Slide 1

**A Solution to Chronic Homelessness**

**Presented by Sandra Miyoshi**

**October, 2004**

Slide 2

**Homeless In Hawaii**

This slide includes a picture of a homeless family.

Slide 3

**Beach Parks**

A Haven for the Homeless

This slide includes a picture of a homeless family living on the beach.

Slide 4

**Outreach Worker Locates Her Client**

Finding Shelter Under a Trailer

This slide includes a picture of a homeless person sleeping under a
trailer.

Slide 5

**Size of Hawaii's Homeless Population**

August 2003 Point-in-Time Count

-   6,029 homeless persons state-wide

-   Honolulu \~ 3,297

-   Hawaii \~ 1,243

-   Maui \~ 1,153

-   Kauai \~ 336

*-SMS Hawaii Homeless Study 08/03*

Slide 6

**A Focus on Chronic Homelessness**

-   A subgroup that constitutes 30% to 50% of Hawaii's homeless
    population

-   The most visible form of homelessness; often people on the streets
    of our neighborhoods and communities

Slide 7

**Chronic Homelessness**

Characteristics of Individuals Experiencing Chronic Homelessness

-   Unaccompanied individuals

-   Homeless continually for a year or more or multiple episodes of
    homelessness over a two-year period

-   Disabled by addiction, mental illness, chronic physical illness, or
    developmental disability

-   Frequent histories of hospitalization, unstable employment, and
    incarceration

-   Average age in the early 40's

Slide 8

**10-Year Plans to End Chronic Homelessness**

Support for 10-Year Plans

-   The U.S. Conference of Mayors and the National Association of
    Counties have endorsed the Bush Administration's national goal of
    ending chronic homelessness in 10 years

-   "We have to do more than just manage homelessness. Our objective
    \[is\] to prevent homelessness and ultimately end it."

> *- Mayor Richard Daley*

Slide 9

**10-Year Plans to End Chronic Homelessness (con't.)**

Support for 10-Year Plans

"Five years ago, the notion of cities having 10-year plans to end
homelessness was naïve and risky. No one thought it was possible. But
the new research and new technologies have created such movement and
innovation on this issue that it may be naïve and risky
[not]{.underline} to have such a plan."

\- *Philip Mangano, Executive Director of U.S. Interagency Council on
Homelessness*

Slide 10

**Why Focus on Chronic Homelessness?**

This slide contains a graphic with chronic homelessness represented in
the center fed by six arrows as follows: 1) This group consumes a
disproportionate amount of costly resources; 2) Chronic homelessness has
a visible impact on your community's safety and attractiveness; 3)
Effective new technologies exist to engage and house this population; 4)
Addressing this group will free up resources for other homeless groups,
including youth/families; 5) It is a finite problem that can be solved;
6) This group is in great need of assistance and special services.

Slide 11

**Chronically Homeless Consume a Disproportionate Amount of Resources**

10% - 30% of the Homeless Population Consumes Over 50% of the Resources

-   Individuals who are chronically homeless consume costly public
    resources, including:

    -   Emergency medical services

    -   Psychiatric treatment

    -   Detox facilities

    -   Shelters

    -   Law enforcement/corrections

Slide 12

**There is a Solution**

Provide the "Housing First" in Permanent Supportive Housing

-   Housing First is a shift in philosophy from a person needing to
    CHANGE to merit a home TO "everyone deserves a place to live"

-   Permanent Supportive Housing (PSH) is Housing PLUS Services

Slide 13

**Permanent Supportive Housing Makes "Cents"**

-   Solves the homeless problem

-   Regular home visits by case managers help to ensure appropriate
    behavior and long-term residency

-   Cost effective

Slide 14

**Permanent Supportive Housing Strategies**

Proven Successful in Other Communities

-   Assertive Community Treatment, (ACT): multi-disciplinary
    clinically-based teams that engage chronically homeless people on
    the streets and in shelters

-   Permanent Supportive Housing with easy access for homeless people
    who are mentally ill

-   Direct access to Permanent Supportive Housing for frequent consumers
    of acute health systems

Slide 15

**Current Housing Trends**

Rental Housing in Hawaii

-   In the current Hawai\`i market, former rentals are being sold

-   Prospective renters with housing subsidies cannot find units within
    the affordable rent range

-   A handful of nonprofit developers struggle to assemble projects with
    several different funding sources, each with a different set of
    criteria and funding cycle\*

*\*It is not uncommon for there to be as many as seven different funding
sources for a single project*

Slide 16

This slide includes a graph showing quarterly housing trends of
apartment availability in Oahu from 1975 to 2004 are represented
graphically with data provided by the SMS Research Housing Policy Study.
The graph indicates an erratic pattern from a range of 200 to 2000
units. In 1975, there were 1000 units available, with a decline to 200
in 1979, raising to 1300 in 1982, declining to 300 units in 1983 and
1984, which increased to 900 units in 1985,'86, '87 were consistently
available. The deepest trough on the graph came in 1989 when only 200
units were available with a quick increase to 1700 in 1993. Apartment
availability peaked in 1999 with 2000 and began a steady decline to only
425 units available in 2004.

Slide 17

**What happened to rental inventory?**

This slide includes a grid showing the changes between 1996 and 2002 on
the variables of resident population versus apartment inventory. In
1996, 1,203,755 residents had access to 50,512 units. In 2002, 1,244,898
residents had access to only 47,811 a decrease of 5% according to the
SMS Research Housing Policy Study. Footnote indicates that the trend is
worsening with a decrease of 8% in 2004.

Slide 18

This slide includes a graph representing the rising cost of housing on
Honolulu, Hawaii Kai, Makiki, Salt Lake, Downtown, and Waikiki. Graph
represents rental costs overtime starting in 1990 through December 2002.
The range of rentals is from \$700 - \$2100. In all cases rents declined
in 1998 and 1999 and then increased. Hawaii Kai remains the most
expensive area with rents beginning in the \$1700's and ending at
\$1900. Rents in Salt Lake and Makiki started around \$1000 in 1990 and
ended closer to \$900 in 2002. Wakiki shows the most dramatic change in
rent from \$1300 to \$1800. The size of the unit is not indicated.

Slide 19

**Wages & the Cost of Housing**

Affordable for Whom?

-   To afford rent on a typical 2 BR apartment in Hawaii, a worker must
    earn \$13.87 per hour, far above the wage earned for many
    occupations\*

-   Federal minimum wage is \$5.15 per hour

-   State of Hawaii minimum wage is \$6.25 per hour

*\*Center for Housing Policy,[Paycheck to Paycheck: Wages & the Cost of
Housing in America]{.underline}, 2003*

Slide 20

This slide includes a grid indicating the impact on Hawaiian residents
regarding housing affordability. It notes that in 1992, approximately
43.7% of all renter households were paying more than 30% of their income
for housing and that the number of rental households paying more than
30% grew to 47.7% in 2003. The chart then lists average monthly rent
Honolulu, Maui, Hawaii and Kaua\`i in 1992, 1997, 2003 respectively with
the overall percent increase totaled in the last column. The data is as
follows: Honolulu: \$864, \$928, \$1014 for an increase of 17%. Maui:
\$730, \$850, \$979 for an increase of 34%, Hawaii: \$556, \$697, \$859
for an increase of 54% and Kauai: \$807, \$830, \$983 for an overall
increase of 22%.

Slide 21

**Most Needy Priced Out of Homes**

Elderly, Disabled, & Mentally Ill

-   A disabled person living on Supplemental Security Income, (SSI -
    \$556/mo) and renting in Hawaii would have to spend:

    -   Honolulu: **130.4%** of benefits

    -   Hawaii County: **110.6%** of benefits

    -   Maui County: **169.8%** of benefits

    -   Kauai County: **161.7%** of benefits

-   Average U.S. rent for 1 BR in 2002 = 105% of SSI benefits

*Technical Assistance Collaborative, Inc,. [Priced Out in
2002]{.underline}, 2003*

Slide 22

**Affordable Permanent Housing**

-   Affordable permanent housing units are desperately needed to end
    chronic homelessness and to prevent future homelessness

Slide 23

**Affordable Housing Development**

Incentives for Affordable Housing Development

-   Low-Income Housing Tax Credit Program (LIHTC)

-   Rental Housing Trust Fund (RHTF)

-   201 G Process for affordable housing development (*development fast
    tracking)*

-   Hula Mae Multi-family revenue bond program

-   HOME Investment Partnerships Program

Slide 24

**State Programs**

Low-Income Housing Tax Credit Program (LIHTC)

-   Financing tool for nonprofit and for-profit developers to construct
    or rehabilitate affordable housing units

-   Approximately \$2.14 million in Federal and \$669,000 in State tax
    credits may be awarded each year

-   HCDCH awards Federal and State tax credits to obtain
    dollar-for-dollar offset for up to 10 years

-   Two types of tax credits: 9% competitive applied against annual
    LIHTC allocation and 4% non-competitive awarded with tax-exempt bond
    financing

Slide 25

**State Programs**

Rental Housing Trust (RHTF)

-   Equity Gap low-interest loans or grants to qualified owners and
    developers constructing affordable rental projects

-   At least 10% of a project's units must be affordable to families
    earning no more than 30% of the median family income

-   Generally, all other units are affordable to families earning 50-60%
    and below of the area median income

-   The RHTF annually receives 25% of the conveyance tax \~ \$2 million
    to \$3 million per year

Slide 26

**State & County Program**

201G Affordable Housing Developments

-   Expedites processing of State and county land use approvals

-   Provides exemptions from subdivision and building codes that do not
    contravene public health and safety

Slide 27

**State Programs**

Hula Mae Multifamily Revenue Bond Program

-   Interim and permanent financing for eligible rental housing projects
    at below-market interest rates through the sale of tax-exempt
    revenue bonds

-   Ability to secure 4% low-income housing tax credits in conjunction
    with the Hula Mae multifamily financing

-   As of June 30, 2003, the program has financed four projects with
    \$74.7 million to stimulate the development or rehabilitation of 620
    rental units, 417 of which are set aside for lower income households

-   HCDCH is currently authorized to float up to \$200 million

Slide 28

**State Programs**

HOME Investment Partnerships Program

-   Federal HOME program is intended to expand the supply of decent,
    affordable, and sanitary housing

-   HCDCH receives approximately \$3 million in HOME funds each year
    from HUD and passes the funds through to the counties of Hawaii,
    Kauai, and Maui

-   HOME funds may be used for a number of purposes, but are primarily
    used to develop affordable rental housing

Slide 29

**Finding Land for Development**

HCDCH Land Assessment

HCDCH is in the process of identifying and assessing its land and, upon
completion of that assessment, intends to make certain lands available
for development

Slide 30

**City & County of Honolulu**

Community Development Block Grant (CDBG)

-   City and County of Honolulu receives approximately \$12 million per
    year

-   Land acquisition for housing is an eligible activity

-   New housing construction and related infrastructure may be developed
    by certain types of organizations within a HUD-approved neighborhood
    revitalization strategy area

-   Use for program operations limited by 15% cap on public service
    activities

-   Numerous restrictions apply

-   City ordinance only allows use by nonprofit entities

Slide 31

**City & County of Honolulu**

HOME Investment Partnership Funds

-   City and county receive approximately \$4 million per year

-   Specifically for housing development, rehabilitation, rental
    assistance

-   Numerous restrictions apply

-   City ordinance only allows use by nonprofit entities

Slide 32

This slide includes a chart of the County breakdown of rental units
needed in Honolulu, Maui, Hawaii and Kauai based on percentage of median
income. According to the SMS Housing Research Study of 2003 over a
5-year period individuals at or below 80% of the median income will need
a total of 16,980 rental units. The number of units needed by locale are
as follows: in Honolulu for 80% median income 5,330 needed for 50% 4180
for 30% 1620 for a total of 11,130 units. In Maui the units needed at
80% median income are 1260, at 50% 780 are needed and at 30% 530 are
needed for a total of 2,570. For Hawaii, 1140 units are needed at 80%
median income, 50% 580 are needed and at 30% 380 are needed for a total
of 2100. Finally, in Kauai 610 units are needed at 80%, 430 are needed
at 50% and 140 at 30% for a total of 1180 units.

Slide 33

**We Need YOUR Help**

This slide includes a picture of a little boy standing in front of a
shelter.

Slide 34

**End**