Interventions in a Tough Rental Market MTW Conference 4-20-17

4,178 Housing Choice Vouchers (MTW) CHA at a Glance 4,178 Housing Choice Vouchers (MTW) 1,518 Tenant-Based 2,502 Project-Based 158 Sponsor-Based 2,700 Public Housing units Non-MTW: 155 VASH, 300 NED, state rental vouchers

Challenges Low vacancy rates High rents & upfront costs Competition – student population, growing tech industry Increase in PUC

Strong relationships with local non-profit landlords City Programs Opportunities Strong relationships with local non-profit landlords Homeowners Rehab Inc. (HRI), Just-A-Start City Programs Inclusionary zoning program Affordable Housing Trust Fund MTW Flexibility Ability to project-base Security deposit and last months rent waiver Sponsor-based voucher program Increased regional presence Vouchers leased outside of Cambridge Expiring Use/Preservation Program

Utilization CY2016 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul- 16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 UMA 3,752 4,002 4,017 UML 3,386 3,653 3,626 3,713 3,780 3,817 3,836 3,880 3,915 3,925 3,917 3,952 Units Available 366 349 376 289 222 185 166 122 87 77 85 65 Utilization 90% 91% 93% 94% 95% 96% 97% 98% Includes Tenant-Based, Project-Based, and Sponsor Based vouchers Issued over 500 Tenant-Based vouchers in early 2016  ~56% success rate) 41% leased in Cambridge (~50% of which leased in inclusionary units or PB) 59% leased outside Cambridge (54% of which are paying over 30% of income towards rent)

Year % Cambridge % Outside Cambridge Percentage of Tenant-Based Voucher Holders Leased in Cambridge vs. Outside of Cambridge Year % Cambridge % Outside Cambridge 2011 68% 32% 2012 66% 34% 2013 64% 36% 2014 2015 62% 38% 2016 60% 40% April 2017 56% 44%

Program % Cambridge % Outside Cambridge Total 53% 47% Percentage of Tenant-Based Voucher Holders Leased in Cambridge vs. Outside of Cambridge Program % Cambridge % Outside Cambridge MTW 56% 44% NED 51% 49% VASH 8% 92% Total 53% 47% As of April 2017

Landlords in the Tenant-Based Voucher Program Has increased slightly over the past few years. Increase in voucher utilization Program has grown by ~1,800 units since 2015 Expiring Use/Preservation program Year Active Tenant-Based Landlords 2012 886 2013 899 2014 933 2015 921 2016 926

Landlords in the Tenant-Based Voucher Program Of the units leased in Cambridge: 64% of units are owned by landlords with 10+ units leased in the Tenant-Based program 15% of owners have only one unit leased in the Tenant- Based program Of the units leased outside of Cambridge: 1 owner has 10+ units leased in the Tenant-Based program (<1%)

Addressing Tough Rental Market Conditions Landlord & Tenant Incentives Partnership with City Inclusionary Zoning Program Ability to Project Base Expiring Use/Preservation Program

Landlord & Tenant Incentives – MTW Initiatives Security Deposit & Last Month’s Rent agreements Initial Inspections – allow move-in with City of Cambridge inspection Allow household to exceed 40% of adjusted income at move-in Sponsor-Based voucher program Security deposit: If the owner agrees to accept a reduced security deposit of not more than an amount equal to the higher of one month’s tenant portion of the rent or $200; the owner will have access to an amount up to the balance of the full contract rent amount Last Month’s rent: If the owner agrees to waive the requirement of a last month’s rent, the owner may access a vacancy payment of 80% of the contract rent at the end of participant’s residency if that participant vacates without notice. Initial Inspections: If the Cambridge apartment has passed an inspection completed by the City’s Inspectional Services Department CHA will allow lease and contract execution; however the apartment must pass a CHA HQS inspection within thirty days from initial lease-up and before the release of any assistance payment. If, through no fault of CHA, the apartment does not pass an HQS inspection within thirty (30) days from the initial lease update, the start date of the lease and contract must be amended to reflect the actual date the apartment passes the HQS inspection and the CHA is not liable for any lost rent during the interim period.

Partnership with City of Cambridge Inclusionary Housing Program 1998 Zoning Ordinance (response to end of rent control in 1995) Applies to new residential developments or buildings converted to residential use which create 10 or more new housing units or over 10,000 square feet of residential space. The Ordinance requires that 15% of the base units in the building be affordable  recently increased to 20% ~50% of the units in the inclusionary portfolio are currently occupied by voucher holders

Difference in Gross Rents: Inclusionary vs. Non-Inclusionary Units *does not account for units that may be subsidized by other means, such as LIHTC units.

Project-Based Program This program allows CHA to expand its Project-Based portfolio beyond the 20% HUD threshold and allows property owners to project- base a building beyond the 25% HUD threshold. Property owners may coordinate with CHA to project-base up to 100% of a property.

Project-Based Program ~60% of MTW portfolio is Project-Based assistance (excludes RAD-converted PB units) Emphasis on maintaining hard stock Tenant rent remains at 30% of adjusted income, any rent increases not passed on to the tenant Enables households to remain in Cambridge Removes housing search barriers

Expiring Use/Preservation Program Identify units in the private market that are nearing the expiration of an existing subsidy contract which would then allow owners to convert the subsidized units into market-rate units. i.e. prepayment or expiration of Section 236 mortgage, RAP contract, Rent Supp, etc. CHA is using MTW authority to project-base the tenant protection vouchers that become available when the subsidy contracts come to an end taking into account resident preference

Expiring Use/Preservation Program While initially utilized in the City of Cambridge only, CHA has exercised its state-wide administrative authority and has started working with owners outside of Cambridge. To efficiently administer some of the projects, the CHA has entered into partnerships with the local housing authority. Worcester Housing Authority Lynn Housing Authority and Neighborhood Development Southbridge Housing Authority

Tenant Education Programming On the Horizon Landlord Engagement Welcome Packets and Briefings Monthly Newsletter Focus Groups and Surveys Appreciation event Apartment Listing Web Platform Landlord Database Tenant Education Programming Teach housing search, apartment maintenance, and conflict mitigation skills with other community organizations

Shift in Focus Preserve what we have (project-basing, RAD) Preserve what others have had (expiring use/preservation program) Expand our reach  think/act regionally

Hannah Lodi Director of Leased Housing Cambridge Housing Authority hlodi@cambridge-housing.org 617-405-5529 Questions / Comments?