Building Up: Developing a Supportive Housing Project

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Building Up Developing a Supportive Housing
Project

• Alison Recca-Ryan
• Leslie Wise
• John Rowland
• NATIONAL ALLIANCE TO END HOMELESSNESS CONFERENCE
  JULY 12, 2005
  
• Corporation for Supportive Housingwww.csh.org

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Overview of the Agenda

• Who is CSH
• Defining Supportive Housing
• What is Supportive Housing
• Population served
• Who Creates and Runs SH
• Models of Housing and Services
• The Environment for Supportive Housing
• Systems Fragmented vs. Systems Integrated
• Funding environment
• Planning Systems environment
• Small Group Break-Out Discussion
• Financing of SH

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Our Mission

• CSH helps communities create permanent housing
  with services to prevent and end homelessness
  

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CSHs Core Services

• Project development and finance assistance
• Organizational/industry capacity building
• Advocacy/public policy reform

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What is Supportive Housing?

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

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A Distinctive Solution

• Temporary/ Transitional Interventions
• Uncertain length of stay
• Program requirements
• Isolated
• Reinforce dependency

• Supportive Housing
• Stable, no time limits
• Independent living
• Belong to a community
• Personal responsibility for behavior and rent
• New approach to services

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Who Lives There?

• Formerly homeless individuals, families, youth
• People with serious, persistent issues substance
  use, mental illness, HIV/AIDS
  
• People being discharged into homelessness from
  the criminal justice system or other
  institutional settings

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Supportive Housing Worksfor people

• 57 ? emergency room visits
• 85 ? emergency detox services
• 50 ? incarceration rate
• 50 ? in earned income
• More than 80 stay housed for at least one year

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Supportive Housing Works for communities

• Increased property values
• Neighborhood beautification
• Lower crime rates
• Overall economic impact
• More effective use of public resources

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Supportive Housing Types

• Dedicated buildings
• Rent-subsidized apartments
• Mixed-income buildings
• Long-term set asides
• Single-family homes

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Services Make the Difference

• Flexible, voluntary
• Counseling
• Health and mental health
• Alcohol and substance use
• Independent living skills
• Community building
• Vocational counseling and job placement

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In Supportive Housing, Tenants Choose to

• Access appropriate care for and manage chronic
  health and mental health conditions
  
• Take steps toward achieving and maintaining
  sobriety
  
• Achieve housing stability
• Work
• Socialize
• Be leaders in their community
• Connect with the wider world
• Pursue goals and interests

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Tenant Commentary
I have 2 years clean and sober, a steady job, I
pay my own rent all of which I could not have
done without supportive housing.
Charlie Miller, TenantCanon Kip, CA
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Models of Supportive Housing
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Models for Supportive Housing Traditional
Development

• Creates a permanent asset to the community
• Involves acquisition and construction and the
  full compliment of development activities.
  
• Can take 2-3 years (or more!) to develop
• Involves establishing on-going funding sources
  and providers for operating and services Creates
  a permanent asset to the community
  

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Models for Supportive Housing Traditional
Development

• Developing Project Concept/Assessing Feasibility
• Building a Development Team
• Identifying and Securing Resources
• Program Design and Construction
• Preparing for Operations
• Lease-up

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Center House,Asbury Park, NJ

• 25 units
• Urban, single structure
• Combines Residential Day Center
• Homeless individuals with HIV/AIDS
• On- and off-site services provided by consortium
  of local agencies
  
• TDC 4.5 million HUD SHP, LIHTC, HOME, Balanced
  Housing, FHLB

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The Fortune Society The Castle

• Targeted tenancy Formerly incarcerated men and
  women, including PWAs
  
• Model Single-site supportive housing (41 units)
  and Shelter (18 beds)
  
• Funding
• Capital HHAP, LIHTC, Historic Tax Credits
• Operating HOPWA, HUD SC (pending)
• Services HUD SHP, HOPWA SPNS, HOPWA, Existing
  agency services
  

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Columbus, Ohio

• 100 efficiency apartments
• 50 for chronically homeless men and women, 50
  for low income people
  
• Community room, linkage to healthcare, education,
  and employment services
  
• Faith-based sponsor

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Models for Supportive Housing Accessing
Existing Housing

• Sometimes referred to as Housing First, also
  might be referred to as Scattered Site Housing
  
• Integrates residents into the community
• Can retrofit existing affordable housing and
  add services in a single site
  
• Once secure rental subsidy, can move very
  quickly
  
• Involves establishing ongoing funding sources and
  providers for operating and services

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Accessing Existing HousingOpportunities Without
Building

• Turn-key development
• Dont develop, but get the building.
• Master Leasing
• Often times fast and easy
• Scattered-Site
• The model of choice for many residents

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Models for Supportive Housing Accessing Existing
Housing

• Accessing existing rental units in the community
  and adding wrap around services
  
• Integrates residents into the community
• Once secure rental subsidy, can move very
  quickly
  
• Involves establishing on-going funding sources
  and providers for operating and services
  

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Scattered Site One Example

• Using existing apartments in the community
• Provider does not own units but might master
  lease
  
• No rehabilitation or construction involved take
  apartments as is
  
• Owner of apartments typically private landlords
  who own large and small apartment buildings or
  2-4 family houses
  

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Direct Access to Housing in CA

• The city of SF acquires sites for the DAH program
  through master leasing
  
• Most units have private baths and shared cooking
  facilities
  
• DAH housing presently includes
• The Camelot Hotel (51)
• Windsor Hotel (78 units)
• Star Hotel (54 units)
• Pacific Bay Inn (75 units)
• Le Nain Hotel (86 units)
• Broderick Street Adult Residential Care Facility
  (34 units).
  
•   

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LA No Fail Housing

• Lamp Lodge is the permanent housing component of
  LAMP Inc.s continuum of housing opportunities
  for people with mental illnesses in Los Angeles
  
• All are homeless when they arrive, and have a
  history of mental illness they may have
  substance use issues as well
  
• LAMP focuses on a philosophy of no fail housing
  and a non-linear case management model

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Sunshine Terrace A Partnership with a PHA in
Ohio

• Columbus Metropolitan Housing Authority and the
  YMCA of Central Ohio partnered to convert
  Sunshine Terrace into supportive housing
  
• 50 units for formerly homeless, services and
  security, retraining of on-site staff
  
• Project is now fully occupied

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Who Creates Supportive Housing
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Who Creates Supportive Housing

• A wide variety of entities can create and operate
  supportive housing
  
• The deciding factors include the type of SH and
  the population to be served, the organizations
  experience and capacity, the competitive
  environment, and even the funding sources
• Partnerships are also prevalent in SH creation

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Who Creates Supportive Housing

• Mental Health and other Service Providers
• Homeless Service Providers
• NFP Affordable Housing Provider
• Public Housing Authorities
• Private Developers and Private Landlords
• SH providers who only create and run SH

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Who Creates Supportive Housing

• In some locales, there is a targeted initiative
  which creates the environment for supportive
  housing creation
  
• In CT, the state agencies came together to create
  a Demonstration and then the PILOTS initiative
  
• In NJ, the state created a Long Term Support
  Program and put out an RFQ to find providers
  
• In CA, San Francisco and surrounding counties
  have done targeted SH initiatives called HHISN

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The Environment for Supportive Housing
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Systems Fragmentation vs. Systems Integration

• Challenges to Supportive Housing
• Integrated services and supportive housing are
  products with proven effectiveness ending chronic
  homelessness but without a system to produce
  them
• Siting/NIMBYism
• Services funding
• Sustainability
• Results take time
• Political will and support
• Often, success means using money for purposed
  that werent officially intended

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Systems Fragmentation vs. Systems Integration
Many systems share responsibility and serve many
of the same clients

• Homeless services
• Social services
• Employment
• Child welfare
• Education
• Mental health

• Substance abuse
• Housing development and finance
• Rent subsidy
• Hospitals, clinics, public health
• Criminal justice

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A Vision for a Better System

• Supportive housing as standard response
• New and reliable sources of funding
• Streamlined process for approving service and
  housing funds
  
• Supportive housing as a tool for community
  development

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Funding Environment

• New federal, state, and local investments
• Increased corporate and foundation funding
• Pressure to access Medicaid and other mainstream
  funding sources for services and operation
  
• Services for Ending Long-Term Homelessness Act
• Modifications to Existing Sources LIHTC, HUD
  McKinney-Vento Homeless Asst., DOL

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National Momentum

• New federal, state, and local investments
• Increased corporate and foundation funding
• U.S. Conference of Mayors
• Interagency Council on Homelessness
• New Freedom Mental Health Commission
• Samaritan Initiative
• Services for Ending Long-Term Homelessness Act

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Local Planning Momentum

• City, County and State 10-Year Plans to End
  Homelessness
  
• State Interagency Council on Homelessness
• Continuum of Care Planning Groups Process
• State Policy Academies on Chronic Homelessness
  and Family Homelessness
  

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Supportive Housing Development In Your Community
Key Partnerships and the impact of Federal,
State, Local Environments
Small Group Discussion
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The Financing of Supportive Housing
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Financing of Supportive Housing

• Supportive housing requires the financing of
  three distinct components development,
  operating and services
  
• Generally the projects require deep subsidies and
  ongoing intensive services
  
• The average of funders for a supportive housing
  project is 7 but it can range from 2 to 10

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Financing Plan
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(No Transcript)
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Identifying Securing Resources
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Funding Considerations

• Type of project
• Population served
• Eligible applicant
• Experience and team
• Compliance/regulations
• Geography

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Capital The Bricks and Mortar

• Capital costs are directly tied to the
  acquisition and development of the project,
  including hard costs and soft costs.
  

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Capital

• Potential Funding Sources

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Operating Subsidy

• The difference between the rents paid by the
  tenants and the cost of operating the completed
  building
  

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Operating Subsidy

• Potential Funding
• Sources

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Support Services

• What services will be made available to building
  residents
  
• General Supportive Services
• Independent Living Skills
• Health Medical Services
• Substance Abuse Services
• Vocational Services
• Services for Families

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Support Services

• Potential Funding Sources

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Challenges of Supportive Housing

• Complex Financing
• High Capital Costs
• Community/program space, security measures,
  durable materials
  
• High Operating Costs / Low Revenue
• Serves very low income tenants
• Cannot carry debt
• Needs deep rent subsidies
• Support Services
• Few sources for non-institutional settings
• Need long-term availability

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The Development Puzzle

• Development (sources and uses)
• Operating (sources and uses)
• Services (sources and uses)
• Population (physical, financial, support)
• Property (rehab scope, acquisition price, site)
• Timing (when and resources)
• Organization (capacity, staffing, consultants,
  partners)
  
• Community (input, approval, acceptance)

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Michigan Example Heritage H.O.M.E.S. Inc.

• Formed through the 1997 merger of two well
  established Western Michigan nonprofits
  
• New organization combined the missions of the
  original groups
  
• Selected by the Allegan County consortium as its
  nonprofit sponsor, developer, and property
  manager for supportive housing

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Heritage H.O.M.E.S. Multi-Site Project Profile

• 47-unit multi-site project part of CSHs Michigan
  Demonstration Project
  
• New construction, one-story units across five
  rural sites
  
• Target people with special needs, people who are
  homeless, and those at risk of homelessness

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Heritage Homes Scattered Site Financing Profile
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Heritage Homes Scattered Site Financing Profile
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Heritage Homes Scattered Site Financing Profile
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For More Information

• Check out the following resources at
  www.csh.org
  
• SH Financing Guide
• Toolkit for Ending Long Term Homelessness
• CSH Policy Pages