Authority Seeks 2nd Housing Assistance Program

Housing Authority Seeks Second Housing Assistance Program

HARWICH – The housing authority is seeking to put a second emergency support housing fund in place designed to assist needy residents on a short-term basis. The authority put one rental assistance program in place this fall using funds from the Community Preservation Act.

Housing Authority Chair Jennifer Thyng and Executive Director Valerie Foster were before selectmen Monday night seeking $50,000 from the town’s affordable housing special revenue fund to put the voucher program in place.

The fund, which collects revenues dedicated to affordable housing through the sale of town property and lease of the cell tower site in East Harwich, has accrued $1.3 million. The fund is administered by the board of selectmen for housing related purposes.

“It is the responsibility of the citizens of Harwich to help each other in times of need,” Thyng wrote to selectmen when making the request.

She said when the authority put in place the rental assistance revolving fund program this fall, they had a number of calls from people in need of short-term emergency support and rental assistance, but who could not qualify for that program because they could not afford to repay the money to the revolving account.

The rental assistance revolving fund provides needy residents with the first month, last month and security deposit, allowing people on limited incomes to fund upfront costs associated with rental housing with the understanding they will take a budgeting seminar and repay the loan.

“It’s been amazing to hear the stories of people who call,” Thyng said. “They say they can’t afford to pay it back so we’re trying to figure out another program to help these people.”

Thyng cited the plight of an 88-year-old resident who lives in affordable housing and whose social security check each month does not cover the cost of the rental. It is impossible for him to make ends meet, she said.

There are people who have committed to helping him out, buying groceries and helping with prescription drug expenses, but these generous acts cannot last forever, the housing authority chair said. This person has not asked for help from the authority, but is the kind of person the fund would assist, Thyng said.

The program is modeled after one in place through the Chatham Housing Authority. Harwich’s Executive Director Valerie Foster is also the director of the Chatham authority, where this program has won awards.

Foster identified two creative programs in place in Chatham: a buy-down program giving up to $60,000 for a first time homeowner, requiring a deed restriction in perpetuity; the other program is the rental assistance program similar to the one sought for Harwich. The authority would receive a small administrative fee for operating the program.

Chatham has a five-year cap and provides up to $400 per month for families. The goal of the program is to assist families in reaching self-sufficiency or home ownership. Recipients also must take budgeting courses and are encouraged to meet with a financial planner. In some instances the fund assists people who are on a lengthy waiting list for public housing.

“One of the keys to the program is to earn more and budget better,” Foster said.

Thyng said Harwich is starting to make strides in affordable housing now and she cited plans for the housing authority to have 12 more units in the next two years, as well as several non-profit developments looming.

“This is a way to help people now,” Thyng said.

Town Administrator James Merriam asked if the need is the result of cutbacks in federal and state housing programs. He said federal Section 8 voucher programs are shutting down and the burden is being shifted to the local level.

Foster said Harwich is not getting vouchers directly from the federal government and neither are the other Lower Cape towns. She said Harwich has one voucher which came from relocation of a Colorado resident. Gov. William Weld froze the state voucher program in 1991, she added.

Foster said these programs give people a step up, providing a little help in time of need. Thyng said it provides a little help during the winter or while people reach self sufficiency. It would provide the opportunity to help a family for six months, a year or even a couple of years, she said. The monthly cap would be $400 and be reviewed each year.

Thyng said they are seeking funding through the special revenue fund because it can be made available through selectmen now instead of waiting for a town meeting vote in the spring. The authority chair said they plan to request $100,000 in Community Preservation Act funds for next year.

“There is the Caleb Chase program and other programs out there,” Selectman David Marsland said. “There are a lot of people out there who can’t pay mortgages. How far are we going to go in helping people in these dilemmas?”

Selectman Peter Piekarski said this program does not help the town in reaching the state target of 10 percent affordable housing. Selectmen must decide whether they want to help people in town or try to reach that target, he said. Thyng added the town voted to set up the rental assistance fund to help people.

“I know at least 24 people who will be knocking down our door,” if this fund is established Thyng said.

Board of Selectmen Chairman Robin Wilkins called the request a pilot program run under a management system already in place, and a chance to develop baseline data on needs in Harwich.

Thyng told selectmen the town’s housing committee is supporting this request. Use of the fund requires support from that committee and it further requires two weeks of discussion by the board of selectmen before voting to commit the funds. Selectmen have scheduled a second session on use of the funds for Monday night.

11/1/07