CHICAGO, IL – U.S. Representative Jan Schakowsky (D-IL)
keynoted the 11th annual Chicago Low-income Housing Trust Fund
meeting. The Trust Fund, which was created by the Chicago City
Council in 1989, oversees rental assistance programs designed to
help owners and developers provide reduced rents to low-income
residents. Last year, the Trust Fund used $10.3 million to help
2,172 low-income households. “For more
than a decade, the Chicago Low-income Housing Trust Fund has laid
down the foundation and directed the programs that have helped
thousands of people in Chicago. Your work has benefited families in
need of decent and affordable housing, and together, we can expand
on your success, increase public investment, and help bring the
housing crisis to an end,” said Schakowsky, a member of the
Subcommittee on Housing and Community
Opportunity.
During her speech, Schakowsky discussed efforts to increase
federal funding for housing needs. In Chicago alone, there is a need
for over 150,000 units of affordable housing, and there are more
than 34,000 households on the waiting list for housing
vouchers. She also reviewed her plans to continue her attack
on predatory practices in the mortgage industry such as high
interest rates, single premium insurance products, loan flipping and
churning, unilateral call provisions, and loans made without regard
to the borrower’s ability to
pay.
In addition, Schakowsky announced her intentions to
introduce legislation that will help seniors and families remain in
their apartments even after building owners “opt out” of the Section
8 program. Numerous seniors and families have been forced to
move out of their communities because of current law, and by 2005,
the Chicago area could lose over 20,000 more affordable housing
units due to Section 8 opt-outs.
Below is the full text of Schakowsky’s
speech:
SPEECH BY U.S. REPRESENTATIVE JAN SCHAKOWSKY
(D-IL)
CHICAGO LOW-INCOME HOUSING TRUST
FUND ANNUAL
MEETING JUNE 19,
2001
I want to thank Mr. Thomas McNulty for inviting me to be
with you, today. In fact, I want to thank you all for being
here because, without you, the affordable housing crisis that we
face in Chicago would be far worse than it already is. I don’t
have to tell any of you how dire the affordable housing situation is
today in Chicago and across the country. According to the
National Low Income Housing Coalition:
- If you are a Chicago family who needs three bedrooms, then
you need to earn at least $19 per hour to afford a fair market
rent apartment in Chicago. If you’re lucky, and only need
two bedrooms, then you only have to earn $15 per
hour.
- If you are really lucky and all of your children have
grown up and moved out, then you only have to earn $13 an hour for
the fair market rent on a one-bedroom
apartment.
- But if you only earn a minimum wage, then you need to work
99 hours a week to afford that apartment.
Unfortunately, too many in Chicago have to deal with the
luck of the invisible hand. In the Chicago area, we need over
150,000 units of affordable housing. On top of that, by 2005,
the Chicago area could lose over 20,000 more affordable housing
units due to Section 8 opt-outs. Even homeowners are under the
gun. Because of predatory lending, foreclosures in Cook County
jumped from 131 in 1993 to nearly 5000 in 1998. This also
hurts their neighbors who suffer lower property values and the City
of Chicago, which loses valuable property tax revenues that could be
used for programs like the Trust
Fund.
Certainly these pressures are what’s causing the increase in
homelessness. The Urban Institute’s latest survey found that
two-thirds of homeless people cited financial pressures as the cause
of their homelessness. If we are going to solve this crisis,
then the Federal government has to step up to the plate and join in
the tremendous effort that the Trust Fund—that you—are
making.
The Bush administration, however, is striking out. Last
year’s HUD Budget was $32.4 billion, which was the largest budget in
twenty years. Still, it was not enough and far from adequate
to meet the growing needs for affordable housing of families,
seniors, and thousands of others. Yet the Bush Administration,
with this crisis staring them in the face, decided to cut nearly $2
billion from HUD’s 2002 budget.
The President has laid out a blueprint that cuts $200
million from the HOME program, an initiative that has helped so many
and one which you use to build and provide affordable rental housing
when the need is so great and when we need to build up, not cut
back. And he wants to cut $422 million from the Community
Development Block Grant fund, which helps to create jobs, spur
community growth, and aid in economic viability and
prosperity. And the budget completely phases out the Drug
Elimination Grant program ($310 million) and hurts our efforts in
Chicago to hire more cops and provide drug treatment to make public
housing communities safe for families and
seniors.
This budget also raises FHA mortgage insurance fees ($100
million) and makes it more difficult to build moderately priced
rental apartments or make homeownership a reality for thousands of
families.
Just as alarming is that this Administration believes that
they can fool us just because they requested token increases for
some initiatives. Looking closely at Administration’s budget,
I am appalled that they only want to provide 34,000 new rental
vouchers nationwide. In Chicago, alone, we have more than 34,000
households on the waiting list for vouchers. We need
more.
Section 8 Renewals are fully funded, and that’s a
relief. But that doesn’t necessarily stop landlords from
opting-out of the Section 8 program and the increase won’t build one
more replacement housing unit. And the budget provides a $150
million increase to the Public Housing Operating Fund, but that is
outstripped by dramatically higher energy
costs.
HUD is even refusing to release $40 million in funds that is
already has to insure construction of much needed affordable rental
units. Because HUD refuses to fund the program, 3 projects in
Chicago with 875 units worth $34.5 million in mortgages are stuck in
limbo because of HUD’s decision. And the President is willing
let this crisis fester—virtually standing by and watching families
tossed in the streets—to pay for his unfair and irresponsible $2
trillion dollar tax cut. He would rather give the top 1%
wealthiest Americans, all of whom have a solid roof over their
heads, 38% of the benefit than give decent, affordable housing to
families in need.
We can fight this. We must fight this. At a time
when home ownership is at an all time high, 66%, hundred of
thousands of people in cities and towns are facing a housing
crisis. We cannot stand aside and ignore these facts. We
must build more affordable housing and Congress and the President
need to make this effort a
priority.
I am also going to introduce legislation that will help
preserve access to affordable housing. As you all know, the
Section 8 opt-out crisis has spawned the “enhanced” voucher so
seniors can afford the new, higher rents their building after it
opts-out. But enhanced vouchers aren’t enhanced when the
building goes condo and the seniors are forced to move out.
When they move, that voucher loses it “enhanced” funding and seniors
are forced to leave their communities—their friends and support
services—for lower cost neighborhoods in other parts of town.
My legislation will change that rule and let people stay in their
neighborhood.
Congress must also pass legislation to help preserve
affordable housing buildings. I support helping non-profits,
that are committed to preserving affordable housing, buy and
maintain current stock from landlords who are no longer interested
in this business. The landlords may not need it, but our
communities certainly do.
But it’s not just the renters who are in trouble.
Homeowners also face the problem of predatory lending. That’s
why I was the first to introduce predatory lending legislation, last
session. I will be reintroducing this bill again this year and
with your help, we can drive those thieves out of
business.
But this really isn’t just about policy. It is about
making the commitment that every person in this country will have a
safe, decent, and affordable place to live, and ensuring that we use
our resources to make that happen. It is immoral to waste
trillions of dollars on tax cuts that benefit the wealthy, while
threatening and even eliminating public investments that help
millions.
Last week, Alderman Suarez and Jack Markowski joined me in
Washington to press Bush officials to support a national affordable
housing trust fund. You’ve laid down the foundation and you’ve
directed programs that work here at home. You’ve helped
thousands and made a believer out of all of us here in
Chicago. Now, the time has come for a national trust fund.
Today, I am returning to Washington to join Rep. Bernie Sanders in
introducing his Affordable Housing Trust Fund. We need billions
more, not billions less, and we need to be able to count on
it. This fund will commit a permanent stream of money to
address the concerns of the families and seniors who can’t afford
the rising cost of housing.
Right here in Chicago, we know the benefits of the Trust
Fund. Right here in Chicago, we have figured out how to
provide decent, affordable housing which is so critical to the well
beings of our families and our communities. That’s your
example. It’s time to take it all across America. Thank
you for letting me be a part of that
effort. |