SPARC lights the fire!

   By John Elizalde and Sarabelle Hitchner, First Unitarian Economic Justice Action Group, First Unitarian Committee on Hunger and Homelessness; Interfaith Alliance on Poverty

Portland, Multnomah County, Gresham and a host of others have stepped into the lions’ den according to Mark Dones from the Center for Social Innovation.  Mark was clear at the SPARC Community Kickoff that SPARC is likely to light up the way that our community has social systems, rules and maybe laws that adversely impact people of color and contribute to these people being homeless.  And we’ll need to deal with that reality.

Supporting Partnerships for Anti-Racist Communities launched in Multnomah County under sponsorship of A Home For Everyone, the municipal and county government partnership to end homelessness in the region.  SPARC will assess and address the ‘stark racial and ethnic disparities found nationally among people experiencing homelessness,’ according to the program brochure.  This means we’ll ‘fundamentally change the conversation we are having about the root causes of housing instability, risk for homelessness and barriers to exiting homelessness for people of color.’  The process brings together policy makers, service providers and people with lived experiences to understand how racism impacts homelessness.

SPARC is an initiative of the Center for Social Innovation (center4si.com), a 12-year old social change research and consulting group out of Needham, MA.  To date, there are 10 communities around the country in these conversations and making changes.  Whereas homelessness is a national phenomenon, it impacts people locally and must be addressed community by community.

The program kickoff was held March 19 and began a week of intensive program activity that will continue over a 3-year process.    There will be the requisite quantitative analysis of Multnomah County data as well as qualitative study.  Economic Mobility, Housing, Behavioral Health, Criminal Justice, Family Stabilization and Network Impoverishment will be part of the qualitative review.  A thesis could be (and in all likelihood has been) written on each of these features.

Critical for us will be a plan to reach ‘racial equity.’  This means the deliberate policies and practices that provide everyone with the support they need to improve their lives.  In broad terms this means a program that includes on-going anti-racism training, persistent professional development for people of color, full time equity positions in government and service agencies, governing board diversity, anti-racist community efforts and innovative interventions.

A couple of important points came from the panel of experts who spoke at the kickoff. 

• It is more than poverty that is driving homelessness for people of color.
• Homeless people know what changes to social systems would improve their circumstances.
• Outcomes of work are the test of equity, not simply lip service to policy.
• Listen to people of color and believe them. Folk really do know what their lived experience is.
• We who are white don’t get to call ourselves allies or accomplices of people of color – they make that call.
• We of Caucasian heritage live with a different cultural history, memory, and confidence in government-driven change than our neighbors (and government leaders) whose families were interned in WWII, repatriated to Mexico early last century, or suffer the uncertainty around deportation today due to DACA --- for example.
• If you are having a discussion about race and racism and there isn’t a person of color in the room, something is wrong.

As the song says, ‘we’ve only just begun’ and it seems like a big deal that our community is taking this deep dive into an important realm of our social fabric.

 Kaia Sand, Executive Director, Street Roots stated in her opinion piece  “SPARC-ing conversation on homelessness and race, Street Roots-March 23-29, 2018” -

“Oregon has a history of excluding and displacing people of color.  Federal housing policies, forced relocations of Native people, mid-century termination of some Oregon tribes, exclusionary housing laws, racist real estate practices, planning and policies, terrible terms on housing mortgages and on and on.  And then there’s less to pass on - people of color lose out on intergenerational wealth.  This all impacts housing stability.

PORTLAND HYGIENE PROJECT

  So, you find yourself broke, homeless, facing  life on the streets of Portland.  Besides finding food, clothes, bedding,  and a place to sleep, you need to locate a toilet available through the day,    and somewhere to wash your body, brush your teeth and launder your clothes.

The HYGIENE PROJECT, done in partnership with the PSU School of Social Work and the Sisters of the Road in Old Town/Chinatown, explored the need for showers, toilets and laundry facilities for those without permanent housing. Portland State University students discovered that Portland’s homeless population is suffering due to lack of access to proper hygiene facilities

Lisa Hawash, an assistant professor in the PSU School of Social Work, led the research and survey of 550 homeless people, over a 2-year period from 2014 and 2016. The graduate students found that 40% had experienced health problems due to lack of hygiene resources, including staph infections, scabies, lice, open sores, endocarditis and urinary tract

KOIN news reported that “surveyors learned that 40% of people use public restrooms at City Hall, libraries,  and the mall, 33% use the Portland Loo and 32% use shelter restrooms. The most common place people reported taking care of their hygiene needs was Transition Project or JOIN because those are a few of the places that provide showers, laundry and bathrooms. Other places mentioned in the survey were Red Door, Rose Haven, Sisters of the Road,  and Union Gospel Mission.

“After completing their survey of people at shelters and service organizations, Hawash’s students are calling for a community hygiene center that would be open every day, for at least 12 hours, with showers and supplies, bathrooms, laundry facilities and lockers. Hawash emphasized the importance of finding many ways to solve homelessness. There can be affordable housing bonds, the Right to Rest Act, shelters and hygiene centers but those things on their owe won’t solve the systemic problem. She said a hygiene center is one of the ways to address the issue.

The hygiene center would be

• Open seven days per week, at least 12-14 hours per day;
• Accessible showers and supplies
• Accessible bathrooms
• Washer/dryer laundry facilities
• Storage/locker space.

“As a community social worker, I believe in the dignity and respect and human rights for all people and people’s self determination,” Hawash said. “At the end of the day, it’s about inherent worth.”

 PORTLAND RESCUE MISSION   HygiHOMELESS CARE KIT:

A typical Care Kit consists of a watertight gallon-size zipper lock plastic bag filled with items like:

• Water bottle
• Socks
• Tuna and crackers
• Granola Bar or cereal bar
• Fruit snack or applesauce cup
• Crackers with peanut butter or cheese
• Gift certificate to fast food
• Hand wipes
• Pack of Kleenex
• Maxi pads
• Depends
• Toothbrush and toothpaste
• Nail clippers
• Band Aids
• Chapstick
• Comb or small brush
• Mints, cough drops or gum
• Note of encouragement or uplifting Bible verse

ALBINA VISION

The Albina Vision plans to restore a 30-acre area into a version of the largely residential neighborhood that existed 60 years ago, before it was razed for construction of the Memorial Coliseum and other structures. Led by Rukaiyah Adams (Chief Investment Officer with the Meyer Memorial Trust) and Zari Santner (former Portland Parks Bureau director), the "Albina Vision" hopes to "rebuild a community, not just physical spaces" and "be honest about the destruction of this neighborhood, not back away from that history."

“The plan will keep the Memorial Coliseum and Moda Center, but build new streets and buildings in the areas around them. It will also include a large "cap" covering I-5, Interstate Ave and the railroad tracks, stretching  from NE Clackamas Street north to beyond NE Broadway Ave. and west to the riverfront  It would provide public access to the river, create new buildings and streets, and move existing parking underground”

When Project Leader Zari Santner and Architects  Hennebery Eddy were invited to help develop a physical and economic vision for the district, they recognized the “opportunity to use design to reflect the needs, goals and aspirations of a community, convey possibilities for integrating the district into the city, and incorporate the relationships and connections to nearby sites, prompting community conversation and input.

“A group of engaged citizens and community leaders collaborated over six months, conducted five in depth work sessions to review the history of the district, its current configuration and status, the range of prior proposals and current studies under way, articulate values and develop a physical framework for the future.  These advocates of the city were given no specific development agendas, free to establish their own standard of a successful outcome.

“The resulting Albina Vision is not prescriptive, but rather is a framework to foster the growth of a diverse, sustainable, urban district – on par with great neighborhoods of the world. It includes short, mid- and long-term goals, considerations and aspirations that address transportation infrastructure, the built environment, and what it means to foster a diverse, sustainable community. “

 Rukaiyah Adams, Chief Investment Officer of Meyer Trust,  has spearheaded the Albina Vision. She says she is driven by the belief that  “we are all just trying to take care of one another.” A desire to succeed in the capital markets for the benefit of everyday people brought Rukaiyah to Meyer Trust.

 She was born in Berkeley, California but grew up in the Walnut Park area of northeast Portland, now called the Alberta Arts district, and attended King Grade School. She holds a BA from Carleton College with Academic Distinction, a JD from Stanford Law School, where she served on the Law and Policy Review, and an MBA from The Stanford Graduate School of Business

Rukaiyah said the current Rose Quarter is an example of the “primacy of the car” and that she wants to, “rebuild a community, not just the physical spaces” of a neighborhood that she refers to as “ground zero for the discussion about equity and history in Portland.”

"Righting the Wrongs of Black History"

Carol Turner and David Groff, West Minster Presbyterian, Co-Chairs of the Interfaith Alliance welcomed a crowded room of those attending the Interfaith Alliance’s first meeting of the year.  John Elizalde, First Unitarian, and Co-Chair of the Becoming Poverty Aware & Communication Action Team, introduced featured speaker, Joy Alise Davis, Executive Director of the Portland African American Leadership Forum (PAALF). Originally from Jamaica, Joy Alise grew up in Ohio, and received her Masters of Urban Design at Miami University. She has expertise working on social sustainability projects, including racial equity strategies, collaborative design strategies, project development, civic engagement and community data analysis.

As Executive Director of PAALT, she has devoted herself to social justice issues  involving  the African American community in Portland.     Originally neither the City of Portland or the State of Oregon welcomed African Americans.

Oregon had a law prohibiting slavery from the earliest days of its provisional government in 1843. However, it wasn’t enforced, and a number of early settlers from Missouri came with one or more slaves to help work their new Willamette Valley farms. In 1844, the Peter Burnett-led legislative council amended the law to allow slaveholders two years to free male slaves and three years to free female slaves.

In  1857 an all-white male Oregon constitutional convention was held.    A clause was approved in the state constitution which read:

“No free negro or mulatto not residing in this state at the time of the adoption of this constitution, shall come, reside or be within this state or hold any real estate,  or make any contracts.” under penalty of law.  At the same time Oregon voters cast ballots decisively   voting down slavery.    In 1860, Oregon’s black population was just 128 in a total population of 52,465.  

World War II produced a change in established norms.  The U.S. had just had its fleet sunk and there was an urgent need for ships to fill its navy.  African Americans joined  the thousands  coming from  cities and towns back east and the south to work in Northwest shipyards.  Swan Island  and  the Oregon Shipyards drew workers  in Portland, as did Kaiser Shipyard in Vancouver.  Shipyards operated 24 hours per day, producing one Liberty ship each per week.

The need   for housing was great.  Vanport, an immense prefab housing complex was constructed  on the site currently   occupied by Delta Park and the Portland International Raceway. Construction began in August 1942  and Vanport  became home to 40,000 people, about 40 percent of whom were African-American, making it Oregon's second-largest city at the time, and the largest public housing project in the nation.   Vanport was   destroyed at 4:05 p.m. on May 30, 1948, when a 200-foot (61 m) section of the dike holding back the Columbia River collapsed during a flood.  Miraculously only 15 lives were lost.

When the war ended,  many of the “newcomers” returned back east or to the south.  However, many African Americans decided to stay here.  Realtors observed a red-line practice whereby African Americans were not allowed to buy property outside certain boundaries, basically Union Avenue to the west, Lombard to the north, NE 33^rd to the east, and E Burnside to the south.  By 1950 this area had become a vibrant part of the city with thriving neighborhoods, churches, and  stores.

Don Frazier, Pastor of Genesis Community Fellowship, remembers growing up there, how everybody knew everybody, people sat out their porches of a summer night,  kids played on the street and families dressed up of a Sunday morning to go to church.  It was a neighborhood that felt like home.

The Albina district also  housed a vibrant night life with clubs, restaurants, and music,  which Jim Thompson has described in his book “Jumptown”,  as “the Golden Years of Jazz”.    Oregonian reporter, John Kellin reported in  March 2015 about a History Hub discussion held at Kennedy School.  "For the first time in our lives, we had money," said Ben Johnson, who came to Portland in 1943 when he was 13 with his parents so his father could help build ships. He said that his mother, a schoolteacher, had never made more than $16 a month. But his father was suddenly making $18 a week (or about $250 a week today) in the shipyards.

"We had discretionary income to spend and we wanted to spend it," said Johnson.    "Problem was, where could you spend it?  In part, he said, the answer was the night clubs such as the Dude Ranch. And his parents were far from alone. While there had been just a few hundred African Americans in Portland before the war, that number swelled to more than 20,000 during the war.  With that many people making good money and looking for places to spend some of it, the clubs began to flourish and, in turn, began to attract name acts such as Thelonious Monk, Charlie Barnet and Nat King Cole. The scene also began to cultivate local talent.

Paul Knauls told of his experience  coming to Portland in the early 1960s and opening the Cotton Club.  He said that Portland had become a mecca of jazz and blues at that point and the clubs had begun to draw many white fans as well as black devotees. He listed acts such as Etta James, Diana Ross, Martha and the Vandellas and the Four Tops as among those who came through Portland at the time.

Bill Rutherford talked about how influential the music scene was on Portland youths and said that dances for young people often drew overflow crowds to venues such as the old Knott Street Community Center.  Eventually, most of the black jazz and blues clubs in Albina were wiped out by urban renewal.  Places like the Dude Ranch, the Savoy and the Acme became memories.

In 1958,  an Urban Renewal program was launched by the City of Portland to make possible the construction of the Memorial Coliseum, (now Moda Center), the Portland School District Administration building, and Legacy Emmanuel Hospital expansion.  Hundreds of homes and businesses owned by African Americans were claimed under “eminent domain” and demolished to make way for the new construction. Residents forced out of their homes and businesses were left to find accommodations elsewhere.  Many ended up in northeast and southeast Portland, separated from their community.  Gang members moved from Los Angeles to Portland bringing problems with them

Joy Alise  explained that efforts are now under way “to right these wrongs.”  The PAALF People’s Plan serves as a powerful tool for research, organizing, and implementation. By viewing the community as the drivers of change, this project engaged over 400 African Americans on their experience living in Portland. Empowering the Black community to assert their right to actively shape the city we live in, the  PAALF People’s Plan   hopes to ensure that solutions are informed by the people affected.

Although African Americans continue to “yearn” for their community,  lack of affordable housing has become another barrier to their return.  Nevertheless, efforts are being made  to support their “Right to Return”.  Joy encouraged Interfaith Alliance members to support organizations working to make this happen.  B. Gregg

THE ALBINA VISION

Rukaiyah Adams  Source:  J. Maus/BikePortland – September 2017)

The “Albina Vision” would develop the 30-acre Rose Quarter with housing and businesses that respects history and embraces the future.

Rukaiyah Adams explained “What we envision is … putting bikes and walkers first and not just having them be unsafe crossing giant highways and streets.” She shared that her great-grandmother moved to the Rose Quarter after fleeing the violence of the Jim Crow south. “It was a lot like Ladds [neighborhood] today,” she said. “Imagine bulldozing Ladds Addition to build a soccer stadium.”    She wants to, “rebuild a community, not just the physical spaces” of a neighborhood that she refers to as “ground zero for the discussion about equity and history in Portland.”

The “Albina Vision wouldn’t seek to demolish the Coliseum. Rather,” Adams says, “Portland must be honest about the destruction of this neighborhood, not back away from that history. 

The way we see it,” she continued, “the homes of black veterans were bulldozed to build a monument mostly to white veterans — so this is our Robert E. Lee monument. We look at it and can appreciate the beauty and wanting to protect the architecture; but also feel like there’s a story about what we’re monumenting here-- that has to be told if it will be preserved.”

Beth Israel Opens Portland Homeless Family Solutions Emergency Winter Shelter

On December 4, 2017, Multnomah County shelters were packed to the brim, leaving  homeless families out in the cold with no place to sleep but the streets of Portland. When the City and County asked Portland Homeless Family Solutions for assistance, they reached out to their long-time partner Congregation Beth Israel in Northwest Portland for help.  Congregation Beth Israel did not hesitate.

  Congregation Beth Israel (Interfaith Alliance member) will be opening their doors to  provide "an emergency winter family shelter"  from December 11, 2017 through April 30, 2018 to accommodate 75 moms, dads, and kids

You can help us make this new shelter a success! 

• Volunteer to help set up the shelter: Join us between December 4-10 to set up the beds, organize shelter supplies, and get ready to welcome families. Email Bethany@pdxhfs.org  to sign up.

• Volunteer to help run the shelter: Bring food for dinner, come play with kids, or help keep the night running smoothly. Please attend a volunteer orientation on Thursday, December 7 or Sunday, December 10. RSVP required: email Bethany@pdxhfs.org to sign up for an orientation.

• Donate these supplies: Hygiene supplies like soap & shampoo, tooth paste & brushes, and deodorant, breakfast and snack foods, blankets and twin sheet sets, pillows and pillow cases, and warm winter coats. We are also collecting holidays toys for kids in shelter. Email Emma@pdxhfs.org  to coordinate donations.
• Give a financial contribution: The County & City are funding the operation of the shelter, but they aren't providing funding to help families from shelter move into housing. Help us end homelessness by donating money that we can use to help families in shelter get back into homes - and stay there. Donate here!

We always say it takes a village to raise a family, and we are going to need you - our village - to help make this shelter successful.

A Place to Call Home: Exploring Housing in Oregon by Muz Afzal

At the most basic level, a home is a place that gives you shelter, protecting you from the weather and unsafe situations. It’s also where you live your life, eat your meals, and raise your family. If housing is a basic human right, why do so many people struggle to find or keep housing? How do we as individuals and as a society make decisions that undermine the idea that we all have a right to a home?

This is the focus of A Place to Call Home: Exploring Housing in Oregon, a free conversation with Cristina Palacios on Saturday, November 18th at 3 pm at SE Uplift 3534 SE Main St. Portland OR 97214. This program is hosted by SE Uplift Neighborhood Coalition and sponsored by Oregon Humanities.

Through the Conversation Project, Oregon Humanities offers free programs that engage community members in thoughtful, challenging conversations about ideas critical to our daily lives and our state’s future. For more information about this free community discussion, please contact Muz Afzal at muz@seuplift.org or call (503) 232-0010 Ext 319.

Cristina Palacios was born in Tolimán, Jalisco, México, and started organizing at age fourteen. Most recently, Christina worked with Community Alliance of Tenants as a senior organizer. She is driven by a passion for housing and social justice and the belief that everyone—regardless, their income, disability, race or immigration status—deserves a safe and healthy place to call home.

Comments to the Portland Housing Bureau by the Interfaith Alliance on Poverty Re: Affordable Housing Bond Draft Policy Framework

September 23, 2017 Thank you for the opportunity to observe the stakeholder process and comment on the draft policy framework. We will not comment on all that we agree with except to say that the values expressed in the populations to serve and the locations for affordable housing are appropriate. We look forward to the housing bureau achieving both the construction goals and the public policy objectives expressed in the draft framework.

We have four areas of concern, all focused on costs. Portlanders provided the city with a strong vote of confidence and a lot of money. The affordable housing constructed with the bond proceeds needs to repay Portlanders for their trust.

Site specific cost analysis and cost control:

The policy framework doesn’t address this issue. There is reference to the city performing a due diligence review that could be presumed to include a cost analysis. That’s it. We believe strongly that the construction goals need to be front and center in the analysis of each project as it is proposed. City staff has many projects ‘on the desk’ right now according to banter during the stakeholder meetings. This framework should include a description of how the costs of these projects will be compared just as it addresses location, development processes and target populations.

In short, bringing a good mix of residents in the right locations following an equitable development process but only constructing 1000 units will be seen as a failure in the eyes of a good many Portlanders.

The stakeholders haven’t spent time on this topic and need to before the final policy is completed. The policy needs to address site-specific costs.

Administrative space in full service buildings:

The policy doesn’t address whether the bond proceeds can be used to construct the administrative space needed for permanent supportive housing or resident services. Given the tight construction cost environment, the costs being spread over the affordable units could be important in deciding which projects to pursue.

Use of rents: Presumably the construction costs for the housing will be paid for with bond proceeds. Those costs will then be paid off by property taxes levied on Portland property owners. Rents will not be used to pay for the construction costs and related bond financing and interest. Thus, rents will be set to cover other costs. However, the framework doesn’t address those costs nor does it provide information on how those costs will be controlled. In short, how will rents be set and what is there intended use? These costs should be included in the regular reporting from the housing bureau.

Land purchases: The policy framework does not address the topic of using the bond to purchase land. Other funds or funding strategies would be used to fund construction of affordable housing with the city maintaining ownership of the land and requiring affordable housing pricing for all units on that land. This suggestion came up at several stakeholder meetings but wasn’t addressed in discussion or in the policy framework draft. It should be assessed and explicitly dismissed if it is a flawed strategy for stretching bond proceeds.

Creating such a store of land would give the city a valuable resource. It would be important to specify that the land not be traded for another ‘project of value.’ It is intended for affordable housing. Any promise to build affordable housing in exchange for one of these land parcels should require that the affordable housing be occupied before any development on the land is occupied.

Again, thank you for the opportunity to comment on this important policy framework.

John Elizalde, Interfaith Alliance on Poverty, Advocacy work group

Affordable Housing Bond – Update by John Elizalde

Last November Portlanders agreed to give the city of Portland the authority to sell general obligation bonds in order to build housing affordable to people earning up to 60% of the average median income for the Portland area. The bonds authorized were $258 millions dollars and included an amount for administration. That’s a ton of money to this writer. However, projections at the time were that only 1,300 homes could be build with this amount. Since then construction, labor and material costs have continued to rise as the housing boom lingers (and now the national housing industry will be responding to Hurricanes Harvey and Irma and the related destruction). The voter approved measure also called for a citizen oversight committee to assure that the bond funds are invested in housing that will meet the needs of struggling Portlanders. It is important that the bond can only be used for housing that will be owned by the city. Hence, public values will be made manifest by the use of the bonds. The city housing bureau created a ‘stakeholder group’ to create a policy framework for bureau and oversight committee to use when making investment decisions. (The Interfaith Alliance on Poverty Advocacy work group will follow the oversight committee work.)

The draft framework hit the streets for public review on August 18 and the comment period closed on September 23. The Interfaith Alliance on Poverty Advocacy work group had been attending stakeholder group meetings and following the development of the draft policy framework. We submitted comments.

The framework does a good job of describing the demographic groups that should receive priority housing; generally these will be folk who haven’t been targeted for such housing and have suffered the consequences of racism and exclusion. High priority locations are called out in the framework so housing will go near where people live now or at least so as to avoid displacement or in school areas where children move in and out too frequently for their educational needs. Not surprising there are tradeoffs in these objectives and the framework is designed to allow explicit decisions about location, demographics, displacement, etc rather than leave decisions to a random process.

The Interfaith Alliance on Poverty comments focused on costs that seemed to get short shrift in the draft. We thought there needed to be site specific criteria for cost based decisions; there is no mention of site specific cost analysis in the draft. We are concerned about the city’s ability to meet the goals for the bond funds: 1,300 total units, 650 units for family size units (2 or 3 bedroom), 600 units deeply affordable for incomes up to 30 AMI.

The policy calls for 300 units to receive significant services for residents but it was unclear whether bond funds could be used for construction of facilities for such administrative work. And, it was unclear as to the use of the rents collected for the units. Portland property owners will pay of the housing bonds but we don’t know where the rents do and what sort of oversight there will be of those funds.

Lastly our comments addressed the idea of the bond funds being used to buy land. We are concerned that construction costs may make new construction difficult given the cost constraints of the bond. So purchasing land and allowing other developers to build affordable housing on that land using other funding could stretch bond dollars. The draft policy didn’t address this.

In general, we found the process used to create the framework to be inclusive, open and thorough (and slow, very slow). Sometimes intensive public involvement is a time consuming task. Keep in mind the vote on the bonds was November 8, 2016 and the framework will go the city council for their consideration 368 days later. And, this is in the middle of a housing crisis.

Of course, realistically the bond fund housing will make but a small contribution to solving the housing crisis. The city needs some 20,000 affordable units for struggling families. The wheels of progress move slowly but at least for the housing bond they are moving.

Find the draft policy framework here: https://www.portlandoregon.gov/phb/article/656538.  For a copy of the Interfaith Alliance on Poverty comments write to john_elizalde@hotmail.com

John Elizalde, Advocacy Workgroup

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SMALL STEPS, RESPECT & A $20 BILL, By B. Gregg

   Street Roots Newspaper Seller, Lori Lematta, and Executive Director, Israel Bayer

When Street Roots Executive Director,Israel Bayer, spoke to a meeting of the Interfaith Alliance on Poverty, held at the Madeleine Church, on August 31^st, he was asked  how the Interfaith Alliance could help the homeless. Israel said, “Small steps, they make a difference.”  He also emphasized the importance of treating everyone with respect.

In the last month, we have witnessed how hurricanes, fire, earthquakes.  and flood can  render people homeless.   In the blink of an eye,  the accumulations of a lifetime are gone.  We all grieve and dig deep in our pockets to help as we can.

Those surviving on the street of Portland  may have survived circumstances every bit as harrowing as a hurricane or earthquake, but that is not how we perceive them.  We are more inclined to view them as victims of their own making  We look away, not wanting to touch or be touched,  afraid to admit our common humanity, to see ourselves in them and  realize that “there but for the grace of God go I.”

Israel explained that our current level of homelessness was caused by the confluence of many factors: the elimination of Federal low cost-housing, the rise in property values and rent, the decrease of affordable housing, the de-institutionalization  of the mentally ill, the rise of veterans produced by middle east wars, the increase in addiction, and the impact of the 2008 recession causing women and families to join the ranks of the homeless, etc.

In his September  1, 2017   Street Roots editorial, Israel wrote:

 “We're making a difference on homelessness, even if it's hard to see. For every person the system finds housing for, there are more people becoming homeless

“Thinking about solving the issue of homelessness can feel almost impossible. For the general public it’s hard to understand the relationship that nonprofits and government play in working to give people a safe place to call home. It’s understandable. Why, after spending all of this money, are people still sleeping on our streets? It’s a valid question.

“If you commute into downtown every day for any length of time, it may be hard to notice a difference in the numbers of people that are visibly homeless. It’s because you’re probably not.

“Let me explain. 

“We do know how to give people a safe place to call home.

“Last year, both Portland and Multnomah County helped nearly 5,000 individuals and families find housing placements in the region. An additional 6,000 people received prevention services, such as rent assistance, to help them stay in housing.

“What the public doesn’t always see is that for every person the system finds housing for, there are more individuals and families becoming homeless on what feels like a daily basis. The struggle is real.

In short, the reason you’re not seeing a visible difference in the homeless population isn't because we don’t know how to house people; it’s because we can’t stop the flow of people hitting our streets.

“In short, the reason you’re not seeing a visible difference in the homeless population isn't because we don’t know how to house people; it’s because we can’t stop the flow of people hitting our streets. Of course, any logical human being understands that when you have the kinds of rent increases the region and state are experiencing without any regulations there are bound to be thousands of people left out in the cold. Not to mention funding for housing itself, which was once a federal priority, has been cut to the bone.

We all end up paying the price. Don’t let anyone fool you. The housing crisis that Portland is experiencing is also being experienced in communities all over Oregon.

“I believe the lack of investment in affordable housing statewide has many more residents from around the state coming to Portland to seek services.

“The rich may be coming here from California, Texas and points beyond, but poor folks are migrating to Portland from small communities and suburbs across the state.

“It’s a perfect storm for Portland. 

“If the federal government doesn’t prioritize housing, and the region and the state aren’t going to prioritize affordable housing, then it leaves Portland to its own devices.

“In many ways, it’s an example of what’s happening politically and socially in our country.

“People and communities begin to do more with less and develop a scarcity mentality that creates a dynamic that we should only take care of our own. Unfortunately for the poor, in some communities, the mentality is that poverty has become a burden. It’s a sad affair.

“These realities are playing out in local politics and on the national stage with devastating impacts to our country. Everyone begins to point their finger at someone else. It’s a never-ending cycle, unless we as a community choose to rise above the noise and rhetoric.

“The reality is, of course, that Portland and Multnomah County should continue investing in affordable housing and homeless services. It’s not only the right thing to do; it’s the smart thing to do.

“When we support and invest in affordable housing, we are not only investing in Oregonians today, but we are investing in future generations. Affordable housing, like our roads and parks and schools, plays a vital role in maintaining a healthy society for generations to come.

“All of this is to say that it’s true: It is hard to see how we are collectively making a difference when we continue to see thousands of people sleeping on our streets. For the thousands of people we are supporting with a safe place to call home, it makes all the difference in the world.”

Israel   encouraged   congregations to consider giving a “Street Roots” vendor the opportunity to sell his/her newspapers after Sunday services.  Several Interfaith Alliance Churches are now considering this possibility

Street Roots Vendor, Lori Lamatta, shared her personal story,  overcoming  emotional trauma, problems of health and addiction, and escaping homelessness.

She told about life on the streets, constantly having to wait in lines,  having to be out of the shelters by 7:00 AM,  having no place to rest in the daytime, how some shelters treat you like children,  being bound to the streets,  the smell of “death” in the air, never taking a vacation, buying a new outfit, etc.

She confided that one year at Christmas she was so depressed she had considered suicide.  She contemplated “writing the note”.  She said you may think about suicide, but it isn’t real until “you write the note.”  Then she said a woman stopped beside her and gave her a $20 bill, wishing her a “Merry Christmas”.  She said that turned everything around.  She bought a pizza and shared it with a friend on the street.

Lori sells her newspapers by a bakery, and on Sunday mornings at Westminster Presbyterian church.  That is where she and Carol Turner, Interfaith Alliance Co-Chair got acquainted.    Before selling her papers at the coffee hour following church services, Lori attends services herself.  She confided that sitting in the pews and listening to the music and pastor’s sermon is an uplifting experience.  The parishioners now know her as “Lori” and she knows them by name.

Selling “Street Roots” allows the homeless    to become independent entrepreneurs adding to their income.  It enables Portlanders   to purchase a “cutting edge” newspaper at a bargain price.  But it does much more.  It provides an opportunity for both buyer and seller to get to know each other.  Although vendors   understand   life on the streets, they also share the common concerns of those who buy their papers – the latest  weather forecast and whatever is happening in the nation, the world, and people’s lives.  Therefore, selling newspapers becomes a human exchange, not dependent upon economic or social status.

None of us is born a success or failure, although the circumstances may point us in one direction or the other.    None of us want to be seen as poor, homeless, addicted, or an object of pity.  We want respect!   After telling her courageous story, Lori emphasized the importance of treating others as you, yourself would want to be treated, as a  fellow human being, sharing life’s journey,  in need of love, respect, and occasionally a helping hand or a $20 bill.  B. Gregg

FAREWELL LETTER FROM ISRAEL BAYER, STREET ROOTS EXECUTIVE DIRECTOR

Dear Street Rooters, I almost can’t believe I’m writing this, but I’m announcing today that I’ll be departing Street Roots at the end of this year. I’ve lived and breathed Street Roots and homeless advocacy for the past 15 years of my life. I’ll be taking six months off to write a book and to take a breather before deciding what’s next in my life. Concerning Street Roots, the organization has never been in a better place. Under the leadership of Executive Editor Joanne Zuhl, the newspaper is thriving and will continue to do so. The organization itself is in the best financial standing it’s ever been, and we have a great team of dedicated staff, a strong board of directors and an amazing readership that will lead Street Roots into the next era. Street Roots is currently working with our board of directors on a transition plan.

How to give context to the past 15 years at Street Roots? It’s hard to describe. I’m letting go of something I’ve loved with all of my heart for most of my adult life. My love for Street Roots, the neighborhood I’ve worked in for years, and the city I live in is bigger than anything I could describe. First and foremost, the hundreds upon hundreds of hours I’ve spent with people on the streets has been by far the most rewarding. It’s also been the most heartbreaking. Being able to take part in seeing so many people rise above the trauma of homelessness and go on to do great things is inspiring. Witnessing the power of the human spirit when faced with some of the harshest living conditions in the modern world is both daunting and hopeful. It’s the reason that regardless of any of the hardships we face at Street Roots, we always remain optimistic. I’ve also witnessed more people die on the streets that I can count. Their ghosts haunt me at times, and I will also have a place in my heart for those who didn’t make it out of the hell that is homelessness.

Things I’m the most proud of are that together, as a team, we have inserted ourselves into the local media landscape, while becoming a fixture of hope and dignity for both people on the streets and readers a like. Street Roots has become an award-winning weekly publication, helping change the face of homelessness in Portland.  

 i’d argue pound for pound we are one of the best street newspapers in the world and one of the best newspapers in the Pacific Northwest. Street Roots has worked with Multnomah County and the medical examiner’s office to create an annual count of people who have died on the streets. We helped deliver Portland’s first affordable housing public ballot initiative. We continue to fight for the civil rights of people on the streets. We’ve helped maintain housing for hundreds of individuals and families. The list goes on. Street Roots isn’t afraid to think big, to plan thoughtfully and to execute. That couldn’t be done without the amazing team we have at Street Roots.

Personally, I’ve always tried to lead the organization in a way that wasn’t geared toward doing the popular thing, but the right thing — for both the organization and people on the streets. It has meant giving my blood, sweat and tears, while also experiencing some of the most traumatic and joyful times of my life. It has not always been easy to navigate the small world of Portland politics. It has meant speaking truth to power and trying – to the best of my ability – to always think about moving the issue homelessness forward, regardless of the consequences. I’ve always tried to do so with integrity, sometimes getting it right and sometimes not.

When I first started at Street Roots, there was a World War II vet named George who was sleeping on the streets near the office. I’d always go and talk with him about everything from life to Street Roots to times long gone. The most important advice he gave me when I was starting was that there are going to be times in this job when it feels like the whole world is bearing down on you — simply breath and think about who you’re here to serve. “It’s the people,” he would say. “If that’s the only thing you accomplish, than you’ve done your job.” George has long since passed on, but I still think of him and those words, especially today as I write this column and reflect. I hope it’s the people that I’ve ultimately served.

Honestly, there are so many mentors and friends I’d like to thank for helping me along my journey at Street Roots. When I took over Street Roots I had no nonprofit training or political lens in which to look at the world. It was with the help of many friends and Street Roots supporters that I owe my gratitude. I love and appreciate all of you dearly, wherever we might find ourselves on the long road.

Lastly, over the next six months I will be working with the organization to make sure that Street Roots remains strong and vibrant throughout the transition. Ultimately, from a reader perspective, you’re not going to see much of a change. The organization will march on through the good times and bad, just like it always has. The reality is Street Roots is so much bigger than any one person. I can’t say how thankful I am to have been able to take part of leading this organization and being a part of such a beautiful story. Let’s continue to make it so.

 Big love! Israel Bayer

2017 HOMELESS REPORT FOR MULTNOMAH COUNTY Reported by David Groff and John Elizalde

Every year Multnomah  County and the City of Portland  volunteers and outreach  workers combine efforts to do a comprehensive “point in time” count of children and adults experiencing homelessness. This year the count occurred on February 22, 2017, and revealed that “11.6 fewer people” were sleeping without shelter.  It is believed that this is the result of the community’s “investment in rent assistance, housing placements and more than 600 new shelter beds.”

“In the Portland area, the average one-bedroom apartment now rents for more than $1,100 a month.“ Rents have grown 20 times faster than the median income since 2015, leaving minimum wage earners with little to cover other expenses.

In addition, more than 18,000 people in Multnomah County rely on federal disability checks that top out at $735 a month.

For more information, email ahomeforeveryone.net

SAINT FRANCIS APARTMENTS

Home Forward is partnering with Catholic Charities and St. Francis of Assisi Parish to create an affordable housing community located in   inner Southeast Portland The plan for the St. Francis Apartments is to develop 102 apartment units that will include 73 studios, 28 one-bedroom units, one two bedroom unit and 33 parking spaces.

Ninety percent of the units will be for families earning less than 60 percent of the median income and ten percent will be units for those earning less than 30 percent of the median income. In addition 25 units will be reserved for victims of domestic or sexual violence.

The building will extend the full length of SE 12th Ave., along SE Stark St. and then continue halfway up SE 11th Ave. The apartment building will cover about fifty percent of the block. Most of the north half of the park will be landscaped as a semi-private open space

The project will replace a private park adjacent to St. Francis of Assisi Parish.  St Francis Dining Hall, located in the basement of the church, serves 150-300 hot meals   daily to the homeless of the area.    Ground breaking for the housing project is expected in December of this year.

Home Forward is now the largest provider of affordable housing in Oregon.  It has served all of Multnomah County, including the cities of Portland and Gresham, since 1992.  The agency owns 2,600 public housing  3,700 affordable housing and administers 8,200 Section 8 housing assistance vouchers.*

 NOTE: The Home Forward (HF) Section 8 Housing Choice Voucher waiting list is currently CLOSED. It was last open for five days in September 2016, and prior to that in November 2012. There is no notice of when the list will reopen and vouchers become available.    There are currently 3,000 on the waiting list.  

AFFORDABLE HOUSING IN CULLY

At the May Alliance Planning Meeting, Cameron Herrington, explained how Living Cully works to expand affordable housing and prevent the displacement of residents threatened by rapidly increasing housing costs.  Cully is the “the most diverse community in the state”, with 50% people of color, immigrants, and refugees.  Public transportation is limited; parks and libraries are lacking; sidewalks are few and streets have pot holes. Through its work in NE Portland’s Cully Neighborhood, Living Cully works to prevent displacement and assist low income residents in their fight against rising rents.

When residents of the Normandy Apartments,   received notice last December that their rents had more than  “doubled” from $630 to $1320  per month, Living Cully jumped in to help.  They assisted the tenants in organizing a march and   getting an attorney.   The owner agreed to postpone the rent  increase until July 1, enabling children to remain in their current school placement through the end of the school year.

This decision gave the tenants some breathing room, but they still needed to find affordable housing.  Living Cully posted a message on the social media site “Next Door.”  In response, Nancy  Hiss offered an ADU “accessory dwelling unit” that she had built in her backyard to accommodate her parents, who are now deceased.  At $900 a month, it was the answer to  Normandy apartment tenant, Michelle Labra’s prayers.

The Interfaith Alliance has participated with Living Cully in supporting   the Normandy apartment tenants and   Oak Leaf mobile home park residents to achieve affordable housing.  Living Cully partners include  Habitat for Humanity Portland Metro East, Haciendas Community Development Corporation, NAYA  (Native American Youth and Family Center) and Verde.

Affordable Housing Smith-Warner Conference Report by Marilyn Mauch

 Faith, Land, and Housing Conference, Saturday, April 29, 2017 --  8:30 am – 3:00 pm Presented by Warner Pacific and Community Partners:  Rockwood Community Development Corporation, Habitat for Humanity, Oregon Opportunity Network, and the Leaven Community

How can Portland’s faith communities use their land and resources to respond to the affordability crisis?  

The conference opened with Apostle Steven Holt, Kingdom Nation Church, giving an impassioned call to action for faith communities to use their resources for affordable housing.    Key thought:  It’s not only a matter of equity, but also a matter of righteous action. Matt Tschabold, Portland Housing Bureau, gave a short overview of the Portland area housing crisis and Lorelei Juntenen gave a quick-paced Housing Development “101” addressing the development process and obstacles which builders of affordable housing face.

Note:  After the conferences, I resorted to internet sleuthing  to try and reconstruct hurdles developers of affordable housing face.  My brief notes follow.  M. Mauch

Suitable land for low income housing needs to be sited near transportation, grocery stores and other community services.  In the Portland locale, such land sites are hard to find and command top dollars.  However, the rents to be charged must be relatively low given the income level of those needing the shelter.  As summarized in a Bloomberg report [1]……”there are only a few levers that truly affect a developer’s ability to finance a project.  Taking a smaller fee or negotiating a more favorable loan can help at the margins; so can making the project so appealing to residents that no one ever moves out.  To really reduce costs or raise revenue, though, there are just these options:  Spend less on land, materials, and labor, or bring in more money by raising rents or finding new public financing. But land, materials, and labor can only be cut so much (construction costs are effectively fixed by labor and commodities markets), and raising rents removes the "affordable" from affordable housing.’’

Presentations on three examples of faith communities using land for housing. 

Example 1:  Gethsemane Lutheran Church, Seattle, Pastor Joanne Engquist gave an overview of the transition of the church which now includes a new building with five floors of affordable housing above the church’s entry and office spaces, a Sanctuary and a basement community service center.  The original church chapel remains adjacent to the new building.The affordable housing was built in partnership with Compass Housing Alliance.  See Seattle Times article below.

Gethsemane church remodel includes affordable housing  (2012 Seattle Times article)

Gethsemane Lutheran Church in downtown Seattle has opened a new building that includes a sanctuary, 50 units of affordable housing and a community-service center.

The Rev. Chris Boerger’s words brought knowing laughter from the congregation at Gethsemane Lutheran Church on Sunday when he described the work it took to turn a 1950s-era sanctuary into a versatile new building that’s not quite like any other church in the region.

It’s a church, yes — but it also includes 50 units of affordable housing, and a basement community-service center that serves hundreds of needy people with a variety of programs, from Sunday soup and movies to a day shelter for homeless women and children. “This has been a building program, and it has been hard work, and it has not always been easy,” said Boerger, bishop of the Northwest Washington Synod of the Evangelical Lutheran Church in America, as he helped dedicate the $20 million project.

Gethsemane, at the corner of Stewart Street and Ninth Avenue in downtown Seattle, is the oldest Lutheran church in the city. Fifteen years ago, a church committee began exploring the idea of turning some of the downtown property into affordable housing. The land had grown increasingly more valuable over the years. But when the 2001 dot-com bust hit, a developer who was interested in the land backed out, said Jean Anderson, a congregation member who headed two of the three church committees that worked on the project.

The idea was renewed when the value of downtown properties recovered. “It kept going from one unthinkable idea to the next,” Anderson said. “A few dedicated people just hung in there. There was a lot of prayer, and faith.” The church’s brick chapel, which seats about 150, is little changed. But it’s now part of a larger building that includes a jewel-like sanctuary at Stewart and Ninth, fronted with long, thin, colored panels of art glass and fused glass. “When the sun hits it, it does amazing things in here,” said architect Jim Olson, of Olson Kundig Architects. He described the building as “one of the most meaningful projects I’ve ever worked on.” Above the church’s entry and office spaces are five floors of affordable housing, built in partnership with Compass Housing Alliance. The top is capped with a rooftop garden, meant to be an oasis in the urban location. The basement is home to Mary’s Place, a day shelter for homeless women and children, and to the soup and movies program, which feeds and entertains up to 120 homeless people every Sunday afternoon.

“This place is an extraordinary gift to the downtown community,” said Gethsemane’s pastor, the Rev. Joanne Engquist, who moved from Cambridge, Mass., to be pastor of this church in May 2011. At the time, the building site was just a hole in the ground. On Sunday, Engquist talked about how she hoped the church would be more than just a shelter and a place of worship — it would also be open to the community, and people would seek it out for fun, games and laughter. “This is a magnificent project,” she said.

Example 2:  Rivergate Community Church and Habitat for Humanity, North Portland

Rivergate Community Church is located on North Lombard Street.  The congregation was in decline and aging.  There were three levels to the church that impeded congregational use as well as their desire to use their bottom floor Fellowship Hall to serve activities with and for the Portland community.  However, they couldn’t afford to put in an elevator to enable easy access to all three levels of the church buildiing.  The church sits on a large piece of land much of it lying empty or for parking.  When the church inquired, they found that the empty plot was the largest unused lot in the area.  After much congregational deliberation, they decided to inquired if Habitat could build affordable housing on the land.  They sold that plot to Habitat and 12 affordable houses were erected and the congregation was able to install an elevator.  The congregation and the people moving in have developed a community garden.  The congregation is also “big” on pot lucks and they join with the families to have good times at the meals together.  While before, the church was seen as a” sleepy place” in town, it is now well known for what they have done.

The presentation at the housing conference consisted of a video that explains their journey in full.  You can see it at the following internet address:

Click below to see the video shown at the Warner Smith Possibilities Housing Conference

http://www.rivergatecommunitychurch.org/media.html

 Example 3:  St. Andrews and All Souls Episcopal Church + University Park United Methodist – Rob Justus, developer.

See the below for write-ups on the affordable housing being provided by University Park UMC.

http://koin.com/2016/08/03/portland-church-answers-call-for-affordable-housing/

http://www.oregonlive.com/portland/index.ssf/2017/03/affordable_housing_ideas_for_c.html

http://portlandtribune.com/pt/9-news/317308-194858-church-to-build-affordable-housing

 http://portlandtribune.com/uej/9-news/317308-194858-church-to-build-affordable-housing

A North Portland church is beginning its quest to help solve the affordable housing crisis in the city. Created on Thursday, 04 August 2016 | Written by Bianca Pahl |

Almost two years ago, University Park United Methodist Church’s members discussed the possibility of utilizing their property to build affordable housing units for low-income households. In April, when the church’s Board of Trustees of the Oregon-Idaho Annual Conference agreed to guarantee the loan, University Park’s talk turned into action.

The church, at 4775 N. Lombard St., is now securing loans, hiring a contractor and awaiting permit approvals.

The congregation will build a 26-unit apartment building on its property, which will cost $2.1 million to construct, says the developer, Rob Justus. Funding will come from a bank loan and the profits of selling a home set aside to house the pastor, which is no longer needed.

If everything goes smoothly, construction on the apartments should start in the spring of 2017, says University Park Pastor Julia Nielsen.

The Annual Conference hopes to organize a system where it can repurpose other properties for affordable housing. Nielsen says University Park will be a prototype project for other churches wanting to do the same. “If we can do this, we might be able to learn some things that we can share with other churches,” Nielsen says. “Our goal is to solve the affordable housing crisis in Portland. I think there’s a possibility of making that happen.”

The church partnered with Justus, cofounder of Home First Development, who says two other churches have already approached him about starting an affordable housing project since he began the University Park apartments. Many churches have assets and are thinking of new and innovative ways to use those assets to help the homeless and the community, says Lowell Greathouse, the mission and ministry coordinator for the Oregon-Idaho Annual Conference.

“It opens up the possibility of sparking a revolution or a new way for churches to be involved in addressing affordable housing,” Greathouse says. The route University Park is taking is appealing, Justus says, because it doesn’t involve the government, saving time and money. The church owns the land and the bank issues a loan. “It’s straightforward financing,” Justus says.

The church is more than 120 years old and at one time had hundreds of members. The congregation has been dwindling in members for the past 20 years, Nielsen says. More than a year ago, St. Johns Community Church formed a union with University Park, and the community grew. Both churches, which now share the same place of worship, have a historic relationship with helping the homeless in each of their communities.

Portland’s sizzling housing market has caused rents to rise at a record pace, increasing homelessness. In January 2015 there were 3,801 homeless people sleeping on the streets, in shelters and in temporary housing in Multnomah County, according to the 2015 Point-In-Time Report.

“Housing is a critical need,” Greathouse says. “We want to be a part of the solution to homelessness and affordability of housing in Portland.”

The church’s dream is starting to become a reality.

The housing will consist of 13 two-bedroom units with 790 square feet, and 13 one-bedroom units with 400 square feet. Every unit will have a washer, dryer and full kitchen.

Justus says the apartments will be rented to people with incomes less than 60 percent of the median family income. Nielsen says she anticipates rents will be around $700 a month.

The housing will fill the current lawn space on the church’s property, as well as take up a portion of the west side of the Errol Stephenson Hall, Nielsen says. There will be some deconstruction to the hall but the place of worship will remain.

“This makes it possible for University Park to connect with their community in a real, tangible way that makes the church relevant and a partner with the community in addressing a real need,” Greathouse says.

COMMUNITY DEVELOPMENT CORPORATIONS (CDC)

Representatives from local CDC’s provided snapshots of their affordable housing efforts.  CDC’s represented were

Rose Community Development CDC

Hacienda CDC

PCRI - Portland Community Reinvestment Initiatives

Below is a site explaining funding and efforts of CDC’s.

http://crossroads.newsworks.org/index.php/local/keystone-crossroads/71864-what-are-community-development-corporations-cdcs

Proud Ground – Mission, Vision and Values  A representative from Proud Ground attended the conference.  Proud Ground is a community land trust that was started by the City of Portland.  Here are just a few excerpts from Proud Ground’s website -- https://proudground.org/about/faq/

Goal of community land trusts:  Utilizing the Community Land Trust model of permanent affordability, expand homeownership opportunities for families, with low to moderate incomes, so they can live or remain in the community of their choice. Serve as a leading strategic partner to improve affordability region-wide, with a focus on areas affected by displacement.

Community Land Trusts are nonprofit organizations that help make homes and other things (such as community gardens, commercial space, affordable housing) affordable and accessible. For most CLTs, affordable housing is the highest priority. There are over 250 CLT programs across the country, serving communities from small towns to large cities.

In exchange for a reasonable purchase price (about $60,000 to $100,000 LESS than a market-rate home), homeowners agree to resale arrangements that provide a seller with a share of the homes equity while ensuring the home remains affordable for another moderate-income homebuyer. This arrangement is guaranteed through a legal agreement between Proud Ground and the homeowner. Homebuyers review these legal agreements with an attorney independent of Proud Ground to understand all the details before buying a home.

Why It’s So Hard to Build Affordable Housing: It’s Not Affordable

Developers struggle to break even on rental projects for the poorest Americans, by Patrick Clark, July 26, 2016, 3:00 AM PDT

A real estate developer wanted to increase affordable housing in Denver, trying to make fiscal sense out of a plan to build rental apartments for people making only 30 percent of the area's median income—the kind of housing America desperately needs. He discovered that, no matter what lever he moved or compromise he made, he was going to need some money from the government to make it work. Then he was going to need some more.

Almost one in four U.S. renters spends more on housing than they can afford, according to a report in June from Harvard University‘s Joint Center for Housing Studies—and the problem gets worse at the lower end of the income spectrum. About 10 million renter households earn 30 percent or less of the area median income, accounting for a quarter of the renter population. The U.S. would need to add more than 7 million cheap apartments to meet demand from such extremely low-income renters, according to a recent report from the National Low Income Housing Coalition.

“If we want to prioritize closing the gap for low-income households, we’re going to need more funding from public subsidy,” said Erika Poethig, director of urban policy initiatives at the Urban Institute, which published an online simulator Tuesday for the purpose of illustrating the challenges to building new affordable housing. Our Denver developer above is fictional, but he's an illustration of what that simulator churns out: No matter how you slice it, creating the affordable housing needed today probably requires government help.

With the interactive tool, users can play developer, toggling their costs and expected revenues in an attempt to make a project "pencil out," a real estate euphemism for profitable, adjusting everything from rent levels and vacancy rates to debt service coverage, administrative expenses, and construction costs. The data underlying the project comes from a handful of recent affordable housing developments in Denver, a fast-growing city in the middle of an apartment-building boom that has increased costs for developers of market-rate and rent-regulated buildings alike.

Building for such poor renters is never an easy task, and in the case of our Denver developer, the job was complicated by the his desire to build near a light rail stop to carry his residents into the center city.  That meant choosing a small site and limiting the number of units to 50, making it hard to count on winning federal tax credits to help fund the deal. He could raise rents so the average tenant is spending half their income on rent, but that would defeat the central purpose of the project. He could try to slash outlays for concrete and steel—but there’s only so far you can pare costs without running afoul of building codes or endangering tenants. Instead, he was forced to hunt for a development site farther from the city center, but also further away from people who needed the housing, not to mention their jobs.

Playing with the simulator, you quickly learn that there are only a few levers that truly affect a developer’s ability to finance a project. Taking a smaller fee or negotiating a more favorable loan can help at the margins; so can making the project so appealing to residents that no one ever moves out. To really reduce costs or raise revenue, though, there are just these options: Spend less on land, materials, and labor, or bring in more money by raising rents or finding new public financing.  But land, materials, and labor can only be cut so much (construction costs are effectively fixed by labor and commodities markets), and raising rents removes the "affordable" from affordable housing.

That leaves subsidies, the biggest of which is the low-income housing tax credit, which Congress funded to the tune of $7 billion last year. Even so, that program is more useful to developers building for higher wage-earners, said Linda McMahon, chief executive of The Real Estate Council, a trade group for Dallas-area real estate companies.  "Below 50 percent of area median income, you're talking about people who can only afford $500 or so in rent, and you really need another layer of subsidy to pay your [commercial] mortgage," she said.

Developers seeking to build for poorer renters sometimes start with low-income housing tax credits, then apply for additional funding from state or local governments.  Poethig also pointed to a new law that would let developers tap rental vouchers to fund new projects, as well as mechanisms by which local governments give builders publicly-owned land or development rights in exchange for a promise to build affordable units.

There's also another way to create housing for the poorest renters, which is to build housing for higher wage-earners, freeing up older, lesser-quality units through a process called filtering.

"It's not always politically attractive, because you're talking about housing that has deteriorated a bit," said Reihan Salam, policy fellow at the National Review Institute.  "That's basically how housing markets have always worked."

The cost of affordable housing: Does it pencil out? 

Internet retrieval – article from the Urban Institute, 2016.  The Assisted Housing Initiative is a project of the Urban Institute, made possible by support from HAI Group, to provide fact-based analysis about public and assisted housing. The Urban Institute is a nonprofit, nonpartisan research organization and retains independent and exclusive control over substance and quality of any Assisted Housing Initiative products. The views expressed in this and other Assisted Housing Initiative commentaries are those of the authors and should not be attributed to the Urban Institute or HAI Group.

Copyright © Urban Institute July 2016. View this project on github

There is not enough affordable housing in the United States. For every 100 extremely low income households, there are only 29 adequate, affordable, and available rental units. That means two parents who both work minimum-wage jobs might wait years to find a safe, affordable place to live with their two kids. With such high demand, why aren’t developers racing to build affordable apartments?

It turns out building affordable housing is not particularly affordable. In fact, there is a huge gap between what these buildings cost to construct and maintain and the rents most people can pay. Without the help of too-scarce government subsidies for creating, preserving, and operating affordable apartments, building these homes is often impossible. This tool helps explain why.

Why is there a gap?

Development costs a lot of money. Developers rely on loans and other sources to fund construction before people move in and start paying rent. But developers can only get those loans and equity sources if the development will produce enough revenue to pay back the loans and pay returns to investors. The gap between the amount a building is expected to produce from rents and the amount developers will need to pay lenders and investors can stop affordable housing development before it even begins, leaving few options for the millions of low-income families looking for safe, affordable homes.

The problem is even more difficult when you consider the poorest residents. In many places, the rent the poorest families can pay is too little to cover the costs of operating an apartment building, even if developers could build that building for free.

To illustrate this problem, we examined data from the Denver metro area, which is experiencing a growth in rental housing demand but is not a traditionally high-cost city. The rental housing conditions in Denver are largely representative of other US cities.

Uses

Buildings cost money to build: to developers, those costs are often called uses. The first major use is the land developers plan to build on, called the acquisition cost. In some cases, developers are able to use public land to develop affordable housing. But when that option is not available, there is little a developer can do to lower the land cost.

Simulate donated public land

The next major development cost is construction. While a developer could make some decisions to minimize construction costs, they are largely determined by market forces. Construction costs for the various Denver properties we analyzed ranged from $8.8 million to $17.6 million, making construction the largest single use.

A third use to consider is the developer fee. This fee is built into the calculation of the development costs because a developer uses it to pay all the costs of doing business: hiring staff, running an office, finding new opportunities, and more. After all, developers can't build if they aren’t going to earn any money from the project. Affordable housing developers can choose to defer a portion of the fee, leaving more money to cover development costs. The developers then recoup the deferred portion of the fee as rents are paid over time. This assumes, of course, that the gap is eventually closed, that the building is built, and that it operates successfully for years.

While these are three important uses a developer must account for, other costs include: design fees, construction loan interest, permanent financing fees, reserves, and project management fees.

Sources

To cover the costs of building and operating a housing development, developers rely on a number of different sources of money. One important source is debt. Developers borrow money from lenders based on the amount they will be able to pay off over time.

Though the current market affects the terms of the loan, it’s unlikely developers will ever get a loan big enough to close the gap.

To demonstrate this, we look at vacancy rates, generally an indicator of market strength. In a weak market, it might take longer to fill an apartment after a renter moves out, so you’d expect a higher vacancy rate. Repairs to an apartment in between occupants and other factors can also lengthen vacancy. Since the size of the loan is based on the future rent a building is expected to bring in, lower vacancy rates—and the resulting increase in income—should increase the size of the loan. Below, you can adjust the vacancy rate to see its effect on the gap.

Vacancy rate

Besides the loan, developers might fund development through tax credits or grants. These sources come with caveats, however. The tax credits a building is eligible for depend on how much it costs to create the property and on how much rent the developer plans to charge relative to the average income in the area. Additionally, federal, state, and local governments have limited amounts for tax credits and grants, so even if a development qualifies, funding is not guaranteed.

Closing the gap

Can we close the gap...with bigger loans?

It’s fair to ask at this point: if there aren’t enough grants or tax credits out there, why don’t developers just take out bigger loans to get the building off the ground?

In short, the lenders won't (and shouldn’t) let them. The size of the loan a bank will make depends on the project's net operating income (NOI), or the amount of money it expects to bring in from rent after accounting for operating expenses.

Lenders use NOI to calculate how much debt a developer will reasonably be able to pay off, accounting for interest and recognizing the developer still needs to have some cash flow to cover unexpected expenses.

But if the rent is set at rates that a working family can afford, that NOI is going to be quite low. It might even be less than zero if operating costs exceed revenue. The lower the NOI, the lower the size of the loan.

Can we close the gap...with more apartments?

So if you need a higher NOI to get a bigger loan, why not add more apartments to your building to increase the NOI? Though this will increase construction costs, some costs, like the acquisition cost and project management fee, may remain the same or increase more slowly, helping close the gap. You can see this to your right: the gap for the 100-unit building is proportionally smaller.

There are, however, some caveats. The first is a matter of economics. One of the big benefits of developing a building with more apartments is that tax credits might be more cost effective. But just because your project is eligible for tax credits doesn’t always mean you get them. Click the button below to see what happens when you don’t have the tax credit.

Tax credits for 100-unit building

The other caveats are practical ones. Consider, first, that adding more apartments is only useful if developers can fill them, which might be possible in larger cities but harder as you move farther away from dense urban areas. Additionally, creating large communities of affordable housing has its social and economic downsides, particularly if it unintentionally segregates low-income families from the rest of a community. It all depends on the scale and shape of the particular place.

Can we close the gap...with higher rent?

Charging residents more in rent might seem like an obvious solution, since it means higher property revenue, which leads to a larger loan. But when does affordable housing stop being affordable?

For a building to qualify for tax credits, the apartments must be affordable to families earning no more than 60 percent of the area median income (AMI). Additionally, many rent subsidies are targeted to extremely low-income families, or those earning less than 30 percent of AMI.

The current standard is that a family should pay no more than 30 percent of its household income on rent. Anything more is no longer affordable.

To make a unit affordable to an extremely low-income family of three, you could charge no more than $540 a month. You could charge up to $1,081 for a family of three and still qualify for tax credits, but now you risk shutting out extremely low-income residents, like a parent of two children earning $21,125 as a retail cashier.

Consider that in Denver, the AMI for a family of three is $72,100, so earning 60 percent of AMI means a family takes home $43,260; earning 30 percent of AMI means a family earns $21,630. A married telemarketer would earn $36,544 in Denver—slightly less than 60 percent AMI for a family of two. A person working full time but earning minimum wage, which in Colorado is slightly above the federal minimum, would be just above 30 percent AMI but still well below 60 percent.

Use the toggles below to see the effects of raising rent. You can choose to raise rent by either targeting higher-income (but still low-income) renters, asking renters to pay a larger portion of their income toward rent, or both.

60% AMI renters

50% of family income goes towards rent

So...how can we close the gap?

Subsidies are essential to closing the gap.

Changes to land use, to regulations, or in what and how we build all will help close the gap, but we won’t get where we need to be without subsidies.

Subsidies come in different forms. Some, like vouchers or rental assistance, help pay the rent, leaving tenants enough income to pay for other needs and making the property operate sustainably. Others, like tax credits, HOME funds, Community Development Block Grants, and housing trust funds help pay the costs of construction, development, or major repairs. No one subsidy can solve the affordable housing problem. Rather, a combination of programs including federal tax credits, state housing trust funds, local zoning decisions, and public land contributions can help affordable housing get built. To close the gap for affordable housing, especially for the lowest-income households, there almost always has to be assistance for both development and rental income over time.