Introduction to Developing Permanent Supportive Housing

1
Introduction to Developing Permanent Supportive
Housing
Corporation for Supportive Housing
2
What to Expect Today

• Brief Overview of Supportive Housing
• Supportive Housing Finance Issues and Options
• Capital Budgets
• Operating Budgets
• Service Budgets
• Ideas for using HOME in supportive housing
• Supportive Housing in Rural Communities
• Partnerships and Capacity Building
• Financing on a smaller scale
• Service Delivery

3
The Basics What is Supportive Housing?

• A cost-effective combination of permanent
  affordable housing linked to support services
  that helps people live more stable, productive
  lives.

4
The BasicsFeatures - Permanent Supportive
Housing

• Permanent Rental Housing
• Each resident holds lease on his/her own unit
• Resident can stay as long as he/she pays rent and
  complies with terms of lease (no arbitrary or
  artificial time limits imposed).
• Affordable
• Tenants usually pay no more than 30 of income
  for rent.

5
The BasicsFeatures - Permanent Supportive
Housing

• Flexible Services
• Participation in a program is not a condition
  of residency
• Services are designed project by project for the
  target population and the housing setting
• Services are flexible and responsive to
  individual needs
• Cost Effective
• Costs no more,and often much less, than the cost
  of homelessness and produces better outcomes than
  the expensive system of crisis care

6
Supportive vs. Affordable Housing Whats the
Difference?

• Capital
• ZERO debt service
• Common/community areas, front desk, support
  service space
• Durable construction materials
• Operating
• Deeper subsidies
• Project-based vs. tenant-based issues
• Front desk coverage

7
Supportive vs. Affordable housing Whats the
Difference?

• Services
• Client-based vs. project based
• Property/Asset Management
• Underwriting the services

8
SH Finance Capital Budget Challenges

• Debt Service Considerations
• Community and Service Space
• Availability and compatibility of resources
• LITC, HOME, McKinney-Vento, other programs
• Determine scale of project suitability for tax
  credits

9
SH Finance Capital Budget Options

• HOME Program
• Low-Income Housing Tax Credits
• Community Development Block Grant (CDBG)
• HOPWA
• McKinney-Vento (SHP Capital)
• Federal Home Loan Bank
• State and local trust funds
• Veterans Administration

10
HOME the Capital Budget

• Use for acquisition, rehabilitation, or new
  construction, predevelopment
• SRO and group homes eligible
• With LIHTC Market Rate Loan preserves basis

11
SH Finance Operating Budget Challenges

• Need for long term commitments
• Need for deeper subsidies
• Project-based vs. Tenant Based/Underwriting

12
SH Finance Operating Budget Options

• Potential sources for ongoing operations
• HOME Tenant-based Rental Assistance
• Shelter Plus Care
• McKinney-Vento (SHP Leasing)
• Section 8 Mod Rehab
• Section 8
• Tenant-based Assistance
• Project-based Assistance

13
Using to HOME to Finance the Operations

• HOMEs Tenant-based Rental Assistance Option
• Up to 2 year-commitment
• Eligible Expenses Rent, utilities, Security
• Deposits, Utility Deposits
• Rent Reasonableness (30 of income)
• TBRA is portable
• NOT allowed for temporary shelter

14
Using to HOME to Finance the Operations

• Other HOME Options
• Operating Deficit Reserves
• Up to 18 months
• Other Ideas
• Capitalized Reserve Options

15
Shelter Plus Care

• Funded through Continuum of Care
• Eligible households homeless AND disabled
• Project, Sponsor, or Tenant based
• 5 year commitment
• Automatic renewal out of separate pot
• Dollar for dollar Service Match

16
SRO Moderate Rehab

• Used in SRO buildings
• Requires at least 3,000 in rehab
• 10 years commitment of subsidy
• Operated in conjunction with PHA

17
Section 8 - PBA

• PHAs now permitted to commit up to 20 of
  vouchers to project-based assistance
• Rent subsidy is committed to a unit rather than
  to the tenant Contract terms from 1-10 years
  (renewable)
• Two types of Section 8 PBA
• existing housing (no rehabilitation required)
• linked to new construction/rehabilitation

18
Section 8 - PBA

• After one year in a PBA unit, tenant can request
  a tenant based voucher and move (portability
  feature).
• No more than 25 of units in a building may
  receive PBA except for units targeted to the
  elderly, disabled or families receiving
  supportive services.
• Allows a preference based on service offered at
  the housing.
• PHA define what types of services qualify for the
  supportive service exemption and publish these
  in their Admin. Plan

19
SH Finance Service Budget Challenges

• HUDs Shifting Emphasis
• Accessing Mainstream Resources
• Year to Year Financing
• Categorical Nature of Service Funding
• Client-based vs. Site based

20
SH Finance Service Budget Options

• 3 common approaches
• Contract w/ provider for services to a set of
  eligible clients
• Reimbursement agreement for certain services to
  eligible clients
• Fixed fee for maintaining the health of
  individual clients

21
SH Finance Service Budget Options

• Potential Sources of Funding to Explore
• HHS Substance Abuse and Mental Health Services
  Administration (SAMHSA) programs
• Projects for Assistance in Transition from
  Homelessness
• Temporary Assistance for Needy Families (TANF)
• HUDs Supportive Housing Program

22
SH Finance Service Budget Options

• State DHS programs County human services
• Medicaid waivered services
• Rehabilitation Option
• Targeted Case Management
• State waivers
• Foundation support

23
Supportive Housing Options for Rural Communities

• Scattered site supportive housing
• Master leasing in Community
• Partnerships with PHAs and regional providers

24
Supportive Housing Options for Rural Communities

• Small scale projects w/ HOME, CDBG, etc.
• Set-asides within larger affordable housing
  projects
• Connections to existing service providers

25
Example SH in Rural Communities

• State of Kentucky
• Project Size and Siting
• Transportation issues
• Outreach to the Homeless
• Service Provision
• Lessons Learned

26
Example SH in Rural Communities

• Cloquet, Minnesota
• Need in rural communities
• Development issues
• Support Services issues
• Lessons Learned

27
Thank youAndy McMahonCorporation for
Supportive Housing2801 21st Avenue South-Suite
220Minneapolis, MN 55407612-721-3700www.csh.or
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