Policy & Legislation
HCD Seeks to Increase Demand for Homeless Youth Program
Under Prop. 1C, $50 million was designated to develop homes for homeless youth up to age 25 through the Homeless Youth Housing Program; however, the number of applications received by the Department of Housing and Community Development (HCD) has not been as high as expected. On August 9, 2007, HCD held a teleconference to pinpoint adjustments to the Homeless Youth Housing Program in an effort to increase demand for the program. Participants worked to identify why so few applications for funding had been received.
The agenda focused on three topic areas: the impact of the program’s age restrictions, compatibility with other funding sources, and loan limits.
Many participants felt the program's age restriction (which makes tenants ineligible for the program when they reach age 25) is of greatest concern because, once the tenant reaches the age limit, "re-designating" the housing becomes complicated. The age restriction also makes the program incompatible with tax credits. Because of this incompatibility, projects using tax credits are discouraged from accessing these funds.
Participants also suggested that potential applicants are not applying because Homeless Youth Housing Program funds cannot be combined with Multifamily Housing Program (MHP) general funds. Many developers stated they prefer to apply for MHP general funds because those funds are more flexible in that they're not restricted by age limitations.
HCD staff seemed open to allowing more flexibility on age restrictions, though their concern about older adults occupying homes designed to serve homeless youth still remains. HCD is also considering increasing the loan limits for the program to make it more attractive to developers.
If you have additional ideas about how to increase demand for the program, contact Zack Olmstead.
Contact: Zack Olmstead, (916) 447-0503 x 108 or .
