NJ Department of Human Services Division of Family

NJ Department of Human Services Division of Family Development (DFD)

Why is housing important to TANF recipients in NJ? C New Jersey has the highest housing costs in the country C In a Dec. 2001 report, the Anti-Poverty Network of New Jersey stated that: è 22. 8% of low-income families experienced “housing hardship” in 1999 (unable to pay rent, mortgage or utilities during previous 12 months) èIn 2000, 44% of renters in NJ were unable to afford the Fair Market Rent for a 2 -BR unit. C Many of our low-income families are one crisis away from returning to welfare C New Jersey’s housing initiatives are helping low-income working families stabilize their finances, minimize financial crisis and, where feasible, become first-time home buyers

Housing Assistance Program (HAP) u. Created in 1997 as partnership between DHS & NJ Dept. of Community Affairs (DCA) u. Provided temporary housing subsidies to eligible WFNJ families transitioning to work u. Administered by DCA & funded by DFD ($6 M for 3 year period. . . $2 M per year) u. Subsidy reduced as client’s income increased. Savings from reduced subsidy were put into client’s escrow account, to help with future costs 350 clients assisted in 5 major urban cities

Long Term Support Program Supportive Housing Demonstration Program (SHDP) A Public / Private Partnership

Goals of LTSP SHDP 1. Permanent 2. Affordable 3. Linked to Residential Support Services 4. Geographically Distributed 5. Partnerships

Overview of LTSP Legal Services of New Jersey Case Management Initiative Supportive Housing Demonstration Program All LTSP Program Participants 941 80 to 100 Participants Assist LTSP Participants in Applying for SSI or Appealing Denial of SSI Conduct Needs Assessment Create Affordable, Permanent and Provide Case Management Housing Opportunities Refer Inappropriately Housed Connected with Residential to SHDP Support Services

Other Innovative Approaches Social Services for the Homeless C State(SSH) appropriation of $8 M to C Each county receives an annual assist families and individuals who allocation to provide services are working and homeless or at under contract with DFD. imminent risk of becoming homeless C Additional $2 M in TANF funds ( and are not eligible for WFNJ). allocated to augment SSH services C Services include: emergency food for working families with incomes and shelter, payment of back rent up to 250% of the federal poverty or utilities and security deposits, etc. level. Provides non-recurring, short-term assistance (not beyond C SSH serves 100, 000 people 4 months). annually.

Other Innovative Approaches TANF funding used to wrap around Section 8 Vouchers C $4 M in TANF dollars set aside to help clients utilize their Section 8 Certificates C Extremely low vacancy rate makes finding a landlord to accept Section 8 difficult C Funds can be used for security deposits, moving or other expenses C Allows payments to landlords while repairs are made to bring a unit up to Section 8 standards

Other Innovative Approaches Housing Subsidy Program (MOE monies) C Ongoing rental assistance or one-time expenses, such as moving costs, utility turn-on or security deposit C Current & former TANF clients with earned income up to 150% of FPL, spending 40% or more of income on rent C TANF recipients who are employed and working at least 20 hrs. per week for the past 4 months C Must voluntarily close their welfare case C Assistance up to 24 months

Issues in using TANF funds for Housing TANF final regulations define housing as “assistance” Therefore, payments toward housing costs for a working family could make their TANF clock run (after 4 months) Recommend treating housing like transportation, child care and Medicaid

Key Contacts C Liza Nolan, New Jersey Program Director Corporation for Supportive Housing (CSH) 609 -392 -7820; fax 609 -392 -7818 liza. nolan@csh. org C Larry Hatton Department of Human Services Policy and Planning 698 -984 -9335; fax 609 -984 -7380 Larry. Hatton@dhs. state. nj. us C Barbara De. Graaf NJ Division of Family Development 609 -588 -2405; fax 609 -588 -3369 Barbara. Degraaf@dhs. state. nj. us