Using LIHTCs to Create Integrated Supportive Housing Julia Bick, N.C. Department of Health & Human Services Mark H. Shelburne, N.C. Housing Finance Agency

Mental Health: A Report of the Surgeon General 1999 Supported housing focuses on consumers having a permanent home that is integrated socially, is self-chosen, and encourages empowerment and skills development.

Housing Permanent with rights and responsibilities of ownership or tenancy Decent and well managed Affordable Accessible- both in terms of any necessary physical modifications and in access to community amenities

Supports Individualized-tailored to fit the individual’s needs Flexible-frequency and intensity according to need Voluntary-not a pre-requisite or condition of housing occupancy Varied-to assist the resident in maximizing vocational, social, and recreational potential for community living Adequate- sufficient to meet the individual’s need

Supportive Housing is housing with supports. Two separate but related issues.

Affordable Housing Costs for a Single Person at SSI Level When speaking of access to housing, the individual's poverty, and not disability, is most often the operative barrier. 30% of $637 a month = $191 a month No market in NC where you can rent without assistance at this income level

The need for decent, safe affordable housing cuts across disability categories. Collective, rather than competitive action. 504 Rehabilitation Act Regulations prohibit, in the absence of Federal law or regulation, targeting Federal housing resources to a particular disability group to the exclusion of any other disability group.

LIHTC units must be “for the use of the general public.” Owners may adopt a preference to select families that include a person with a disability. Owners may not create preferences for persons with a specific type of disability unless allowed in the controlling documents of the property. (HUD 811, etc.) Owners may not apply a preference for persons without a disability.

Basics of Partnership Owners of LIHTC properties must set-aside 10% of units for persons with disabilities Local human service agencies make referrals to available units through a collective process This cross-disability group is represented by one agency The lead agency and property management enter into a memorandum of understanding

NC LIHTC Targeting Plans Developer, Management and Local Lead Agency agree: Tenancy cannot be conditioned on service compliance. Willingness to negotiate Reasonable Accommodations. Confidentiality protected, no disability information, beyond eligibility, is communicated to management.

Architectural Accessibility Bonus points available for making units accessible in addition to FHA legal minimums became a threshold requirement __________________________________ Additional 5% of all project units must: (a) be fully accessible (b) full turn around in bathrooms (c) curbless showers

Key Program Assistance Targeted to persons with disabilities Production based  attached to Tax Credit units coming on line Operating subsidy  Pays the difference between tenant income and an operating standard Designed as “bridge” until the tenant can access permanent and portable Federal assistance.

Why did we do it? The federal Housing Credit is the nation’s largest production resource People with disabilities have the greatest need for affordable housing NCHFA had always wanted to match these two but didn’t have a way until 2002 DHHS and advocates rose to the challenge of presenting a workable solution

Benefits Tax Credits are an efficient system for the production of high-quality, professionally managed housing. Provides integrated housing choices Separates housing from services  Lease controls occupancy  Linkage to services Partners maintain their separate roles  “Housers” build and mange the housing  local services and support systems make services available to tenants

How was it possible? Needed to gain support from LIHTC development community Owners and managers Reluctant at first but accepted quickly Have become supporters of the program

Why does it work? Each side of the state and property-level partnerships focus on what they do best  NCHFA allocates LIHTCs and monitors for compliance  DHHS works with local agencies and on-site property management  Owners and property managers build and manage rental housing  Human service agencies provide services and support to individuals and families State-funded operating assistance

Role of Management Treats lead agency referrals the same as any other applicant Applies normal screening criteria, including reasonable accommodations Keeps units open for short periods Once under lease, treats the same as any other tenant Requests operating assistance funds each month for occupied units

What doesn’t happen? Owners and management:  have no medical information  do not provide services, treatment, etc. No compliance problem if the lead agency has no referrals No reason to avoid remedies for lease default, including eviction (subject to reasonable accommodations)

How do owners benefit? Many tenants have disabilities regardless of set-aside requirement; having a connection to the services community helps:  serve these tenants,  other residents, and  solve problems Better understanding of reasonable accommodations requirements First units leased, low turnover

Community Integration Supportive housing units are part of larger LIHTC properties Nothing identifies them as different Other residents, let alone neighborhood, are not aware that some occupants have disabilities Result is no NIMBY, other than against affordable housing in general

What are the numbers? 6 annual award cycles 1,191 funded units (673 currently available) 193 properties 103 different cities and towns 90% of available units occupied by referrals <1% eviction rate 600+ Households have quality affordable housing who otherwise probably would not

Challenges To assure tenants have access to services we must marshal the resources of a limited and fragmented service system.  Public human service systems are funded and organized around particular sub-populations.  Services provided based upon individual eligibility and need. Provide services to people, not to buildings. To secure a continuing source of operating assistance.

Future of LIHTC Program Most pressing need is for housing person below 30% of median income. LIHTC properties approaching saturation in many communities at 50% income levels Subsidies that make units in LIHTC developments affordable to extremely low income persons is an efficient use of limited resources.