June 16 at 10:00 a.m.

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Mental Health Services Act Housing Program
June 16 at 1000 a.m. Presented by the John
Burton Foundation California Coalition for
Youth Call-in phone number for live audio
484-589-1011 Access code 696-195-868
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Webinar Technical Details

• Call-in phone number for live audio
• 484-589-1011
• Access code 696-195-868
• To submit live questions, click on the
  Questions panel on your screen, type your
  question, and click Send

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Outline of Presentation

• Overview of Mental Health Services Act Housing
  Program
• Case studies of MHSA programs for Transitional
  Age Youth
• Available funding in selected counties
• Q and A

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Todays Presenters

• Debbie Raucher, John Burton Foundation
• Sandy Rose, California Institute for Mental
  Health
• Lisa Blakely, Corporation for Supportive Housing
• Susanna Marshland, Fred Finch Youth Center
• Lila Wiggs, Step up on Second

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Using Mental Health Services Act Housing Program
Funds with Transitional Age Youth

• Lisa Blakely-CSH
• Sandy Rose, CiMH
• The Homeless Youth Capacity Building Project
• June 16, 2010
• www.csh.org

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Our Mission
CSH helps communities create permanent housing
with services to prevent and end homelessness.
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What Does Housing Have To Do With The MHSA?

• The MHSA asks the State of California to
  transform the way in which it has delivered
  mental health services to individuals with
  serious mental illness.
• The transformation process has begun with several
  State implemented pilot programs which included a
  housing component and goal of
• Moving beyond the mental health clinic setting
  to offer a much wider array of services and
  support to consumers in community settings,
  enhancing their recovery efforts and
  opportunities for independent living.

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MHSA Housing Priorities

• Reducing homelessness, involuntary service and
  incarceration are all major focuses of MHSA
  implementation and performance measurement.

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The Role of Housing
?Parents
? Support Services
? Housing
? Children/Youth
Community Resources
Safe, affordable, stable housing is a foundation
for resilience and recovery
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MHSA Housing Program Highlights
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MHSA Housing Program Highlights A Collaboration

• Who created it?
• The California Department of Mental Health
  (DMH), the California Housing Finance Agency
  (CalHFA) and the County Mental Health Directors
  Association collaborated to develop the MHSA
  Housing Program.

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MHSA Housing Program Highlights Housing Types
Rental Housing Developments
Shared Housing Developments House Mate program
for unrelated adults

• Generally consist of single family home or
  two-four-unit building.
• Must have at least two bedrooms.
• Must provide a lease and locked bedroom for each
  tenant.
• Spouse, adult partner children can share
  bedroom with qualified tenant.
• Allowable to submit one application for multiple
  dwellings.

• 5 or more units.
• General and Special Occupancy.
• 5-100 10 set aside for MHSA members, minimum of
  5 units.
• 100 or more at least 10 units set aside.
• Must set aside adequate space for supportive
  services.
• No SRO Must have at least a stove top

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MHSA Act Housing Program Highlights Funding

• Capital Funding
• 75 Million per year (375 Million) for Capital
  Costs associated with development, acquisition,
  construction and/or rehabilitation of permanent
  supportive housing.
• Rental Housing Developments may apply for up to
  1/3 of the capital costs up to a maximum of
  109,893
• Predevelopment Loans
• Predevelopment loan available, 500 K for rental
  development and 200 K for shared housing
  factored as part of funds allocated.
• Must have evidence of MHSA loan commitment,
  evidence of other financing and evidence of site
  control or purchase agreement and appropriate
  zoning.
• Predevelopment loans can be used for acquisition.
• Rolled into permanent financing at close of
  construction, 3 interest forgiven.
• Cannot be larger than permanent commitment.

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MHSA Act Housing Program Highlights Funding

• Capitalized Operating Subsidies (COSR)?
• An additional 40 million per year (200 Million)
  in capitalized operating reserves.
• Rental Housing Developments and Shared Housing
  Developments may apply for 109,893 per targeted
  unit.
• Qualified applicants for capitalized operating
  reserves must receive capital funding from the
  MHSA Housing Program and require operating
  subsidies to cover the operating costs.
• The operating subsidy is intended to last 18-20
  years.

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MHSA Act Housing Program Highlights Funding

• Capitalized Operating Subsidies (COSR)?
• COSR means an account held and invested by the
  Agency to cover shortfalls in unit income
  available for payment of approved operating
  expenses attributable to MHSA Housing Units.
• Funds are set aside at the MHSA permanent loan
  closing date in a reserve for the purpose of
  supplementing development income for the payment
  of approved operating expenses associated with
  the MHSA Housing units that will receive the COSR

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MHSA Act Housing Program Highlights Funding

• How Dost the COSR Work?
• Example
• A project has a 200 K annual Operating Budget.
• Rental Income is projected in the first year to
  be 150 K
• The development will draw down 50 K from the
  COSR to cover the difference.
• The difference could be the result of the
  projects assumptions related to rental income
• Some tenants will not have enough resources to
  contribute to rent until they are receiving
  SSI/SSP (i.e. with TAY it could take a while to
  get SSI).
• The simple difference between the portion of rent
  the tenant will pay (i.e. no less than 30 off
  monthly SSI/SSP or household income which ever is
  greater) and the rental income required to meet
  the projects operating expenses.

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MHSA Act Housing Program Highlights Project
Owner

• Who is a Qualified Borrower?
• Must be a non profit or an affiliate of the
  County.
• Examples
• Collaboration is possible with a for-profit
  entity by forming a limited partnership (LP) This
  is typically true when the project includes tax
  credit financing or when a for profit developer
  has a non profit affiliate.
• The managing general partner of the LP must be a
  501(c)(3) corporation or a limited liability
  company (LLC) whose sole member or members are
  501(c)(3) corporations).
• A 501(c)(3) corporation
• A LLC whose sole member or members are 501(c)(3)
  corporations.
• An affiliate of a local redevelopment agency.
• An affiliate of the county created to hold
  properties financed with the MHSA Housing Program
  funding, or (i.e. a separate legal entity)
• An affiliate of a local housing authority created
  to hold MHSA Housing Program Properties.

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MHSA Act Housing Program Highlights Rent and
Income

• What are The Rent Requirements?
• Targeted to households earning 50 AMI and less
  for both shared and rental housing.
• Encouraged to restrict MHSA targeted units and
  occupancy to households earning 30 or less of
  AMI, and to restrict rents to 30 of income.
• Rents in MHSA Housing Program capitalized
  operating subsidy, the tenant portion of the rent
  must be set no lower than 30 of the current
  SSI/SSP income or 30 of total household income,
  whichever is greater.

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MHSA Act Housing Program Highlights Housing
Program Application

• Who Submits the Application?
• Applications are submitted by the County Mental
  Health Department (CHMD).
• Both developer and county sign the application.
• Developer Borrower
• CMHD Service commitment for term of the loan.

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MHSA Housing Program Highlights Housing Options

• Rental
• Dedicated buildings (single population)
• Set aside units (mixed income population)
• Set aside units in a special needs SH development
• Shared Housing
• Duplexes, triplexes and four-plexes
• Single family homes and condominiums
• All units exclusively house MHSA tenants

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MHSA Housing Program Highlights Target
Population

• Homeless and at risk of homelessness low-income
  adults and older adults (SMI)
• Children or adolescents (SED)
• At Risk of Homelessness
• Discharged from Hospitals and Institutional
  facilities.
• Released from local city or county jails
• Temporarily placed in Residential Care
  Facilities.
• Crisis and transitional residential settings.
• Transition Age Youth (TAY)

• All participants must be certified by the county
  mental health department.

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What Models Make Sense for My Community?
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Rental versus Shared Housing
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New Construction versus Rehabilitation
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Who Has Created MHSA Permanent Supportive Housing
Units

• Not For Profit Affordable Housing Developers
• Youth Service Providers
• Public Housing Authorities
• SH Providers Who Only Create and Run SH
• Mental Health Providers

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What Are some Partnership Models?

• Set-a-side Units in a Mixed Income Affordable
  Housing Building.
• Dedicated Building Owned by Non Profit
  Developer/Contracted Service Provider or County.
• Turn Key Developer Oversees Development for
  Owner ( County or Provider).
• Property Management is variable directly impacted
  by the partnership (i.e. in house or third
  party).

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MHSA Project in The Pipeline
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Publications / TAY Resources
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Online Resource Library www.csh.orgMHSA
Toolkit for Ending Long-term Homelessness
Publications New homes, Brighter Futures
Profiles of Housing Programs for Young
AdultsKey Issues in Supportive
HousingSupportive Housing for Youth
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Resources
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Susanna Marshland, Fred Finch Youth Center
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Fred Finch Overview

• Organization History
• Current TAY Programs
• 3 mental health programs
• 2 funding by MHSA services dollars
• Permanent Housing
• Coolidge Court
• Harmon Gardens (in progress)

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Coolidge Court

• 18 units of studio apartments
• Target population 18-24 with mental health
  disability
• Staffing part time resident mgr and full time
  case manager
• Development funding from HUD for housing for
  people with disabilities
• Utilized development partner for construction
• Property Management done by Fred Finch

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Lessons of Coolidge Court

• Laws can be changed preference for homeless
  youth
• Studio units ideal size provide incentive for
  moving on and offer private living space
• Grouping TAY together works well

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Lessons of Coolidge Court (cont.)

• Crucial to establish funding for services
• Average length of stay longer than transitional
  housing
• Pros youth can take more risks (e.g. go back to
  school)
• Cons less opportunity to bring new youth into
  program

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Harmon Gardens

• 15 units plus one resident mgr unit
• 10 units to be funded by MHSA
• Project will receive both MHSA capital and
  operating funds
• Development funding also includes Low Income Tax
  Credits, and State Multi-Family Housing Program
  for Homeless Youth
• Operations funding includes Project based Section
  8 for non-MHSA units

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Harmon Gardens Process

• Fred Finch approached by Affordable Housing
  Associates to partner
• Corporation for Supportive Housing and Foster
  Youth Housing Initiative provided assistance with
  pre-development funding
• Design modeled after Coolidge Court
• Included TAY in planning process including
  neighborhood meetings and city hearings. This
  facilitated project approval process.

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Harmon Gardens Lessons Learned

• Crucial to be good collaborator
• Mix of multiple funding sources challenging
• Need to track eligibility for all funding sources
• Occupancy limit questions in process
• Services plan in process. Challenges include
• Services for non-MHSA tenants
• Funding for resident services coordinator
• Inability to restrict to Fred Finch clients

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Partner Roles

• AHA obtained development funding and is providing
  all construction and development services
• AHA to provide property management services
• Fred Finch knows populations and is advising on
  youth needs Fred Finch providing services once
  project operational

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Lila Wiggs, Step Up On Second
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Daniels Village - Overview

• 7 units dedicated to mentally ill TAY plus one
  unit for resident manager

• Located in Santa Monica
• Renovation of existing motel
• Step Up functions as developer, service provider
  and property manager
• Opened in August 2009

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Project Development

• Development Financing
• 700,000 MHSA funding
• 2.02 million City of Santa Monica
• 200,000 capital campaign
• 50 from private donors
• 50 from foundations
• Team of brokers used to identify possible sites
• Development consultant and construction manager
  hired for development process

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Operational Financing

• Clients pay 30 of income towards rent
• MHSA operating subsidies
• Local TAY rental subsides
• Other options for cities without designated
  subsidies include project based section 8 and
  Shelter Plus Care
• MHSA subsides can cover operating costs until
  client begins receiving SSI

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Program Features

• On call resident manager who lives on site
• One full time life skills coordinator
• Access to services through Daniels Village and
  FSP if enrolled
• Housing first model
• Provide lap tops, flat screen tvs,
• and cable in all units

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Lessons Learned

• Relationship building process takes longer with
  TAY than with adults
• Committee of consumers to make architectural and
  program recommendations
• Life skills coordinator crucial
• Have pizza at all functions

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Available Funding

• Of the original 400 million about ½ has been
  allocated by the State
• Many counties have funds still available
• Check with your local MHSA coordinator to
  determine the status of your countys funds.

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Upcoming Trainings

• June 17th Regional Training What do
  Foundations Really Want, Riverside County
• July 8th Bridging the Gaps Connecting Young
  Adults to Housing and Services, Oakland
• July 22nd HYCBP annual meeting, Los Angeles
• August 18th Webinar California Youth Crisis
  Line
• Individual Technical Assistance available for
  HYCBP members

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Questions or comments? Enter questions on your
screen now by clicking the Questions panel,
typing your question, and clicking Send. Or
direct later questions or comments to Debbie
Raucher John Burton Foundation (510)
593-8382 debbie_at_johnburtonfoundation.org www.cah
omelessyouth.org