Housing Assistance Afforded

 

Photo: Candor Visuals

Too many dollars chasing too few products is the oft-repeated explanation offered by economists as inflation rates rose last month to 7.5%. American consumers are facing higher rates at the grocery store, online, and at dealerships — don’t rush to purchase any Porsches or Bentleys, that won’t end well.  Making the cost of living worse, homebuyers and renters are experiencing life-changing sticker shock. National median home purchase prices are up over 20%, and the median cost of homes is now over $180,000 in the Wichita area. Construction costs and supply chain issues are uniquely affecting new building feasibility, and renovating existing structures involves similar challenges.

Can’t make the commitment to an inflated down payment? Renting options aren’t trending any better. Nationwide, rental prices elevated 14% from 2020 to 2021 .

Some current examples of reasonably affordable rental housing in the Wichita area reveal prices spanning the $400 to $1400 per month range, with square footage, number of bedrooms and bathrooms, and proximity to work, shopping destinations, and schools topping the list of rentee considerations.

How affordable are these prices for Wichita area buyers and renters? According to the Wichita Metro Area Occupational Wage Survey, Wichita MSA average annual pay is $44,923. That is $11,938 or 21% below the national metro area average of $56,861. Shelter is within reach for most, but recent increases have stretched  budgets beyond projections.

What federal and local assistance is being provided? Billions of dollars are flowing across the country, attributable to Housing and Urban Development (HUD), local housing authorities, and several charitable organizations. Here are some local entities which are charged with providing opportunity and assistance to those needing affordable housing, and to those willing to help provide it:

  • The Wichita Housing Authority (WHA) serves Sedgwick, Butler, and Harvey counties, each offers waiting  list alerts to allow buyers and renters to quickly respond to a limited supply of housing opportunities.

  • WHA Housing Choice Voucher (HCV) Program is designed to help income-eligible families pay their rent to private landlords. HUD determines the rules and regulations for the Housing Choice Voucher Program, eligibility is determined using 2018 Federal Adjusted Income Limits. The HCV Program allows families to choose the type of dwelling as long as it meets certain requirements. Eligible participants must choose a dwelling within Wichita City limits. The landlord retains private property rights, including management, tenant selection, and maintenance. Some qualified renters choose to purchase HCV properties.

  • Participants pay approximately 30 percent of their adjusted income directly to the landlord. WHA subsidizes the balance of the rent. The WHA currently administers over 2,500 vouchers, with a value of approximately $12M.

  • The City of Wichita administers Wichita Housing and Community Services, which helps allocate funding, and ensure compliance of federal and local rules. Some of the implementation of its goals are covered in its Annual Action Plan. The 2019-2023 Consolidated Plan provides a basis and strategy for the use of federal funds allocated to the City of Wichita by the U.S. Department of Housing and Urban Development (HUD). The City is scheduled to receive Community Development Block Grant (CDBG) funding in the amount of $2,968,676, HOME Investment Partnerships Program (HOME Program) funding in the amount of $1,519,843, and Emergency Solutions Grant (ESG) funding in the amount of $250,208.

  • The City of Wichita is an Entitlement City and as such, receives funding directly from HUD according to a formula, and in amounts determined by Congressional appropriations.

  • Following are the fund categories which are a part of the City's Entitlement allocations:

    Community Development Block Grant (CDBG)

    HOME Investment Partnerships Program (HOME)

    Emergency Solutions Grant (ESG)

  • Each year, the City Council appoints a Grants Review Committee (GRC), which includes representation from the six City Council districts, Unified School District 259, Wichita State University, large and small business, Wichita Independent Neighborhood Association, United Way of the Plains, and Sedgwick County. The GRC reviews proposals for CDBG-funded public service activities, including funding for domestic violence shelter services, youth crime prevention and enrichment and proposals for HOME Investment Partnerships Program CHDO Set-Aside funding

HUD boasts several recent goals and successes: to nationally involve narrowing the digital divide between users and mortgage-related service providers, streamline data services, reduce fraud and abuse, and to improve the quality of data collection. HUD budgeted $41.3 Billion in 2021 for housing services to assist American homebuyers and renters, with allocations targeted toward disabled and homeless residents. Another $5 billion was added last year through the American Rescue Plan.

The Cares Act allowed HUD to waive some statutes and regulations for public housing, and expanded HCVs for new applicants while helping others retain housing. The Wichita Housing Authority Landlord Incentive Program attempts to help area homeless people connect to, and navigate, WHA programs.

 
Steve Witherspoon