Housing Trust Funds: Barriers and Opportunities
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CitizensCitizens ResearResearchch CCouncilouncil ofof MichiganMichigan HousingHousing TrustTrust Funds:Funds: BarriersBarriers andand OppOpporortunitiestunities DecemberDecember 20092009 RepReporortt 358358 CCELEBRELEBRAATINGTING 9393 YYEARSEARS OFOF IINDEPENDENTNDEPENDENT,, NNONPONPARARTISANTISAN PPUBLICUBLIC PPOLICOLICYY RRESEARCHESEARCH ININ MMICHIGANICHIGAN Board of Directors Chairman Vice Chairman Treasurer Eugene A. Gargaro, Jr. Jeffrey D. Bergeron Nick A. Khouri Joseph R. Angileri Eugene A. Gargaro, Jr. Bryan Roosa Deloitte. Masco Corporation General Motors Corporation Jeffrey D. Bergeron Ingrid A. Gregg Lynda Rossi Ernst & Young LLP Earhart Foundation Blue Cross Blue Shield of Michigan John T. Bozzella Marybeth S. Howe Jerry E. Rush Chrysler Group LLC Wells Fargo Bank ArvinMeritor, Inc. Beth Chappell Nick A. Khouri Michael A. Semanco Detroit Economic Club DTE Energy Company Hennessey Capital LLC Rick DiBartolomeo Daniel T. Lis Terence A. Thomas, Sr. Rehmann Kelly Services, Inc. St. John Health Terence M. Donnelly Aleksandra A. Miziolek Amanda Van Dusen Dickinson Wright PLLC Dykema Gossett PLLC Miller, Canfield, Paddock and Randall W. Eberts Cathy H. Nash Stone PLC W. E. Upjohn Institute Citizens Bank Kent J. Vana David O. Egner Paul R. Obermeyer Varnum, Riddering, Schmidt & Hudson-Webber Foundation Comerica Bank Howlett LLP Advisory Director Louis Betanzos Board of Trustees Chairman Vice Chairman Patrick J. Ledwidge Mark A. Murray Terence E. Adderley Roderick D. Gillum William L. Matthews Irving Rose Kelly Services, Inc. General Motors Corporation Plante & Moran PLLC Edward Rose & Sons Jeffrey D. Bergeron Allan D. Gilmour Kenneth J. Matzick Gary D. Russi Ernst & Young LLP Alfred R. Glancy III Beaumont Hospitals Oakland University Stephanie W. Bergeron Unico Investment Group LLC Sarah L. McClelland Nancy M. Schlichting Walsh College Thomas J. Haas Chase Henry Ford Health System David P. Boyle Grand Valley State University Paul W. McCracken John M. Schreuder National City Bank/PNC James S. Hilboldt University of Michigan, Emeritus First National Bank of Michigan Beth Chappell The Connable Office, Inc. Patrick M. McQueen Lloyd A. Semple Detroit Economic Club Paul C. Hillegonds The PrivateBank Dykema Mary Sue Coleman DTE Energy Company Robert Milewski Lou Anna K. Simon University of Michigan David L. Hunke Blue Cross Blue Shield of Michigan Michigan State University Matthew P. Cullen USA Today Glenn D. Mroz Rebecca Smith Rock Enterprises Dorothy A. Johnson Michigan Technological University Huntington National Bank Tarik Daoud Ahlburg Company Mark A. Murray Gerard L. Stockhausen Long Family Service Center F. Martin Johnson Meijer Inc. University of Detroit Mercy Stephen R. D’Arcy JSJ Corporation Cathy H. Nash S. Martin Taylor Detroit Medical Center Elliot Joseph Citizens Bank Amanda Van Dusen James N. De Boer, Jr. Hartford Hospital James M. Nicholson Miller, Canfield, Paddock and Stone Varnum, Riddering, Schmidt & Howlett DanielLLP J. Kelly PVS Chemicals PLC John M. Dunn Deloitte. Retired Jay Noren Kent J. Vana Western Michigan University David B. Kennedy Wayne State University Varnum, Riddering, Schmidt & Howlett LLP David O. Egner Earhart Foundation Donald R. Parfet Hudson-Webber Foundation Patrick J. Ledwidge Apjohn Group LLC Theodore J. Vogel CMS Energy Corporation David L. Eisler Dickinson Wright PLLC Sandra E. Pierce Ferris State University Edward C. Levy, Jr. Charter One Gail L. Warden Edw. C. Levy Co. Henry Ford Health System, David G. Frey Philip H. Power Emeritus Frey Foundation Daniel Little The Center for Michigan Jeffrey K. Willemain Mark Gaffney University of Michigan-Dearborn Keith A. Pretty Deloitte. Michigan State AFL-CIO Sam Logan Northwood University Leslie E. Wong Eugene A. Gargaro, Jr. Michigan Chronicle John Rakolta Jr. Northern Michigan University Masco Corporation Arend D. Lubbers Walbridge Ralph J. Gerson Grand Valley State University, Emeritus Michael Rao Guardian Industries Corporation Alphonse S. Lucarelli Virginia Commonwealth University Eric R. Gilbertson Susan W. Martin Douglas B. Roberts Saginaw Valley State University Eastern Michigan University IPPSR- Michigan State University Citizens Research Council of Michigan is a tax deductible 501(c)(3) organization Citizens Research Council of Michigan Housing Trust Funds: Barriers and Opportunities December 2009 Report 358 This report was prepared at the request of the Northwest Michigan Council of Governments and was funded in part by the Northwest Michigan Council of Governments and the Community Economic Development Association of Michigan. CITIZENS RESEARCH COUNCIL OF MICHIGAN MAIN OFFICE 38777 West Six Mile Road, Suite 208 • Livonia, MI 48152-3974 • 734 -542-8001 • Fax 734-542-8004 LANSING OFFICE 124 West Allegan, Suite 620 • Lansing, MI 48933-1738 • 517-485-9444 • Fax 517-485-0423 CRCMICH.ORG HOUSING TRUST FUNDS: BARRIERS AND OPPORTUNITIES Contents Summary........................................................................................................................................................... v Introduction .....................................................................................................................................................1 Housing Trust Funds ................................................................................................................................................................ 1 Income and Housing................................................................................................................................................................ 2 Poverty Threshold and Poverty Guidelines ........................................................................................................... 3 Area Median Family Income ......................................................................................................................................... 5 Homelessness ................................................................................................................................................................... 8 Minimum Wage ................................................................................................................................................................. 9 Fair Market Rent .............................................................................................................................................................. 10 For Sale Housing ............................................................................................................................................................. 13 High Cost Mortgages .................................................................................................................................................... 18 Vacant Housing Units ................................................................................................................................................... 18 New Home Construction ........................................................................................................................................... 20 Migration ........................................................................................................................................................................... 21 Federal Housing Programs .........................................................................................................................22 Department of Housing and Urban Development ................................................................................................... 22 American Recovery and Reinvestment Act of 2009 ................................................................................................ 24 National Affordable Housing Trust Fund ....................................................................................................................... 25 Michigan State Constitutional Issues ..................................................................................................... 27 The Internal Improvements Clause ................................................................................................................................ 27 Lending of Credit .................................................................................................................................................................... 29 State .................................................................................................................................................................................... 29 City or Village..................................................................................................................................................................30 Supreme Court Advisory Opinion ...................................................................................................................................30 Headlee Amendment ........................................................................................................................................................... 31 Michigan Housing and Community Development Trust................................................................... 32 Michigan State Housing Development Authority...................................................................................................... 32 State Housing Trust ...............................................................................................................................................................