INDIANA HOMELESS PREVENTION AND RAPID RE-HOUSING Continuum of Care Leasing August 21, 2009 Indiana Housing and Community Development Authority

IN - HPRP IHCDA Community Services Staff  Rodney Stockment, Manager    Lynn Morrow, Department Assistant    Lori Dimick, Homeless Program Manager    Megan Maxwell, Special Needs Representative  

IN - HPRP IHCDA Community Services Staff  Kelli Barker, Special Needs Representative    Kirk Wheeler, HMIS and HPRP Project Director    Kelly Pickell, HMIS Program Representative  

IN - HPRP Resources IN - HPRP Power Point Posted  HUD – HPRP Notice and Webcasts – wealth of good information!   Virtual helpdesk and searchable FAQs National Alliance to End Homelessness   Best Practices, guides Corporation for Supportive Housing   Information on permanent supportive housing

IN - HPRP Rental Assistance All rental assistance under the HPRP is tenant based, i.e. requires a lease in the householder’s name. Rental assistance may be given under existing leases if it is clear that the assistance allows the individual or family to remain in housing they would otherwise lose within the next 7 days. Although the program recognizes “short term rental assistance” up to 3 months and “medium term rental assistance” from months, funds may not be obligated for longer than 90 days.

IN - HPRP Rental Assistance Rental subsidies must be renewed at least every 3 months. Many Agencies will do monthly “renewals” as required case management contacts before writing a check to the landlord. In general, rental assistance cannot be provided to a housing unit that is owned or controlled by the subgrantee agency. Exceptions may be possible upon written appeal to the HUD Regional Office.

IN - HPRP Rental Assistance  IHCDA requires that its HPRP funds be allotted for rental assistance based on a calculation of 30% of household eligible income as a tenant portion.  An Excel worksheet to facilitate this calculation is available from IHCDA. Some agencies may have their own HUD Section 8 calculation forms. In any case, the file must contain evidence of a tenant portion calculation.

IN - HPRP Rent Reasonableness Rental assistance must be based on a determination of “rent reasonableness.’ This requires at least three comparables, as defined as units that are similar in “location, quality, size, type and age” as well as “any amenities, housing services, maintenance and utilities to be provided by the owner.” IHCDA will provide quick rent reasonableness forms but wants to move to the use of the GoSection 8 software in the fall. Training on the software will be provided. 

IN - HPRP Rent Reasonableness We suggest pairing the rent reasonableness determination with the habitability inspection. This assures that units are ‘as advertised” and allows adjustment for amenities, e.g. microwaves or a community pool. The rent reasonableness determination may include other units owned by the same landlord but must also include at least one other owner/ property manager. 

IN - HPRP Leasing Rental support requires a lease in the household name. In general, we expect these to be standard 0ne year leases for commercially available rental units. IHCDA does not require a specific lease format but does require a standard Lease Addendum, which assures that the lease complies with all federal and state requirements. Lease Addendums will be required to receive HPRP rental assistance for existing leases. Refusal to sign an amendment on the landlord’s part will result in exclusion from the program.

IN - HPRP Leasing Rental assistance for a new unit cannot be provided until (1) the habitability inspection is approved, (2) rent reasonableness is determined and (3) the lease and lease amendment are signed. The participant file must contain evidence of all these steps. Rental assistance for existing units require only the signing of the lease addendum unless the unit is subject to inspection for lead (on the basis of having children under 6 y/o in residence.)

IN - HPRP Leasing IHCDA will not provide a standard short term rental assistance contract due to the very short period of rental assistance for many households (e.g. one month.) An example MOU from another jurisdiction will be distributed if an agency wishes to have a written agreement with landlords. Please be reminded that IHCDA requires that at least 65% of the financial assistance funds be used for rapid rehousing. These will, by definition, all be new leases.

IN - HPRP Lease Addendum The Addendum does not replace a lease; it is simply an attachment to the standard lease. Communication with landlords should clearly state that assurance of rental support is on a month-by- month basis. Information about the form and format of rental payment, including remittance address, must be returned to the Central Access agency at the time of leasing.

IN - HPRP Lease Up The lease up process has several steps: Solicitation of willing landlords Determination of HPRP eligibility and need for rental assistance. Issuance of “voucher” to participant Finding of possible eligible unit (participant and case manager) Unit application and landlord process

IN - HPRP Lease Up Habitability Inspection Rent Reasonableness Determination Tenant portion rental calculation Lease signing with lease amendment Moving and utility assurance On going case management Determination of continuing need and check request

IN - HPRP Lease Up Eligible Activities: Security deposits Utility deposits Moving costs Ineligible Activities: Construction or rehabilitation Home furnishings Child care (0r pet care)

IN - HPRP Rental Assistance Voucher The voucher is a document intended to allow a participant to seek out a suitable rental unit and assure the landlord that some level of rental assistance will be provided. The voucher is not a guarantee of payment or a contract. Vouchers are time limited, in the spirit of prevention and/or rapid rehousing. The 10 day limit should also include all necessary habitability inspection and rent reasonableness calculation.

IN - HPRP Landlord Solicitation C of Cs are expected to work with Central Access agencies to identify rental resources in their region. In general, HPRP supported units should be comparable to other affordable rental housing – neither the cheapest nor the most expensive. Property Managers and landlords may be encouraged to list their properties on the GoSection 8 website and/or the Indiana Housing Now site. If they choose to list on the GoSection 8 site, their units will have rent reasonableness calculated.

IN - HPRP Landlord Solicitation Prior to October 1, 2009, each subgrantee must provide evidence of at least some available rental units in their region. Available means that there has been direct contact with the property manager/ landlord and some assurance of a willingness to house HPRP participants. By January, 2010, IHCDA will require that each subgrantee demonstrate capacity to house the number of households they project to serve.

IN - HPRP Landlord Solicitation Attractive features of the HPRP – no change in lease, prompt rental payment by HPRP agency, ability to fill empty units without formal Section 8 approval, limited commitment on a unit-by-unit basis. Added value – free listing on GoSection 8 and Indiana Housing Now. Ability to pay security deposits and, if necessary, utility assistance.

IN - HPRP Comments and Questions

IN - HPRP