January 11, 2010
Written Statement of:
Floyd O. May, Managing Director
National Organization of African Americans in Housing
Submitted to:
House Financial Services Sub-Committee on Housing and Community Opportunity
Hearing on " H.R. Bill 476: To Authorize funds to prevent housing discrimination through the use of nationwide testing, to increase funds for the Fair Housing Initiatives Program, and for other purposes."
The National Organization of African Americans in Housing, (NOAAH) is a National Membership Organization of proactive housing advocates; formed in 1998 to partner with industry and government to design and implement fair housing policies and programs, as well as innovative strategies that improve the quality of housing services delivery, and to promote healthy vibrant communities. Included in the NOAAH Membership are former HUD officials, executive directors of public housing authorities, state housing finance agencies, resident leadership groups, private groups and businesses.
NOAAH commends the Sub-Committee and the sponsors of H.R. 476 for introducing this bill and strongly urges the passage of H.R. 476. The history of housing discrimination in this country remains a significant problem for minorities and members of the protected classes from enjoying their full citizenship rights under the Constitution.
Since the passage of the Fair Housing Act of 1968, and the subsequent Fair Housing Amendments Act of 1988, The United States Department of Housing and Urban Development (HUD) has had the responsibility to "further fair housing" and investigate allegations of housing discrimination.
In FY 1990, HUD'S annual report, on Fair Housing, showed that it received 7,483 complaints of housing discrimination. In FY 2008, HUD's annual report, on Fair Housing, disclosed that HUD and Fair Housing Assistance Agencies received 10, 552 complaints of housing discrimination. The 10,552 complaint receipts were the highest number of complaints ever received.
Notwithstanding, the record number of complaint receipts in FY'08, estimates on the number of actual discriminatory housing incidents annually encountered, but unreported, substantially exceeds that number. HUD estimated during the mid-1990's that 2 to 10 million incidents of discrimination occurred in the housing market during the period from 1977 to 1987, (there is no recent national data on the incidence of discrimination that rely on objective and scientific methods.)
We share the view held by many researchers and advocates that housing discrimination impedes housing choice because of the following reasons:
- Real estate and lending professionals still do not comply with fair housing laws
- Affordable housing for low-and moderate-income households and handicapped accessible housing is available in a small and decreasing number
- Households may not consider housing opportunities across a broad range of neighborhoods that provide a desired quality of life and contain quality affordable housing
- Certain members of protected classes exhibit low levels of home buying literacy and high proportions of having no credit history or a blemished credit history
FAIR HOUSING TESTING
NOAAH supports and advocates for increased allocations in the HUD budget to provide Fair Housing Testing. Fair Housing testing has proven to be a very effective tool to measure the quality, quantity and content of information and customer service given to potential home seekers. Its' further use; as an investigative tool, challenges respondents to provide affirmative defenses, for their alleged discriminatory practices, in denying housing to members of the protected classes.
ROLE OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
The Secretary, of the Department of Housing and Urban Development, is responsible to ensure that aggressive enforcement of Title VIII is achieved. In recent years, the Department of HUD has been widely criticized for its lackluster performance in reducing housing discrimination. Some of the Department's critics have alleged that current HUD programs, policies, and practices have contributed to increased levels of housing discrimination.
HUD is currently developing a new 5 year strategic plan. We are concerned that the Department's current draft strategic plan fails to demonstrate a strong commitment to HUD's responsibilities to reduce the increasing levels of housing discrimination.
The draft mission statement calls for HUD to invest in quality; affordable homes, build strong, safe, and healthy communities, for all. The current mission statement of HUD, called for the Deparment to provide decent, safe and sanitary housing "in a nondiscriminatory manner." The Department's omission in identifying that the elimination of housing discrimination, in its draft mission statement, as part of its core values and mission, is very troubling.
We are further troubled that HUD fails to identify that the elimination of housing discrimination is one of its 5 goals:
1. To repair the nation's economy and housing market
2. To promote affordable rental housing
3. To utilize housing as a platform for improving quality of life
4. To build inclusive and sustainable communities of opportunity
5. To transform the way HUD does business
Notwithstanding, the Department's current poor demonstration of its commitment to aggressively reduce the high levels of housing discrimination, in both the rental and sales housing markets, NOAAH does not support the removal of the Office of Fair Housing and Equal Opportunity from HUD, and establishing it as a separate commission. NOAAH strongly believes that the responsibility for Fair Housing is appropriately seated at the Department of Housing and Urban Development. The Secretary of HUD needs to be reminded and directed that he is responsible and accountable to aggressively combat illegal housing discrimination in all housing programs. To accomplish that end, NOAAH offers the following recommendations:
- Require all HUD Assistant Secretaries to share responsibility for Fair Housing compliance in all HUD programs
- Provide adequate budgetary authority to staff the Office of Fair Housing and Equal Opportunity
- Revive the President's Fair Housing Council
- Strengthen compliance by furthering Fair Housing obligations by Federal Grantees
- The HUD Secretary should create a strong Fair Housing Education Campaign
- The elimination of Housing Discrimination should be identified as a HUD strategic goal
NOAAH appreciates the opportunity to submit this statement to the Sub-Committee regarding H.R. 476 and urges Congress to pass it, and increase funding for the Fair Housing Assistance and Fair Housing Initiatives Programs. We are available to expand our views regarding Fair Housing to the Sub-Committee, if requested.
Respectfully Submitted,
Floyd O. May, NOAAH Managing Director
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On October 29, the Senate Housing, Transportation, and Community Development Subcommittee held a hearing on bills to modernize the Section 202 Housing for the Elderly and Section 811 Housing for Persons with Disabilities programs. At the beginning of the hearing, Senate Banking, Housing, and Urban Affairs Committee Chairman Chris Dodd (D-CT) stated he would make sure the Committee considers these important bills soon.
Representative Chris Murphy (D-CT) testified in support of S. 1481, the Frank Melville Supportive Housing Investment Act, which would modernize the Section 811 program, create a competitive project-rental assistance contract (PRAC) demonstration program, and transfer approximately 14,000 Section 811 vouchers to the Section 8 program. Under the bill, state HFAs and local governments will be eligible to compete for the PRAC-only demonstration. Murphy is the lead sponsor of companion legislation, H.R. 1675, which passed the House in July. S. 1481 was introduced by Housing Subcommittee Chairman Robert Menendez (D-NJ) on July 21.
Ann O’Hara testified in support of S. 1481 on behalf of the Consortium for Citizens with Disabilities Housing Task Force. O’Hara stated that the demonstration program included in the bill could create 2,000 to 3,000 more units per year than the program’s current production number of just under 1,000 units, without requiring an increase in appropriations. She also commented that states are struggling with the Olmstead Act mandate requiring states to move people out of institutions and into the community and that the units built by the Section 811 program can help states meet this requirement.
Michelle Norris, from National Church Residences, testifying on behalf of the American Association of Homes and Services for the Aging, and Toby Halliday, testifying on behalf of the National Housing Trust, testified in support of the Section 202 Supportive Housing for the Elderly Act of 2009, S. 118.
S. 118 would simplify and streamline the process for producing and preserving Section 202 housing stock. It directs the Secretary to carry out a demonstration program, in no more than five states, to sell to state HFAs portfolios of mortgages associated with loans related to supportive housing for the elderly. The bill would also require the Secretary to permit an owner of assisted housing to give a preference in tenant selection to the homeless elderly. The bill was introduced by Senator Herb Kohl (D-WI) in January. The text of S. 118 is included in a broader housing preservation bill in the House that has not yet been introduced.
Sheila Crowley, CEO of the National Low Income Housing Coalition, testified in support of both bills. Crowley testified that demand for housing for persons with disabilities and for the elderly far exceeds supply and that passing these two bills along with enacting Section 8 Voucher Reform Act (SEVRA) legislation and funding the National Housing Trust Fund would help address the need.
In response to Menendez’s question on why the Section 811 bill would greatly increase production and what benefit is created by the demonstration program, O’Hara responded that the number of units produced would increase dramatically because they would be utilizing existing affordable rental units and making them affordable to people on Social Security or Social Security Disability Insurance instead of building the unit and then making it affordable. She stated that the demonstration program would assist in addressing state Olmstead mandates because a major barrier to leaving state nursing homes is the need for accessible housing and those units are already being produced in the Housing Credit program.
Senator Kohl asked the panel what they saw as the main challenge facing the Section 202 program in coming years. Crowley and Halliday both replied that the aging housing stock and need for preservation is a major challenge facing this program; the Section 202 program is 50 years old this year.