1. Interventions in a Tough Rental Market
MTW Conference

2. 4,178 Housing Choice Vouchers (MTW)
CHA at a Glance
4,178 Housing Choice Vouchers (MTW)
1,518 Tenant-Based
2,502 Project-Based
158 Sponsor-Based
2,700 Public Housing units
Non-MTW: 155 VASH, 300 NED, state rental vouchers

3. Challenges
Low vacancy rates
High rents & upfront costs
Competition – student population, growing tech industry
Increase in PUC

4. Strong relationships with local non-profit landlords City Programs
Opportunities
Strong relationships with local non-profit landlords
Homeowners Rehab Inc. (HRI), Just-A-Start
City Programs
Inclusionary zoning program
Affordable Housing Trust Fund
MTW Flexibility
Ability to project-base
Security deposit and last months rent waiver
Sponsor-based voucher program
Increased regional presence
Vouchers leased outside of Cambridge
Expiring Use/Preservation Program

5. Utilization CY2016
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul- 16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
UMA
3,752
4,002
4,017
UML
3,386
3,653
3,626
3,713
3,780
3,817
3,836
3,880
3,915
3,925
3,917
3,952
Units Available
366
349
376
289
222
185
166
122 87 77 85 65
Utilization
90%
91%
93%
94%
95%
96%
97%
98%
Includes Tenant-Based, Project-Based, and Sponsor Based vouchers
Issued over 500 Tenant-Based vouchers in early 2016  ~56% success rate)
41% leased in Cambridge (~50% of which leased in inclusionary units or PB)
59% leased outside Cambridge (54% of which are paying over 30% of income towards rent)

6. Year % Cambridge % Outside Cambridge
Percentage of Tenant-Based Voucher Holders Leased in Cambridge vs. Outside of Cambridge
Year
% Cambridge
% Outside Cambridge
2011
68%
32%
2012
66%
34%
2013
64%
36%
2014
2015
62%
38%
2016
60%
40%
April 2017
56%
44%

7. Program % Cambridge % Outside Cambridge Total 53% 47%
Percentage of Tenant-Based Voucher Holders Leased in Cambridge vs. Outside of Cambridge
Program
% Cambridge
% Outside Cambridge
MTW
56%
44%
NED
51%
49%
VASH 8%
92%
Total
53%
47%
As of April 2017

8. Landlords in the Tenant-Based Voucher Program
Has increased slightly over the past few years.
Increase in voucher utilization
Program has grown by ~1,800 units since 2015
Expiring Use/Preservation program
Year
Active Tenant-Based Landlords
2012
886
2013
899
2014
933
2015
921
2016
926

9. Landlords in the Tenant-Based Voucher Program
Of the units leased in Cambridge:
64% of units are owned by landlords with 10+ units leased in the Tenant-Based program
15% of owners have only one unit leased in the Tenant- Based program
Of the units leased outside of Cambridge:
1 owner has 10+ units leased in the Tenant-Based program (<1%)

10. Addressing Tough Rental Market Conditions
Landlord & Tenant Incentives
Partnership with City Inclusionary Zoning Program
Ability to Project Base
Expiring Use/Preservation Program

11. Landlord & Tenant Incentives – MTW Initiatives
Security Deposit & Last Month’s Rent agreements
Initial Inspections – allow move-in with City of Cambridge inspection
Allow household to exceed 40% of adjusted income at move-in
Sponsor-Based voucher program
Security deposit: If the owner agrees to accept a reduced security deposit of not more than an amount equal to the higher of one month’s tenant portion of the rent or $200; the owner will have access to an amount up to the balance of the full contract rent amount
Last Month’s rent: If the owner agrees to waive the requirement of a last month’s rent, the owner may access a vacancy payment of 80% of the contract rent at the end of participant’s residency if that participant vacates without notice.
Initial Inspections: If the Cambridge apartment has passed an inspection completed by the City’s Inspectional Services Department CHA will allow lease and contract execution; however the apartment must pass a CHA HQS inspection within thirty days from initial lease-up and before the release of any assistance payment.
If, through no fault of CHA, the apartment does not pass an HQS inspection within thirty (30) days from the initial lease update, the start date of the lease and contract must be amended to reflect the actual date the apartment passes the HQS inspection and the CHA is not liable for any lost rent during the interim period.

12. Partnership with City of Cambridge Inclusionary Housing Program
1998 Zoning Ordinance (response to end of rent control in 1995)
Applies to new residential developments or buildings converted to residential use which create 10 or more new housing units or over 10,000 square feet of residential space.
The Ordinance requires that 15% of the base units in the building be affordable  recently increased to 20%
~50% of the units in the inclusionary portfolio are currently occupied by voucher holders

13. Difference in Gross Rents: Inclusionary vs. Non-Inclusionary Units
*does not account for units that may be subsidized by other means, such as LIHTC units.

14. Project-Based Program
This program allows CHA to expand its Project-Based portfolio beyond the 20% HUD threshold and allows property owners to project- base a building beyond the 25% HUD threshold.
Property owners may coordinate with CHA to project-base up to 100% of a property.

15. Project-Based Program
~60% of MTW portfolio is Project-Based assistance (excludes RAD-converted PB units)
Emphasis on maintaining hard stock
Tenant rent remains at 30% of adjusted income, any rent increases not passed on to the tenant
Enables households to remain in Cambridge
Removes housing search barriers

16. Expiring Use/Preservation Program
Identify units in the private market that are nearing the expiration of an existing subsidy contract which would then allow owners to convert the subsidized units into market-rate units.
i.e. prepayment or expiration of Section 236 mortgage, RAP contract, Rent Supp, etc.
CHA is using MTW authority to project-base the tenant protection vouchers that become available when the subsidy contracts come to an end taking into account resident preference

17. Expiring Use/Preservation Program
While initially utilized in the City of Cambridge only, CHA has exercised its state-wide administrative authority and has started working with owners outside of Cambridge.
To efficiently administer some of the projects, the CHA has entered into partnerships with the local housing authority.
Worcester Housing Authority
Lynn Housing Authority and Neighborhood Development
Southbridge Housing Authority

18. Tenant Education Programming
On the Horizon
Landlord Engagement
Welcome Packets and Briefings
Monthly Newsletter
Focus Groups and Surveys
Appreciation event
Apartment Listing Web Platform
Landlord Database
Tenant Education Programming
Teach housing search, apartment maintenance, and conflict mitigation skills with other community organizations

19. Shift in Focus
Preserve what we have (project-basing, RAD)
Preserve what others have had (expiring use/preservation program)
Expand our reach  think/act regionally

20. Hannah Lodi Director of Leased Housing Cambridge Housing Authority
Questions / Comments?