The Role of Housing in Welfare Reform: The Experience of the North Carolina

TANF/Housing Pilot Program

William M. Rohe, Ph.D.William M. Rohe, Ph.D.

Center for Urban and Regional StudiesCenter for Urban and Regional Studies

University of North Carolina at Chapel HillUniversity of North Carolina at Chapel Hill

  

  

TANF Reauthorization and Housing Policy: TANF Reauthorization and Housing Policy: Crosscutting Implications  Crosscutting Implications  

April 12, 2002April 12, 2002

Four questions:

1.1. Why were welfare agencies in N.C. interested in Why were welfare agencies in N.C. interested in using TANF funds for housing?using TANF funds for housing?  

2.2. How does the N.C. TANF/Housing Pilot work?How does the N.C. TANF/Housing Pilot work?

3.3. How does current policy constrain the use of How does current policy constrain the use of TANF funds for housing?TANF funds for housing?

4.4. What changes in federal policy are needed?What changes in federal policy are needed?

Social service agencies support the use of TANF funds for housing because:

They have seen the debilitating impacts of They have seen the debilitating impacts of inadequate housing. Inadequate housing includes:inadequate housing. Inadequate housing includes:

Poor housing qualityPoor housing quality Lack of affordable housingLack of affordable housing Poorly located unitsPoorly located units

   They understand that the prospect of decent They understand that the prospect of decent

housing can be a motivatorhousing can be a motivator

Key elements of the N.C.

TANF/Housing Pilot Program Goal was to “assist as many TANF-eligible families as possible Goal was to “assist as many TANF-eligible families as possible

secure decent, affordable housing.” secure decent, affordable housing.” 

Competitive grant process with $3 million set- aside of TANF Competitive grant process with $3 million set- aside of TANF funds going to coalitions of welfare, housing and training funds going to coalitions of welfare, housing and training organizationsorganizations

Minimum 50% cash match Minimum 50% cash match 

Eligibility criteria include: TANF eligible families (200% of Eligibility criteria include: TANF eligible families (200% of poverty level) and employed or in job training 20 hrs./weekpoverty level) and employed or in job training 20 hrs./week

Time frame: January 2001 – June 2002. Reauthorized through Time frame: January 2001 – June 2002. Reauthorized through June 2003.June 2003.

Pilot program characteristics Eight counties selected to participate. Grants from $217K – $472KEight counties selected to participate. Grants from $217K – $472K   County coalitions included between 3 and 15 agenciesCounty coalitions included between 3 and 15 agencies

Housing activities include:Housing activities include:  

Long- term rental assistanceLong- term rental assistance Short- term rental assistanceShort- term rental assistance Down payment assistance (IDAs)Down payment assistance (IDAs) Housing counseling and educationHousing counseling and education Referral servicesReferral services

   Support services include:Support services include:  

Job trainingJob training Transportation assistanceTransportation assistance Childcare assistanceChildcare assistance Conflict resolutionConflict resolution Substance abuse/ mental health servicesSubstance abuse/ mental health services

   Wide range of clients targeted Wide range of clients targeted

Pilot Impacts after one year:

A total of 1,398 clients servedA total of 1,398 clients served   386 families received rental assistance386 families received rental assistance   21 families bought homes21 families bought homes   16 families moved into non-subsidized units16 families moved into non-subsidized units

Lasting interagency partnerships formedLasting interagency partnerships formed

How does current policy constrain the use of TANF for housing?

Long term rental benefits to working families Long term rental benefits to working families are defined as “assistance” unlike are defined as “assistance” unlike transportation and child care benefitstransportation and child care benefits

The definition of the work requirement in the The definition of the work requirement in the Pilot program prohibits full-time educationPilot program prohibits full-time education

What changes are needed in TANF

policy?

Housing assistance provided to working Housing assistance provided to working families should be considered “non families should be considered “non assistance”assistance”

Allow education to substitute for the Allow education to substitute for the work requirementwork requirement