Burton Blatt Institute at Syracuse University Recommendations for President-Elect Obama

Burton Blatt Institute at Syracuse University Recommendations for President-Elect Obama and the Transition Team

January, 2009

I.Economic Empowerment for Adults with Disabilities

Challenges

Working age adults are three times more likely to live in poverty than their nondisabled peers. Adults with disabilities are also less likely to have any retirement account or own a home and more likely to be asset poor which is defined as not having enough to live on for three months at the federal poverty level. The current labor participation rate for persons with disabilities remains at an unacceptable level with about seven of ten individuals with disabilities who want to work remaining unemployed and out of the workforce. The continued growth in numbers of individuals qualifying for SSI and/or SSDI and the less than half of one percent who ever leave the rolls will, over the next 15 years, lead to a cost to the federal government of one trillion dollars annually.

Opportunities for Change

With the current spotlight on US economic conditions and multiple proposals being added weekly to find the right mix of government spending, selected market intervention, infusion of capital to open up lines of credit, and job creation to reduce increasing unemployment, there is no better time for targeted government action that seriously address the historical stereotyping of people with disabilities as unable to work and public assistance tied to a life sentence of impoverishment.

The Obama economic stimulus proposal should leave no working age adult with disabilities behind by encouraging their participation in the workplace and economic mainstream through the following nine actions:

1. Target IRS community partnership development and volunteer tax preparation assistance (VITA) to reach low income tax payers with disabilities and enhance their access and use of the Earned Income Tax Credit (EITC), financial education, low-cost affordable financial services and products, and savings and asset building strategies. According to the IRS Wage and Investment researchers, there are over 1.3 million low income tax payers with disabilities not claiming over 1 billion dollars in EITC refunds each year. A 2004 Harris Survey found that 83 percent of persons with disabilities never claimed available tax credits related to work. Congress appropriates 8 million dollars annually to provide free tax assistance to seniors through the AARP Tax Aide program. A similar program with adequate funding should provide assistance to low-income taxpayers with disabilities. The Real Economic Impact Tour in 2009 will assist 150,000 individuals with disabilities access the EITC. With additional resources, the other 90% of low-income taxpayers with disabilities could be reached and take the first step on a path out of poverty (visit

In addition, the Work Opportunity Tax Credit provides tax credits to employers who hire SSI recipients, disabled veterans, and referrals from vocational rehabilitation, among others. These tax credits are significantly underutilized, which increases the perception that accommodation of people with disabilities is costly. Proactive education and technical assistance for employers and disability service providers could result in substantial benefit to individuals and business without the need for new tax incentives.

1. Establish an Interagency Federal Task Force on Economic Empowerment for working age adults with disabilities to identify barriers and propose solutions to federal policies that create disincentive to work, savings and asset building. The Task Force should explore improved cross-agency collaboration that encourages income production and preservation, expanded access to quality financial education and financial services, access to capital for microenterprise and small business development, reform of regressive asset and income limits to determine eligibility under SSI and Medicaid, changes to tax policy that encourage work and asset building for low-income workers with disabilities, and state rebalancing of federal flow through dollars with Medicaid, VR, Mental Health, and other sources to promote integrated employment outcomes.

1. Enact a tax advantaged family savings program to encourage families with children with disabilities to set aside funds for future asset goals such as purchase of a home, starting a business or continuing post-secondary education that would nor adversely impact eligibility for various public benefits.

1. Require all economic stimulus funded development infrastructure projects to adopt universal design standards and affirmatively support employment of persons with disabilities.

II.Independent Community Living for Adults with Disabilities - Housing

Challenges

Adults and senior citizens with disabilities are often forced to reside in institutions, such as nursing homes - not because they require health, personal care, and independent living services - but because private housing is not affordable and accessible to them. People with disabilities also endure extended periods of homelessness because of the lack of affordable accessible housing. A major obstacle to recent state and federal efforts, pursuant to the Olmstead v. L.C. Supreme Court decision (527 U.S. 581 (1999)),the Money Follows the Person initiative, the Permanent Supportive Housing Investment Act, the Community Choice Act, and the Community Living Assistance Services and Supports Act, is the lack of affordable, accessible housing for people who would choose to live in their communities.

Opportunities for Change

The commitment to integration of people with disabilities into their communities is stronger than ever. It has been demonstrated to be, not just better for individuals with disabilities, but also financially responsible. Numerous federal initiatives attempt to address the current services and funding systems that force people with disabilities into institutions and homelessness. These initiatives need to be supported by initiatives designed to increase the stock of affordable accessible housing.

The federal government’s increasing involvement in housing funding and finance of housing provides an unprecedented opportunity to improve the availability of affordable accessible housing, by enforcing and expanding existing tools.

The Fair Housing Amendments Act of 1988 requires newly constructed private multi-unit housing to meet minimal accessibility requirements (adaptability). The Rehabilitation Act applies the Uniform Federal Accessibility Standards (UFAS) to federally-funded housing and requires 5% of units to be fully accessible (a much higher standard than FHAA).

1. Increase DOJ and HUD monitoring and enforcement of FHAA and UFAS accessibility requirements. In response to the current difficulties in the housing market, HUD is more involved in housing funding and financing than ever. Every recipient of federal funding and financing assistance should be required to ensure that 5% of the units, including small and single-family units, comply with UFAS. This requirement should be more than part of a checklist, but should be carefully monitored.

Currently, most FHAA and UFAS enforcement is done after construction is completed, when any violations are very difficult to remediate. Therefore, remediation of violations is accomplished through damages payments to private organizations who file lawsuits. DOJ (for FHAA) and HUD (for UFAS) should focus on agency-initiated compliance reviews of construction plans and site visits to new buildings for accessibility compliance. For violations that are not detected until construction is completed (for which correcting the violations is often not feasible), HUD and DOJ should establish creative mechanisms to achieve compliance (e.g., financial contribution to a federally-managed fund specifically to develop accessible affordable units).

1. Expand the FHAA to require accessibility elements in alterations. Most affordable housing is in buildings that pre-date the FHAA’s effective date (1991). The FHAA currently does not impose any accessibility requirements on alterations, no matter how large. Therefore, a building can be almost completely gutted and rebuilt without accessibility. The FHAA should be expanded to require alterations to be accessible/adaptable. This amendment could be modeled on the ADA requirements for alterations, which require each altered element to be accessible and a proportionate expenditure on the path of travel to the altered elements. Alternatively, the amendment could be modeled on UFAS, which requires full compliance when substantial alterations are made. This will close the largest loophole in the FHAA, and will not add significantly to the cost of such large alterations.

1. Adopt visitability standards for all HUD and Fannie Mae financed or subsidized single or multifamily housing to expand accessible housing design, development and maintenance. Owning one’s own home is the cornerstone of the American dream. However, the FHAA applies only to multi-unit buildings. People with disabilities are, therefore, largely excluded from owning a single-family home. Visitability standards would require new federally funded or financed housing, regardless of size, to include minimal accessibility features (a ground-level entrance, wider hallways and doorways, and a first-floor bathroom large enough to accommodate a wheelchair). Many states and localities have already adopted visitability standards. Provide competitive advantages for low-income housing tax credits to multifamily property applications that include accessible features.

1. Centralize and expand funding, loan programs, and tax credits for homeowner, renter, and landlord expenditures to increase accessibility. The FHAA only requires minimal accessibility and adaptability features (such as reinforced walls). A person with a disability who wishes to live in a FHAA unit, or a person who develops a disability and wants to stay in her home, needs to add accessibility features (such as grab bars) at her own expense. Programs to assist people to make these modifications are scarce, insufficiently funded, and difficult to access. Centralized funding sources, loan programs, or tax credits to pay for home modifications that would make it possible for people to leave institutions or avoid institutionalization or homelessness would save money and save lives.

For additional information, please contact:

Michael MorrisEve Hill

202-296-2046202-296-2044