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Innovative Approaches to Supportive Housing Development in Massachusetts October 30, 2014 Webinar.

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Presentation on theme: "Innovative Approaches to Supportive Housing Development in Massachusetts October 30, 2014 Webinar."— Presentation transcript:

1 Innovative Approaches to Supportive Housing Development in Massachusetts October 30, 2014 Webinar

2 Aaron Gornstein Undersecretary for Housing and Community Development Department of Housing and Community Development (DHCD) Roger Herzog Executive Director Community Economic Development Assistance Corporation (CEDAC) Madeline Nash Senior Program Officer for Lending Greater Boston Local Initiatives Support Corporation (LISC) Tom Plihcik Executive Director New Lease for Homeless Families Sara Barcan ( Moderator ) Housing Development Program Manager Community Economic Development Assistance Corporation (CEDAC) PRESENTERS

3 Sara Barcan is the Housing Development Program Manager for the Community Economic Development Assistance Corporation (CEDAC), a position she has held since August 2011. In that capacity, she oversees CEDAC’s predevelopment and acquisition lending programs, which provide non-profit affordable housing developers across the Commonwealth with the necessary capital to advance their projects from the earliest stages through construction closing. Sara also manages CEDAC’s supportive housing programs, which provide soft debt to housing developers through the Housing Innovations Fund, Facilities Consolidation Fund, Community Based Housing and Housing Preservation and Stabilization Trust Fund programs. Sara brings 25 years in the affordable housing industry to her position, and has developed both affordable housing and commercial real estate in a non-profit setting. Sara has also expanded training opportunities for community development professionals in Massachusetts both at CEDAC and as a member of the Steering Committee of the Mel King Institute for Community Building. Sara holds a bachelor’s degree in American History and Literature from Harvard University, and a Master in City Planning from MIT’s Department of Urban Studies and Planning.

4 Governor Patrick appointed Aaron Gornstein to serve as the Undersecretary for Housing and Community Development in December 2011, and he started his new position on January 31, 2012. Mr. Gornstein oversees the Department of Housing and Community Development, which administers nearly $1 billion in state and federal funds for a variety of programs for affordable housing production, community development, municipal assistance, local and regional planning, energy conservation, rental assistance, public housing, and others. He also serves as the chief housing policy advisor to the Secretary of Housing and Economic Development and to the Governor, and serves as Chairman of the Community Economic Development Assistance Corporation, which provides technical and financial assistance to non-profit developers of affordable housing. Prior to his appointment, Aaron served as the Executive Director of Citizens’ Housing and Planning Association (CHAPA) for 22 years. CHAPA is a private, non-profit research and advocacy organization working on affordable housing and community development issues in Massachusetts. Aaron received his undergraduate degree from the University of Wisconsin--Madison and his graduate degree from Tufts University’s Department of Urban and Environmental Policy. He has received more than 25 local and national awards and fellowships for his work in advancing affordable housing and community development initiatives and has served on numerous local and national advisory boards and commissions.

5 DHCD RESOURCES o State Operating Budget: $380 million, includes prevention, rental assistance, public housing, emergency services, and housing services o State Capital Budget: $190 million, includes key programs for permanent supportive housing. Most assistance structured as deferred payment loans. o Other Key Funding: State and federal low income housing tax credits; HOME; and Section 8 o Four quasi-public state housing agencies providing pre-development, construction financing, permanent financing, homeownership, and other resources o Sophisticated non-profit and for-profit development sector and provider agencies

6 RECENT INITIATIVES TO MEET THE NEEDS OF EXTREMELY LOW INCOME HOUSEHOLDS Have taken a comprehensive approach that includes prevention, diversion, rapid-rehousing, permanent supportive housing, and self-sufficiency initiatives. o Expansion of homelessness prevention programs (RAFT) from $240,000 to $11 million. Helped 6,000 families over past two years. o Doubling of state rental assistance (MRVP) from $35 million to $70 million. Issued or in process of issuing 3,000 mobile vouchers and 1,000 project-based vouchers over past two years. o Expansion of short-term rental assistance and rapid- rehousing funds (HomeBASE). Assisted approx. 15,000 households over past three years with placement and housing stabilization services. o New workforce development program (Secure Jobs) for job training and placement. Placed approx. 600 families over past 18 months ($2.5 million)

7 RECENT INITIATIVES TO MEET THE NEEDS OF EXTREMELY LOW INCOME HOUSEHOLDS o Creation of Housing Preservation and Stabilization Trust Fund (HPSTF). Capital investments of $20 million plus depository for savings from emergency assistance accounts o New Lease Program for Homeless Families with private sector o Modified Qualified Allocation Plan (QAP) to focus on extremely low income households o Community Investment Tax Credit for certified CDCs to increase non-profit capacity o Interagency Council on Housing and Homelessness o Section 811 Program utilizing project-based vouchers for supportive housing for people with disabilities o Preservation of existing public and subsidized housing

8 Roger Herzog brings over 25 years of experience in Massachusetts in the housing and community development field, including work in both the public and non-profit sectors. Roger currently serves as the Executive Director for the Community Economic Development Assistance Corporation (CEDAC), where he works with community development corporations (CDCs) and other non-profit organizations on affordable and supportive housing development and preservation. Roger also serves as the chair of the Interagency Supportive Housing Working Group, a Massachusetts initiative to create 1,000 units of permanent supportive housing and improve interagency collaboration. Prior to coming to CEDAC in 1999, Roger worked on affordable housing programs for the City of Cambridge Community Development Department as the City’s Housing Director. While in Cambridge, Roger led the City’s efforts to respond to major changes in the local housing market following the end of the City’s 25-year old rent control system in 1995. Prior to joining the City, Roger served as the Community Development Director of Inquilinos Boricuas en Accion, Inc., a large Boston-based CDC. Roger earned his B.A. from Brandeis University and Master of City Planning degree from the Massachusetts Institute of Technology. His Master’s thesis addressed strategies for rehousing homeless families.

9 INTERAGENCY SUPPORTIVE HOUSING INITIATIVE o Supportive Housing Law, “An Act Relative to Community Housing and Services”, signed in March 2012 required 18 state human services and housing agencies to execute a MOU. o MOU executed December 31, 2012 provides for interagency collaboration to develop supportive housing:  Permanent supportive housing where services are voluntary: acceptance of services is not a requirement of housing  Other supportive housing models including transitional housing o Key constituencies: homeless individuals and families, elders, people with disabilities, veterans, unaccompanied youth o Goal to create up to 1,000 new permanent supportive housing units by December 31, 2015 o MOU established Interagency Supportive Housing Working Group and Steering Committee to implement initiative

10 PROGRESS TOWARD 1000 -UNIT GOAL o “Facilitate the creation of a Demonstration Program that creates up to 1,000 units of Permanent Supportive Housing that includes coordination of operating and/or capital subsidies and voluntary Core Community-Based Supportive Housing Services by December 31, 2015” o Since January 1, 2013, almost 1,200 units of permanent supportive housing have been awarded funds by DHCD o Funding process: annual rental housing funding competition, allocations of federal and state housing tax credits, multiple sources of soft debt, and project-based rental assistance o Priority category for supportive housing production for homeless and other vulnerable populations o New funding source and process: Housing Preservation and Stabilization Trust Fund; consolidated funding round with allocations of capital, rental assistance, and supportive services funds

11 INTERAGENCY SUPPORTIVE HOUSING WORKING GROUP o Met monthly since January 2013 o Representatives from state human services agencies, housing agencies, Corrections, and Administration and Finance o Conducted, for each of the constituent populations:  A preliminary assessment of needs for permanent supportive housing and other supportive housing  an inventory of available resources o Developed a list of current programs representing good practices utilized in Massachusetts to provide supportive housing for different populations o Will develop a long-range action plan to meet the need for supportive housing among the Commonwealth’s residents through  coordination of procurement of capital & operating subsidies & supportive services  establishment of benchmarks to assess financial savings resulting from the avoidance of institutionalization, shelter, or nursing care

12 Coordinating Housing and Services Funds Stabilization Services Model Case Manager Training Increasing Resources for PSH Expansion Measuring PSH Outcomes FOCUS FOR 2015

13 Madeline Nash has worked in the field of community development for over twenty years. She recently joined the Local Initiatives Support Corporation in Boston as a Senior Program Officer for Community Development and Real Estate Lending where she provides financial and technical assistance to community development corporations. Previously, she served for eight years as the Director of Real Estate Development for the Coalition for a Better Acre Community Development Corporation in Lowell, MA; and for seven years as the Director of Real Estate for the Salem Harbor CDC in Salem, MA. At CBA, she oversaw the development of seven affordable housing initiatives totaling 390 units, and served as the asset manager for the organization’s portfolio of properties. Combined, these efforts contributed to the stabilization of one of Lowell’s most distressed neighborhoods and helped CBA to be recognized as a highly capable developer and property manager. Madeline has a Masters Degree in Regional Planning from UMass Amherst and a Bachelors Degree in Political Science from Clark University. In 2012, Madeline received a certificate from the Harvard Executive Education Achieving Excellence Program. Madeline is active in her community where she has served for many years on the local Planning Board, Community Preservation Committee, and Affordable Housing Trust.

14 Community Development Corporation founded in 1982. Property portfolio of 425 rental housing units and 33 commercial units; plus 51 rental units under construction.

15 TWO APPROACHES TO SERVICE ENRICHED HOUSING Properties with 25% of units for homeless families with limited supportive services; Properties with 100% of the units for homeless veterans in partnership with a service provider.

16 Moody Street Before Demolition

17 23 New Construction Units – 8 Units Service Enriched for Homeless Families

18 Gorham Street - 24 new construction units with 8 service enriched units for homeless families

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20 EIGHTEEN STUDIO APARTMENTS FOR SINGLE VETERANS

21 SIX ONE BEDROOM APARTMENTS FOR VETERANS

22 THREE BEDROOM APARTMENTS FOR VETERANS AND THEIR FAMILIES

23  State development funds provide incentives to developers;  State gives priority to projects with service enriched housing for extremely low income households;  State provides project based rent subsidies;  Under the HPSTF Program, State provides funds for supportive services over time;  Property management companies with the capacity to provide supportive services;  Developers partner with service providers with strong track records;  Sites are centrally located with access to services and public transportation.

24 Tom Plihcik is the Executive Director of New Lease for Homeless Families, a Massachusetts non-profit organization comprised of affordable housing owners and shelters that place homeless families into permanent housing. Before launching New Lease, Tom served for almost 10 years as the Director of the Massachusetts Legislature’s Joint Committee on Housing where he worked on the State’s Expiring Use law, Chapter 40T, Smart Growth law Chapter 40R, foreclosure protection act and several affordable housing bond and tax credit authorizations. Prior to the State House, Tom also worked in affordable housing at Abt Associates, The Community Builders and the City of Greensboro, NC.

25 Mission: To reduce the number of homeless families in Massachusetts by implementing a homeless preference in affordable housing rental communities; building effective relationships between properties, providers and clients; and standardizing supportive services to empower families to maintain healthy tenancies.

26 Homelessness Crisis, 2012 Affordable Housing Owners came together, in partnership with the Dept. of Housing and Community Development (DHCD) to address the homeless family crisis in Massachusetts. Alarming Numbers As of October, 2014 there are about 4,600 families in the shelter/motel system which costs Massachusetts over $175 million a year. Action from the Owner Community The depth of the problem spurred Affordable Housing Owners to take action by starting a non-profit, New Lease, to administer a homeless preference for affordable rental units in HUD Multifamily developments.

27 With the help and flexibility of HUD, New Lease created a homeless preference that fit the needs of our community.  Homeless Definition: New Lease’s homeless definition includes homeless families in certain state-funded family shelters in Massachusetts, in order to target the resource to where the crisis is.  Referral System: Referrals are taken from 3-4 generalist family shelter providers in each region. The pilot can learn best practices with a small cohort of stakeholders before expanding.  Alternating Selection: Participating Owners have the option to balance their waitlists by alternating the admission of New Lease preferenced applicants with general waiting list applicants.  Streamlined Approval Process of the Homeless Preference with HUD: New Lease submits required documents to HUD on behalf of its owners to swiftly implement the homeless preference on each development.

28  Participating Affordable Housing Owners are dedicating 10-15% of vacant units (family, Project Based S8) to homeless families. New Lease is working on recruitment strategies to include PBV’s, MRVP’s, LIHTC, etc. in our portfolio. Recently New Lease was awarded 30 MRVP’s to project-base in participating developments.  Goal: House 400 families over the two-year pilot.  The Homeless Preference targets families in the regions of the state with the highest demand on shelters/motels. Boston, Springfield-Metro, South Shore, North Shore/Merrimack Valley and Framingham 16 Participating Shelter/Motel Providers who act as referral sources to New Lease.  Predictable, timely Referral Process to Vacant Units: Ensures faster screening process Builds tight communication plans between all parties Technical Assistance is provided by New Lease so applicants are effective at mitigating housing barriers prior to screening at a development.

29  Standardized Housing Placement Approach among 14 Providers Participating providers are now checking housing history, criminal backgrounds and credit reports to prepare mitigating documentation ◦ Speeds up screening times; less of a reactionary approach to Owner background checks. ◦ 4 Business Days: New Lease delivers complete referral packages (all upfront screening documents) to properties with vacancies in an average of 4 business days ◦ 18 Business Days: The average length of time from when a property manager begins the screening process, to when an applicant is fully approved. ◦ Mitigation: The mitigation training and process works; to date 96% of families who have screened for vacant units have been accepted into the developments.  Standardized and Enhanced Stabilization Services Participating providers have agreed to certain frequencies of contacts and visits with participating families. New Lease is leveraging its partners to provide enhancements to existing stabilization supports (ex. Self sufficiency services)  Creation of Innovative Emergency Fund Rental/utility arrearages Self-sufficiency goals (ex. Books for school) Fee for Service models to engage families in further self-sufficiency

30  66 New Lease Units since November, 2013 66 families have signed or are about to sign leases. Thus far all families who have moved into New Lease units have sustained their tenancies. ◦ One family left voluntarily to relocate with family in a different state. ◦ 5% of families have had minor nonpayment issues that have been resolved through coordinated services and communication.  Yesenia, Housed in New Lease’s Springfield Region Yesenia, 25 years old, single mother of a two year old daughter. State-funded motel stay- 1.5 years; Housed at a New Lease development 11/26/13 Interviewed, screened and signed lease quickly; 4-6 day turnaround time at New Lease development in Springfield, MA. Yesenia’s feedback on accessing the New Lease unit: “The process was very smooth, very fast, and less than a week.” “The property manager took care of me, she was very nice”. Yesenia’s update on her transition into housing: “I love it here. Jenia is doing great. I didn’t think this home was really mine, but when I got my keys and furniture I knew it was real, that this was my home.” What’s next for Yesenia? Now that Yesenia is in a stable home, she plans to start working on obtaining her GED.

31  Recruitment of Additional Affordable Housing Owners NL is in process, we could always use more ideas and leads.  Additional subsidies Recently awarded 30 MRVP subsidies for New Lease families by DHCD. Currently working with HUD’s Office of Public Housing (New England) to outreach to Housing Authorities re: Project Based Vouchers that our existing owners have.  Research and Evaluation Currently working with UMASS Boston for the duration of our pilot to evaluate the pilot.  Compilation & Distribution of Best Practices Expanding Mitigation Practices Efforts towards a Universal Pre-Application

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33 For additional information please contact CEDAC at 617-727-5944


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