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Housing Homeless Populations With Local Government Funds

Housing Homeless Populations With Local Government Funds. Overview of Lennox Chase. Wake County’s first permanent supportive housing community developed specifically for a homeless population 36 studio apartments completed 2003

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Housing Homeless Populations With Local Government Funds

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  1. Housing Homeless PopulationsWith Local Government Funds

  2. Overview of Lennox Chase Wake County’s first permanent supportive housing community developed specifically for a homeless population 36 studio apartments completed 2003 Eligibility requirements: At or below 50%-30% Area Median Income (AMI) Monthly rent: varies between $425 to $373 On-site property manager and support services

  3. Local Government Perspective: Selling Lennox Chase Process included educating County leaders about the needs of the homeless population Homes for low- and very-low income groups had become a priority in County Housing Plans This housing is eligible for CDBG, HOME, ESG, and HOPWA funds, but Lennox Chase saves money: income from rent, and support services located on site

  4. Costs of Homelessness Source:“Ending Homelessness: The Ten Year Action Plan”

  5. Truths about Homelessness • 1,000 persons are homeless on any given night in Wake County • 2,000 persons are homeless on any given night in the Triangle region • 3,300 different persons experience homelessness in Wake county during year • Fair Market Rent for a one-bedroom apartment is $715 per month in Wake County

  6. Working with the Developer • Lennox Chase was part of a request for proposals process • Developed by DHIC (Downtown Housing Improvement Corporation) and owned by an affiliate • Cost was higher for the County than for other developments: subsidy had to be greater since the incoming population had less money to pay rent • Strong Partnerships • An essential component in a risky project: make sure you have faith in your partners • We, as funders are responsible for assuring elected officials and the community that all partners will fulfill their commitments and deliver what they promise

  7. The Importance of Support Services • Support Services must be available for tenants to make the housing successful • At Lennox Chase, on-site support services were the answer • In other developments, on-site services may not be needed • Tenant issues can be addressed before they turn into problems at the development • Provides a level of responsibility by the County as funders

  8. Useful Lessons Learned at Lennox Chase • Education… • The link that ties everything together • Building understanding between elected officials and community members that the incoming populations are people trying to help themselves • Educating the public must be ongoing

  9. Savings to County/State • Jordan Institute for Families at UNC-CH School of Social Work • Analyzed costs of providing services 2 years prior to occupancy at Lennox Chase. 29% savings

  10. Affordable Housing since Lennox Chase Epiphany House: 4 units Hopecrest: 10 units

  11. Affordable Housing since Lennox Chase Carlton Street: 10 units Franklin Woods: 14 families

  12. Affordable Housing Impact • Since 1994, Wake County’s housing program has made funding commitments for 1,874 rental units • 1,179 affordable to families earning < $30,000 annually • 211 dedicated for homeless individuals • In addition, the program has made available 180 housing vouchers for homeless individuals

  13. Developer Perspective:About DHIC • Formed in 1974 • Key business lines • Rental development: 20 communities previous to Lennox Chase. Now 29 with 1,300+ apartments • Homeownership development • Lot developers. 68 units at Meadowcreek, 48 townhouse lots in Cary • Homeownership education and counseling: 372 in classes and 192 first time buyers • Community Services

  14. Developer Perspective • New concept for all concerned • Lack of experience serving population • Hard to sell to local elected officials • High amount of subsidy per unit compared to “traditional” affordable housing development • High total cost per unit • Equity investor insisted on outside consultant familiar with permanent supportive housing • Equity investor required conservative and different underwriting

  15. Refining Development Concept • Collaboration from agencies offering transitional housing and substance abuse programming, etc. • Expertise from outside • Involve property management company early in the process • Document plan and procedures to make sure everybody is on the same page

  16. Design Features of Lennox Chase • Architectural style: “big house” appearance from the street and not institutional • Included common meeting area and kitchen for social events, smoking porch, business center with internet access, elevator, common laundry facility • Security enhanced by having electronic entry system into the building and cameras in common areas

  17. Design Features of Lennox Chase • Studio apartments, 500 square feet • Universal design • All utilities included • Common hallways with monitored entrance adjacent to management office • Smoke free in all common areas

  18. Economics • Rents ranging from $373-$425 including utilities. • No mortgages to pay • Rents cover operating costs in early years • Large reserve to cover deficits; $343,000 • Tax credit property; $1.5 million in equity raised • Low-cost loans from City, County, FHLB of Atlanta and NeighborWorks America; $1.6 million total • Property is performing ahead of expectations

  19. Challenges • “First cost” to local government financing partners is high because: • Low rents • Large reserves • Commitment of on-site support services • Inherent conflicts between property management and social services objectives • Politically acceptable locations with transit and close to employment centers

  20. What We Have Learned as Developer/Owner • Successful model that should be replicated • Given size of complex, on-site social worker is critical • Need for expanded common spaces • Exercise room • Private meeting space • Larger pantry area for donations • Stronger link to and better follow up from referral agencies would be helpful

  21. New Opportunities Brookridge Apartments Wake County awarded a low-interest loan of $600,000 to DHIC for a 40-unit studio apartment development in Raleigh.

  22. New Opportunities Brookridge Apartments (continued) 30 units of housing affordable to people earning less than $20,040 a year. 10 units will be affordable to people earning less than $25,050 a year. On-site property manager, social worker, and resident manager (2BR non-revenue unit) Wake County subsidy: $20,000 per unit. Wake County will maintain a lien on the property for 30 years. Located in walking distance to a bus stop and various places of employment

  23. Social Worker Perspective-Why has Lennox Chase been Successful • Second Chance Program • Considers applicants for tenancy that have barriers to conventional housing. • Standard property manager approval process • If rejected, social worker reviews credit & criminal issues on a case-by-case basis. • May recommend “second chance” to management company if there is evidence that individual has turned things around and is addressing negative patterns.

  24. Social Worker Perspective-Why has Lennox Chase been Successful • Commitment from Interested Parties • Owners, Management, Staff & Community Partners work together to assist tenants in maintaining their permanent housing & self-sufficiency • Follow-up services/support from referring agencies, especially during initial transition period • Permanent housing but not conventional

  25. Social Worker Perspective-Why has Lennox Chase been Successful • Commitment from Interested Parties (cont’d) • Creativity & flexibility are needed to balance the needs of the individual with the bottom line • Communication with partners, sharing information and feedback; being pro-active not reactive • Appropriate referrals to Lennox Chase

  26. Social Worker Perspective-Why has Lennox Chase been Successful • Tenant Buy-In • Form Tenants Advisory Committee • Hold monthly tenants meeting • Elect Community Watch captain • Community events, bingo, movies & holiday celebrations • On-site NA/AA meetings • Tenant newsletter

  27. Residents • 84% of residents were chronically homeless • 83% of residents have history of substance abuse; 44% mental illness • 37% dual diagnosis • 67% of residents are employed full-time • average income is $16,000 • 25% of residents are originals from 2003

  28. Awards & Recognition • 2004, Charles L. Edison Tax Credit Excellence Award from the Affordable Housing Tax Credit Coalition, Washington, DC. Best Special Needs Project of the Year • Summer 2005, Lennox Chase Community featured in Bright Ideas, the NeighborWorks America magazine • October 2005, Sir Walter Raleigh Community Appearance Award, City of Raleigh • Fall 2006, Housing North Carolina Award, NC Housing Finance Agency

  29. Questions/More Information • Annemarie Maiorano, Director, Housing and Community Revitalization, Wake County amaiorano@co.wake.nc.us, (919) 856-5268 • Gregg Warren, President, DHIC gregg@dhic.org, (919) 832-4345, ext 3005 www.dhic.org • Ed Stelli, Supportive Housing Team estelli@co.wake.nc.us, (919) 754-8893

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