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Housing First Community Housing Answers Housing First Community Housing Project 1. Please provide a Development Budget and Sources and Uses of Funds proposal. We need these to determine, among other things, how you propose to convert two units into six The ideal target location is 2- separate units without substantial rehabilitation. apartment unit building (duplex), that requires no major redesign or improvements, hence eliminating the need for multiple sources of funding. Each unit would have 3 single occupancy bedrooms with shared bathrooms, kitchens and living areas. This layout would allow for the option of designating one unit for 3 women and 1 unit for 3 men. The original site selected, at submission of this application was ideal and required almost no renovation. Inspectors suggested very minor improvements, and required none. Unfortunately, subsequent to the first submission, we have determined that the location is not ideal for these tenants. 2. Please provide a five-year operating budget that compares income to rents, and to show Housing First has how these projections match the availability of Section 8 subsidies. recently been a recommended “solution” for chronic homelessness. Both state and federal funding sources are only now realigning their funding priorities away from shelter to more cost effective approaches like Housing First. This model requires sufficient rental revenues to cover the cost of housing maintenance and operation, and additional funding for stabilization through an existing clinical case management outreach team. Projected stabilization services funding will come through the reallocation of state funding sources, and 3rd-party insurers that cover the most intensive period of stabilization services. DTA in collaboration with DHCD has committed to allocating MVRP certificates to projects like this, as part of a Western Mass pilot. The exact mechanism for funding is currently under negotiation. We are being asked to produce a model and site that can be funded. 3. Please confirm that FHCHI has pledged $100,000, already in hand, to the project. See attached letter. 4. Will the funds be returned to the CPA account if the project is not successful? See Attached FHCHI/ServiceNet MOU. It is anticipated that an FHCHI/CPA agreement will contain similar restrictions. 5. What are the reasons that some funding cannot be secured from the HUD 3-County Continuum of Care Plan, which calls for the development of exactly this kind of housing? There are several reasons: The 3-County HUD Continuum of Care receives approximately $150,000 o annually for one NEW permanent supported housing (PSH) project. This funding is available ONLY if the overall application meets a funding threshold. This past year (2007 application), it did not, and the PSH was not funded. Consequently, the SAME projected will be submitted for the up-coming round (Spring, 2008). There are three counties that take turns proposing a PSH project in a rotating o cycle, so that each community may have an opportunity to develop this type of housing. The most recently funding project prior to the 2007 round was a PSH program for homeless veterans in Northampton. Consequently, with will not be Hampshire County’s “turn” for three years. Many semi-rural communities, like ours, look to the development of “small” non- o stigmatizing housing models as permanent supported housing. These projects are only cost-effective and doable if the “development” costs can be contained; the use of state and federal housing development funds inflates the cost of development beyond the assessed value of a property, making it cost-prohibitive from an operating perspective and in terms of re-sale value. The 10-year plan for ending homelessness requires using multiple housing o development strategies to provide housing for the chronically homeless, including CPA funding, which is particularly suited for smaller projects like the one proposed. 6. Will the addition of this site create a shortage of volunteers/funding from existing No.While a few individuals may choose to be involved with residents as programs? “mentors”, there will be no formal participation by the Friends as a body. This project will not impact funding for existing Friends’ programs; any additional fund-raising for this project will be a one-time event. 7. Will the CPC receive annual reports of staff hours, etc. for the position that would be funded for the house? An annual report will be submitted to both the Friends and CPA. 8. Where is the property located that FHCHI has signed a purchase and sale agreement? Will CPC get a site visit? The offer for the original site has been withdrawn and the search for a suitable site continues. When a site is identified a site visit can be arranged. 9. Is P & S agreement contingent on full CPA funding? Yes. No funds over and above the $100,000 are currently available by the Friends. 10. What is the basis for seeking housing for six people, rather than more or fewer? Support services needs and building requirements are greater for concentrations of more than 6 people. Also, a larger building would be more expensive, and would require more funding.Less than this number would not be cost effective from an acquisition perspective. 11. If funding goes forward at this time, is the applicant confident that the house can be up and running before cold weather sets in next fall? Our goal is to select a site that requires only minor rehabilitation so that it can be ready by the up-coming winter. As a 12. Because this is rental housing, why not provide a 99-year affordability restriction? “shared-living” site, this project requires that acquisition and services be provided by an agency. The agency, in turn, will lease rooms to chronically homeless individuals with some “support requirements”. Because of these support requirements, it is atypical rental housing. A 30-year affordability restriction seems prudent to provide more flexibility on how the housing can be used, should there be a shift in population needs. 13. Because this project is intended to benefit homeless households, why not use the extremely low income standard (30% of median) instead of the very low income standard (50% of Yes, we will restrict it to 30% of medium income. median)? 14. Is there a requirement that residents have a prior residence in Northampton, or is this a Potential residents will be selected from the population of single adults preference? using ServiceNet’s emergency shelters in Northampton. The first-hand knowledge gained in this way will provide a basis for predicting a potential resident’s capacity for getting along with others in a group-living situation. It is particularly important for the first set of residents to be chosen with awareness of how one person’s limitations might interact negatively with those of others and to integrate the strengths and limitations of residents in ways that complement the functioning of the house. Priority preference will be given to individuals who have lived or worked in Northampton. However, traditional definitions of prior residency status becomes a bit murky with a group of individuals who experience many years of homelessness, including frequent stays in shelter, on the “streets” or doubled up with family and friends. The 10-year plan Implementation Team will be working with DHCD to ensure that there is an established protocol to prioritize this population for subsidies and housing.