Opening Doors, July 2007, Issue 30

 

Priced Out in 2006:

People with Disabilities Left Behind and Left Out of National Housing Policy

 

By Ann O’Hara, Emily Cooper, Andrew Zovistoski, and Jonathan Buttrick

 

 

Introduction

 

Across the United States in 2006, people with disabilities with the lowest incomes faced an extreme housing affordability crisis as rents for moderately priced studio and one-bedroom apartments soared above their entire monthly income for the first time.  The national average rent for a one-bedroom unit climbed to $715 per month and the studio/efficiency unit rent to $633 per month in 2006 – both higher than the entire monthly income of people with disabilities who rely on the federal Supplemental Security Income (SSI) program.

 

These shocking statistics are the most important findings included in Priced Out in 2006 – the newest Priced Out study of the severe housing affordability problems of people with disabilities who must survive on incomes far below the federal poverty line. The study compares the SSI monthly income of people with serious and long-term disabilities to local U.S. Department of Housing and Urban Development (HUD) Fair Market Rents for modestly priced rental units in 2006.  This issue of Opening Doors highlights the key findings published in Priced Out in 2006, a biennial report published by the Technical Assistance Collaborative (TAC) and the Consortium for Citizens with Disabilities (CCD) Housing Task Force to shine a spotlight on our nation’s most compelling – and least understood – housing affordability crisis.

 

Eunice Kennedy Shriver, nationally renowned disability rights advocate for over 50 years, graciously contributed to Priced Out in 2006.  “Housing is the key for individuals with disabilities,” she stated.  See below for the full Foreword to Priced Out in 2006, written by Mrs. Shriver.

 

 

Foreword to Priced Out in 2006

by Eunice Kennedy Shriver

 

Priced Out in 2006, the newest report published by the Technical Assistance Collaborative (TAC) and the Consortium for Citizens with Disabilities (CCD) Housing Task Force, documents the continued lack of affordable, accessible housing for individuals with significant long-term disabilities, including intellectual disabilities, physical disabilities, mental illness, and chronic health conditions.   This shortage is a crisis of epic proportions for people with disabilities seeking lives of independence, dignity, and acceptance.

 

Priced Out clearly illustrates the persistent relationship between limited income and the lack of decent, safe, affordable, and accessible housing.  Four million adult individuals aged 18-64 living with significant and long-term disabilities rely on Supplemental Security Income (SSI) to cover living expenses, but the value of that income has precipitously declined.  Despite the efforts of so many individuals, families, advocacy organizations, and legislators, the data are simply shocking: 

 

• In 2006, the national average monthly income of a person who relied on SSI as his or her source of income was only $632. When Priced Out was first published in 1998, the value of SSI payments relative to national median income was 24.4 percent.  Today the value of SSI has dropped to only 18.2 percent.

 

• Last year the national average rent for one-bedroom apartments rose to $715 per month – this equals 113.1 percent of monthly SSI income.

 

• In 2006 – for the first time – the national average rent of $633 for studio/efficiency apartments rose above the entire monthly income of an individual who solely relies on SSI income.  Even this modest dwelling would consume 100.1 percent of someone’s income.  

 

How can we possibly expect any individual or family to spend 100-113 percent of their entire monthly income on housing?  It is not only mathematically impossible, but morally unconscionable. 

 

Creating and maintaining the financial and social supports to provide affordable housing for individuals with disabilities in the community is not only the right thing to do, it makes fiscal sense.  The American Association on Intellectual and Developmental Disabilities (formerly AAMR) has determined that it costs 50-75 percent less to provide services in community-based housing rather than more institutional-type housing funded by Medicaid.

 

Several states have recognized the housing crisis for people with disabilities and have answered the call by creating innovative, cost-effective solutions.  North Carolina dedicates 10 percent of the units in new federally financed Low Income Housing Tax Credit developments to people with disabilities.  Complimenting that commitment, rental subsidies are financed with State dollars. This policy thus far has created a total of 800 decent, safe, affordable, and accessible units across the state for people with disabilities.

 

As part of Hurricane Katrina/Rita rebuilding policies, the State of Louisiana has committed to developing 3,000 units of permanent supportive housing in the eight Parishes most affected by these devastating storms.  Funding provided by Congress will assure that these units are affordable to people with disabilities with extremely low incomes and also provide housing support services through community programs.

Finally, as just one example, The Arc of Anne Arundel County in Maryland has partnered with foundations to develop financial literacy programs for individuals with developmental disabilities.  This program, designed to help its constituents establish credit, develop budgets, and utilize financial planning services, offers individuals with disabilities the tools they need to effectively join rental and home ownership markets. 

 

We know decent, safe, affordable, and accessible housing adds to the overall community. We know it makes financial sense for individuals with disabilities to live in community-based housing. We know federal housing programs are significantly under-funded and waiting lists are flooded.  And we also know that this under-funded system is poised for further strain.  Approximately 700,000 people with developmental disabilities live with one or more parents over the age of 65.  These aging parents have lovingly cared for their children, often in silent struggle, for decades.  What will happen to these individuals living at home, and how can we assure our most heroic citizens – parents – that their children will be properly taken care of? 

 

These circumstances call for bold, creative, and bipartisan measures.  Priced Out in 2006 recommends that Congress provide funding to create at least 150,000 new housing units for people with disabilities over the next ten years.  I say bravo!  It is long past time to acknowledge the tremendous restrictions and barriers that exist for people with disabilities and remove them one by one. 

 

In order to obtain and maintain decent, safe, affordable, and accessible housing in the community and bridge the housing affordability gap identified in Priced Out in 2006:

 

• People with disabilities who have SSI-level income must have access to rental subsidies such as those provided by the U.S. Department of Housing and Urban Development’s Section 8 Housing Choice Voucher and Section 811 Supportive Housing for Persons with Disabilities programs.

 

• The production of new, affordable rental housing must become a national priority for individuals with significant long-term disabilities, including intellectual disabilities, physical disabilities, mental illness, and chronic health conditions.

 

• We must work with individuals, communities, foundations, and legislators to demonstrate that safe, affordable, and accessible housing is not an issue of special interest, but indeed of national interest.

 

Housing is the key for individuals with disabilities.  It is the necessary foundation piece that leads to education, employment, and active participation in communities.  It is where families are nourished, strengthened, and loved. The United States needs to step up and fulfill its duty to provide all citizens with the tools they need to achieve greatness.  Only by doing so can we be a true example to other nations. 

 

As an advocate for individuals with intellectual disabilities and their families for over 50 years, I’ve seen the unique power each individual possesses to make a difference.  We’ve made great strides by working together.  But, despite these efforts and successes, we have much left to accomplish.  I urge you to join me and make housing for all people, but especially our most vulnerable, not just a priority, but your priority.

 

I commend TAC and the CCD for yet again amassing such compelling and needed data in the field of disability housing.  They continue to raise and maintain awareness on such a critical issue.  I am grateful for their efforts.

 

Most sincerely,

Eunice Kennedy Shriver

 

 

Priced Out in 2006 Findings

 

The major findings from the Priced Out in 2006 study include the following:

   In 2006 – for the first time – national average rents for both one-bedroom and efficiency units were more than the entire monthly income of an individual relying solely on SSI income.  The national average income of a person with a disability receiving SSI was $632 per month in 2006.  As growth in the cost of modest rental housing continued to outpace cost-of-living increases in SSI payments, the national average rent for a one-bedroom apartment rose to 113.1 percent of monthly SSI – up from 109.6 percent in 2004.  Studio/efficiency rents rose above monthly SSI payments for the first time, topping out at 100.1 percent as a national average compared to 96.1 percent in 2004.

 

   In 2006, the annual income of a single individual receiving SSI payments was $7,584 – equal to only 18.2 percent of the national median income for a one-person household and almost 25 percent below the federal poverty level. 

 

   Since the first Priced Out study was published in 1998, the value of SSI payments relative to median income has declined precipitously – from 24.4 percent of median income in 1998 to 18.2 percent in 2006 – while national average rents have skyrocketed.  The national average rent for a modest one-bedroom unit rose from $462 in 1998 to $715 in 2006 – an increase of 55 percent.

 

   Discretionary state SSI supplements provided by 21 states are not the solution to the housing affordability problems experienced by people with disabilities living on SSI payments.  The State of Alaska – which has the highest state SSI supplement of $362 and a total monthly SSI payment of $965 – best illustrates this finding.  In Alaska in 2006, people with disabilities receiving SSI still needed to pay 77 percent of their monthly income to rent a modest one-bedroom unit. 

 

SSI and Median Income

 

SSI is the federal income maintenance program that provides financial support for people with significant and long-term disabilities who have virtually no assets.  In 2006, an estimated 4 million people between the ages of 18-64 relied on SSI to pay for their basic needs – including housing.  In 2006, federal SSI monthly income was $603.  In addition to the federal payment, 21 states provided an additional SSI supplement to individuals living independently, raising the national average SSI payment to $632 per month or $7,584 per year. 

 

The data in Priced Out in 2006 reveals that people with disabilities receiving SSI also fell further into poverty between 2004 and 2006.  Between 2004 and 2006, the median income of people with disabilities dropped from 18.4 percent to 18.2 percent of median income – its lowest level ever.  Table 1 below documents SSI as a percentage of one-person median income for every state in the nation.  Households at or below 30 percent of median income are considered extremely low-income under HUD guidelines and receive a priority under the Housing Choice Voucher program.  With incomes at 18.2 percent of median, SSI recipients are one of the lowest-income groups eligible for federal housing assistance.

 

Table 1: SSI as a Percentage of One-Person Median Income - 2006

State

% of Median Income

 

State

% of Median Income

Alabama

20.1%

 

Montana

21.3%

Alaska

22.7%

 

Nebraska

17.4%

Arizona

18.8%

 

Nevada

17.4%

Arkansas

22.8%

 

New Hampshire

15.2%

California

22.4%

 

New Jersey

13.4%

Colorado

16.5%

 

New Mexico

22.4%

Connecticut

16.3%

 

New York

19.2%

Delaware

15.3%

 

North Carolina

19.2%

District of Columbia

11.4%

 

North Dakota

18.1%

Florida

18.9%

 

Ohio

17.7%

Georgia

17.7%

 

Oklahoma

22.9%

Hawaii

15.3%

 

Oregon

17.6%

Idaho

21.4%

 

Pennsylvania

18.0%

Illinois

15.5%

 

Rhode Island

17.5%

Indiana

17.6%

 

South Carolina

19.5%

Iowa

17.9%

 

South Dakota

20.1%

Kansas

17.4%

 

Tennessee

20.2%

Kentucky

21.1%

 

Texas

19.0%

Louisiana

21.2%

 

Utah

18.0%

Maine

18.9%

 

Vermont

18.1%

Maryland

13.6%

 

Virginia

15.6%

Massachusetts

16.2%

 

Washington

17.9%

Michigan

17.0%

 

West Virginia

22.1%

Minnesota

17.2%

 

Wisconsin

18.9%

Mississippi

25.4%

 

Wyoming

17.9%

Missouri

18.1%

 

National Average

18.2%

 

In the Columbia, Maryland housing market area the federal Fair Market Rent for a modestly priced one-bedroom apartment was 193.2 percent of monthly SSI income – the highest level in the nation.  In New Orleans, modest studio/efficiency apartments soared to $755 a month – a 45 percent increase since Hurricane Katrina. In the rural areas of Nevada, the cost of a one-bedroom unit priced at the HUD Fair Market Rent was $603 – consuming the entire monthly income of a single individual receiving SSI in that state. See Table 2 below for the percentage of SSI needed to afford a one-bedroom or studio housing unit.

 

Table 2: Percent of SSI Needed to Rent a One-Bedroom and Studio/Efficiency Housing Unit - 2006

States with percentages 100% or higher are listed in bold

State

% of SSI to Rent Studio

% of SSI to Rent 1-BR

 

State

% of SSI to Rent Studio

% of SSI to Rent 1-BR