Shared Housing

Single Adults in New London County Coordinated Access Entry Point Emergency Shelter Daytime Drop-In Center Social respite Rapid Rehousing Rental Properties Permanent Supportive Housing VA Grant Per Diem Bridge Housing

What business are we in?

Shelter as trampoline…even for high barrier individuals BRIEF Shelter as trampoline…even for high barrier individuals

A Key Challenge Many of our guests have very low income. Makes it harder to find units Makes it harder to sustain housing We don’t have the resources for long term rental subsidies. Achieving shorter shelter length of stay requires finding housing options for very low income individuals.

Can Shared Housing Help? Informal—the extra room Formal—several people sharing a single apartment

Issues with shared housing Shouldn’t people have their own place?. There are real barriers: If one roommate leaves, the one remaining is on the hook for the whole rent. Landlord resistance to renting to several people with very low income. Existing “shared housing” (i.e. boarding houses, sober houses etc.) are often of very low quality. Having roommates can be hard. Most housing subsidies do not provide for shared housing.

Opportunity Knocks Donor offered us a bargain sale on a four family house

NLHHC shared housing Two-Three tenants per apartment. Each with own room Rent includes everything—utilities, cable, internet Allow tenants to pay weekly Month to month lease with standard lease provisions Rent to “higher risk” guests No special services but access to HHC supports No formal “room mate” matching process.

Shared by Three Kitchen Living Room Bathroom

Private Room Own lock We supply basic furniture We supply for each room: Own TV with cable Internet access Mini-Fridge Rent/person/month: $450-$550 FMR: Studio $748 One bedroom: $832

Income Monthly Rent $4,120 Occupancy rate 95% Payment rate 90% Monthly Collections $3,523 Annual $42,271 Expenses and Loan Repayment Utilities $10,000 Loan Repayment $13,200 Property Tax $6,000 Maintenance $3,000 Property Management $6,000 Insurance $2,000 Legal $2,000 $42,200 Occupancy 9-10 people Cost/person/month $390-$420

Key Lessons Shared housing will not work for everyone—BUT It is far better than long shelter stays. It can serve as a stepping stone for those whose income increases. Supply TV and mini-fridge in every room to reduce friction. Pay close attention to zoning rules. Need to run in a compassionate but business like way. Budget for evictions. Enforce lease terms and pay attention to security. Assure housing is superior to market. Have a process to fill vacancies quickly.