2013 Legislative Update 

January 15, 2013

Dear ,     

 

WELCOME TO 2013 and ANOTHER BUDGET SESSION IN MINNESOTA! 

 

Hearth Connection is starting up our legislative advocacy efforts this year to help achieve our mission of ending homelessness.  I write to keep you informed and to ask for your assistance!

 

Legislators are back at the State Capitol. This session is a budget session and lawmakers will be spending the next four months putting together the 2013-2014 state budget.  The election produced a lot of turn-over.  Twenty Senators and forty-two House members will be serving first terms. This will require a lot of education and dialogue to raise the issues of homelessness and affordable housing to a priority level for the Legislature.

 

Hearth Connection wishes to continue showcasing our effectiveness and the positive outcomes of the regional collaboratives to end long-term homelessness.  We will stress the tremendous unmet need - nearly 4,000 Minnesotans experience long-term homelessness and struggle to survive in crisis shelters or outdoor encampments.  The State should invest in accountable interventions that can solve the crisis.

 

Hearth Connection is part of the Homes for All campaign which seeks a $50 million increase in state funding for a broad continuum of proven programs that stabilize families and individuals, prevent homelessness, and build affordable housing.

 

Homes for All Campaign

 

Homes for All is a statewide alliance of over 40 housing and homeless organizations working toward housing solutions for Minnesotans.  As a member of this coalition, Hearth Connection is sharing their recently published Legislative Agenda for 2013 with you, our members and allies.  This agenda includes the alliance's specific requests for increases in state appropriations.

 

2013 Legislative Priorities:

 $50 million increase in appropriations and $50 million in bonding

 to house working families and homeless children

 

Campaign Themes:

  • Supportive Services provide a positive return on investment (ROI)
  • Housing Stability = Better health, school performance, and workforce
  • Affordable Housing creates jobs and workforce housing

 

DHS Program

Purpose

2012 - 2013 Funding Level

Proposed Increase

 Total Base Funding Proposed

Long-Term Homeless Supportive Services Fund

Coordinated, intensive services to individuals, youth, and families in supportive housing

 

$9.9 million

$10 million

$19.9 million

Transitional Housing

Time-limited housing and services for Minnesotans experiencing homelessness

 

$5.9 million

$6 million

$11.9 million

Emergency Services Program

Services and emergency shelter for people who are homeless

 

$688,000

$1 million

$1.7 million

Runaway and Homeless Youth Act

Housing and services for youth who are homeless or at risk of homelessness

 

$238,000

$8 million

$8 million

Increased Appropriations:  $25 million

 

MHFA Program

Purpose

2012-2013 Funding Level

Proposed Increase

Total Base Funding Proposed

Family Homeless Prevention Assistance Program (FHPAP)

Direct assistance and services to households at risk of losing housing or transitioning out of homelessness

$14.9 million

$2.5 million

$17.4 million

Challenge Fund

Financing for affordable housing development statewide

$13.9 million

$9 million (Restored)

$5 million Increase

$27.9 million

Housing Trust Fund

Rental assistance for households previously homeless

$19.1 million

$2 million (Restored)

$2.5 million Increase

$23.6 million

Preservation (PARIF)

Preservation loans for subsidized rental housing

$14.7 million

 

$8.4 million

Rental Rehab Loans

Assistance for owners of smaller rental properties for improvements

$4.9 million

$3 million (Restored)

$7.9 million

Rehab Loans - Single Family

Assistance for the rehabilitation of single family housing

 

 

$5.5 million

HECAT

Homebuyer/homeowner education, counseling and training services

$1.5 million

$250,000 (Restored)

$1.75 million

Capacity Building

Regional coordination leverages federal funding

$250,000

$250,000 (Restored)

$250,000 Increase

$750,000

Homeownership Assistance Fund

Down payment and closing cost assistance for first-time homebuyers

$1.6 million

$250,000 (Restored)

$1.8 million

                                                                                    Increased Appropriations:  $25 million

 

Additionally, the Homes for All campaign is seeking $50 million in bonding for new construction and rehabilitation of affordable and public housing.

 

Given the alliance's past work together in 2012 in passing the Affordable Housing bonding proposal (which garnered $37 million), the Homes for All legislative advocates and lobbyists are organized, cohesive, and coordinated with their approach and communication.  None of us expect an easy win, but we are excited to engage lawmakers in a discussion of the social crisis of homelessness and the lack of supportive services and affordable housing opportunities for homeless and low-income Minnesotans. 

 

Hearth Connection will continue to offer guidance and specific advocacy efforts concerning the need for increased investments to the:

  • Long-Term Homeless Supportive Service Fund; and
  • Housing Trust Fund (rental assistance).

 

As part of the Homes for All coalition, we will also speak to the critical need for services and housing support for families with children and unaccompanied homeless youth. We hope that you will join our effort and reach out to your Representative and Senator in support of Hearth Connection and the Homes for All priority agenda.

 

For your information, here are some of the new Legislative Committee Chairs:

 

Senate Environment, Economic Development and Agriculture - Sen. David Tomassoni

Senate Finance - Sen. Richard Cohen

Senate Health and Human Services - Sen. Tony Loury

Senate Health, Human Services, and Housing - Sen. Kathleen Sheran

 

House Health and Human Services Finance - Rep. Tina Liebling

House Housing Finance and Policy - Rep. Karen Clark

Housing Ways & Means - Rep. Carlson

 

Upcoming Hill Days at the Capitol

 

Please plan to join Hearth Connection and the Minnesota Coalition for the Homeless for Homeless Day on the Hill.  A large turnout is needed to rally support for our agenda and to meet with individual lawmakers.

 

Homeless Day on the Hill - Thursday, March 7 (supported by Minnesota Coalition for Homeless)

  • We will focus on the Homes for All campaign and proposed increases in funding for supportive services, rental assistance, and family/youth homeless service needs.
  • We want a good showing this year and encourage you to talk with your agency teams to find ways to participate - including the urging staff and supporters to attend and inviting program participants to attend so that their voice is heard.

 

If you can't join us that day, you are encouraged to attend one of the following related advocacy days at the Capitol:

 

(1)  Second Chance Day on the Hill - Wednesday, January 16

    • The Second Chance Coalition and allies will gather at 10am in the State Capitol Rotunda.
    • The Minnesota Second Chance Coalition is a partnership of over 50 organizations that advocate for policies that allow those who have committed crimes to redeem themselves, fully support themselves and their families, and contribute to their communities to their full potential.

 

(2)  Mental Health Day on the Hill - Tuesday, March 12 (supported by NAMI)

 

(3)  Youth Day on Hill - Wednesday, March 13 (supported by Youth Intervention Program Association)

- Will include organizations supporting increased funding to the Homeless Youth Act (offering a spectrum of shelter, services, and housing from DHS)

 

(4)  Habitat for Humanity Day on the Hill - Tuesday, March 19 (supported by Habitat)

 

 

Other Issues to Watch This Legislative Session

 

After a dramatic November general election, the DFL party is firmly in control of the Minnesota Legislature and the Governor's office for the first time in 22 years.  The following matters have already been discussed as policies headed for debate:

  • moving forward with development of a state-based health insurance exchange;
  • moving forward with tax reform and increases in taxes for top income earners;
  • filling a gap in funding (estimated by the DOT) of $9 billion for roads, bridges and transit;
  • finding resources to meet the recommendations for a DOE working group on K-12 funding and school finance reform which seeks $633 million per year increase in funding for K-12 education;
  • finding resources to meet the MinneMinds campaign - $150 million more per year toward young children (3-4 year olds) to achieve early learning and school readiness;
  • rolling back gains made in the recent past in tort reform legislation; and
  • legalizing gay marriage in Minnesota. 

I would also note that there are some additional policy recommendations that may benefit homeless populations:

  • Minnesota's Safe Harbor for Sexually Exploited Youth Act helps to divert victims of sex trafficking (commercial sexual exploitation) from prosecution and toward social services and housing assistance.  Given the intersection between homeless youth and sexual exploitation, attempts to secure appropriations for supportive services, shelter, and housing could help to address youth homelessness.  For more information please contact the Family Partnership at 612-729-0340.
  • The Visible Child Work Group was convened by the State legislature in 2012 "to identify and recommend issues that should be addressed in a statewide, comprehensive plan to improve the well-being of children who are homeless or have experienced homelessness (Chapter 247, Minnesota Laws 2012)." Over the course of five meetings, VCWG members: heard from a variety of persons with knowledge and experience related to child homelessness, shared their own perspective and knowledge, discussed issues, and reviewed the draft report. A report with recommendations was submitted in December to the Governor's office and the Legislature.  The members of the VCWG hope that the State takes up the task of completing a comprehensive plan.

Federal Legislation and Policy Review

 

Congressional Budget Deals and Sequestration

 

The New Year's budget package (HR 8) offered only short-term relief from policy confrontation.  February looks like a tough month for Congress and the President.  In February the government will run out of borrowing authority; the debt limit will have to be increased.  Then in March the sequestration will hit and the six-month appropriations for FY 2013 will run out (the Federal Fiscal Year starts on October 1 each year). 

 

Previous legislation had mandated across-the-board cuts to fiscal-year 2013 domestic spending of about eight percent, along with similar cuts to the military budget, to take effect January 1, 2013. The bill passed at the start of the year postponed these across-the-board spending cuts of "sequestration" for two months.  Many programs important to low-income people are exempt, but virtually all programs under the Department of Housing and Urban Development (HUD) are not exempt and would have been cut by sequestration. This would have had an immediate negative impact on Section 8 and public housing, which in most locations have already begun spending FY 2013 funds. Eventually, it would have had a similar impact on virtually all HUD programs.  Most programs under the Department of Health and Human Services (HHS) and other grant programs would have been impacted as well.

 

The Alliance predicted that sequestration's cuts to HUD homelessness programs would have meant homelessness instead of housing for 145,000 people. And it still might.  Unlike many of the spending cuts or tax measures, which provisions in the new bill either extended for a year or made permanent, sequestration was delayed for only two months, until early March. The exact details on the impact at that point are not yet known.

 

For more information, please sign up for policy updates from the National Alliance to End Homelessness.

  

Funding the National Housing Trust Fund

 

The National Low Income Housing Coalition (NLIHC) announced recently that it supports legislation to address the affordable housing needs of low and middle income American families through mortgage interest deduction reform and funding the National Housing Trust Fund.

The Common Sense Housing Investment Act (H.R. 6677), introduced by Representative Keith Ellison (D-MN), would convert the mortgage interest deduction to a flat rate 20% tax credit and cap the maximum mortgage to receive a tax break at $500,000.  Changing it from a deduction to a credit will greatly increase the number of low income households that could benefit.   Capping the break at $500,000 will result in a net savings to the federal treasury.  H.R 6677 would divert the savings gained from these modifications to the National Housing Trust Fund. The National Housing Trust Fund was established by Congress in 2008, but has yet to be funded. Its purpose is to reduce the shortage of rental homes that are affordable for the lowest income families.  According to the NLIHC, nationwide, "for every 100 households with incomes in the bottom 30% of income, there are only 30 rental homes that are affordable and available to them." Once funded, the National Housing Trust Fund will offer grants for construction, rehabilitation, and operation of affordable rental housing.

 

Mr. Ellison estimates that the savings from the mortgage interest deductions to be transferred to the National Housing Trust Fund would be about $27 billion a year. Under this proposed change, the number of homeowners with mortgages who would benefit from the tax break would increase from 43 million to 60 million, with 92% of the increase being households with incomes less than $100,000 a year.

In addition to providing funding for the National Housing Trust Fund, this bill would expand the Low Income Housing Tax Program and increase appropriations for HUD's Section 8 and public housing programs. This legislation is being backed by over 600 national, state, and local organizations, including the National Alliance to End Homelessness.   

 

Future Correspondence

 

We plan to send out Legislative Updates about once a month.  However, if you have questions, please reach out to us.  Call us at 651-645-0676 or send emails to [email protected].  Also, remember to sign up for the Hearth Connection blog.

 

Thank you and I look forward to continuing our advocacy efforts in 2013 with our allies.

 

 

Sincerely,

 

 

Richard Hooks Wayman

Executive Director of Hearth Connection

  

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