Coalition
Supports Quinn’s Veto Pledge
No vacation for lawmakers until they pass 12-month budget that
is morally and fiscally responsible, group says
July 1, 2009
Springfield, IL—A coalition of 50 organizations representing
millions of Illinoisans applauded Governor Quinn today for demanding
that lawmakers fulfill their shared responsibility to craft a 12-month
budget that fully funds vital community-based programs throughout
the state.
The coalition warns that a Democratic “Doomsday Lite” proposal
to cut funding by 30% for programs ranging from domestic violence
and child abuse prevention to care for seniors and people with
disabilities would be devastating. A proposal floated by Republicans
to pass a temporary budget based on FY ’08 spending would
not only lead to harmful cuts in services, but would do nothing
to alleviate the anxieties of caregivers or the families they serve.
The coalition is urging all 177 lawmakers and Governor Quinn to
remain in Springfield for as long as it takes to reach a bipartisan
agreement on a full, 12-month budget that cuts nonessential services
and revenue to close the budget gap.
“The families of the people we serve aren’t making
vacation plans, they’re cancelling them, and trying to figure
out what they’re going to do about child care, about health
care, and who is going to have to quit their job to take care of
an aging parent or disabled family member that the state is poised
to dump out on the street,” said the Reverend Dr. Denver
Bitner, head of Lutheran Social Services of Illinois (LSSI). “Lawmakers
shouldn’t be making any vacation plans either, until they
pass a budget that is not only fiscally balanced, but also morally
balanced.”
The coalition says they have seen signs of progress. Under mounting
pressure in recent weeks, Democrats and Republicans have publicly
acknowledged that the state has a moral responsibility to fully
fund community-based programs, and they have recognized that the
proposed cuts are creating anxiety for families that are directly
impacted. Privately, rank-and file lawmakers from both parties
have admitted that a tax increase will be needed as part of the
budget solution.
But coalition members say that Democratic leaders are pushing
a “Doomsday Lite” budget that would still have devastating
consequences, including:
• 15,600 seniors will lose community care programs that enable
them to remain in their homes and out of nursing homes, and another
35,000 seniors will see those services reduced;
• 88,585 children will lose day care services, threatening
their parents’ ability to work;
• 12,900 women will lose life-saving breast cancer screenings,
and 45,000 men will lose prostate cancer screening and prevention
services;
• 12,000 teens and adults will lose treatment for drug and
alcohol addiction;
• 60,000 pre-school children will lose their early childhood
education;
• 11,000 cases of elder abuse will go uninvestigated;
• Half of the state’s child abuse investigators will
be eliminated, raising caseloads to 20 to 1;
• Nearly 14,000 rape and child sex abuse victims will be denied
crisis services.
The coalition also says a plan floated by Republican leaders to
delay passage of a 12-month budget for 30 to 60 days would only
prolong anxieties for families impacted by the cuts and for the
100,000 caregivers across the state that stand to lose their jobs.
The coalition predicts that without an agreement in place between
lawmakers from both parties and the governor on both cuts and new
revenue, lawmakers aren’t likely to meet a new deadline,
and would only insist on another extension. The coalition also
points out that even the possibility of cuts has forced many local
service providers to lay-off employees and close programs already.
Those cutbacks would still continue even with a temporary spending
plan, and the uncertainty would create greater instability in the
state’s infrastructure of community-based service providers.
“Governor Edgar warned that it would be irresponsible of
our state to implement a temporary budget, and he’s absolutely
right,” said Nancy Ronquillo, head of Children’s Home
+ Aid, one of the state’s largest and oldest providers of
care for abused and neglected children. “We’ve been
forced to issue notices of potential lay-offs to over 700 employees
throughout Illinois. We have nearly 800 abused and neglected children
that we have to worry about and workers who deserve 30 days notice
before they are laid off. No agency can go through that every month
without creating total chaos.”
“These cuts aren’t just morally irresponsible, they
are fiscally irresponsible, because every dollar we cut from preventative
programs ends up costing taxpayers $6 to $8 down the road,” warns
budget expert Ralph Martire, head of the Center for Tax and Budget
Accountability. “When we turn our back on abused children,
people with mental illness, our seniors and disabled, they don’t
just magically disappear. They turn up again in our special education
classes, prisons, emergency rooms and nursing homes, but at much
greater cost to the taxpayer.”
The coalition says they will continue to press lawmakers from
both parties to live up to their shared responsibility to invest
in vital programs that promote the common good. More public protests
are being planned following a rally two weeks ago that drew 5,000
protesters to the State Capitol and candlelight vigils held this
week across Illinois. Opponents of the cuts are also being urged
to call toll free at 888-616-3322 to speak to their lawmakers in
support of a responsible budget.
The Chicago Coalition for the Homeless, Housing Action Illinois,
Sargent Shriver National Center on Poverty Law and the Supportive
Housing Providers Association are among the coalition's member
organizations.
Proposed
State Budget Cuts Will Have Dire Impact on Those Who Need Housing
During June, Housing Action Illinois has surveyed state-funded
providers of housing-related social services to determine the impact
of the "doomsday" budget cuts that will be implemented
unless Illinois Governor Pat Quinn and legislative leaders agree
on revenue increases.
According to the nearly 60 agencies that responded to the survey,
on average they reported receiving 50% of their program funding
from State of Illinois.
If the cuts go through, 89% of the human service organizations
surveyed reported that they will be forced to reduce the services
they provide to consumers and more than half, 56%, will shut down
some programs completely. Ten percent will close their agency doors
entirely.
Even more alarming is the immediate effect these cuts will have
on the people in Illinois who need housing. For example, based
on the survey, we estimate that 8,824 fewer people experiencing
homelessness will be provided shelter if 27% budget cuts to the
Emergency Food and Shelter Program are made. The program funds
the City of Chicago Department of Human Services and 88 private
agencies around the state. In fiscal year 2008, 45,418 people were
served by the program statewide and demand has been growing due
to the tough economic times.
The agencies surveyed include those funded by the following budget
line items:
- Domestic Violence Shelters that provide safety assistance to
victims of domestic violence, including 24-hour crisis hotlines,
counseling, safety planning, legal advocacy, children's services,
and temporary food and housing. The proposed budget cut to these
programs is 75% of their state funding.
- The Emergency Food and Shelter Program that offers immediate
and comprehensive shelter services to homeless persons and persons
at risk of becoming homeless. Funded programs include overnight
shelters and transitional housing. The proposed budget cut to
these programs is 27% of their state funding.
- The Homeless Prevention Program that provides rental assistance,
utility assistance and supportive services directly related to
the prevention of homelessness to eligible individuals and families
who are in danger of eviction, foreclosure or homelessness or
are currently homeless. The proposed budget cut to these programs
is 100% of their state funding.
- Centers for Independent Living that provide a variety of services
for people with disabilities, including services for making housing
accessible for people with disabilities. The proposed budget
cut to these programs is 50% of their state funding.
- Supportive
Housing Services coupled with housing to enable formerly homeless
individuals and families, or those in danger of becoming homeless,
who live in private housing to maintain their residence in the
community. The proposed budget cut to these programs is 34% of
their state funding.
Statements from Providers
Here are three statements on the impact of the proposed cuts from
providers of state-funded housing programs:
"We already operate on a bare bones budget. The elimination
would have to come directly out of the services and supplies provided
the residents and members of our community. We would have to eliminate
clinical case management, our food pantry and all other services
offered the community."
Barb Hicks
Executive Director
Madonna House, Quincy
"We are an agency that has served the homeless in Southern
Illinois for 25 years. This is the first time state funding cuts
have put our efforts to help the homeless in such jeopardy. With
the loss of jobs in the area increasing, now is no time to close
shelters that provide shelter and food. We don't want to close
our doors."
Peggy Russell
Executive Director
Williamson County Family Crisis Center, Herrin
"These cuts are dangerous for Illinois. They target the most
vulnerable citizens and demand that they bear the burden of the
budget crisis. If these cuts are allowed to go through, they will
decimate families and the consequences will ultimately hurt every
citizen of the state."
Ryan Dowd
Executive Director
Hesed House, Aurora
What to Do?
Increasing the state income tax to 5% from 3%, combined with tax
relief targeted at those with the lowest incomes through expanding
the Earned Income Tax Credit, will increase the sustainability
and fairness of our state's tax system and preserve the programs
that vulnerable people depend on every day.
Have You Responded Yet to Our HousingMatters.Net Alert?
A simple and quick way to contact your state legislators to oppose
the proposed budget cuts is to respond to our HousingMatters.net
action alert.
If you have, thanks so much and please consider forwarding the
alert to others by clicking the link above. If you haven't, it's
not too late. So far, we have generated more than 650 messages
to state legislators. Let's keep it up.
Housing
Roundtable Update
June 8, 2009
State
Budget Update: More Advocacy Needed to Stop Massive Cuts
Much public organizing and education work is going on to stop
cuts of 50 percent or more in state spending for human services,
including Domestic Violence Shelters, the Emergency Food and Shelter
Program, the Homeless Prevention Program, Homeless Youth Services,
Independent Living Centers and Supportive Housing Services.
Most importantly, many state-funded service providers have to
help elected officials and the general public understand the ramifications
of the pending cuts in terms of the number of people who will not
be able to escape domestic violence, be denied shelter, forced
into homelessness, not able to move from an institution into independent
living and not able to receive the services that help them maintain
their housing.
We need to thank legislators who voted for a tax increase and
encourage legislators who voted against a tax increase to support
such an increase. Click
here to see a record of the Senate vote,
where a permanent income tax increase and a sales tax expansion
passed. Click
here to see a record of the House vote, where a temporary
tax increase was rejected.
Housing Action Illinois has developed a brief survey for state-funded
providers of housing-related services to help document the impact
of the proposed budget cuts. If
you would like to participate in the survey click on this link.
If you have reached out to your state legislators already, please
let us know what they said. If you haven't yet, but are willing
to help, please also contact us. Send all messages to Bob Palmer
at bob@housingactionil.org.
Capital Budget: More than $130 Million for Affordable Housing
On a positive note, efforts over the past two years to get affordable
housing funding included in the state capital budget are near fruition.
The second capital budget bill passed this year, House Bill 313,
included $100 million for affordable housing generally plus $30
million specifically for veterans and people with disabilities.
The funding will go to the Illinois Housing Development Authority.
The groups that led the campaign were Business and Professional
People for the Public Interest, Chicago Coalition for the Homeless,
Housing Action Illinois, Illinois Housing Council and the Supportive
Housing Providers Association. Thanks to all the others who supported
the work that resulted in this major victory.
However, the fate of the capital budget is linked with what happens
with the operating budget. The State's ability to finance the bonds
that will pay for the capital budget will be extremely limited
if the ongoing fiscal problems are not resolved, making it all
the more important that a sustainable agreement be reached by legislative
leaders and Governor Quinn.
State Legislation Goes to Governor's Desk
The following housing-related bills developed by Roundtable members
passed both chambers of the General Assembly and, if they have
not already, will be sent to Governor Quinn for his consideration.
More information is available at www.ilga.gov.
House
Bill 2470: Amends the property tax code to expand the existing
Housing Opportunity Tax Abatement Program to include tenant-based
Housing Choice Vouchers and tenant-based vouchers that have been
converted to project-based vouchers. It also expands the number
of geographic areas where landlords are eligible to participate
in the program. Advocated for by Interfaith Open Communities.
House
Bill 3863: Requires that after a foreclosure is complete,
the new owner of a rental property must make a good faith effort
to identify residents of the property and inform residents that
the property has been the subject of foreclosure, and provide contact
information for resident concerns and repair requests. The bill
also provides a tenant a minimum of 30 days to move after the eviction
hearing if the tenant is evicted under the procedure provided under
the Illinois Mortgage Foreclosure Law. Advocated for by the Sargent
Shriver National Center for Poverty Law and Housing Action Illinois.
Senate
Bill 1629: Amends the Energy Assistance Act to make landlords
who participate in the Rental Housing Support Program or Housing
Choice Voucher program to be eligible for energy utility assistance.
Advocated for by the Chicago Low Income Housing Trust Fund.
Senate
Bill 1920: Creates a Mobile and Manufactured Home Relocation
Commission to study the process and procedure by which a mobile
or manufactured home located in a mobile or manufactured home park
that is closing is relocated. Advocated for by the Mobile Home
Owners Association of Illinois.
Numerous other positive pieces of housing legislation also passed,
including the following bills:
House
Bill 688: Provides that a municipality may file a court
petition to appoint a receiver to manage a "distressed condominium
property"—defined as being a danger, blight, or nuisance
to the surrounding community or to the general public—as
well as take additional steps to ameliorate the situation.
House
Bill 746: Creates a Rapid Reintegration Pilot Program for
people with physical disabilities and/or mental illness who need
a short-term placement of 6 months or less in a nursing facility
so that they can successfully return to the community without experiencing
unnecessary institutionalization.
House
Bill 2005: Amends the process to challenge a foreclosure
judicial sale by eliminating the requirement that owners of a home
they live in secure by bond a bid equal to the successful bid at
the prior sale.
House
Bill 2653: Amends the Homelessness Prevention Act to allow
payment of mortgage arrearages to help homeowners avoid foreclosure.
House
Bill 3987: Environment Illinois led the campaign to create
a statewide energy-efficient building code for residential buildings.
House
Bill 4011: Enables the State's participation in the Nationwide
Mortgage Licensing System and Registry.
Federal Update
Much has happened at the federal level, since our last update.
Rather than try to summarize everything in this message, here are
some links to allow you to get more information about specific
issues:
President Obama's Budget Request
Recovery Act Funds for Housing
* Click on these links for Illinois-specific information for
the Neighborhood
Stabilization Program and the Homeless
Prevention and Rapid Rehousing Program.
McKinney Vento Reauthorization Becomes Law
New Protections for Renters in Foreclosed Buildings
Community Reinvestment Act Modernization Legislation
Draft Section 8 Voucher Reform Act (SEVRA)
Housing
is Still “Out of Reach” in Illinois
The Housing Wage is $17.17 for Two-Bedroom Apartment
April 14, 2009—According
to a report released today, the Housing Wage for the state of Illinois
is $17.17 for a two-bedroom apartment, while the average wage a
renter in Illinois earns is $15.33.
The Housing Wage is the hourly
wage a family must earn working 40 hours a week, 52 weeks a year—to
afford a modest two-bedroom apartment renting for $893- the average
rent in Illinois. The Housing Wage in Illinois has increased 32.5%
since 2000.
The report, Out of Reach
2009, was jointly released
by the National Low Income Housing Coalition (NLIHC), a Washington,
DC-based housing advocacy group, and Housing Action Illinois. Federal
guidelines state that no one should spend more than 30% of their
income on housing, including rent or mortgage payments, utilities,
property taxes and insurance.
“The increase in the housing
wage compared to a year ago suggests that the foreclosure crisis
and the economic slowdown have actually driven up rental costs
overall as competition for affordable rental units increases as
fewer people are buying homes and people who lost their homes to
foreclosure have reentered the rental market,” said Mimi
Chedid, Policy Coordinator for Housing Action Illinois. The housing
wage for Illinois in 2008 was $16.23.
In Illinois, a minimum wage
worker earns an hourly wage of $7.75. In order to afford market-rate
rent for a two-bedroom apartment in Illinois, a minimum wage earner
must work 89 hours per week, 52 weeks per year. Or a household
must have 2.2 minimum wage earners working 40 hours per week year-round
in order to afford a two-bedroom apartment.
In Illinois, among
metropolitan and non-metropolitan areas, the lowest Housing Wage
for a two-bedroom apartment is $10.50 in the Bond County metropolitan
area. The highest housing wage for a two-bedroom apartment is $19.31
in the Chicago metropolitan area.
An estimated 49% of renters in
the Illinois area do not earn enough income to afford a two-bedroom
unit at the Fair Market Rent.
Housing Action Illinois’ mission
is to increase and preserve the supply of decent, affordable, and
accessible housing in Illinois for low-and moderate-income households
through advocacy, public education, and technical assistance to
nonprofits. Data for every state, metropolitan area and county
in the country is available online, at http://www.nlihc.org/oor/oor2009.
Use
of Homeless Shelters in Illinois Significantly Increased During
Second Half of 2008
Proposed Federal Recovery Funding For Homelessness Welcome
But Stable Housing Still Needed
Click
here to download the press release as a PDF file.
Click
here to download the entire report as a PDF file.
January 15, 2009—Homeless service
providers in Illinois saw a marked increase in the need for their
services during the last six months of 2008. This is a trend that
is likely to continue as long as the economy continues to worsen.
During December 2008, 71% of state-funded providers
of overnight and transitional shelter reported serving an increased
number of people experiencing homelessness compared to six months
previous. According to the report released by Housing Action Illinois,
more than one-third, 35%, of agencies reported an increase of more
than 10%.
These trends make the case for 200,000 new Housing
Choice Vouchers and a $2 billion increase for homelessness prevention
assistance through the United States Department of Housing and
Urban Development’s Emergency Shelter Grant (ESG) program
to be included as part of any economic recovery package proposed
by President-elect Barack Obama and members of Congress.
On January
15, leaders of the U.S. House of Representatives released a draft
of their proposed economic recovery legislation. The proposal includes
$1.5 billion for the Emergency Shelter Grant Program but no funding
for Housing Choice Vouchers. The Senate will introduce a proposal
in the coming days and Congress will try to complete legislation
by mid-February.
“The short term rental assistance, housing
relocation, and stabilization services provided by the Emergency
Shelter Grant Program will really benefit families suffering due
the economic crisis,” said Bob Palmer, Policy Director for
Housing Action Illinois. “However, new Housing Choice Vouchers
are really need to create more stable housing options for vulnerable
households.”
If both programs were funded at the suggested
amount, Illinois would receive approximately 8,622 new vouchers
and $95.4 million to enable approximately 18,644 households to
avert eviction or obtain new housing with short-term assistance.
These measures would not only
help prevent an increase in homelessness but inject funds quickly
into local economies and help bolster local housing markets. All
or nearly all of the funds would be spent before the end of 2010,
the time frame when additional spending is badly needed to help
turn the economy around.
At the state level, Illinois needs to
find a way to pass a fiscal year 2010 budget that provides an adequate
safety net for people at-risk of or experiencing homelessness.
The EFS Program is an essential part of the state’s response
to homelessness along with homelessness prevention, permanent supportive
housing and other programs and deserves adequate funding to meet
the needs of people experiencing a housing crisis.
Housing Action Illinois’ mission is to increase and preserve
the supply of decent, affordable and accessible housing in Illinois,
particularly for households with the lowest incomes. They have
more than 150 organizational members statewide, including homeless
service providers, nonprofit housing developers and housing counseling
agencies.
Loan
Servicers Rarely Offer Relief to Illinois Homeowners Facing Foreclosure
Federal Moratorium on Foreclosures and Mandate to Modify Loans Needed
Click
here to download the press release as a PDF file.
Click here to download the entire report as a PDF file.
December 22, 2008—Even
as the number of home foreclosures continues to increase, 75% of
loan
servicers rarely agree to workout plans that allow homeowners in
Illinois to maintain their homes.
These survey findings, reported in Who's Serving Whom? Analyzing
The Frequency Of
Loan Servicer Modifications, provide evidence to support federal
legislation to systematically and automatically modify loan terms,
a temporary federal moratorium on home foreclosures until such
legislation becomes law, and other measures.
Housing Action Illinois conducted a survey of HUD-certified housing
counseling
agencies in September 2008 to determine how often specific loan servicers
offered
workout plans to homeowners in order to avoid foreclosure.
Nearly three-quarters, or 27 of the 38,servicers evaluated were
found to agree to
workout plans in less than one in four cases. Among those active
servicers with the
highest volume of loans who were found least likely to agree to
workout plans were:
• America's Servicing Company (a subsidiary of Wells Fargo)
• First Franklin Loan Services/Home Loan Services
• Bank of America
• Saxon Mortgage
• American Home Mortgage Servicing
• Aurora Loan Services (a subsidiary of Lehman Brothers Bank)
The other 11 other servicers were evaluated to agree to workout plans
at least half the
time or more: JPMorgan Chase, Chase (a subsidiary of JPMorgan Chase),
CitiMortgage (a subsidiary of Citi), Dovenmeuhle Mortgage, Litton
Loan Servicing, National City, Countrywide Home Loans (acquired
by Bank of America), Washington Mutual (acquired
by JPMorgan Chase), Liberty Savings Bank, Fifth Third Bank and
Everhome Loss
Mitigation.
However, the most popular type of workout plan offered was a repayment
plan, which is
of limited or no value to most homeowners at-risk of foreclosure
because there is no
change in loan terms and all past due principal and interest payments
in the loan must
be paid in full.
Refinances into a new affordable loan were almost
never offered; only 3% of counselors reported this often occurred.
Despite the difficulty in securing workout plans from servicers,
the survey results suggest that homeowners facing foreclosure are much better off seeking
assistance from a HUD-certified housing counseling agency. A September 2008 study by the State
Foreclosure Prevention Working Group showed that nearly 80% of
seriously delinquent homeowners were not engaged in any type of loss mitigation efforts and are
proceeding directly to foreclosure.
“In order to effectively address the current
and growing foreclosure crisis, the federal government needs to
mandate that servicers proactively modify the loan terms of homeowners
facing foreclosure,” said Bob Palmer, Policy Director
for Housing Action Illinois. “Without such a requirement,
sustainable loan modification plans that allow
families to remain in their homes are difficult to achieve, despite
the best efforts of HUD-certified housing counseling agencies and
the families who go to them for assistance.”
Housing Action Illinois’ mission is to increase
and preserve the supply of decent, affordable and accessible housing
in Illinois, particularly for households with the lowest incomes,
through three program areas: Education and Organizing; Public Policy
Advocacy; and Training and Technical Assistance. It has more than
150 organizational members statewide, including homeless service
providers, nonprofit housing developers and housing counseling
agencies. |