Issue: The federal government had a big role to play in creating the housing crisis that has created homelessness as we know it today. It also has a big role to play in solving homelessness. Trying to solve what is a problem of poverty coupled with a severe shortage of affordable housing primarily through funding to provide social services to people who are homeless doesn’t address the structural problem. A number of groups are offering more comprehensive solutions and organizing a grassroots base to pressure the federal government to address the problem more broadly. One solution being proposed is the creation of a national Housing Trust Fund.

Background: 5,600 groups across the country (including Real Change) have endorsed the effort to establish a National Housing Trust Fund, which would be a dedicated source of funds for low-income housing production and would provide the resources to build and preserve 1.5 million units of housing over the next decade.

In Washington, the state Housing Trust Fund was increased to $130 million in the budget that the legislature just passed. While the increase was less than advocates had hoped, that it was increased at all is a testament to its effectiveness given the limitations on the capital budget this biennium. The state Housing Trust Fund is part of the funding package for the large majority of affordable housing units created in Washington.

Housing trust funds provide a steady stream of reliable revenue to support the complexities of the housing industry. Because the funds are dedicated, they are usually the most flexible money available for affordable housing. That allows for maximum efficiency in the use of these funds while it encourages leveraging of other public and private dollars. The state’s trust fund leverages additional dollars at a rate of four to one.

Over the past 25 years, we’ve seen a decline in housing production funding at the federal level for very low-income people. While government spending on housing overall seems to have grown, tax expenditures — such as the mortgage interest deduction — account for more and more of that growth and spending on housing overall. In other words, the federal government hasn’t stopped funding housing — it’s just shifted from producing housing for poor people to providing housing subsidies for the middle class. Creating a Housing Trust Fund would be a step toward finding a better balance.

Action: While there is no specific legislation yet, at the end of March, Rep. Barney Frank (D - MA) was successful in adding an amendment to a regulatory reform bill that would pave the way for a National Housing Trust Fund, and advocates expect a bill creating a fund to be introduced in May.

Contact your U.S. Senators and Representative and ask them to support the creation of a National Housing Trust Fund.

For more information visit www.nlihc.org.

Rep. Jay Inslee (D - 1st Dist.), 1-800-422-5521
jay.inslee@mail.house.gov

Rep. Rick Larsen (D - 2nd), 1-800-562-1385
rick.larsen@mail.house.gov

Rep. Jim McDermott, (D - 7th), 206-553-7170
www.house.gov/mcdermott

Rep. Dave Reichert (R - 8th), 206-275-3438
www.house.gov/reichert

Rep. Adam Smith (D - 9th), 1-800-764-8409
www.house.gov/adamsmith

Senator Patty Murray (D), 206-553-5545
www.murray.senate.gov/email

Sen. Maria Cantwell (D), 206-220-6400
maria_cantwell@cantwell.senate.gov