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Developing Solutions and Supporting Tenants

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1 Developing Solutions and Supporting Tenants
Supportive Housing Developing Solutions and Supporting Tenants

2 Consulting & Assistance
What We Do CSH is a touchstone for new ideas and best practices, a collaborative and pragmatic community partner, and an influential advocate for supportive housing. Lines of Business Training & Education Policy Reform Consulting & Assistance Lending Powerful capital funds, specialty loan products and development expertise Research-backed tools, trainings and knowledge sharing CSH offers capital, expertise, information and innovation that allow our partners to use supportive housing to achieve stability, strength and success for the people in most need. : ) Custom community planning and cutting-edge innovations Systems reform, policy collaboration and advocacy

3 Supportive Housing Training Center
CSH’s Training Center offers practical, interactive training solutions that empower people to learn about, build, and provide high-quality supportive housing in their community. We enable people from all backgrounds to practice and master the skills necessary to make a difference and improve the lives of the most vulnerable people.

4 What is supportive housing
CSH’s Presentation What is supportive housing Supportive housing outcomes Development models Qualified Allocation Plans (MD, VA and DC) Project examples I will stop after each section for a few questions

5 What is Supportive Housing?
What do you think defines supportive housing? What are essential features of the model? Who is supportive housing for?

6 How would you describe supportive housing?
Permanent, affordable, independent, tenant centered, flexible, voluntary Trainer Notes:

7 Supportive Housing is not:
Treatment Transitional Licensed community care

8 Defining Supportive Housing
Targets households with barriers Tenants sign leases Is affordable Engages tenants in flexible, voluntary services Coordinates among key partners Supports connecting with community The key components of SH. Although there are many models of supportive housing in a wide range of geographic locations, all quality supportive housing Targets persons who are homeless, at-risk of homelessness, or exiting institutions with challenges such as serious mental illness, substance abuse and/or chronic health conditions Treats SH tenants just like any other tenant with standard lease or sublease agreements Is affordable to persons meaning that they ideally pay no more than 30% of their income Have service providers who use a variety of techniques to engage tenants in services Brings together the key project partners such as the service provider and property manager to work together to help tenants achieve their goals Supports tenants in being an integral and connected part of their community

9 What is Supportive Housing?
Supportive Housing Outcomes What is Supportive Housing? What do you think defines supportive housing? What are essential features of the model? Who is supportive housing for?

10 Core Outcomes for Tenants in SH
CSH created Dimensions of Quality that contain the framework for a number of specific outcome measures and project attributes. The whole point in trying to create and operate quality supportive housing is to achieve positive outcomes for tenants. In general supportive housing we talk about outcomes in 5 primary buckets: Tenants remain in the supportive housing or move on to other permanent housing Tenants report that they are satisfied with their services or housing Tenants increase (or in some cases maintain) their income or employment They receive access to medical and behavioral health care and in many cases are able to improve their health Tenants are able to build and strengthen their connection to the community and social support networks

11 Supportive Housing Works
Supportive housing costs less than shelter and transitional housing. Emergency room visits significantly decrease. Savings in police and emergency response. Reduced recidivism. SH reduced costs: shelter (99% savings) emergency room (14% savings) incarceration (95% savings) and ambulance transportation (32% savings) The total cost savings for the six month period was $219,791, or an average of $1,348 per person.

12 A Strategy that Works for People
More than 80% of tenants stay housed for at least one year Even when services are not a condition of tenancy, tenants participate at high rates: 81% health care utilization 80% mental health treatment 56% substance abuse services

13 Development Models

14 Tenants sustain stable housing
Coordinated Roles Developer Owner Property Manager Service Provider Tenants sustain stable housing Developing and operating supportive housing requires a team of professionals. Owner could be developer, service provider or other entity. Property manager should have experience both with compliance for applicable capital and operating funding, and with supportive housing. Service providers may not have development experience, but they can help developers access additional capital funds, housing authority and HEARTH operating subsidies, and have local community agency connections.

15 Difference between Affordable and SH
Capital Operating Capital Operating Services Single Purpose: 100% of units for tenants who have special needs or are formerly homeless, at or below about 30% AMI with coordinated supportive services. Integrated Housing: A mix of supportive housing units with affordable or market rate units in one development. Affordable Housing: 100% of units for tenants typically at or below 60% AMI and no coordinated supportive services. In affordable housing often a resident service coordinator providers some referral or general services. Affordable PSH

16 Development Options Turnkey Co-Development Master Leasing
Service Contract Turnkey: Developer develops property and then turns ownership over to the service provider for a predetermined fee. Co-Development: Developer and service provider work together to develop property and create tenant selection plan, and share the developer fee and property ownership. Master Leasing: Owner leases specific units to a service provider (usually for multiple years), who then subleases units to tenants. Service Contract: To comply with service provision requirements specified in capital financing, owner contracts with service provider to provide supportive services and often tenant recruitment as well.

17 Community Engagement

18 Housing Models and Community Support
Does every project require us to build community support? Whose support do we need for a project?

19 Working with the Community
Building a mutually beneficial relationship with the community Getting involved with community associations or activities Addressing community needs with the project Finding opportunities to educate the community Your strategy and approach to building connections and support within the community will vary based on the unique aspects of your neighborhood or supportive housing project. Projects of all types, however, should address the following questions: How can our organization become involved in the community or communities in which supportive housing tenants will live? Is there a neighborhood association we can join? Are there community policing meetings that we can attend? Are there community needs that our project could address? Could we help to start a neighborhood watch? Could our project include a community garden or other local resource? Are there services that we could make available to all community members, like employment training or child care? If there is community opposition to supportive housing then addressing that opposition should be done in individual conversations with concerned neighbors.

20 Six Steps to Building Community Support
Step I: Assessment and Planning Step II: Political Strategy Step III: Building Active Community Support Step IV: Dealing with Community Concerns Step V: Legal Strategy Step VI: Public Relations/ Media Strategy

21 Qualified Allocation Plans (QAPs)
Review CSH’s Qualified Allocation Plan report if you feel this way about reading QAPs. Qualified Allocation Plans (QAPs)

22 Maryland Threshold Requirement
One of four allowed categories is integrated supportive housing (projects dedicating 10 to 25% of units to supportive housing). Scoring Incentives Up to 14 points for projects dedicating units to households at or below 30% AMI. Up to 10 points to projects dedicating between 6% and 25% of units to people with disabilities or with special needs. Up to 10 points to projects with additional services or operating funds committed.

23 Virginia Scoring Incentives
35 points to developments that reserve a minimum of 75% of units as supportive housing for the homeless Up to 10 points to developments that dedicate 20% of units for housing persons with disabilities. 10 points for developments committing to dedicate a minimum of 20% of total units for permanent supportive housing for homeless.

24 Washington, DC Threshold Requirement
New construction and vacant projects must dedicate 5% of units to supportive housing. Scoring Incentives DHCD can award up to 10 points for up to two of eight objectives, including: Creating housing for low-income disabled, elderly, or other households with special needs requiring supported living environments. Creating permanent supportive housing opportunities, with supportive services, for individuals and families who are experienced or at risk of experiencing homelessness. Creating permanent housing for households living with HIV/AIDS. Other Rental subsidies (project based vouchers and Local Rental Support Program) and services funding available through the Unified RFP.

25 Project Examples

26 Crescent Square, Virginia Beach
Virginia Supportive Housing is developer and services provider. Includes 42 units for formerly homeless individuals and 38 units for individuals earning 50 percent or less of the area median income. Total development costs: $10.4 million. CSH provided $300,000 predevelopment loan.

27 Crescent Square, Virginia Beach, VA
Each unit will include a kitchenette, living and sleeping area, full bathroom and a closet. Eight of the units will be completely accessible for persons with disabilities. Amenities include a high-tech security system, community room, computer room, fitness room, laundry facilities, a front desk staffed 16 hours per day, and a landscaped patio with a community garden Residents sign leases and pay 30 percent of their income in rent with a minimum rent payment of $50 per month. VSH offers on-site supportive services through case managers who help residents stabilize, retain their housing and reclaim their lives.

28 Southview Villas, Hope Mills, NC
Rural Integrated Supportive Housing 64 units (48 one-bedroom and 16 two- bedroom units)

29 Southview Villas, Hope Mills, NC
Capital LIHTC Equity (Investor: Raymond James) $3,945,156 State Tax Credit $1,031,407 Cumberland County Community Loan Fund Loan $ 400,000 Deferred Developers Fee $ 113,615 Bank Loan $ 564,000 Total $6,054,178 Operating (Annual) Net Rental & Other Income $ 273,335 Rental Income from Key Program $ 28,320 Services (Annual) Provided free of charge to residents by Local Lead Agency and its referral agencies, primarily funded by North Carolina Department of Health and Human Services.

30 Thank you. Holly Denniston-Chase Loan Officer CSH Holly. denniston@csh
Thank you! Holly Denniston-Chase Loan Officer CSH x 20


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