n HUD and You in Partnership to Aid

n HUD and You in Partnership to Aid the Homeless August 2008 Super. NOFA Outreach 1

Common Goals and Themes of the HUD Mc. Kinney Vento Programs Supportive Housing Program Shelter Plus Care Single Room Occupancy Section 8 Moderate Rehabilitation n Obtain and remain in permanent housing • 2008 -- 71. 5% of clients remain in permanent housing 7 months or longer • 63% of clients who leave transitional housing are placed into permanent housing 2

Current Goals of All Programs (cont. ) n n Increase skills and/or income • for 2008, the employment rate of participants who leave should be at least 19% Achieve greater self-determination • this measures the ability of clients to influence decisions affecting themselves ØNational standard ØApplies to the entire C of C ØNumbers from the Annual Progress Reports of Applicants 3

Who is eligible to be served? Participants must be homeless with a common thread that clients are coming from the streets or shelter. n The homeless definition is different for permanent housing, SHP transitional housing, and projects serving the chronically homeless n Lacks Housing Resources to obtain housing n 4

Eligible Participants for New & Renewal Permanent Housing 1) 2) 3) Comes from the street • places unfit for human habitation, cars, shacks, campgrounds, etc. Comes from emergency shelters • Youth, general population, victims of domestic abuse, family shelters, singles Coming from transitional housing • And documented as coming originally from the streets or a shelter originally 5

Supportive Housing Program and Shelter Plus Care Eligibility n Participants in permanent housing projects must be disabled including physical, mental, chemical or emotional impairment that infinite duration, impedes an individual’s ability to live independently, could be improved with more suitable housing conditions Developmental disability HIV+/AIDS Written verification from a qualified source * Disability not required for SRO Section 8 n • • 6

Who cannot be served? Please note the HUD definition and documentation may be more restrictive then other funders § § Long-term stays (over 30 days) -- Mental Health Treatment facilities, Jail, Chemical Treatment Facilities – Institutions requiring discharge plans for housing – Eviction from private dwelling (unless going to SHP transitional housing or Support Services Only ) –Wards of the State, –Doubled Up or Living with family and friends even for only short period –Paying more than 30% of income –Motels (other than paid by 3 rd party in lieu of emergency shelter) 7

Samaritan Initiative (formerly the Bonus project) for the Chronically Homeless or other units for Chronically Homeless n n n Unaccompanied homeless individual with a disabling condition living on the street or in an emergency shelter Has been continuously homeless for a year or more OR has had at least four episodes of homelessness in the most recent three year period 8

Chronically Homeless Definition, Cont. n Disabling condition: • a diagnosable substance use disorder, serious mental illness, developmental disability, or chronic physical illness or disability, including the co-occurrence or two or more of these conditions • limits an individual’s ability to work or perform one or more activities of daily living 9

Reporting Requirements n n An Annual Progress Report (APR) is required 90 days after the end of each operating year • HMIS will provide information for questions two through 15 ---involves demographics of those who entered and exited • List HUD funds spent • Must list the amounts and origin of cash match • Discuss progress of participants in reaching program goals • Progress from Application Logic Model For those who spent $500, 000 or more of federal funds in an operating year, an A-133 annual audit is required 10

Site selection criteria for Zoning, Environmental, and Site Control Applicants must: n Have site control within (1) one-year of conditional approval n Be properly zoned n Able to pass the environmental requirements; • • • Noise, Hazardous materials, Historical, and Flood plain issues Services available (water, hospitals, commercial, etc. ) 11

Tenant Rent Calculated n n n - Tenants pay: “ 30% of their Adjusted income for rent” Adjustments are made for: Disability - Daycare Dependants - Medical Expenses Income disregard for disable who find employment Rent Pays for shelter and utilities: Example is: For a single person is, $230 x 30% = $61 gross rent (optional to charge rent under SHP) n 12

u. Minnesota Technical Assistance Contractor (Call HUD first ) u. Minnesota Housing Partnership (MHP) 651. 649. 1710 ext. 103 13 3

Common Issues and Concerns n n n Be knowledgeable about housing (development, maintenance, code compliance, leasing, or landlord responsibilities) Have support services in place or have a realistic date to have services in place Have an appropriate frequency and set of comprehensive support services with regular assesments of needs Check your numbers including both the number of households to be served and budgets (including match) Application consistent with the Super. NOFA! 14

Program Resources n n n The Supportive Housing Program Deskguide and Shelter Plus Care Resource Manual can be downloaded at www. hudhre. info Provides detailed information www. hudhre. info/index. cfm? do=viewhomelessa ndhousingprograminfo This site covers the Supportive Housing Program , Shelter Plus Care, and Section 8 Single Room Occupancy 15

esnaps n Contact esnaps regarding the application submission process if you have any concerns or questions at the following: • esnaps@hudhre. info or • Toll Free number • 1 -877 -637 -6277 16

n n For information on Specific Programs of HUD and your grant please contact the Minneapolis Field Office Primary contact phone: 612. 370. 3019 • Sara Bergen ext. 2103 • Mary Burbank ext. 2102 • Joe Geary ext. 2157 • Tom Koon (Program Manager) ext. 2108 n For esnaps: • again contact toll free 1 -877 -6376277 or esnaps@hudhre. info 17

OVERVIEW OF THE SUPPORTIVE HOUSING PROGRAM (SHP) 18

Supportive Housing Program Components or Activities 1. 2. 3. 4. 5. Permanent Housing Transitional Housing Support Services Only (not tied to any housing units) Homeless Management Information System (HMIS) Safehavens – typically for those with mental illness living on the streets 19

Additional participant eligibility criteria Transitional Housing and Supportive Service Only Projects: n Those whose situations n and those who are: of homelessness qualify them for permanent housing projects n and those who are: • being evicted within a week from a private dwelling and have no other resources to obtain housing • being discharged within a week from an institution in which s/he has been a resident more than 30 days and no subsequent residence has been identified and lacks other resources to obtain housing 20

SHP-Eligible Grantees n n n n State Metropolitan city Urban county Governmental entity Private non-profit Community mental health organization that is a public non profit n INDIVIDUALS ARE NOT ELIGIBLE TO APPLY TO BE A GRANTEE Applicants outside of the COC process 21

Safehaven for Youth Scott County, Minnesota 22

NEW SHP—Acquisition, Rehabilitation, New Construction n Each site can receive up to $400, 000 for acquisition, rehabilitation, or new construction combined 100% cash match required Must abide by the Uniform Relocation Act etc. • SHP is subject to the requirements of the Uniform Relocation and Real Property Acquisition Policies Act of 1970 (URA) • URA is triggered at the beginning of negotiations for a property for a Federally assisted project • If acquiring a property to use for SHP, the URA applies even if the property is vacant 23

SHP—Acquisition, Rehabilitation, New Construction n n Environmental Review Completed Prior to the grant agreement being executed, the applicant must show that it has commitments for all of the funds required to complete the project 24

SHP New Projects Issues to Consider n n n Is new construction or rehabilitation better suited for your clients and program? Which is more cost-reasonable? Will zoning approval be complicated? What is the cost of lead paint and asbestos abatement? What are the accessibility requirements and added costs? Will there be any relocation costs? What will the ongoing future energy and maintenance costs be? 25

Using SHP funds to Lease n n n Lease structures to provide supportive housing or services Housing must meet habitability standards Rent must be reasonable HUD portion of rent paid with grant funds cannot exceed Fair Market Rents Rent includes all basic utilities and shelter n n n Grantees maintain control of the funds at all times---money is not given directly to clients to pay rent All lease arrangements must be at an arm’s length Grantees/sponsors cannot have an ownership interest in property that is leased 26

Using SHP funds to Lease n n n No match requirement Grantee may have the lease • in its name • jointly with tenant Client may have the lease in his/her name Client may assume lease Cannot rent from relatives of client n Site control is required if the participant will not eventually assume the lease or if the SHP request is only for leasing (no supportive services or operation funds are requested) 27

Using SHP Funds for Supportive Services n n n Case management Food for clients Employment training Life skills Transportation (cannot pay for individual cars) Parenting skills n n n Damage deposits/first month’s rent Childcare Other supportive services that help a client to achieve one or more of the three SHP goals 28

Using SHP Funds for Supportive Services There is a cash match requirement n SHP funds can be used to pay only 80% of all eligible supportive services n Or for every $4 of SHP funds spent on eligible supportive services, grantee must pay $1 in cash toward expenses for eligible supportive services n Must have site control n 29

Using SHP Funds to Pay for Operations n n Operating costs are those costs that are associated with the physical day-to-day operation of the housing facility SHP funds used to pay 75% of all eligible operating expenses Or for every $ 3 of SHP funds spent, grantee must pay $1 in cash for eligible operations activities Must have site control if SHP operation funds are used for supportive housing 30

Using SHP Funds to Pay for Operations Examples of eligible costs: n maintenance and repair n Utilities---gas, heat, electric, water, trash, etc. n Insurance n Relocation n Salaries (or portions thereof) of staff not delivering services—I. e. security guard n 31

Other SHP Budgeted Costs n n Homeless Management Information Services (HMIS) generally only the COC designated provider Administration limited to 5% of requested amount • Costs related to administration of the grant such as required audit, training on the grant program and Annual Progress Report 32

SHP Grant Cycle n n HUD announces which projects received funding about six months after the application deadline to HUD (usually between Dec and Feb) Technical submission process for new or changing renewal grants Grant agreement is executed (do not spend funds before that date for new projects) Start of construction and/or operations • Operating start date is the date that participants begin to receive services n n Renewal projects begin the day after the previous grant ended Sign grant agreement by September 30, 2010 33

Renewal Grants n n SHP grant that will expire at any time during 2009 must apply for renewal from the 2008 Super. NOFA Renewals can be for 1 to 3 years, but most are for 1 year n Only supportive services, operating, HMIS, leasing, and admin budgets can be renewed 34

Shelter Plus Care Permanent Housing for Disabled Homeless Persons 35

Purpose n n n S+C provides permanent housing in connection with supportive services for homeless people with disabilities and their families S+C program provides rental assistance Supportive Services are required as match 36

The Benefits of Shelter Plus Care Flexibility and Use of existing resources and local Expertise n n First, it is an easier than many programs to run Leverage services and mainstream funding already being provided in community Build partnerships between official grantee/housing provider/service provider Allows partners to focus on what they do best 37 13

More Benefits n Quick turn around time: • S+C avoids the time lag of housing development. n 4 flexible models to choose from. 38

More Benefits Maximize Co. C resources and add points for COC n n n Helps Co. C get housing emphasis points New projects could help get Samaritan funding to serve chronically homeless S+C renewals do not come out of the pro rata need and avoids Continuum of Care renewal burden after initial contract – • must be listed by COC to be funded n S+C renewed at current Fair Market Rents allowing adjustments for inflation 39

Funding Mechanism n n New projects are funded competitively through the Continuum of Care NOFA process. Applicants must be a public entity • • • n Unit of Local Government (e. g. county government) Housing Authority State Grant amount is determined by (# of Units by bedroom size) x (Fair Market Rents) x (Grant Term) 40

Outreach n n n 24 CFR Sec. 582. 325 Outreach Activities Requires recruiting new clients from emergency shelters and from the streets Use best efforts to ensure eligible hardto-reach persons served by S+C Have a current list of street outreach programs, shelters, Contact these organizations and educate their staffs in order to recruit new participants for your program. 41

Rental Assistance can be: § § Tenant-Based Sponsor-Based Project-Based SRO-Based (Single Room Occupancy) 42

Tenant Based Rental Assistance (TRA) § § § Initial 5 year term Participants choose housing and can retain rental assistance if they move Units must pass HQS inspection Applicant may limit location or general area to ensure service provision Should consider local market 43

Sponsor Based Rental Assistance (SRA) n Initial 5 year term n Sponsor must own or lease units n n Entity providing housing cannot do HQS or rent reasonable test if owner Units can be single site, scattered site, or clustered 44

Community Involvement Program, Minnetonka, MN (Sponsor Based Program) 45

Project Based Rental Assistance (PRA) n n n 5 year term 10 year term with rehabilitation Eligible Cost at least $3000 per unit Assistance is tied to a building and not portable If with rehabilitation complete within 12 months 46

The Francis, Rochester, MN Project Based Program 47

Moderate Rehabilitation for S+C Single Room Occupancy Dwellings (SRO) Based Rental Assistance n n 10 year term in connection with rehab of SRO, $3, 000 per unit. Must contract with PHA to administer Doesn’t make sense for most projects contact HUD Field Office if considering application Examine other components first 48

What is paid by HUD? n Monthly rental payments: (Contract Rent) – (Tenant Contribution) = S+C Subsidy • Remember: Contract Rent is limited by Rent Reasonableness not Fair Market Rent • Tenant Contribution is limited by income: n 30% of monthly adjusted income n n 10% of monthly gross income Welfare rent if applicable • Utility Allowances must be considered if not included in Rent - Contact your PHA for their utility allowances 49

How do you calculate unit rents? Grant: (# of Units) x (Fair Market Rents) x (Grant Term) =Grant Amount Property owner’s unit rent + tenant’s utility allowance = Gross Rent (Gross Rent) – (Tenant Contribution) = S+C Subsidy Actual contract rents may be other than FMRs § Contract rents with owner must be reasonable rents § Resident rent contribution reduces subsidy NOTE: Decreasing S+C subsidy for units; results in funds that can be used for other costs or “Grant Savings” § 50

“Grant Savings” creates flexible funds Eligible costs for “Grant Savings” n n Administration costs up to 8% of total grant NOTE: Rental assistance admin is not grant admin Eligible Costs Ineligible Costs • Outreach for new participants • APR • HQS Inspections • Audits • Income & Rent determinations • Grant administration • Processing Rent payments • Housing search • Outreach, see Section 582. 325, Outreach activities 51

Additional uses for “Grant Savings” For a rainy day § Security Deposit § Vacancy payment § Limited damage repairs § Future rent increases § Additional Units; please check with your CPD Rep first! 52

What do you have to provide? n The Matching value of supportive services - Match is an overall grant requirement… - And it is not unit by unit, or year by year • Administration expenditures are not matched • Examples of Match could be: n n n Health Care Case Management Job Training Counseling Budgeting Skills Mental Health Chemical Dependency Education Child Care Transportation 53

How do I find Match? n There are many ways to find service match: • • • Direct service staff salaries Value of contracted services Prorated leasing costs for buildings used for services • Services provided by volunteers ($10/hr) • Outreach activities § Tracking and documenting match is key: • Sponsors • Service providers • County Human Service Agencies 54

Meeting Project Performance To help meet your goals and coordinate program: Grantees should have a detailed Memorandum of Understanding (MOU) with Sponsors n This process will ensure and explain what each partner is responsible for… - Please note MOUs are negotiable Grantee is ultimately responsible n 55

Other Items to note include: n New and Renewal S+C projects count as a housing activity for the COC’s housing emphasis points And… 56 40

S+C is Not Section 8… • No criminal background restrictions required • No credit check or rental history required beyond homeless status/disability status • No set HAP payment for all clients-each case varies • No minimum rent paid by participants • Chemical addiction is considered a disability Please know the difference between S+C, Section 8 and other rental assistance programs!!!!! 57

Renewal Process for S+C grant previously renewed S+C renewals have been 1 year terms n Renew in the year prior to your Shelter Plus Care grant expiration date n For renewal of a renewal grant the number of units funded in the previous year must be the same n Renewal grant listed by COC n 58

What is the Renewal Process for a first renewal of a S+C grant n n New S+C grants are generally for periods of 5 years In the year prior to Shelter Plus Care grant expiration date, grantee must make a critical decision based upon the fund balance remaining in grant. • Does it have enough funds remaining to continue operating into the calendar year following your grant expiration date? - If its does, it should seek a grant term extension. 59

Renewal Process for S+C n n n For first time renewals, the amount is calculated by multiplying the number of units under lease at the time of the renewal application by the Fair Market Rents (FMR) by 12 months. Use the current FMRs Again renewal is not part of Pro Rata Need Renewal must be listed by COC Renewal does count 100% as housing emphasis 60

Minnesota –S+C Grantees Ø Ø Ø Ø Bemidji HRA Carver County HRA Clay County HRA Crookston HRA Dakota County CDA Duluth HRA Itasca County HRA Koochiching HRA Mankato EDA Morrison County HRA Metro Council HRA Minneapolis PHA Olmsted County HRA Rice County HRA St. Cloud HRA St. Louis Park HRA Ø HRA of St. Paul Virginia HRA Ø Washington County HRA Ø Worthington HRA Ø Willmar HRA Ø Blue Earth County* Ø Grant County* Ø Hennepin County* Ø Olmsted County* Ø Ramsey County * Ø Scott County * Ø Minnesota Housing (State Ø Ø agency) (all grants transferred) * Grantee is the county government -usually Human services 61 61 48

SRO Rental Assistance SRO provides assistance for 10 years 62

SRO is Permanent Housing n n n Developed from the Rehabilitation of Existing Buildings Please note: This is Rental Assistance Only… You must find the capital funds for acquisition and rehabilitation of property from other resources 63

- MN SRO Experiences St Paul; 2 buildings, Duluth; 3 buildings, Eveleth; 1 building, Minneapolis; 5 buildings, South St. Paul; 1 building. 64

What Properties are eligible? n n n - The structure may be of any type, but when rehabilitation is completed, the unit must meet the definition of SRO housing. Rehabilitation must be at least $3, 000 per unit and meet HQS of Section 8 SRO housing is defined as: a residential property that includes multiple single room dwelling units. Each unit is for occupancy by a single eligible individual. 65

Eligible Properties Residential property dwelling units continued: - - The unit need not, but may, contain food preparation or sanitary facilities, or both Some units must be handicapped accessible with added units for the visually and hearing impaired 66

Eligible Properties n Efficiency units are also eligible: But the contract rent charged for these units may not exceed the Moderate Rehabilitation SRO Fair Market Rent (FMR) minus (-) the allowance for tenant-paid utilities, if applicable. • (Consider Shelter Plus Care if all units are for disabled persons) n n 100 assisted units is the maximum per site All Units designated for the program must be vacant at the time of initial operations 67

Eligible Properties n n Under NO circumstances are 1 -bedroom units eligible for assistance. Please note: A Separate Exhibit 2 for an initial application must be submitted for each property. 68

What are some Sources of Eligible Buildings? n n Residential hotels and motels Rental properties with mostly efficiency units Non residential buildings converted i. e. warehouses, commercial buildings or social clubs Conversion of hospitals or nursing homes 69

Who are eligible applicants? n Public Housing Authorities (PHA) n Non-profit applicants - Must work with PHA’s - The property owners may be PHA or nonprofits - For-Profit owners can not apply, but can work with a non-profit or PHA 70

How is the Rental Subsidy and Grant Amounts Calculated? n n n n Rental Subsidy: Take 75% of “ 0” (zero) bedroom rent; (x) multiply it up to 120% for debt service; then (x) multiply it by the number of units; then (x) multiply it by 10 years, this = (equals) the total assistance of funding Grant Amount: This is initially funded out of the “pro rata” share or bonus fund of the Co. C 71

How is the flow of assistance funds charted? 72

What are some sources of development funds? Ø HUD’s HOME funds Private foundations and other grants Veterans Affairs Federal Home Loan Bank Grant Community Development Block Grant MN Housing Finance Agency funds Low income housing tax credits Tax exempt Bonds Bank Loans Owner Equity Ø Bake Sale Proceeds!!!!!!! Ø Ø Ø Ø Ø 73

If I am interested in doing a SRO project, what should I do first? n Meet or talk to HUD personnel to determine this is the best option for your agency. • (Hint -A S+C sponsor or project based proposal with all efficiency units may be better for proposals that serve only the disabled) n Meet with your PHA and other partners and discuss proposal, issues, location, environmental issues, relocation, and current residents if applicable, 74

SRO Renewal Process Renewal after the initial 10 years is the through the Section 8 Renewal process with the Housing Authority and HUD. n Renewal is for one-year at a time n The Renewal is Not Part of the Continuum of Care (COC) Pro Rata share and Does Not Count against the pro rata share for a COC n 75