Transcript Document
Understanding
Tenant Based
Rental Assistance
Presented By:
Candace Baldwin
NCB Capital Impact
&
Brenda Hampton
Illinois Department of Human
Services
1
Agenda
• Introduction of Speakers
• Discussion Points
– Current development subsidies do not “drill down” to
income levels of MFP participants
– Housing Choice Voucher (a.k.a. Section 8) are over
subscribed and not readily available
– Alternative sources of funding for rental assistance that
could be utilized
– States have implemented bridge rental subsidy programs
linked to Housing Choice Voucher
• Open Discussion
2
Development subsidies do not create
affordable housing for MFP population
• Traditional affordable housing finance tools
do not drill rents down far enough to meet
MFP participant’s level of income
• Housing Choice Vouchers (HCV) are oversubscribed
• Tenant based rental assistance is needed to
make rents affordable for community
integration
3
Tenant Based Rental Assistance (TBRA) is
derived based upon recipient’s income
• No more than 30% of resident’s income
• Like vouchers, tenant based rental
assistance programs fill the gap
• “Gap” is difference between 30% of
resident’s income and fair market rent (FMR)
• FMR* set annually by HUD based upon local
markets
*For more information on how to find the fair market rent for local area visit:
http://www.huduser.org/datasets/fmr/fmr2008f/FY2008_FMR_SCHEDULEB.pdf
4
There are a number of Alternative
Sources for TBRA
• Tenant based rental assistance can be
sourced from:
– HOME funds
– Housing Trust Funds
• Typically locally controlled
• Follow similar eligibility guidelines as
housing choice vouchers
5
HOME funds are Typically Overlooked as
a Source for Rental Assistance
• HOME funds are administered through a
participating jurisdiction (PJs)
• State or local government designated by HUD to
administer HOME funds
• Small cities and counties are administered by State
HFA
• Rental housing units must meet HUD qualification
• Length of rental assistance contract set by program
guidelines
6
HOME funds can Assist in Transitioning
MFP participants into the Community
• Uses for HOME funds can cover:
– Housing costs such as rent
– Utility costs and/or deposits
– Security deposits
• Limited to tenants with incomes at or below
80 percent of area median income
• Participating jurisdiction has to include TBRA
as an activity in consolidated plan
• Contracts for two years and are renewable
7
Housing Trust Funds can also be Used for
Rental Assistance
• Trust funds can be administered by state or
local governments
• 38 state housing trust funds in the U.S.
• Funded through fees assessed – e.g. real
estate transfer tax, document recording
fees, application fees
• Not subject to federal regulations – leads to
flexibility of eligible uses
8
A Number of States use Housing Trust
Funds for Rental Assistance
• Minnesota Housing Trust Fund
– Established in 1988
– 2002 expanded use of funds for rental assistance
– Funds administered through designated agencies
and organizations through RFP process
• Oregon Low Income Rental Assistance
– Department of Housing and Community
Development
– Referrals through community partner
organizations
9
HOME and Trust Funds face similar
challenges to HCV
• Funding for both programs subject to
availability of funds annually
• Annualized payment creates a long term
funding commitment rather than one time
development subsidy
• Not all HOME or Trust Funds are designated
for tenant based rental assistance
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Expanding use of TBRA funds for MFP
Participants Requires Outreach
• HOME Funds
– Contact PJ and state HFA to discern if TBRA is use
of program
– Consolidated Plan updates – public process
– Request prioritization of funds to be directed to
MFP initiative
• Housing Trust Funds
– Similar strategy to HOME funds
– Identify innovative sources of funds to increase
trust fund appropriation
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Bridge Rental Subsidy Programs can also
be tied to more than just Vouchers
• Number of states have employed bridge
rental subsidy programs
– Iowa HCBS Bridge Rental Subsidy Program
– Maryland Bridge Rental Subsidy Program
• Focused on participant securing housing
choice voucher
• May consider allowing TBRA through HOME or
Trust Funds to be the transition to
permanent rental assistance
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For more information
Candace Baldwin
Senior Policy Advisor
NCB Capital Impact
[email protected]
703-647-2352
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MFP Presentation
October 8, 2008
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Illinois Department of
Human Services/Division of
Mental Health
Permanent Supportive
Housing and
Bridge Subsidy Program
15
Participating partners:
Technical Assistance Collaborative, Inc.
(TAC), Boston, MA
Corporation for Supportive Housing
(CSH), Chicago, IL
Illinois Housing Development Authority
(IHDA)
Pubic Housing Authorities (contractual agreement)
Regional Housing Support Facilitators
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Permanent Supportive
Housing Housing Policy
(PSH) Statement:
The Department of Human Services,
Division of Mental Health is committed to,
as a priority toward systems rebalancing,
the development and expansion of
Permanent Supportive Housing (PSH) for
individuals who meet defined criteria of
eligibility and who are diagnosed with a
serious mental illness.
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Permanent Supportive
Housing Housing Policy
Statement (cont):
The goal of this initiative is to promote
and stabilize consumer Recovery with
elective support services in one’s leased or
owned home that (1) provides safety ; (2)
ensures comfort and decency ; (3) is
financially manageable within resources
that the consumer has available.
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Illinois - PSH model:
Typically rental apartments linked with
flexible community-based support
services:
Self contained unit (bathroom & kitchen)
Scattered sites
Studio or efficiency units
one bedroom apartments
two bedroom shared apartment
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Illinois - PSH model (cont)
Sites with three or more unrelated
individuals are considered as Group
Homes
Group Homes will not qualify as
acceptable residential options under
the PSH model .
20
Illinois - PSH model
(cont)
Services are linked to housing, but are
considered voluntary.
Services are not a contingency to retain
housing.
Housing is considered permanent.
Landlord/tenant law governs.
Tenant hold the lease, sublease or rental
agreement.
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Illinois - PSH model
(cont)
Tenant controls access to his or her
dwelling unit in accordance with
applicable landlord/tenant law.
Tenant-based rental assistance dollars
(one-time) available to eligible/approved
DMH consumers - Bridge Subsidy
Program*
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Support Services:
The full array of DMH Support Services
are available based on medical necessity.
Support Services are flexible based on
consumer choice.
Community mental health engagement is
a requirement in the PSH referral and
application processes.
Community providers have an expectation
to continue outreach to consumers in
PSH.
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PSH priority population
Residents of Long Term Care (nursing homes-NF)
Extended care patients of State
Psychiatric Hospitals
Individuals at risk of placement in a NF
Aging out young adults (DCFS wards or
Individual Care Grant )
Residents of existing DMH contracted
Supervised or Supported Residential
settings.
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PSH Eligibility Criteria
Diagnosis of Serious Mental Illness.
Income within 30% or below Area
Medium Income (AMI).
Referred and approved by a DMH
contracted vendor through outlined
processes.
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PSH - Bridge Subsidy
Program
Financing - $7.5 million dollars over five
years were allocated by State legislative
appropriation (Hospital Tax_Lock Box) to
develop opportunities for
eligible/identified individuals to transition
to affordable community-living
alternatives.
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Bridge Subsidy Program . .
.
Requires income at or below 30% Medium
Area Income.
Pays 70% of the rental cost - applied to
the lease.
Requires that the consumer pay 30% of
his/her income - applied to the lease (if a
consumer has no income, Bridge will
cover 100% cost).
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Bridge Subsidy Program . .
Requires that all individuals approved for
Bridge either apply for a Section 8
Voucher or other rental programs or get
on a waiting list for a rental voucher.
Rental cost is calculated against the Fair
Market Rental rate, by county (rental units
cannot exceed this amount).
Includes a $2,000 one time Transition
Fund, (maximum $2,800 for a lifetime).
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Bridge Subsidy
Administration
DMH has contracted with (at least one)
Local Housing Authority in each Region to
serve as a Subsidy Administrator (SA)
Two contracts are with entities that have
subsidy administration experience: one of
the two will serve as a SA in all areas of
the state without a contracted HA.
SA will conduct initial Housing Quality
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Bridge Subsidy
Administration
standard unit inspections according to
HUD specifications.
SA will assist as a resource with
landlord search.
SA will certify consumer income.
SA will respond to Request to Lease.
SA will negotiate unit rental price that
meets HUDs rent reasonableness test.
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Bridge Subsidy
Administration
SA will conduct initial income certification.
SA will execute Housing Assistance
Payment (HAP) contract with landlord.
SA will pay security deposit, utility deposit
and monthly rent according to the BHAP.
SA will conduct annual income
recertification.
SA will submit monthly reports and
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quarterly fiscal reconciliation to DMH.
Transition Fund
Requisition Forms A&B
(attachments)
One SA will process Transition Fund request
(Form B) for household purchases for the
entire state.
Transition Form - Instructions
Transition Form A - Used by SA for
identification of payment for security deposit,
utility deposit and reimbursement fees.
Transition Form B - Used by care managers
to access a ‘bank card’ for consumer
household purchases.
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