t and, as a result, experience hardships. A strengthened social safety net is essential for giving families a boost that their work can’t. This report substantiates the critique that working families need work supports to make ends meet. There is a critical role for government to play in insuring that families are able to avoid hardships and meet their basic needs. The extension of health care, child care, and affordable housing to all families will be important steps in this direction.”

 

How Do Ohio’s Wage and Salary Workers Stack Up?
The Bureau of Labor Statistics has recently released their "2000 Annual Averages for Wage and Salary Workers." This information, which is provided by state, looks at where hourly and salary workers fall with respect to the Federal minimum wage. For the State of Ohio, there were a total of 3,374,000 workers over the age of 16 in 2000. Of these workers, one percent or 57,000 earned less than $4.25 per hour; four percent or 141,000 earned between $4.25 and 5.15 per hour; 18 percent or 609,000 earned between $5.16 and $7.14 per hour; and 77 percent or 2,609,000 earned more than $7.15 per hour.

 

Financial Services in Distressed Communities...
In August of this year, the Fannie Mae Foundation released a white paper entitled Financial Services in Distressed Communities: Issues and Answers. The paper, which consists of two separate yet related articles, takes an in-depth look at the recent explosion of “alternative” financial services markets in distressed communities and the corresponding growth of both subprime and predatory lending in those same markets.

Here is a brief excerpt from the paper:

The American financial system is arguably the most sophisticated and efficient in the world. The power of our financial services industry derives from the complexity of the nation’s financial intermediaries includ- ing commercial banks, savings institutions, mortgage banks, credit unions, investment banks, securities firms, insurance companies, specialized credit intermediaries, and a variety of specialized government and government-sponsored or -regulated financial institutions. But this sophisticated financial services infra- structure differs markedly from the world of finance in lower-income and minority communities. There, the language of finance is increasingly pawn shops, check-cashing outlets, payday lenders, and rent-to- own stores. Largely unregulated in many states, the fees charged by these alternative financial services outlets are frequently excessive and their business practices often differ greatly from the asset-building and wealth-creation services provided by mainstream financial institutions.

In addition, excessive subprime, as well as predatory, lending tend to flourish in communities saturated with check cashers, pawnshops, and related financial services outlets. The heavy concentration of these practices in lower-income and minority communities further erodes the asset-building potential of finan- cially vulnerable households. This concentrated negative impact on households translates into increased financial distress at a community level as households already living on the margin are forced to navigate a minefield of high-cost, unscrupulous, and often fraudulent financial services providers.

In addition to outlining the pervasiveness of alternative financial services markets in low-income and minority communities throughout the country, the paper offers some comprehensive policy recommendations that could be implemented in relatively short order. It is worth pointing out that one of the principal authors of the paper is James Carr, who spoke at our annual conference earlier this year.

If you would like to learn more about paper or would like to download a copy, please visit the COHHIO web page and check out the predatory lending section (www.cohhio.org/predatorygenerallinks.html).

 

 

Coalition on Homelessness and Housing in Ohio Membership
Name
Organization
Address
City, State, Zip
Phone, Fax, County
Individual: _____ $35 (Regular) _____ $75 (Benefactor) _____ $250 (Sustainer)
_____ $10 (Low-Income) _____ Fee Waiver Requested
Agency (according to budget):
_____ $35 ($100,000 or less) _____ $75 ($100,001 - $250,000)
_____ $125 ($250,001 - $500,000) _____ $200 ($500,001 - $1 million)
_____ $250 ($1 million-$1.5 million) _____ $300 (over $1.5 million)
Please send your tax deductible check to COHHIO at 35 E. Gay St, Ste. 210, Columbus, Ohio 43215.
Thank you for your support!

 

 

Community Development Block Grant Renewal Act
The following is a factsheet from the Center for Community Change: Rep. Carrie Meek of Miami introduced a bill (HR 1191) to improve CDBG by focusing more of the money for low income people, and by increasing the opportunity for nonprofits to foster public participation. Here is what it does:

1. Increases the “Primary Objective” to 80% benefit to lower income people. The “Primary Objective” of CDBG is to “principally” benefit lower income people. Currently that means 70% of a jurisdiction’s CDBG must benefit lower income people. The increase to 80%, along with other features of the bill, strengthens Congressional intent that, in the wake of a severe affordable housing crisis and changes in welfare law, CDBG must “principally” benefit lower income people. It signals that use of CDBG for airport runways, Post Offices, museums, and miles of concrete are not Congress’s intent.

2. Requires a minimum of 40% of a jurisdiction’s CDBG to directly benefit “low income” people (below 50% of the areawide median). Even though ConPlans universally show that “extremely low” and “low” income people have the most acute needs, few jurisdictions allocate fair share to meet those needs.

3. Creates a new specific eligible CDBG activity: use by nonprofit organizations representing lower income people to promote or provide public participation, or to monitor use of CDBG. This use will not be subject to the 20% administration and planning cap, or the 15% public service cap.

4. Increases “proportional consideration” when measuring “benefit”. Only the amount of CDBG used and the proportion of lower income people served gets counted toward the 80% Primary Objective.

5. Adds existing regs language to the statue in order to better assure that lower income people truly benefit from “area wide” activities such as roads. Specifically, it limits use of the “area benefit test” to areas that are “primarily residential” (i.e. downtown is not eligible); and, it looks at “the full range of direct effects” in assessing whether an activity truly benefits lower income people.

6. Eliminates the “presumption” that lower income people benefit from economic development just because employees live in areas that have a 70% lower income concentration or meet the definition of an empowerment zone (or if the business itself is in the latter). Businesses getting CDBG still have to ensure that at least 51% of any new or retained jobs are for lower income people.

7. Defines a public hearing as a hearing held in accordance with state and local laws. Often, so-called public hearings are not attended by elected officials, depriving low income people a forum to convey their concerns and priorities to those most responsible.

For more information, contact Ed Gramlich at the Center for Community Change at 202/342-0567 or gramliche@commchange.org. See a more detailed description of HR 1191 at CCC’s website at www.communitychange.org under News Alerts.

 

 

We Can do This!

Ending Homelessness for People with Mental Illness and/or Substance Abuse Disorders

A National Training Conference
December 5 - 8, 2001; Omni Shoreham Hotel; Washington, D.C.

Co-sponsored by: Center for Mental Health Services, Center for Substance Abuse Treatment; Center for Substance Abuse Prevention, Substance Abuse and Mental Health Services Administration; U.S. Department of Health and Human Services; Bureau of Primary Health Care, Health Resources and Services Administration
Corporation for Supportive Housing, National Alliance to End Homelessness; National Coalition for the Homeless

Members of the COHHIO Mental Health Housing Work Group are focused on defining how Ohio can begin a serious process of ending homelessness for people with mental illness. Several will be attending this important conference and welcome you to join them. In this time of scarce resources, our best planning and collaborative efforts will be essential for improving the housing challenges facing Ohio’s citizens who have mental illness. Please contact Pam Argus at COHHIO for further Ohio information and plans. For more information, contact: National Resource Center on Homelessness and Mental Illness at 800/444-7415 or visit their website at http://www.prainc.com/nrc/.

 

 

White House Faith Based Initiative
The White House has indicated that it will press ahead with the President’s domestic policy agenda, while simultaneously responding to the events of September 11th. In particular, the White House may soon offer a new version of the President’s domestic policy center-piece - the faith-based initiative. In August, the White House released a report on barriers to the full participation of faith-based and other community organizations in the delivery of social services identified by an audit of five federal agencies: HUD, HHS, Labor, Education and Justice. (see COHHIO newsletter - September 2001 issue). The Pew Forum on Religion & Public Life held a forum in Washington recently to discuss the report from the perspective of administrators and recipients of federal funds. (See http://pewforum.org/events/0817/ for a full transcript of the forum.) Bill Faith, Executive Director of COHHIO, participated on the panel for the Forum and offered a few observations.

• While the report illustrates just how complicated federal regulations have become and certainly over regulation presents barriers to all kinds of non-profits in accessing federal resources, most of the findings seem to be presenting solutions in search of a problem.

• The report suggests that faith-based groups should perhaps not be required to have 501(c)(3) status, and the accompanying reporting to the IRS, to qualify for federal funds. We cannot support an erosion of basic public accountability measures for non-profits. Remember, all of the reporting non-profits go through is due to the fact that non-profits receive exemption from federal and state income taxes, tax deductibility for donations received, and other benefits. Nonprofits should be required to be accountable to the public for those public benefits.

• Nowhere in the report was it suggested that additional funding will be needed for faith-based groups to become more involved in addressing various social problems. Legitimate faith-based groups already are and should continue to be involved. However, without increased funds, all we're going to end up doing is robbing Peter to pay Paul, to use a couple of biblical characters. The reality is, there will not be anything to gain if we change things to simply move funding from sophisticated non-profits with capacity to administer these programs and deliver quality services to smaller, newer, faith-based groups that may not have the capacity.

• Finally, the report uses HUD's Continuum of Care program to illustrate various problems. The irony is this is one of the best programs that HUD, despite itself, ever developed to help the homeless service delivery systems across the country. The program requires that a wide range of community representatives are involved in figuring out how to best address homelessness in their area, including representatives from business, religious, philanthropic, and service providers networks. The report mentioned that almost 20 percent of the funding goes to faith-based organizations but asserts that's not enough. To use this program as some sort of the poster child to illustrate why we need to focus more on faith based groups is badly misplaced.


COHHIO Seeks your Input
Please find on the next two pages a survey that seeks to get input from you regarding your organization’s training needs for organizational development. COHHIO will use this information to try to determine the most important topics and to offer professional trainings that will help address these needs. Please take a minute to complete it, and return it to us by October 31. Thank you.

 

Organizational Development Training Needs Survey for Non-Profits

Name:
Organization:
Address:
City, State, Zip
Email, Phone, Fax

Board Governance: Training in the art and science of board governance.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L Board Basics: How to structure a Board of Directors, Committees and the different roles of the board and executive director.

H M L Building Your Board Hat: The Roles and Responsibilities of Nonprofit Boards and the legal obligations of board members. Includes the topics of planning, policy making, fiscal oversight, fundraising, evaluation, participation.

H M L I Don’t Do Fundraising: Interactive session that explains the board’s role in fundraising and gives them the skills needed to make the ask.

H M L Taking Board Minutes. Learn effective strategies that will enable you to capture the essential elements of the board meeting, including recording motions, resolutions and voting results that fulfills the requirements of auditing bodies.

Fundraising: Designed to help nonprofit staffers bring dollars into their organizations.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L Fundraising in a Box: General overview of all types of fundraising. Designed for beginners.

H M L Grant Writing in a Box: Researching, designing and writing a winning grant proposal will be discussed during this session.

H M L Fundraising Plan: This is the first stop in fundraising...putting together your plan. Learn what goes in an effective plan and how to get there.

H M L Special Events Primer: Special events are the backbone of every organization. Learn how to design and implement a winning special event for your agency.

Human Resources.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L Human Resources in a Box I: First Steps in Designing a HR Department. Designed to help the small nonprofit set up a human resources department and stay in compliance with the myriad of legal rules and regs for staff.

H M L Human Resources in a Box II: Hiring, Sustaining and Firing Staff. Learn the systematic rituals that will help you bring the right person into your organization and then elevating them to their fullest potential.
Volunteer Management: Learn best practices in recruiting, training and sustaining volunteers.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L First Course in Volunteer Management: Topics include job design, recruitment, training, motivating, recognizing and evaluating volunteers.

H M L Advanced Recognition: 100-plus ideas on recognizing volunteers. Learn creative and innovative ways to give your volunteers the recognition they deserve.

H M L Risk Management & Volunteer Programs: Learn the best way to safeguard your agency when working with volunteers.

Financial Management: Top practices in financial record keeping.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L Budgeting in a Box I: The Basics. Shows you how to use your budget as a tool for profes- sionally managing your nonprofit: basics of the budgeting process, budgets for expenses and revenue and guidelines for making the budget process effective.

H M L Budgeting in a Box II: Advanced Budgeting Tools. Advanced level information on the development of cash flow projections, dealing with unexpected expenses and loss of pro- jected revenue.

H M L Eliminating the Mystery of the Financial Statement: Gain a basic understanding of the purpose, structure and utility of the monthly financial statement.

Planning: How to develop a plan to keep your organization on track.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L Long Range Strategic Planning Processes: Find out why you need to plan, what a good strategic plan consists of, and learn about the different methods of strategic planning.

H M L Picking the Low Hanging Fruit: Design a quick fix plan for those pressing issues...find out how to develop a set of actions that will get energy buzzing.

H M L Tech Planning. Things to Know and Questions to Ask. Find out how to make your tech- nology dollars are spent in the right way. A step by step assessment of your technology needs.

Leadership.
Interest Level - Circle Course Descriptions:
High, Medium or Low:

H M L New Executive Director Boot Camp. This two day course takes Executive Directors with less than two years experience through the basics of have-to knows including board rela- tionships, budget need-to-knows, personnel, fundraising and legal matters.

Organization (select one that most closely represents your work):
_____ Supportive Housing _____ Transitional Housing _____ Shelter
_____ Mental Health Housing _____ Permanent Affordable Housing Developers
_____ Other

Please return by October 31 to Coalition on Homelessness and Housing in Ohio, 35 East Gay Street, Suite 210, Columbus, Ohio 43215 or fax to 614/463-1060. For questions, call 614/280-1984 or email cohhio@cohhio.org.

 

 

YEP Members Participate in United Nations Event
After the tragedies of September 11, 2001, the United Nations decided to hold an international video conference addressing the concerns of youth from around the world. As a part of the Youth Empowerment Program's continued partnership with the United Nations, we were invited to participate in this event.

As YEP members from Columbus, we were able to participate along with YEP members from Akron and Kent. Asad and I are brothers from Somalia. We are Muslim. We have lived in refugee camps and homeless shelters. We are in high school and are living independently in this country. We are Americans. We have seen war and violence. We witnessed the U.S. Embassy bombings in Kenya. We do not support the bad people who do these acts. Since September 11, we have been treated differently by people in our community. Three weeks later it's getting better, but not much.

On Wednesday September 26, we were able to open a discussion with other youth from around the world. The youth that participated represented different perspectives on what is going on in our world today. Whether it was homeless kids in Cleveland or college students in Geneva, all of the opinions expressed gave us a more clear picture of the impact on these events. New York students were worried about a draft. They were worried about a war and did not want to see more loss of life. Kids from Atlanta were very patriotic. They focused on their school and supporting the President. Geneva students stressed the need for worldwide peace and economic stability. Our friends here in Ohio were concerned about the impact on Muslim Americans. All of the discussion offered unique perspectives that we have not yet heard. Our group was most interested in talking with the Muslim students in Pakistan.

In the beginning, although not all supported Bin Ladin, the feeling of the Pakistani students seemed to be that Bin Laden was unfairly accused without evidence. It was interesting to hear about the type of media they received. We were able to discuss with them the things we had seen first hand. They all stated that if this was all true they believe that Bin Ladin should be punished. One of our Muslim friends had referenced Bin Ladin’s group as a hate group like the Muslim version of the KKK, recruiting hurting and vulnerable people to do bad things.

The Pakistani kids brought out alot of issues that gave us things to think about. They were alot like the other students in many ways. They were concerned about their economy, saying that their economy dropped immediately after the attack. They, like New York, did not want to see more tragedies and loss of life. They feared for their families and their country. In the end, we felt that more discussions like this would be necessary to open the minds of people worldwide. This was a good first step to gaining understanding of each other, outside our cultural or physical borders. Our Ohio group felt that there needs to be more dialogue between citizens of different countries and more time to develop higher levels of cultural understanding.

Note: Asad and Burhan have been member of the state YEP council for more than a year. They have both participated in many YEP events and donated more than 200 hours each to meeting the needs of homeless children in Ohio. We are very proud to have them on our team. For more information on COHHIO's YEP Program, contact Angela Lariviere at 614/280-1984.

 

 

Save This Date!
December 17, 2001
Annual Tenenbaum Welfare Conference

COHHIO succeeded in getting $11.7 million TANF (Temporary Assistance for Needy Families) funds in the current State Budget for housing. Many of you attended the Tenenbaum Conference last year when the effort to bring TANF funds to housing was just beginning. In addition to the major role TANF funds, or the lack of them, play in the lives of the clients you serve, we now have a direct housing funding stake in TANF. Reauthorization of TANF funding is due by October 1, 2002. Please mark your calendars for this important conference. Learn what is happening in the process of reauthorization and what you can do to influence the outcomes of TANF Reauthorization in the interests of the families we serve. To register, contact Ohio State Legal Services at 614/221-7201. For content questions, please contact Pam Argus at COHHIO at 614/280-1984.


Resources
TRAININGS
Finance Professional Certification Program. Dec. 3 - 7 - ED 300: The Art of Deal Structuring. Integrates the business credit and real estate finance skills learned in the previous weeks with the creative demands of deal structuring. Questions should be directed to Mary Dupler, OHCP Publications Specialist, at 614/466-2285.  

2001 Lead Abatement Training. The training is designed to provide lead abatement contractors/supervisors, lead abatement workers, lead inspectors and lead risk assessors with practical, lead-based paint abatement information and with the opportunity to participate in hands-on skill-based lead-abatement activities. The registration fee for each of the courses if $100. For more information, contact Tom Sherman, OHCP, at 614/466-2285 or Mike Keyes, COAD, at 740/594-8499.
Residential Lead Abatement for Supervisors/Contractors - Nov. 5-9 (Findlay)
Residential Lead Hazard Abatement for Workers - Oct. 30-Nov. 2 (Athens)  

FIRSTLINK Trainings: • Volunteer Management Series - $40 per session. Program Components and Materials - November 1; Volunteer Motivation - November 15; Interviewing, Screening and Placement of Volunteers - November 29; and Evaluate, Review and Renew Your Program - December 6. Create a Financially Sound Organization - Financials Made User Friendly - November 8 - $30 and Develop a Case Statement for Fundraising - December 13 - $30. Making Your Organization More Effective - October 25 - $35. • Bulk Mailing for Novices - October 30 - $20. • Understanding Persons with Disabilities - November 14 - $25. • Relationships in the Nonprofit Arena - November 28 - $45.   For more information, contact the FIRSTLINK Training Department at 614/221-6766.  

Ohio CDC Annual Conference - Oct. 31 - Nov. 2. For more information, contact the Ohio CDC Association at 614/461-6392 or ohiocdc@ohiocdc.org.  

November 5-6 - Housing First: Ending and Preventing Family Homelessness, Beyond Shelter and National Alliance to End Homelessness, Washington, DC. The "housing first" approach advocates for the immediate relocation of homeless families into permanent housing, followed by up to one year of home-based support after the move to help families stabilize. For more information, call Beyond Shelter at 213/252-0772, ext. 222 or visit their web page at www.beyondshelter.org.  

November 7 - 9 - Community: A Capital Idea, The Enterprise Foundation Annual Network Conference, Washington, DC. The three-day event will teach organizations to more efficiently and more effectively administer programs for low-income neighborhoods. Specialities include: building, financing and operating housing, developing and delivering child care, safety and employment programs, using Low Income Housing Tax Credits, increasing economic development and other issues vital to community development. Registration - $250 - $425. For more information, visit www.enterprisefoundation.org.  

November 19-20 - 2001 Ohio Housing Conference, Columbus. Sponsored by the Ohio Housing Finance Agency and the Ohio Capital Corporation for Housing. Check the OCCH website - www.occh.org - and the OHFA website - www.odod.state.oh.us/ohfa - for more details.

PUBLICATIONS
Study of the Ongoing Affordability of HOME Program Rents, HUD USER. Examines the extent to which HOME is meeting its legislative mandate to provide affordable rental housing. The primary goal of HUD's research ws to determine the proportion of HOME-assisted rental units that were within affordability standards at least two years after initial occupancy. To order, visit the HUD USER website at www.huduser.org/publications/affhsg/ongoing.html.

HUD's Fiscal Year 2002 Annual Performance Plan. Provides an overview of the Department's goals and programs, including the new initiatives of Secretary Mel Martinez. It provides performance measurement goals for virtually every HUD program, including means and strategies for accomplishing these goals. ACCN-HUD11156. Free. To order, call 800/245-2691.

Federal Programs and Local Organizations: Meeting the Housing Needs of Rural Seniors, Housing Assistance Council. Assesses how different localities use Federal funds and social services to meet the needs of elderly homeowners and renters. Available online at www.ruralhome.org/pubs/hsganalysis/elderly/index.htm or $5 by mail. For more information, contact Luz Rosas at 202/842-8600.

What We Know Works, Pew Partnership. This publication has compiled complex research into strategies that have yielded positive results in building stronger communities. The research is summarized into five areas: healthy families and children, thriving neighborhoods, living-wage jobs, collaborative leadership and viable economies. Download this publication free at www.pew-partnership.org/solutions.html.

FUNDING
General Mills Foundation supports programs that work to strengthen families and promote a safe, nurturing environment for children and youth. Violence prevention initiatives will be favored. Makes operating, project and capital grants starting at $1,000 and exceeding $100,000. Download a complete list of criteria, the focus cities, information to include with a proposal and a grant application at www.generalmills.com/explore/community/guidelines.

The Source Youth Foundation. Awards year-long grants of $5,000 to $50,000 to nonprofit organizations that serve youth. To qualify, the applicant must serve young adults ages 14 to 24 who face personal, environmental and institutional barriers to success; and intend to use the grant to promote educational, workplace and leadership achievement among the served population. Visit www.teamyouth.com/grantguidelines.html for funding priorities and guidelines.

OTHER
HOME Energy Assistance Program. A federally funded program designed to help eligible Ohioans meet the rising cost of home heating this winter. Poverty guidelines: 1 person - up to $12,885; 2 persons - up to $17,415; 3 persons - up to $21,945; 4 persons - $26,475; 5 persons - up to $31,005; 6 persons - up to $35,535; 7 persons - up to $40,065; 8 persons - up to $44,595. For households with more than eight members, add $4,530 for each individual member. For more information, call toll free 800/282-0880 or 800/686-1557 (TDD).

Workers Compensation Premium Savings. COHHIO is now accepting applications for admission into the COHHIO/Frank Gates Workers Compensation Group. By being part of the group, you can save hundreds or thousands of dollars on your workers compensation premiums. By submitting a simple form to Frank Gates, you can find out how much you can save in the program. After reviewing your savings potential, you can then decide if you would like to be in the group. Don't delay in requesting the simple form as the deadline for admission into the program is November 30. For more information, contact Al Gardner of Frank Gates at 614/793-8000 or Susan Francis at COHHIO at 614/280-1984 or susanfrancis@cohhio.org.


Regional News
Stark County. The Stark County Housing Trust Fund will present a two day county-wide Housing Symposium on October 25 - 26 at the Hilton in downtown Canton. The keynote speaker will be State Senator Scott Oelslager. Topics will include: Multi-family housing: An integral part of every community; Insurance needs of nonprofits; Working with the media; Building relationships in funding housing projects; Responsible lending and the battle with predatory lenders; Board basics; Equity funders and their importance in community revitalization; Advocacy and working with government for housing for all; Building affordable homes: two groups, two populations. Deadline to register is October 19 (late registrations will be accepted at the door). Registration is $95 for the two day Symposium. Ten scholarships, funded by the Stark Community Foundation, are available to Stark County neighborhood group leaders and nonprofit staff. For more information, call Michele Colopy at the Stark County Housing Trust Fund at 330/451-7397 or e-mail SCHTF@msn.com.

The Housing Network has resource and educational materials available concerning housing services in Summit County. A free copy of Home Rehabilitation Programs for Summit County is available to agencies addressing the home repair needs of low and moderate income homeowners. A Housing Supportive Services Resource Directory is available from the Housing Network for $12 (includes shipping) and consists of nearly 100 organizations and agencies serving the housing and social service needs of Summit County residents. Also, available from the Housing Network is an educational video, "Creating A Community," to help landlords educate their tenants about the rights and responsibilities of landlords and tenants. This thirteen minute video is meant to encourage tenants and landlords to be proactive in creating a clean, safe, responsible, and healthy community. The video can be purchased for $20. For more information about any of these educational resource materials, contact Michele Colopy at the Housing Network at 330/253-3370 or e-mail at Hsngntwrk777@cs.com.

Cuyahoga County. Brian Davis, Director of the Northeast Ohio Coalition for the Homeless, was elected to the National Coalition for the Homeless Board of Trustees at their meeting on October 5-7.

The National Coalition for the Homeless just completed their strategic plan and are currently embarking on initiatives in the areas of Civil Rights for homeless people, economic justice, housing justice and health care. The National Coalition is planning regional conferences in 2002 with topics in these areas.

To report regional news or to get more information, contact Cathy Johnston at COHHIO at 614/280-1984.

(614) 280-1984 Voice
(614) 463-1060 Fax

cohhio@cohhio.org