Budgeting to End Homelessness in DC - A Letter to DC Mayor Bowser

Dear Mayor Bowser:

We are writing on behalf of the Greater Washington Community Foundation and its Partnership to End Homelessness Leadership Council to offer our recommendations on DC’s Fiscal Year 2025 budget. We urge you to prioritize ending chronic homelessness and making substantial investments in affordable housing and housing stability programs for DC households with extremely low-incomes (0-30 MFI).

Homelessness in DC increased about 12% from 2022 to 2023, the first time this has happened since 2016, when DC launched Homeward DC. This alarming news comes at a time when the District’s rate of investment in housing programs is declining. At the same time, rent continues to rise in DC making it harder for many people to afford to live in DC and evictions are also increasing.

As you know, the Partnership to End Homelessness is a collective effort of private sector business leaders, philanthropists, and national and local nonprofits working in alignment with the city’s comprehensive plan to ensure homelessness in DC is rare, brief, and non-recurring. The private sector and philanthropy play an important role in supporting and funding efforts to end homelessness, but the city’s success greatly depends on the leadership of the DC government to adequately fund and implement evidence-based solutions.

We understand that the city has financial challenges and that the District has many funding priorities to balance this year. However, we are deeply concerned that with the end of pandemic assistance programs, many DC residents are struggling economically and having trouble maintaining their housing. We urge you to prioritize the protection and expansion of programs that help residents obtain and maintain stable and affordable housing. Stable and affordable housing creates the conditions for healthy families and thriving communities, and helps DC advance its goals of achieving racial and economic equity for all its residents. We have the solutions to prevent and end homelessness, and under your leadership, the District has shown that it can make progress by putting resources behind these solutions. We urge you to  invest the necessary resources to continue making progress. 

Our FY 2025 budget recommendations align with the recommendations of our community advocacy partners.

Expand Permanent Supportive Housing to end chronic homelessness: We ask you to invest $36.6 million in Permanent Supportive Housing (PSH) to end chronic homelessness for 1,260 single adults. We urge you to provide $22.8 million for PSH for 580 families. 

Support Emergency Rental Assistance: Census Bureau Household Pulse data estimates that 31,000 renters with incomes under $50,000 are behind on their rent in January 2024, or one-third of all low-income renters. Rents continue to rise sharply, even in rent-controlled units. The significant need for emergency rental assistance has time and again been demonstrated by the high volume of requests submitted and the fact that funds are repeatedly depleted long before the end of the fiscal year. Demand for emergency rental assistance is so great that the available ERAP application slots each quarter were filled within hours of opening the portal. We urge you to fund DC’s ERAP program at a minimum of $100 million in FY 2025.

Preserve Public Housing, Expand Affordable Housing: We urge you to commit to preserving and creating deeply affordable housing for households earning 0-30 percent of the Median Family Income (MFI). We recommend:

  • Maintaining the $60 million annual commitment to repairing public housing.

  • $17.3 million for 800 Local Rent Supplement Tenant Vouchers, to assist those on the DC Housing Authority waitlist.

Expand non-congregate shelter for people experiencing homelessness: The District should take steps to transform its shelter system to make them smaller, safer, and trauma informed. Shifting away from large congregate shelters is essential to supporting the dignity of unhoused residents but also to help them. We support the call for two shelters, funded at $13.3 million.

Support street outreach: Given the increase in unsheltered homelessness over the past year, we call on the District to provide $6.4 million for homeless street outreach to fully restore and expand outreach capacity of the Coordinated Street Outreach Network. 

Support medical respite:  We ask you to support 150 medical respite beds, to offer the critical service of caring for the unhoused who need intensive medical support.

Support and Expand Project Reconnect: Project Reconnect is a successful and cost-effective shelter diversion and rapid-exit program for unaccompanied adults experiencing homelessness. By maintaining existing funding for the program at $1.2 million, and adding an additional $545,000, the program can add diversion specialists to reach more people and prevent homelessness at scale.  

Maintain funding for DC Flex: DC Flex gives a yearly stipend of $7,200 to use on rent in the case of an emergency or in a case where a participant is unable to make rent. We urge you to maintain its $1 million funding as we assess this promising approach. 

Maintain 24/7 shelter access: DC expanded access to shelters during the pandemic so that individuals could stay in and/or access the buildings around the clock. We urge you to continue this practice, which will require $8.4 million. 

Create a fund to cover PSH move-in expenses:  The District should create a fund to cover one-time move-in expenses for residents receiving a voucher. Assistance with transportation to find a unit, obtaining necessary documents, and IDs, plus help to purchase household items is critical to ensuring that a voucher can be used quickly.      

Address the critical need for affordable housing: DC will not end chronic homelessness until we address the critical need for affordable housing. We ask that you: 

  • Increase the supply of Tenant Based Local Rent Supplement (LRSP) vouchers, including TAH.

  • Ensure that the Housing Production Trust Fund meets the target of at least 50 percent of funding dedicated to producing housing for extremely low-income households (0-30% MFI). We urge you to fund an adequate number of LRSP vouchers to meet the important targeting requirement of the Trust Fund to produce deeply affordable housing.

  • Ensure all produced affordable housing is accessible.

Housing stability is the foundation of thriving individuals, families and communities. Any long-term vision for a stronger DC must start with ending homelessness and addressing the high rates of housing instability. We must not let the District’s finances this year result in long-term harm to our neighbors with the least resources. Stable and affordable housing is the key to creating healthy communities, which in turn supports school success, reduces crime, and narrows DC’s racial income and wealth gaps.

Thank you again for your leadership and commitment to ending homelessness in our city. We urge you to continue to make progress in FY 2025 towards ending homelessness and increasing the supply of deeply affordable housing for extremely low income households.

Sincerely,

The Partnership to End Homelessness Leadership Council

Tonia Wellons, President & CEO

Greater Washington Community Foundation