SSVF Temporary Financial Assistance

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SSVF Temporary Financial Assistance
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Temporary Financial Assistance Types

• Rental assistance
• Utility-fee payment assistance
• Utility deposits
• Security Deposits
• Moving costs
• Emergency supplies
• Child care
• Transportation
• All funds are to be issued to a 3rd party

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Unallowable Financial Assistance

• See SSVF Program Guide (p. 56)!
• Cash assistance
• Credit Card bills
• Extensive Car repairs (gt 1,000)
• Car Payments for participants
• Medical Supplies
• Food
• Mortgage costs
• Travel costs (bus passes for work are eligible)
• Home furnishings
• Telephone
• Entertainment Cost (inc. cable, satellite TV,
  etc.)
• Internet Services
• Pet care

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Habitability Standards

• Grantees are encouraged to assure that
  participants housing is safe and sanitary by
  conducting a Habitability Inspection.
• See SSVF Program Guide Exhibit B, p. 68-69 for
  detailed Habitability Standards

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Financial Assistance Participant Plans

• If the participant receives temporary financial
  assistance to pay rent, utilities, or child care,
  grantees must help the household develop a
  reasonable plan to address their future ability
  to pay
• Grantees must assist participants to implement
  the plan by providing any necessary assistance or
  helping the participant to obtain any necessary
  public or private benefits or services.

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The Plan

• The plan is based upon income vs. expenses
  increase/stabilize income and/or reduce expenses.
• What is a reasonable plan?
• A plan that has a reasonable chance of success
  AND
• The best plan that can be developed under current
  circumstances.
• What is unreasonable?
• ltMost of the timegt A plan that assumes the
  participant will no longer be very low-income
  AND/OR
• ltMost of the timegt A plan that assumes the
  participant will quickly and significantly change
  a long-term lifestyle.

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The Plan affects re-housing/ relocation housing
choices

• Consider likely income when deciding where to
  re-house or relocate a household
• Dont select a unit that likely cannot be
  retained once rental assistance ends
• Look for the cheapest housing that is safe
• The household can upgrade their housing as their
  income improves

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Example The Larssons

• The Veteran family (the Larsson family) has two
  parents and 3 children under 6. They have been
  staying in a homeless shelter because the father
  was in an accident, couldnt work for a month and
  lost his 11/hour job. The mother has been
  staying at home to care for the children.
• You are assisting the Larssons to move into
  housing.
• What are your reasonable assumptions?
• How should these assumptions affect the
  households choice of housing?

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What are your assumptions for this household?

• INCOME ASSUMPTION?
• Mr. Larsson will find a full-time job that pays
  11/hour? 13/hour? 9/hour?
• The family will find affordable daycare and Ms.
  Larsson will get a part-time or full-time job?
• RENT BURDEN ASSUMPTION?
• The household can pay 30 of their income on
  rent? 50? 75?

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Analyze your assumptions!
Highest income XXXXX Medium income XXXXX Low income XXXXX
Highest Rent Burden (X) Rent ___ Rent ___ Rent ___
Medium Rent Burden (X) Rent ___ Rent ___ Rent ___
Lowest Rent Burden (X) Rent ___ Rent ___ Rent ___
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The Larssons Assuming 1 wage-earner
Highest possible income 11/hour FTE 22,880 Medium income 9/hour FTE 18,720 Lowest expected income 8/hr, 0.5 FTE 8,320
Highest Rent Burden (65-80) Rent 1235-1525 Rent 1015-1250 Rent 450-555
Medium Rent Burden (50-64) Rent 950-1220 Rent 780-1000 Rent 350-445
Lowest Rent Burden (30-49) Rent 575-934 Rent 470-765 Rent 208-340
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Plan for Larsson Family

• Reasonable Assumption
• 9/hour (Medium Income)
• 50 Rent Burden
• Rent 800
• In your community, it is possible to find a
  decent 1-BR apartment for 800/month. Family has
  3 children under 6.
• Reasonable Plan Second job or higher pay/hour?
  OR Higher rent burden? OR Less desirable
  neighborhood so HH can afford apartment with 2
  BRs? OR Children sleep in BR parents sleep on
  sofa-bed in living room?

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Financial Assistance Participant Plans

• If the participant receives financial assistance
  for security or utility deposit or moving costs,
  the grantee must help the participant develop a
  reasonable plan to address the households future
  housing stability.
• Grantees must assist participants to implement
  the plan by providing any necessary assistance or
  helping the participant to obtain any necessary
  public or private benefits or services.

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Financial Assistance Participant Plans

• The plan is based upon addressing (not assuring)
  the participants ability to remain housed.
• What is a reasonable plan?
• A plan that has a reasonable chance of success
  AND
• The best plan that can be developed under current
  circumstances.
• What is unreasonable?
• ltMost of the timegt A plan that requires the
  participant to quickly and significantly increase
  income and/or change a long-term lifestyle.
• ltMost of the timegt A plan that presumes the
  household will have no future financial crises,
  will not move to different housing, and will
  exhibit a high level of skill in all aspects of
  housing.

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What is necessary for housing stability?

• Ability to pay the rent
• Ability to comply with the lease
• Ability to care for the unit (or at least not
  damage it!)
• Ability to get along with the landlord and other
  tenants (or at least not escalate into open
  conflict)

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Ability to pay the rent

• Income vs. Rent. Ideally, rent should not be
  more than 60 of income, but this will not always
  be possible.
• Emergency reserves. Ideally, a household should
  have enough savings to cover emergencies without
  sacrificing rent, but this will not always be
  possible.
• Budgeting. Reduce discretionary expenses,
  increase use of in-kind assistance.
• Last resort Representative payee or vendor-paid
  benefits for rent.

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Ability to comply with the lease

• Understand landlord-tenant rights and
  responsibilities
• Translate important lease language
• Identify patterns of past non-compliance and plan
  to prevent recurrence
• Illegal drugsbuying, selling, using

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Ability to care for the unit (or at least not
damage it)

• Fire-safety
• Sanitation
• Plumbing!
• Soft expectations for housekeeping
• Knowledge of cleaning methods and products
• Avoid do-it-yourself

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Ability to get along.

• Soft expectations/norms for noise, odor,
  interactions, childrens behavior
• Ability to respond appropriately to complaints
• Ability to make appropriate complaints
• Ability to talk to landlord and negotiate for
  rent extension, guests, etc.
• Boundaries for friends/family who visit

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When does a participant need more than SSVF can
offer?

• Look at your targeting, screening and assessment.
  Are you screening out too many households? Are
  your participants failing immediately after
  services end (participants may experience another
  crisis in the future)?
• Does a participant need longer-term or more
  intensive assistance than you can offer? Is that
  assistance available and acceptable to the
  household? If not, you may be their only hope.
• May need to refer participants to other services.
  Know what is available !

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How much and what kind of financial assistance?

• Just enough for participant to get or keep
  housing
• If household isnt expected to be able to sustain
  costs of current housing once financial
  assistance ends, just enough to relocate to less
  expensive housing
• Does not exceed the SSVF time/frequency limits
  for each category of financial assistance
• Within your programs budget cap for total
  temporary financial assistance spending (30 of
  grant)

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Financial Assistance Requirements and Limitations

• Third party payments only
• No assistance if the participant is already
  receiving another form of Federal/state or local
  assistance for the same time period and cost type
  (e.g. LIHEAP and SSVF utility assistance)
• Costs must be reasonable and documented

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Rental Assistance

• Maximum of 8 months over a 3-year period, or 5
  months over a 12-month period (months of arrears
  assistance are included in these totals!)
• Includes the payment of rent, penalties or fees
  to help a participant remain in or obtain
  permanent housing
• Legal lease or written occupancy agreement must
  be in place
• Rents must comply with HUDs rent
  reasonableness standard FMRs do not apply

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Rental AssistanceConsiderations

• How can you design a subsidy that is extremely
  short-term? Avoid the cliff effect.
• How much does the household pay (vs. SSVF) toward
  rent?
• Can the amount of rental subsidy be designed so
  the family can use some of their income to build
  emergency reserves for future crises?
• How can you increase income, reduce expenses
  and/or re-house or relocate the household ASAP
  before rental assistance ends?
• Can you bargain for a rent reduction?

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Utility Assistance

• Maximum of 4 months over a 3-year period or 2
  months in a 12-month period
• Months do not need to be consecutive or
  concurrent with rental assistance
• Includes arrears
• Eligible utilities heat, electricity, water,
  sewer and garbage collection
• Ineligible telephone, cable, others

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Utility AssistanceConsiderations

• Can you help the household quickly obtain another
  longer-term source of utility assistance?
• Can you assist the household to reduce utility
  expenses significantly through an energy audit?
• Can the household obtain housing where utilities
  are included in the rent? Is that option a fair
  trade-off of expenses?
• Can the household sign up for a budget plan
  billing that allows the same monthly heating
  payment year round? (This is not necessarily
  tied to incomeany household can choose this
  billing method and it makes monthly budgeting
  easier.)

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Utility Security Deposits

• Maximum of one payment of each deposit over a
  3-year time period
• Does not count towards utility or rental
  assistance limitations
• Utility security deposits covering the same
  period of time in which assistance is provided
  through other housing subsidies are eligible.

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Deposit Payment Considerations

• When the participant owes substantial utility
  arrears and thus cannot get utilities connected
  in another apartment, consider renting a unit
  where the landlord is responsible for utilities
  it may be less expensive than paying all arrears.
• Security deposits MAY be negotiableup or down
  (sometimes a higher deposit is the only way to
  obtain housing for a tenant with a very poor
  rental history, criminal history, etc.)

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Moving Costs

• Includes moving company expenses, and short-term
  storage feesall are limited to one time in a
  3-year period.
• Storage Maximum of three months or until the
  participant is in permanent housing (whichever
  comes first)
• Transportation costs for participants related to
  a move (e.g., bus, train) are not eligible
• Grantees are responsible for determining
  reasonable costs and any limits that apply.
  This will be monitored.
• If a grantee decides to help a client relocate to
  another geographic area, the grantee still
  retains responsibility for ensuring all program
  requirements are met.

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Transportation Assistance

• No limit on amount of public transportation
  assistance (within program budget)
• No time limit on public transportation assistance
• Maximum of 1,000 car repairs/maintenance over a
  3-year period
• Eligible only if such assistance will help
  enhance housing stability
• E.g. Local bus pass so a participant can travel
  to her new job while she relocates to a closer
  apartment.

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Child Care Assistance

• Maximum of 4 months over a 3-year period, per
  household (even if household includes multiple
  children)
• Payment must be made to an eligible child care
  provider
• A provider of child care services for
  compensation, including a provider of care for a
  school-age child during non-school hours, that
  (1) is licensed, regulated, registered, or
  otherwise legally operating, under state and
  local law, and (2) satisfies the state and local
  requirements, applicable to the child care
  services the provider provides.

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Child Care Assistance Considerations

• Is the need for child care temporary? Until a
  relative can help or a parent recovers from an
  illness/injury or a couple can find jobs on
  different shifts?
• Know the waiting lists for affordable child
  careis a 4-month subsidy long enough to bridge
  the time until the household is accepted?

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Emergency Supplies

• Maximum of 500 over a 3-year period
• Includes supplies that the grantee deems
  necessary for the participants life or safety
• Examples food, medical supplies, baby formula or
  diapers, etc.
• These supplies are only eligible when the
  participant is in an emergency situation

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Associated Costs
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• Costs associated with processing and implementing
  financial assistance are eligible costs within
  the 90 of grant funds that must be spent to
  provide or coordinate supportive services (not an
  administrative cost). Examples
• Time spent cutting checks to landlords
• Habitability inspections

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Adequate Source Documentation
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• Evidence that costs were
• Incurred during grant period
• Actually paid (or properly accrued)
• Expended on allowable items for eligible
  participants
• Approved by responsible official (within your
  agency) prior to expenditure

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Adequate Source Documentation
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• Examples
• Rental Assistance
• Lease confirming participant and landlords
  names, rental unit address, term (length) of
  lease, utility inclusion (if any), a bill or paid
  invoice, and official recommendation and approval
  by agency for payment
• Moving Costs
• Invoice or payment request from the moving
  company to the participant

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Common Errors
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• Missing or insufficient documentation for
  expenses paid
• No comparison to determine that costs were
  reasonable
• No rent reasonableness for units assisted
• No comparison costs reviewed for moving, and
  storage expenses
• Ineligible expenditures
• Paid more than is allowable
• E.g. Rental assistance for 6 months within 1 year

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Final Considerations

• Just enough Provide only the assistance that
  is needed to assure the household can get and
  keep housing.
• Stretch your financial assistance e.g. limiting
  participants rent contributions at 30 of their
  income will reduce funds available to assist
  others.
• You mayand probably should charge co-pays.
• Prioritize who you will serve and what needs you
  must address.
• You are encouraged to target households who, but
  for this assistance, would become or remain
  homeless.

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• Questions?