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HUD and You in Partnership to Aid the Homeless HUD and You in Partnership to Aid the Homeless August 2008 SuperNOFA Outreach.

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Presentation on theme: "HUD and You in Partnership to Aid the Homeless HUD and You in Partnership to Aid the Homeless August 2008 SuperNOFA Outreach."— Presentation transcript:

1 HUD and You in Partnership to Aid the Homeless HUD and You in Partnership to Aid the Homeless August 2008 SuperNOFA Outreach

2 Common Goals and Themes of the HUD McKinney Vento Programs Supportive Housing Program Shelter Plus Care Single Room Occupancy Section 8 Moderate Rehabilitation Obtain and remain in permanent housing Obtain and remain in permanent housing % of clients remain in permanent housing 7 months or longer % of clients remain in permanent housing 7 months or longer 63% of clients who leave transitional housing are placed into permanent housing63% of clients who leave transitional housing are placed into permanent housing

3 Current Goals of All Programs (cont.) Increase skills and/or income Increase skills and/or income for 2008, the employment rate of participants who leave should be at least 19%for 2008, the employment rate of participants who leave should be at least 19% Achieve greater self-determination Achieve greater self-determination this measures the ability of clients to influence decisions affecting themselvesthis measures the ability of clients to influence decisions affecting themselves  National standard  Applies to the entire C of C  Numbers from the Annual Progress Reports of Applicants

4 Who is eligible to be served? Participants must be homeless with a common thread that clients are coming from the streets or shelter. Participants must be homeless with a common thread that clients are coming from the streets or shelter. The homeless definition is different for permanent housing, SHP transitional housing, and projects serving the chronically homeless The homeless definition is different for permanent housing, SHP transitional housing, and projects serving the chronically homeless Lacks Housing Resources to obtain housing Lacks Housing Resources to obtain housing

5 Eligible Participants for New & Renewal Permanent Housing 1) Comes from the street places unfit for human habitation, cars, shacks, campgrounds, etc. 2) Comes from emergency shelters Youth, general population, victims of domestic abuse, family shelters, singles 3) Coming from transitional housing And documented as coming originally from the streets or a shelter originally

6 Supportive Housing Program and Shelter Plus Care Eligibility Participants in permanent housing projects must be disabled including physical, mental, chemical or emotional impairment that Participants in permanent housing projects must be disabled including physical, mental, chemical or emotional impairment that infinite duration, impedes an individual’s ability to live independently, could be improved with more suitable housing conditions infinite duration, impedes an individual’s ability to live independently, could be improved with more suitable housing conditions Developmental disabilityDevelopmental disability HIV+/AIDS HIV+/AIDS Written verification from a qualified sourceWritten verification from a qualified source * Disability not required for SRO Section 8* Disability not required for SRO Section 8

7   Please note the HUD definition and documentation may be more restrictive then other funders   Long-term stays (over 30 days) -- Mental Health Treatment facilities, Jail, Chemical Treatment Facilities – – Institutions requiring discharge plans for housing – – Eviction from private dwelling (unless going to SHP transitional housing or Support Services Only ) – –Wards of the State, – –Doubled Up or Living with family and friends even for only short period – –Paying more than 30% of income – –Motels (other than paid by 3rd party in lieu of emergency shelter) Who cannot be served?

8 Samaritan Initiative (formerly the Bonus project) for the Chronically Homeless or other units for Chronically Homeless Unaccompanied homeless individual with a disabling condition living on the street or in an emergency shelter Unaccompanied homeless individual with a disabling condition living on the street or in an emergency shelter Has been continuously homeless for a year or more Has been continuously homeless for a year or more OR has had at least four episodes of homelessness in the most recent three year period OR has had at least four episodes of homelessness in the most recent three year period

9 Chronically Homeless Definition, Cont. Disabling condition: Disabling condition: a diagnosable substance use disorder, serious mental illness, developmental disability, or chronic physical illness or disability, including the co-occurrence or two or more of these conditionsa diagnosable substance use disorder, serious mental illness, developmental disability, or chronic physical illness or disability, including the co-occurrence or two or more of these conditions limits an individual’s ability to work or perform one or more activities of daily livinglimits an individual’s ability to work or perform one or more activities of daily living

10 Reporting Requirements An Annual Progress Report (APR) is required 90 days after the end of each operating year An Annual Progress Report (APR) is required 90 days after the end of each operating year HMIS will provide information for questions two through 15---involves demographics of those who entered and exitedHMIS will provide information for questions two through 15---involves demographics of those who entered and exited List HUD funds spentList HUD funds spent Must list the amounts and origin of cash matchMust list the amounts and origin of cash match Discuss progress of participants in reaching program goalsDiscuss progress of participants in reaching program goals Progress from Application Logic ModelProgress from Application Logic Model For those who spent $500,000 or more of federal funds in an operating year, an A-133 annual audit is required For those who spent $500,000 or more of federal funds in an operating year, an A-133 annual audit is required

11 Site selection criteria for Zoning, Environmental, and Site Control Applicants must: Have site control within (1) one-year of conditional approval Have site control within (1) one-year of conditional approval Be properly zoned Be properly zoned Able to pass the environmental requirements; Able to pass the environmental requirements; Noise,Noise, Hazardous materials,Hazardous materials, Historical, andHistorical, and Flood plain issuesFlood plain issues Services available (water, hospitals, commercial, etc.)Services available (water, hospitals, commercial, etc.)

12 Tenant Rent Calculated Tenants pay: Tenants pay: “30% of their Adjusted income for rent” “30% of their Adjusted income for rent” Adjustments are made for: Adjustments are made for: - Disability - Daycare - Dependants - Medical Expenses - Income disregard for disable who find employment Rent Pays for shelter and utilities: Rent Pays for shelter and utilities: Example is: For a single person is, $230 x 30% = $61 gross rent (optional to charge rent under SHP)

13 u u Minnesota Technical Assistance Contractor (Call HUD first ) u u Minnesota Housing Partnership (MHP) ext

14 Common Issues and Concerns Be knowledgeable about housing (development, maintenance, code compliance, leasing, or landlord responsibilities) Be knowledgeable about housing (development, maintenance, code compliance, leasing, or landlord responsibilities) Have support services in place or have a realistic date to have services in place Have support services in place or have a realistic date to have services in place Have an appropriate frequency and set of comprehensive support services with regular assesments of needs Have an appropriate frequency and set of comprehensive support services with regular assesments of needs Check your numbers including both the number of households to be served and budgets (including match) Check your numbers including both the number of households to be served and budgets (including match) Application consistent with the SuperNOFA ! Application consistent with the SuperNOFA !

15 Program Resources Program Resources The Supportive Housing Program Deskguide and Shelter Plus Care Resource Manual can be downloaded at The Supportive Housing Program Deskguide and Shelter Plus Care Resource Manual can be downloaded at Provides detailed information ndhousingprograminfo Provides detailed information ndhousingprograminfo ndhousingprograminfo ndhousingprograminfo This site covers the Supportive Housing Program, Shelter Plus Care, and Section 8 Single Room Occupancy This site covers the Supportive Housing Program, Shelter Plus Care, and Section 8 Single Room Occupancy

16 esnaps Contact esnaps regarding the application submission process if you have any concerns or questions at the following: Contact esnaps regarding the application submission process if you have any concerns or questions at the following: Toll Free numberToll Free number

17 For information on Specific Programs of HUD and your grant please contact the Minneapolis Field Office For information on Specific Programs of HUD and your grant please contact the Minneapolis Field Office Primary contact phone: Primary contact phone: Sara Bergen ext. 2103Sara Bergen ext Mary Burbank ext. 2102Mary Burbank ext Joe Geary ext. 2157Joe Geary ext Tom Koon (Program Manager) ext. 2108Tom Koon (Program Manager) ext For esnaps: For esnaps: again contact toll free or contact toll free or

18 OVERVIEW OF THE SUPPORTIVE HOUSING PROGRAM (SHP)

19 Supportive Housing Program Components or Activities 1. Permanent Housing 2. Transitional Housing 3. Support Services Only (not tied to any housing units) 4. Homeless Management Information System (HMIS) 5. Safehavens – typically for those with mental illness living on the streets

20 Additional participant eligibility criteria Transitional Housing and Supportive Service Only Projects: Those whose situations of homelessness qualify them for permanent housing projects Those whose situations of homelessness qualify them for permanent housing projects and those who are: and those who are: being evicted within a week from a private dwelling and have no other resources to obtain housingbeing evicted within a week from a private dwelling and have no other resources to obtain housing and those who are: and those who are: being discharged within a week from an institution in which s/he has been a resident more than 30 days and no subsequent residence has been identified and lacks other resources to obtain housing

21 SHP-Eligible Grantees State State Metropolitan city Metropolitan city Urban county Urban county Governmental entity Governmental entity Private non-profit Private non-profit Community mental health organization that is a public non profit Community mental health organization that is a public non profit INDIVIDUALS ARE NOT ELIGIBLE TO APPLY TO BE A GRANTEE INDIVIDUALS ARE NOT ELIGIBLE TO APPLY TO BE A GRANTEE Applicants outside of the COC process Applicants outside of the COC process

22 Safehaven for Youth Scott County, Minnesota

23 NEW SHP—Acquisition, Rehabilitation, New Construction Each site can receive up to $400,000 for acquisition, rehabilitation, or new construction combined Each site can receive up to $400,000 for acquisition, rehabilitation, or new construction combined 100% cash match required 100% cash match required Must abide by the Uniform Relocation Act etc. Must abide by the Uniform Relocation Act etc. SHP is subject to the requirements of the Uniform Relocation and Real Property Acquisition Policies Act of 1970 (URA)SHP is subject to the requirements of the Uniform Relocation and Real Property Acquisition Policies Act of 1970 (URA) URA is triggered at the beginning of negotiations for a property for a Federally assisted projectURA is triggered at the beginning of negotiations for a property for a Federally assisted project If acquiring a property to use for SHP, the URA applies even if the property is vacantIf acquiring a property to use for SHP, the URA applies even if the property is vacant

24 SHP—Acquisition, Rehabilitation, New Construction Environmental Review Completed Environmental Review Completed Prior to the grant agreement being executed, the applicant must show that it has commitments for all of the funds required to complete the project Prior to the grant agreement being executed, the applicant must show that it has commitments for all of the funds required to complete the project

25 SHP New Projects Issues to Consider Is new construction or rehabilitation better suited for your clients and program? Which is more cost-reasonable? Is new construction or rehabilitation better suited for your clients and program? Which is more cost-reasonable? Will zoning approval be complicated? Will zoning approval be complicated? What is the cost of lead paint and asbestos abatement? What is the cost of lead paint and asbestos abatement? What are the accessibility requirements and added costs? What are the accessibility requirements and added costs? Will there be any relocation costs? Will there be any relocation costs? What will the ongoing future energy and maintenance costs be? What will the ongoing future energy and maintenance costs be?

26 Using SHP funds to Lease Lease structures to provide supportive housing or services Lease structures to provide supportive housing or services Housing must meet habitability standards Housing must meet habitability standards Rent must be reasonable Rent must be reasonable HUD portion of rent paid with grant funds cannot exceed Fair Market Rents HUD portion of rent paid with grant funds cannot exceed Fair Market Rents Rent includes all basic utilities and shelter Rent includes all basic utilities and shelter Grantees maintain control of the funds at all times---money is not given directly to clients to pay rent Grantees maintain control of the funds at all times---money is not given directly to clients to pay rent All lease arrangements must be at an arm’s length All lease arrangements must be at an arm’s length Grantees/sponsors cannot have an ownership interest in property that is leased Grantees/sponsors cannot have an ownership interest in property that is leased

27 Using SHP funds to Lease No match requirement No match requirement Grantee may have the lease Grantee may have the lease in its namein its name jointly with tenantjointly with tenant Client may have the lease in his/her name Client may have the lease in his/her name Client may assume lease Client may assume lease Cannot rent from relatives of client Cannot rent from relatives of client Site control is required if the participant will not eventually assume the lease or if the SHP request is only for leasing (no supportive services or operation funds are requested) Site control is required if the participant will not eventually assume the lease or if the SHP request is only for leasing (no supportive services or operation funds are requested)

28 Using SHP Funds for Supportive Services Case management Case management Food for clients Food for clients Employment training Employment training Life skills Life skills Transportation (cannot pay for individual cars) Transportation (cannot pay for individual cars) Parenting skills Parenting skills Damage deposits/first month’s rent Damage deposits/first month’s rent Childcare Childcare Other supportive services that help a client to achieve one or more of the three SHP goals Other supportive services that help a client to achieve one or more of the three SHP goals

29 Using SHP Funds for Supportive Services There is a cash match requirement There is a cash match requirement SHP funds can be used to pay only 80% of all eligible supportive services SHP funds can be used to pay only 80% of all eligible supportive services Or for every $4 of SHP funds spent on eligible supportive services, grantee must pay $1 in cash toward expenses for eligible supportive services Or for every $4 of SHP funds spent on eligible supportive services, grantee must pay $1 in cash toward expenses for eligible supportive services Must have site control Must have site control

30 Using SHP Funds to Pay for Operations Operating costs are those costs that are associated with the physical day-to-day operation of the housing facility Operating costs are those costs that are associated with the physical day-to-day operation of the housing facility SHP funds used to pay 75% of all eligible operating expenses SHP funds used to pay 75% of all eligible operating expenses Or for every $ 3 of SHP funds spent, grantee must pay $1 in cash for eligible operations activities Or for every $ 3 of SHP funds spent, grantee must pay $1 in cash for eligible operations activities Must have site control if SHP operation funds are used for supportive housing Must have site control if SHP operation funds are used for supportive housing

31 Using SHP Funds to Pay for Operations Examples of eligible costs: Examples of eligible costs: maintenance and repair maintenance and repair Utilities---gas, heat, electric, water, trash, etc. Utilities---gas, heat, electric, water, trash, etc. Insurance Insurance Relocation Relocation Salaries (or portions thereof) of staff not delivering services—I.e. security guard Salaries (or portions thereof) of staff not delivering services—I.e. security guard

32 Other SHP Budgeted Costs Homeless Management Information Services (HMIS) generally only the COC designated provider Homeless Management Information Services (HMIS) generally only the COC designated provider Administration limited to 5% of requested amount Administration limited to 5% of requested amount Costs related to administration of the grant such as required audit, training on the grant program and Annual Progress ReportCosts related to administration of the grant such as required audit, training on the grant program and Annual Progress Report

33 SHP Grant Cycle HUD announces which projects received funding about six months after the application deadline to HUD (usually between Dec and Feb) HUD announces which projects received funding about six months after the application deadline to HUD (usually between Dec and Feb) Technical submission process for new or changing renewal grants Technical submission process for new or changing renewal grants Grant agreement is executed (do not spend funds before that date for new projects) Grant agreement is executed (do not spend funds before that date for new projects) Start of construction and/or operations Start of construction and/or operations Operating start date is the date that participants begin to receive servicesOperating start date is the date that participants begin to receive services Renewal projects begin the day after the previous grant ended Renewal projects begin the day after the previous grant ended Sign grant agreement by September 30, 2010 Sign grant agreement by September 30, 2010

34 Renewal Grants SHP grant that will expire at any time during 2009 must apply for renewal from the 2008 SuperNOFA SHP grant that will expire at any time during 2009 must apply for renewal from the 2008 SuperNOFA Renewals can be for 1 to 3 years, but most are for 1 year Renewals can be for 1 to 3 years, but most are for 1 year Only supportive services, operating, HMIS, leasing, and admin budgets can be renewed Only supportive services, operating, HMIS, leasing, and admin budgets can be renewed

35 Shelter Plus Care Permanent Housing for Disabled Homeless Persons

36 Purpose S+C provides permanent housing in connection with supportive services for homeless people with disabilities and their families S+C provides permanent housing in connection with supportive services for homeless people with disabilities and their families S+C program provides rental assistance S+C program provides rental assistance Supportive Services are required as match Supportive Services are required as match

37 The Benefits of Shelter Plus Care Flexibility and Use of existing resources and local Expertise First, it is an easier than many programs to run First, it is an easier than many programs to run Leverage services and mainstream funding already being provided in community Leverage services and mainstream funding already being provided in community Build partnerships between official grantee/housing provider/service provider Build partnerships between official grantee/housing provider/service provider Allows partners to focus on what they do best Allows partners to focus on what they do best 13

38 More Benefits Quick turn around time: Quick turn around time: S+C avoids the time lag of housing development.S+C avoids the time lag of housing development. 4 flexible models to choose from. 4 flexible models to choose from.

39 More Benefits Maximize CoC resources and add points for COC Helps CoC get housing emphasis points Helps CoC get housing emphasis points New projects could help get Samaritan funding to serve chronically homeless New projects could help get Samaritan funding to serve chronically homeless S+C renewals do not come out of the pro rata need and avoids Continuum of Care renewal burden after initial contract – S+C renewals do not come out of the pro rata need and avoids Continuum of Care renewal burden after initial contract – must be listed by COC to be fundedmust be listed by COC to be funded S+C renewed at current Fair Market Rents allowing adjustments for inflation S+C renewed at current Fair Market Rents allowing adjustments for inflation

40 Funding Mechanism New projects are funded competitively through the Continuum of Care NOFA process. New projects are funded competitively through the Continuum of Care NOFA process. Applicants must be a public entity Applicants must be a public entity Unit of Local Government (e.g. county government)Unit of Local Government (e.g. county government) Housing AuthorityHousing Authority StateState Grant amount is determined by Grant amount is determined by (# of Units by bedroom size) x (Fair Market Rents) x (Grant Term)

41 Outreach 24 CFR Sec Outreach Activities 24 CFR Sec Outreach Activities Requires recruiting new clients from emergency shelters and from the streets Requires recruiting new clients from emergency shelters and from the streets Use best efforts to ensure eligible hard- to-reach persons served by S+C Use best efforts to ensure eligible hard- to-reach persons served by S+C Have a current list of street outreach programs, shelters, Have a current list of street outreach programs, shelters, Contact these organizations and educate their staffs in order to recruit new participants for your program. Contact these organizations and educate their staffs in order to recruit new participants for your program.

42 Rental Assistance can be:  Tenant-Based  Sponsor-Based  Project-Based  SRO-Based (Single Room Occupancy)

43 Tenant Based Rental Assistance (TRA)  Initial 5 year term  Participants choose housing and can retain rental assistance if they move  Units must pass HQS inspection  Applicant may limit location or general area to ensure service provision  Should consider local market

44 Sponsor Based Rental Assistance (SRA) Initial 5 year term Initial 5 year term Sponsor must own or lease units Sponsor must own or lease units Entity providing housing cannot do HQS or rent reasonable test if owner Entity providing housing cannot do HQS or rent reasonable test if owner Units can be single site, scattered site, or clustered Units can be single site, scattered site, or clustered

45 Community Involvement Program, Minnetonka, MN (Sponsor Based Program)

46 Project Based Rental Assistance (PRA) 5 year term 5 year term 10 year term with rehabilitation 10 year term with rehabilitation Eligible Cost at least $3000 per unit Eligible Cost at least $3000 per unit Assistance is tied to a building and not portable Assistance is tied to a building and not portable If with rehabilitation complete within 12 months If with rehabilitation complete within 12 months

47 The Francis, Rochester, MN Project Based Program

48 Moderate Rehabilitation for S+C Single Room Occupancy Dwellings (SRO) Based Rental Assistance 10 year term in connection with rehab of SRO, $3,000 per unit. 10 year term in connection with rehab of SRO, $3,000 per unit. Must contract with PHA to administer Must contract with PHA to administer Doesn’t make sense for most projects contact HUD Field Office if considering application Doesn’t make sense for most projects contact HUD Field Office if considering application Examine other components first Examine other components first

49 What is paid by HUD? Monthly rental payments: Monthly rental payments: (Contract Rent) – (Tenant Contribution) = S+C Subsidy (Contract Rent) – (Tenant Contribution) = S+C Subsidy Remember: Contract Rent is limited by Rent Reasonableness not Fair Market RentRemember: Contract Rent is limited by Rent Reasonableness not Fair Market Rent Tenant Contribution is limited by income:Tenant Contribution is limited by income: 30% of monthly adjusted income 30% of monthly adjusted income 10% of monthly gross income 10% of monthly gross income Welfare rent if applicable Welfare rent if applicable Utility Allowances must be considered if not included in RentUtility Allowances must be considered if not included in Rent - Contact your PHA for their utility allowances - Contact your PHA for their utility allowances

50 How do you calculate unit rents? Grant: (# of Units) x ( F air M arket R ents) x (Grant Term) =Grant Amount Property owner’s unit rent + tenant’s utility allowance = Gross Rent (Gross Rent) – (Tenant Contribution) = S+C Subsidy  Actual contract rents may be other than FMRs  Contract rents with owner must be reasonable rents  Resident rent contribution reduces subsidy NOTE: Decreasing S+C subsidy for units; results in funds that can be used for other costs or “Grant Savings”

51 “Grant Savings” creates flexible funds Eligible costs for “Grant Savings” Administration costs up to 8% of total grant Administration costs up to 8% of total grant NOTE: Rental assistance admin is not grant admin NOTE: Rental assistance admin is not grant admin Eligible Costs Outreach for new participants HQS Inspections Income & Rent determinations Processing Rent payments Housing search Outreach, see Section , Outreach activities Ineligible Costs APR Audits Grant administration

52 Additional uses for “Grant Savings” For a rainy day  Security Deposit  Vacancy payment  Limited damage repairs  Future rent increases  Additional Units; please check with your CPD Rep first!

53 What do you have to provide? The Matching value of supportive services The Matching value of supportive services - Match is an overall grant requirement… - And it is not unit by unit, or year by year Administration expenditures are not matchedAdministration expenditures are not matched Examples of Match could be:Examples of Match could be: Health CareMental Health Health CareMental Health Case ManagementChemical Dependency Case ManagementChemical Dependency Job TrainingEducation Job TrainingEducation CounselingChild Care CounselingChild Care Budgeting SkillsTransportation Budgeting SkillsTransportation

54 How do I find Match? There are many ways to find service match: There are many ways to find service match: Direct service staff salariesDirect service staff salaries Value of contracted servicesValue of contracted services Prorated leasing costs for buildings used for servicesProrated leasing costs for buildings used for services Services provided by volunteers ($10/hr)Services provided by volunteers ($10/hr) Outreach activitiesOutreach activities  Tracking and documenting match is key: SponsorsSponsors Service providersService providers County Human Service AgenciesCounty Human Service Agencies

55 Meeting Project Performance To help meet your goals and coordinate program: Grantees should have a detailed Memorandum of Understanding (MOU) with Sponsors Grantees should have a detailed Memorandum of Understanding (MOU) with Sponsors This process will ensure and explain what each partner is responsible for… This process will ensure and explain what each partner is responsible for… - Please note MOUs are negotiable - Please note MOUs are negotiable Grantee is ultimately responsible

56 Other Items to note include: New and Renewal S+C projects count as a housing activity for the COC’s housing emphasis points New and Renewal S+C projects count as a housing activity for the COC’s housing emphasis pointsAnd… 40

57 S+C is Not Section 8… No criminal background restrictions requiredNo criminal background restrictions required No credit check or rental history required beyond homeless status/disability statusNo credit check or rental history required beyond homeless status/disability status No set HAP payment for all clients-each case variesNo set HAP payment for all clients-each case varies No minimum rent paid by participantsNo minimum rent paid by participants Chemical addiction is considered a disabilityChemical addiction is considered a disability Please know the difference between S+C, Section 8 and other rental assistance programs!!!!!!!!!

58 Renewal Process for S+C grant previously renewed S+C renewals have been 1 year terms S+C renewals have been 1 year terms Renew in the year prior to your Shelter Plus Care grant expiration date Renew in the year prior to your Shelter Plus Care grant expiration date For renewal of a renewal grant the number of units funded in the previous year must be the same For renewal of a renewal grant the number of units funded in the previous year must be the same Renewal grant listed by COC Renewal grant listed by COC

59 What is the Renewal Process for a first renewal of a S+C grant New S+C grants are generally for periods of 5 years New S+C grants are generally for periods of 5 years In the year prior to Shelter Plus Care grant expiration date, grantee must make a critical decision based upon the fund balance remaining in grant. In the year prior to Shelter Plus Care grant expiration date, grantee must make a critical decision based upon the fund balance remaining in grant. Does it have enough funds remaining to continue operating into the calendar year following your grant expiration date?Does it have enough funds remaining to continue operating into the calendar year following your grant expiration date? - If its does, it should seek a grant term extension.

60 Renewal Process for S+C For first time renewals, the amount is calculated by multiplying the number of units under lease at the time of the renewal application by the Fair Market Rents (FMR) by 12 months. For first time renewals, the amount is calculated by multiplying the number of units under lease at the time of the renewal application by the Fair Market Rents (FMR) by 12 months. Use the current FMRs Use the current FMRs Again renewal is not part of Pro Rata Need Again renewal is not part of Pro Rata Need Renewal must be listed by COC Renewal must be listed by COC Renewal does count 100% as housing emphasis Renewal does count 100% as housing emphasis

61 Minnesota –S+C Grantees  Bemidji HRA  Carver County HRA  Clay County HRA  Crookston HRA  Dakota County CDA  Duluth HRA  Itasca County HRA  Koochiching HRA  Mankato EDA  Morrison County HRA  Metro Council HRA  Minneapolis PHA  Olmsted County HRA  Rice County HRA  St. Cloud HRA  St. Louis Park HRA  HRA of St. Paul  Virginia HRA  Washington County HRA  Worthington HRA  Willmar HRA  Blue Earth County*  Grant County*  Hennepin County*  Olmsted County*  Ramsey County *  Scott County *  Minnesota Housing (State agency) (all grants transferred)  * Grantee is the county government -usually Human services 48

62 SRO Rental Assistance SRO provides assistance for 10 years

63 SRO is Permanent Housing Developed from the Rehabilitation of Existing Buildings Developed from the Rehabilitation of Existing Buildings Please note: This is Rental Assistance Only… Please note: This is Rental Assistance Only… You must find the capital funds for acquisition and rehabilitation of property from other resources You must find the capital funds for acquisition and rehabilitation of property from other resources

64 MN SRO Experiences - St Paul; 2 buildings, - Duluth; 3 buildings, - Eveleth; 1 building, - Minneapolis; 5 buildings, - South St. Paul; 1 building.

65 What Properties are eligible? The structure may be of any type, but when rehabilitation is completed, the unit must meet the definition of SRO housing. The structure may be of any type, but when rehabilitation is completed, the unit must meet the definition of SRO housing. Rehabilitation must be at least $3,000 per unit and meet HQS of Section 8 Rehabilitation must be at least $3,000 per unit and meet HQS of Section 8 SRO housing is defined as: a residential property that includes multiple single room dwelling units. SRO housing is defined as: a residential property that includes multiple single room dwelling units. - Each unit is for occupancy by a single eligible individual.

66 Eligible Properties Residential property dwelling units continued: - The unit need not, but may, contain food preparation or sanitary facilities, or both - Some units must be handicapped accessible with added units for the visually and hearing impaired

67 Eligible Properties Efficiency units are also eligible: But the contract rent charged for these units may not exceed the Moderate Rehabilitation SRO Fair Market Rent (FMR) minus (-) the allowance for tenant-paid utilities, if applicable. Efficiency units are also eligible: But the contract rent charged for these units may not exceed the Moderate Rehabilitation SRO Fair Market Rent (FMR) minus (-) the allowance for tenant-paid utilities, if applicable. (Consider Shelter Plus Care if all units are for disabled persons)(Consider Shelter Plus Care if all units are for disabled persons) 100 assisted units is the maximum per site 100 assisted units is the maximum per site All Units designated for the program must be vacant at the time of initial operations All Units designated for the program must be vacant at the time of initial operations

68 Eligible Properties Under NO circumstances are 1-bedroom units eligible for assistance. Under NO circumstances are 1-bedroom units eligible for assistance. Please note: A Separate Exhibit 2 for an initial application must be submitted for each property. Please note: A Separate Exhibit 2 for an initial application must be submitted for each property.

69 What are some Sources of Eligible Buildings? Residential hotels and motels Residential hotels and motels Rental properties with mostly efficiency units Rental properties with mostly efficiency units Non residential buildings converted i.e. warehouses, commercial buildings or social clubs Non residential buildings converted i.e. warehouses, commercial buildings or social clubs Conversion of hospitals or nursing homes Conversion of hospitals or nursing homes

70 Who are eligible applicants? Public Housing Authorities (PHA) Public Housing Authorities (PHA) Non-profit applicants Non-profit applicants - Must work with PHA’s - Must work with PHA’s - The property owners may be PHA or nonprofits - The property owners may be PHA or nonprofits - For-Profit owners can not apply, but can work with a non-profit or PHA - For-Profit owners can not apply, but can work with a non-profit or PHA

71 How is the Rental Subsidy and Grant Amounts Calculated? Rental Subsidy: Rental Subsidy: Take 75% of “0” (zero) bedroom rent; Take 75% of “0” (zero) bedroom rent; (x) multiply it up to 120% for debt service; then (x) multiply it by the number of units; then (x) multiply it up to 120% for debt service; then (x) multiply it by the number of units; then (x) multiply it by 10 years, this = (equals) (x) multiply it by 10 years, this = (equals) the total assistance of funding the total assistance of funding Grant Amount: Grant Amount: This is initially funded out of the “pro rata” share or bonus fund of the CoC This is initially funded out of the “pro rata” share or bonus fund of the CoC

72 How is the flow of assistance funds charted?

73 What are some sources of development funds?  HUD’s HOME funds  Private foundations and other grants  Veterans Affairs  Federal Home Loan Bank Grant  Community Development Block Grant  MN Housing Finance Agency funds  Low income housing tax credits  Tax exempt Bonds  Bank Loans  Owner Equity  Bake Sale Proceeds!!!!!!!

74 If I am interested in doing a SRO project, what should I do first? Meet or talk to HUD personnel to determine this is the best option for your agency. Meet or talk to HUD personnel to determine this is the best option for your agency. (Hint -A S+C sponsor or project based proposal with all efficiency units may be better for proposals that serve only the disabled)(Hint -A S+C sponsor or project based proposal with all efficiency units may be better for proposals that serve only the disabled) Meet with your PHA and other partners and discuss proposal, issues, location, environmental issues, relocation, and current residents if applicable, Meet with your PHA and other partners and discuss proposal, issues, location, environmental issues, relocation, and current residents if applicable,

75 SRO Renewal Process Renewal after the initial 10 years is the through the Section 8 Renewal process with the Housing Authority and HUD. Renewal after the initial 10 years is the through the Section 8 Renewal process with the Housing Authority and HUD. Renewal is for one-year at a time Renewal is for one-year at a time The Renewal is Not Part of the Continuum of Care (COC) Pro Rata share and Does Not Count against the pro rata share for a COC The Renewal is Not Part of the Continuum of Care (COC) Pro Rata share and Does Not Count against the pro rata share for a COC


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