Transcript Document

Understanding
Tenant Based
Rental Assistance
Presented By:
Candace Baldwin
NCB Capital Impact
&
Brenda Hampton
Illinois Department of Human
Services
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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
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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
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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
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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
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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
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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
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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 .
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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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