In FY’05, the Legislature appropriated $2 million for RAFT, the state’s only comprehensive statewide program to address homelessness prevention for low-income families. RAFT assists families to obtain or retain housing by providing flexible funds for such needs as first/last month’s rent, security deposits, utility payments, and moving costs. In only five months of operation, this program provided much needed financial assistance to more than 1,250 families facing housing insecurities.

Unfortunately, the regional nonprofit housing agencies that administer the RAFT program were forced to shut down the program at the end of January 2005 due to insufficient funding. For FY’06, we urge the Legislature to increase funding for this program to $5 million so that this important tool can help more families and children to exit homelessness or avoid homelessness. In order to assist more families in need, we also recommend shifting the income eligibility limit from 130% of the federal poverty guideline to 50% of the area median income (AMI). This shift will account for regional cost and income differences and increase the effectiveness of RAFT in areas with higher rent levels.

There has been much discussion on both a national and local level regarding the creation of an early warning system. The First Stop Initiative places experienced advocates at neighborhood health centers to help consumers who are at risk of homelessness to access a range of resources, services, and cash benefit programs to stabilize their housing. The goal is to reach low-income households at the first signs of a housing crisis. The project acts as an early warning system that will result in earlier identification of people experiencing housing and income problems and allow for earlier intervention.

The Coalition has been piloting this new initiative at Codman Square Health Center in Boston. Outcome data collected through this pilot clearly shows that it is reaching people earlier in their crisis, allowing for more successful interventions. The Coalition urges the Legislature to provide the funds to expand this pilot initiative. Expansion will allow these prevention services to be provided in five health centers serving low-income communities in four regions of the state. This will make it possible to more fully test the effectiveness of a heath center based, early warning homelessness prevention system.

2. Protect and Improve the Income Support Program for Low Income Elderly and Disabled Households to Help Them Avoid Homelessness

EAEDC is the state’s income support program of last resort. To be eligible for EAEDC benefits, people must be destitute --- having less than $303 in monthly income and less than $250 in assets. Of all the program participants, 75% are receiving benefits because of a disability. For most EAEDC recipients, their grant is the only thing preventing them from becoming homeless and ending up in shelter.

The EAEDC grant amount has not been increased since 1988. During this time, the costs of purchasing housing, food, clothing and other basic needs have increased dramatically. (In fact, to keep pace with inflation, the EAEDC grant would need to be increased by $184 to $487/month.) Since 1988, Federal SSI benefits provided to disabled and elderly individuals have been increased by 48%, or $225/month, raising the monthly grant from $468 to $693/month.

For the second year in a row, the Governor has proposed drastic changes to the EAEDC program including mandatory work requirements for virtually all disabled EAEDC recipients. The Coalition urges the Legislature to reject these proposals, as it rejected the Governor’s proposed eligibility changes in FY’05.

Prior to the FY’03 budget, the income eligibility for Emergency Assistance family shelter was 130% of the federal poverty guideline ($24,500/year for a family of four). Due to budget constraints, the Legislature reduced the income cut off for EA to 100% of poverty ($18,800/year for family of four). Since there are only 54 spaces in the entire Commonwealth for families who do not qualify for state-funded shelter, these working poor parents have few, if any, options for finding a safe haven for their children. The resulting instability threatens the parents’ jobs and jeopardizes their children’s health and safety. Given the drop in the number of families in emergency shelter and the savings resulting from this decline, the Coalition estimates that continuing to fund the program at the FY’05 appropriation level is sufficient to cover the costs of this expanded income eligibility.

The Legislature included language in the FY’05 budget that allows families in EA shelter who exceed the income eligibility limit to retain their shelter benefits for an additional six months. This six-month grace period has encouraged families to maximize their income, and thus their chances, of locating affordable permanent housing. This policy has been important in allowing parents to keep a roof over their children’s heads while saving funds for the transition to permanent housing.

Language included in the FY’04 final budget and the FY’05 Conference Committee budget required DTA to track and report on all families applying for EA shelter, including those who are denied access. The three reports that have been released to date include important data on access, demographics, and program costs. Improved tracking and reporting requirements that include information on DTA’s pilot programs will encourage accountability and provide legislators, administrators, and advocates with information needed to improve the EA program and better address the needs of families experiencing homelessness.

The Massachusetts Rental Voucher Program continues to be one of the quickest and most cost effective responses to the need for affordable housing for the lowest income residents in the Commonwealth.

At least $34.2 million of funding for MRVPs will ensure that no household currently utilizing the Massachusetts Rental Voucher Program will pay more than 40% of their income towards rent. This restored funding could also assist more households by funding some of the 2,700 authorized mobile and project based vouchers that are not currently leased. Additionally, up to $10 million would create a voluntary demonstration program for working households. This program would provide subsidies to households that, over a period of five years, are able to significantly increase their income through assistance from and access to education and training opportunities, childcare, and other community supports.

 

For more information call 781 595-7570