1. Supportive Services for Veteran Families (SSVF )
Shallow Subsidies
Expanding the Supply of Affordable Housing
Adrienne

2. Rationale
Address the limited supply of affordable housing in targeted communities with high rates of homelessness and insufficient stocks of affordable housing.
Longer, consistent subsidy reduces the real cost of rent to household, expanding housing options.
Utilization data shows short-term support not sufficient in selected communities to meaningfully reduce homelessness.

4. Proposed Rule – Key Features
Max rate is 35% of FMR, but standard rates are set by CoC and SSVF grantee agreement.
Monthly rental subsidy does not change for duration of subsidy: 2 years for HH < 30% of AMI; 2 years (- length of RRH/HP support) for HH < 50% of AMI.
Placements can only be made in designated counties – not portable.
No recertification for entire subsidy period, so no disincentive to increase income.
Could potentially be recertified after shallow subsidy period ends.

5. Targeting
Generally expected to part of progressive engagement approach.
Employed after a period of Rapid Re-housing or Homeless Prevention assistance, when household’s housing cannot be stabilized by shorter-term intervention.
Household requires minimal clinical services and only needs moderate financial support differentiating it from HUD-VASH.

6. Targeting
Long runway for support and no reduction in subsidy as income increases is strong incentive for employment gains. Seek out co-enrollment with HVRP.
May be effective prevention tool for those on fixed incomes such as retired seniors or disabled Veterans.
Consider using rent burden in screening. LA requires 60%+ of income spent on rent to be eligible.

7. Considerations for Utilization
Set standards for eligibility to ensure consistency and agency’s ability to support for 2-year period.
Single rate structure must be agreed upon by all SSVF grantees and CoC serving county.
Can be part of a shared housing strategy. Average rent declines per BR.
Data must be captured in HMIS.

8. Other Considerations
Though cheaper on a monthly basis, length of subsidy makes Shallow subsidies relatively expensive. Calculate the number of potential placements and plan accordingly.
As rental subsidy is a 2-year commitment, not month-to-month as in RRH, essential to develop mechanism to set aside funds once placement is made.
With the longer subsidy is master leasing an option? Can local funds be found to augment SSVF Shallow Subsidy?

9. Communities Eligible in FY 2020
Identified as “Priority 3” in NOFA published on December 19, 2018: San Jose/Santa Clara, San Francisco, Oakland/Berkeley/Alameda, Los Angeles, San Diego, Washington DC, Honolulu, Chicago, New York City, and Seattle.
All grantees serving these areas, even those without additional Priority 3 funding, eligible.
Subsidy can be offered beginning October 1, 2019 if Amended Final Rule has been published and subsidy rate has been approved by SSVF.
Communities eligible to use shallow subsidy can be expanded by publication in Federal Register.