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The Trump Administration’s Fiscal Year 18 proposed budget includes cuts to funding for the Department of Housing and Urban Development (HUD), by more than $6 billion.
The City of Philadelphia, through various departments, received a total of $91.5 million in funding from HUD in FY17. Cutting HUD funding would mean our most vulnerable citizens may no longer be able to receive the help they need.
HUD funding helps Philadelphia provide services such as housing for the formerly homeless, affordable housing, and maintenance and improvements to our commercial corridors—all vital in our fight against poverty.
Know the facts
Housing programs for low and moderate-income residents rely on HUD funding. Some of the programs include:
Emergency Solutions Grant (ESG) funds support Philly’s ability to provide emergency shelter and services, rapid re-housing activities, and data analysis. On average, ESG funding – $3.5 million in this year – provides emergency shelter, homeless prevention services and rental assistance to more than 2,000 Philadelphians each year. Rapid re-housing is a program that provides financial assistance for private market rents and move-in costs, along with services focused on maintaining housing. It is more than 93% effective in ending homelessness.
Continuum of Care (CoC) Program funding supports a number of assistance programs to make homelessness rare, brief, and non-recurring. CoC supports more than 2,700 units of permanent supportive housing, rapid re-housing, and transitional housing for formerly homeless individuals and families. It also funds data management and analysis, as well as strategic planning activities. Of the adults served, 46% had increased their total cash income at program completion. Of the households placed in permanent housing, 97% were able to maintain their housing.
The Housing Production program will provide nearly 200 homes for low-income, special needs, and formerly homeless households this year. Through $5.6 million in HOME Investment Partnerships Program (HOME) funding and $600,000 in CDBG, along with local funding and leveraging of private investments, the City will the federal investment into a development program worth $40 million or more. This program uses private sector contractors to build developments.
The Housing Opportunity for Persons with AIDS (HOPWA) program provides housing for low- and moderate-income persons living with HIV/AIDS. This year, $7.3 million in HOPWA funding will provide rental assistance, emergency grants and supportive services to more than 600 people.
HUD funding supports public housing units throughout the city. Philadelphia Housing Authority (PHA) Public Housing manages and oversees approximately 14,000 public housing units, which houses over 28,670 residents. This year $118 million in HUD Public Housing funding supported units for families, seniors, and people with disabilities.
PHA’s Capital Fund Program is supported by HUD funding. The program pays for maintenance, preservation, development, modernization, and management improvements of public housing developments. This year $41 million in HUD funding was dedicated to maintaining and improving 57 PHA public housing developments.
HUD Choice Voucher funding provides rental subsidies through PHA. PHA’s Housing Choice Voucher program provides rental subsidies for approximately 19,000 families. These vouchers also apply to HUD-authorized special purposes such as the Veterans Affairs Supportive Housing Program (VASH), Family Unification Program (FUP), Single Room Occupancy (SRO), Moderate Rehabilitation (MOD) and Mainstream programs. Using $211 million from HUD Choice Voucher funding this year, PHA was able to provide homes to more than 46,861 Philadelphians.
Rental assistance helps prevent homelessness by paying a portion of the private market rent for approximately 250 low-income households. This year the City will use $2 million in HOME funding and $100,000 in CDBG funding to help support our efforts to prevent more low-income families, including individuals with mental health disabilities, from becoming homeless.
The Basic Systems Repair program allows low-income homeowners to receive repairs to support continued homeownership. The Basic Systems Repair Program provides critical home repairs and supports small and minority-owned contractors. Repairs include plumbing, heating, electrical systems and roofs. This year, the program will use $10.9 million in CDBG funding to help 70 Philadelphia small businesses and more than 350 construction workers provide repairs to more than 1,000 homeowners. The Basic Systems Repair program provides a cost-efficient method to help keep housing affordable for those who need it most.
The Housing Counseling & Foreclosure Prevention program provides credit repair, pre-purchase, and other home financial counseling. This program has saved more than 11,000 Philadelphia homes from foreclosure since 2008, and $5.1 million in CDBG funding this year will support counseling to another 10,000 residents. The City funds housing counseling agencies that help homeowners avoid foreclosure, become better prepared for the rights and responsibilities of homeownership, and that address the specialized housing needs of seniors, tenants, people with HIV/AIDS and people with disabilities.
Emergency Solutions Grant (ESG) funds support Philly’s ability to provide emergency shelter and services, rapid re-housing activities, and data analysis. On average, ESG funding – $3.5 million in this year – provides emergency shelter, homeless prevention services and rental assistance to more than 2,000 Philadelphians each year. Rapid re-housing is a program that provides financial assistance for private market rents and move-in costs, along with services focused on maintaining housing. It is more than 93% effective in ending homelessness.
Continuum of Care (CoC) Program funding supports a number of assistance programs to make homelessness rare, brief, and non-recurring. CoC supports more than 2,700 units of permanent supportive housing, rapid re-housing, and transitional housing for formerly homeless individuals and families. It also funds data management and analysis, as well as strategic planning activities. Of the adults served, 46% had increased their total cash income at program completion. Of the households placed in permanent housing, 97% were able to maintain their housing.
The Housing Production program will provide nearly 200 homes for low-income, special needs, and formerly homeless households this year. Through $5.6 million in HOME Investment Partnerships Program (HOME) funding and $600,000 in CDBG, along with local funding and leveraging of private investments, the City will the federal investment into a development program worth $40 million or more. This program uses private sector contractors to build developments.
The Housing Opportunity for Persons with AIDS (HOPWA) program provides housing for low- and moderate-income persons living with HIV/AIDS. This year, $7.3 million in HOPWA funding will provide rental assistance, emergency grants and supportive services to more than 600 people.
HUD funding supports public housing units throughout the city. Philadelphia Housing Authority (PHA) Public Housing manages and oversees approximately 14,000 public housing units, which houses over 28,670 residents. This year $118 million in HUD Public Housing funding supported units for families, seniors, and people with disabilities.
PHA’s Capital Fund Program is supported by HUD funding. The program pays for maintenance, preservation, development, modernization, and management improvements of public housing developments. This year $41 million in HUD funding was dedicated to maintaining and improving 57 PHA public housing developments.
HUD Choice Voucher funding provides rental subsidies through PHA. PHA’s Housing Choice Voucher program provides rental subsidies for approximately 19,000 families. These vouchers also apply to HUD-authorized special purposes such as the Veterans Affairs Supportive Housing Program (VASH), Family Unification Program (FUP), Single Room Occupancy (SRO), Moderate Rehabilitation (MOD) and Mainstream programs. Using $211 million from HUD Choice Voucher funding this year, PHA was able to provide homes to more than 46,861 Philadelphians.
Rental assistance helps prevent homelessness by paying a portion of the private market rent for approximately 250 low-income households. This year the City will use $2 million in HOME funding and $100,000 in CDBG funding to help support our efforts to prevent more low-income families, including individuals with mental health disabilities, from becoming homeless.
The Basic Systems Repair program allows low-income homeowners to receive repairs to support continued homeownership. The Basic Systems Repair Program provides critical home repairs and supports small and minority-owned contractors. Repairs include plumbing, heating, electrical systems and roofs. This year, the program will use $10.9 million in CDBG funding to help 70 Philadelphia small businesses and more than 350 construction workers provide repairs to more than 1,000 homeowners. The Basic Systems Repair program provides a cost-efficient method to help keep housing affordable for those who need it most.
The Housing Counseling & Foreclosure Prevention program provides credit repair, pre-purchase, and other home financial counseling. This program has saved more than 11,000 Philadelphia homes from foreclosure since 2008, and $5.1 million in CDBG funding this year will support counseling to another 10,000 residents. The City funds housing counseling agencies that help homeowners avoid foreclosure, become better prepared for the rights and responsibilities of homeownership, and that address the specialized housing needs of seniors, tenants, people with HIV/AIDS and people with disabilities.
Revitalization of commercial corridors is supported by HUD funding.
CDBG funds are used to encourage development that creates jobs and expands services. Business & Neighborhood Development Loan funds are provided to businesses growing their operations and to neighborhood-based nonprofit organizations developing real estate in order to create jobs for low-income individuals or to expand services in low-income areas. Last year, $4 million in CDBG funds were distributed as loans and grants to nonprofits developing key properties for commercial, cultural, or mixed-use end-users.
Commercial Corridor Revitalization programs improve safety and attractiveness of commercial corridors. The programs support Corridor Managers and Corridor Sidewalk Cleaning Programs for 26 targeted commercial corridors (supporting 1,803 businesses and collecting 32,000 bags of trash), and forgivable loans for businesses to open or expand in low-income areas. Last year, $1.85 million in CDBG funds leveraged City, State, foundation, and private dollars to distribute 69 Storefront Improvement Grants and supported streetscape improvement projects, festivals and more.
The Vacant Land Management program removes blight by using local small businesses and nonprofits to stabilize vacant lots. This year, the City of Philadelphia received $700,000 in CDBG funding to support these efforts. According to studies by the University of Pennsylvania, lot stabilization raises nearby property values, improves neighborhood health, and reduces gun violence.
CDBG funds support technical assistance and small business lending for Philadelphia entrepreneurs. Small Business Technical Assistance, supported by $700,000 in CDBG funding, is provided by seven nonprofit organizations to target specific demographics, industries, and areas of the city. In FY16, 896 business owners received technical assistance. This CDBG funding also allows four Community Development Financial Institutions to administer loans (with non-CDBG funds) to the businesses to help them grow. In FY16, these organizations made 269 loans totaling $7.6 million to small businesses.
Philadelphia’s YouthBuild Charter School receives CDBG funds to serve disconnected youth. The YouthBuild Charter School’s innovative program offers young at-risk adults a high school diploma and valuable job skills, helping to break the cycle of underemployment and poverty. The Employment Training program will use $300,000 in CDBG funding this year to train 125 high school dropouts in construction.
CDBG funds are used to encourage development that creates jobs and expands services. Business & Neighborhood Development Loan funds are provided to businesses growing their operations and to neighborhood-based nonprofit organizations developing real estate in order to create jobs for low-income individuals or to expand services in low-income areas. Last year, $4 million in CDBG funds were distributed as loans and grants to nonprofits developing key properties for commercial, cultural, or mixed-use end-users.
Commercial Corridor Revitalization programs improve safety and attractiveness of commercial corridors. The programs support Corridor Managers and Corridor Sidewalk Cleaning Programs for 26 targeted commercial corridors (supporting 1,803 businesses and collecting 32,000 bags of trash), and forgivable loans for businesses to open or expand in low-income areas. Last year, $1.85 million in CDBG funds leveraged City, State, foundation, and private dollars to distribute 69 Storefront Improvement Grants and supported streetscape improvement projects, festivals and more.
The Vacant Land Management program removes blight by using local small businesses and nonprofits to stabilize vacant lots. This year, the City of Philadelphia received $700,000 in CDBG funding to support these efforts. According to studies by the University of Pennsylvania, lot stabilization raises nearby property values, improves neighborhood health, and reduces gun violence.
CDBG funds support technical assistance and small business lending for Philadelphia entrepreneurs. Small Business Technical Assistance, supported by $700,000 in CDBG funding, is provided by seven nonprofit organizations to target specific demographics, industries, and areas of the city. In FY16, 896 business owners received technical assistance. This CDBG funding also allows four Community Development Financial Institutions to administer loans (with non-CDBG funds) to the businesses to help them grow. In FY16, these organizations made 269 loans totaling $7.6 million to small businesses.
Philadelphia’s YouthBuild Charter School receives CDBG funds to serve disconnected youth. The YouthBuild Charter School’s innovative program offers young at-risk adults a high school diploma and valuable job skills, helping to break the cycle of underemployment and poverty. The Employment Training program will use $300,000 in CDBG funding this year to train 125 high school dropouts in construction.
HUD funding helps more than just urban centers.
Small towns and counties also count on HUD to fund poverty-alleviating programs. The United States Conference of Mayors, The National League of Cities, and the National Association of Counties have all spoken out in opposition to the proposed cuts. They have done so because the elimination or reduction of HUD programs, such as the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program (HOME), would severely reduce municipalities’ ability to make crucial investments in job creation and alleviating poverty.
Small towns and counties also count on HUD to fund poverty-alleviating programs. The United States Conference of Mayors, The National League of Cities, and the National Association of Counties have all spoken out in opposition to the proposed cuts. They have done so because the elimination or reduction of HUD programs, such as the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program (HOME), would severely reduce municipalities’ ability to make crucial investments in job creation and alleviating poverty.
Take action
The proposed cuts to HUD funding would have significant negative effects on Philadelphia’s residents, businesses, and communities, limiting our quality of life and potential for growth. Help us take action.
Contact
Call your elected officials and urge them to support fully funding HUD in the upcoming budget.
Contact the White House (202-456-1111) and let the Trump Administration know you support fully funding HUD in the FY18 budget.
Share
Share this guide with your friends and neighbors. Make sure every Philadelphian knows the harm President Trump’s proposed FY18 budget and its cuts to HUD funding would have on our city.