Shelter Plus Care 2009 Start Up Conference

1. Shelter Plus Care 2009 Start Up Conference S+C Grantee, S+C Sponsor and HUD in Partnership

2. The Benefits of Shelter Plus Care • Stick with what your agency does Best: • Service providers provide services • Housing providers provide the housing. • Quick turn around time: • S+C avoids the time lag of housing development. • Flexible models to choose from • Capitalize on services, mainstream resources and efforts already underway. • S+C Sponsor or Project based creates a stream of revenue to stimulate capital funding • S+C Tenant, Sponsor or Project based allows for an immediate supply of housing for new participants.

3. Benefits of S+C for COC The S+C funds for new and renewal requests are consider per the FY2008 SuperNOFA a housing activity and can help your COC with obtaining more points in the competition S+C can be tailored to the full Bonus or Pro rata need amount available

4. S+C for New Projects in 2009 • Used bonus or pro rata need funds for a new S+C project for disabled homeless single persons and homeless families with a disabled adult and children • In FY2009, there is no Samaritan Initiative - just permanent housing bonus to serve singles and/or families

5. Shelter Plus Care as a COC Back up Project for Strategy Sometimes COC high ranked projects have failed to submit at the last moment, been disqualified by HUD, withdrawn or funding reduced S+C fund request is easy to tailor to available funds S+C projects may be a back up plan by adding project requests just below the funding line estimated by the COC.

6. Grant Funding Basis • Fair Market Rent (FMRS)* x number of units by bedroom size x 60 months= grant funds • 12 month for renewal projects • 120 months if project based with rehabilitation • HUD funds up to 100% of initial FMR rent for five years or one year for renewals (higher if exception rents documented by Housing Authority with application)

7. Uses of Shelter Plus Care Funds • Payment to the property owner (the difference between tenant required rent payment and the reasonable rent) • Occasionally, tenant is also paid when the utility allowance exceeds the tenant required rent amount • Utilities include heat, electricity, water, sewer and garbage collection only • Other uses of Grant funds after payment of rent • Damage deposits • Vacancy payments of up to 90 days • Limited Damage payments • Up to 8% of funds drawn maybe for Administrative fee • see manual and regulations for limitations on use of funds and documentation procedure

8. Program Goals To assist homeless disabled individuals and their families Refer for Section 1 of the Resource Manual: Increase housing stability by obtaining permanent housing; Increase skills and/or income; Obtain greater self-sufficiency.

9. Project Performance Goals Annual Progress Report 2008 • Participants who stayed six or more months in permanent housing • National average is 73.5% • Participants who had employment income when they exit • National average 19% exit with employment income • Overall increase percentage of participants whose income by exit from your program has increased through government benefits and employment

10. Exiting Homeless Participants with Mainstream Resources in 2006 All Grants

11. Shelter + Care Resource Manual-Sections 1 Overview Goals, roles, MOU and components 2 Activities Eligible participants and use of funds 3 Leasing HQS, rent calculation, Occupancy agreement 4 Match calculating support services 5 Financial Management LOCCS 6 Record-keeping and Reporting requirements/ Annual Progress Report APR 7 Grant Renewal and extension 8 S+C Grant requirements administration and other applicable, Uniform Relocation Act, Environmental Regulations, OMB, lead paint , etc. (Printed copy in packets deleted out dated references)

12. Who Is Served Under S+C?Refer to Section 2.2 of manual • Severely Disabled Adults who are homelessand their household members who lack the resources to obtain housing • Low income households • (80% of area median income adjusted for household size and usually not an issue) • See model disability certification form in your packet • (does not address chronic homeless in the manual)

13. Disability or Diagnosis Includes • Chemically Disabled • CD may be the only diagnosis for S+C • Severely or Chronically Mentally Ill • Developmentally Disabled • HIV Positive • Physical Disability • Traumatic Brain Injury • Dual or Multiple Diagnosed

14. Since 2005 • With FY2005 grants (New & Renewal grants), new participants must come from places not fit for human habitation (streets, squats, camps, cars, etc.) or emergency shelters • (must trace new participants back to shelters or the streets for units not set aside for the chronic homeless) • S+C still used for new permanent projects out of pro rata share for families and singles who are not considered chronic homeless.

15. Eligible Participant for any S+C Housing and all post 2005 Renewals & Permanent Housing One adult participant in each household must be disabled • Comes from the street • places unfit for human habitation, cars, campgrounds, shacks, etc. • Comes from shelters • Youth, general population, victims of domestic abuse, family shelters, singles • generally 30 days or less for maximum stays • Coming from Transitional housing for the homeless and ……. • Documented from the streets or a shelter originally • Coming from a jail or treatment facilities with a stay of less than 30 days and ………………. • Documented originally from the streets or a shelter originally

16. Eligible Participants for Units for the Chronic Homeless(see your grant agreement or approved application) • Coming from the streets • places unfit for human habitation, cars, campgrounds, shacks, condemned buildings, etc. • Coming from shelters • Youth, general population, victims of domestic abuse, singles • generally short term stays • Coming from a stay in jail or treatment facilities for less than 30 days and Documented asoriginallycoming from the streets or a shelter Participant must have a disabling condition and for 12 months or 4 episodes in the last 3 years of being homeless and be unaccompanied at the time of service

17. Two Guides for Documenting Eligibility • Defining Chronic Homeless-a Technical Guide. For HUD Programs (In your packet and on the web) • Note you may enroll an individual in S+C and place him in treatment up to 90 days with a unit at the end of his stay. • Model Guide for Permanent Housing Projects (in your packet)

18. Who You Cannotserve • Persons evicted from their homes • Persons who lost their housing while in treatment or institutionalized • Persons in longer term treatment centers more than 30 days unless enrolled in S+C first • Persons from programs that require discharge planning • Persons who came from transitional housing, but did not come from the streets or a shelter before entering transitional housing.

19. Who Is Not Homeless under any year • Paying more than 30% of income • Living in overcrowded conditions • In substandard housing • Living with roommates or relatives • S+C to keep people in their existing home • In a program or institution in which a discharge plan that must address housing • See more restrictive rules for post 2005

20. Who Is Not Homeless under any year continued • Leaving directly from prison • some exceptions if short term stay, discharge plan not required and was homeless prior to incarceration • Wards of the state or those in foster care • Individuals in the State Mental Health System institutions that include discharge plans • Any licensed housing institution under Minnesota 16(a) Section 245 that requires an appropriate discharge plan

21. Outreach • Methods and sources for finding new clients or participants • S+C Regulations 24 CFR 582.325 Outreach Activities • Regulation requires grant recipients and their partners to focus outreach on those who areliving on the streets or other places not meant for human habitation or those in emergency shelters • These are the homeless persons that outreach efforts need to bring in as new participants to S+C

22. Shelter Plus Care- Section 1.2 of Resource Manual • Rental Assistance • Tenant based • Sponsor based • Project based • 5 year contract • 10 year contract if Rehabilitation • SRO/project based

23. Tenant and Sponsor Based Units may move around with either the tenant or the sponsor Sponsor owns or leases units in Sponsor based Tenant leases units in tenant based Contract authority is for 5 years for new and one year for renewal Grantee/Sponsor may limit service area Two most popular programs

24. Project Based and SROwith or without rehabilitation • Assistance tied to a building owned by a for-profit or nonprofit entity • 3 grants in Minnesota • Rental assistance for 10 years • $3000 or more for rehabilitation done per unit • Allows 12 mo. rehabilitation period • Good alternative to the Section 8 Single Room Occupancy or Project Based programs • Allows for full rent by size of unit • Application process is streamlined • Needs only 5 year funds

25. Keep on Target! Know the number of units contracted Know the size of units by number of SRO, efficiency, 1br., 2 br., 3 br., 4 br., etc. Know the population served Know whereabouts of participants Know and keep current assessment of client’s and their household’s needs Know services provided to clients Know grant term and end dates

26. Staying on Target Know reporting dates Know S+C Resource Material Know current occupancy Know activities and responsibilities of grantee, sponsor, and HUD Know what the grant application, MOU and grant agreement says Know when to renew grant

27. How to Keep Track of the Funds! • Develop spread sheets with funds budgeted by month or quarter • Budget for administration (admin. is only if excess funds available) and rental assistance by month • Calculate demand for funds for five years (Renewals one year) • be conservative at first! • Keep funds for future rent increases • You may add units or increase size of units provided there are fund for the number of units in your application for the balance of the grant term

28. Spend Funds in a Timely Manner! • Keep project full for the contract term • 5 year grant funds draw at the rate of 1% to 2% per month or 4% to 6 % per quarter* • 1 year grant, draw about 8-9% of funds per month * *Please note any draw made must be backed by actual expenses incurred • Monthly draws saves your agency interest costs lost in fronting rent to property owners & helps with forecasts • FY 2008 grant agreements require quarterly draws • Lack of progress may result in lost of funds at the close of the grant and monitoring issues

29. DATA Privacy, HIPAA and HUD’s Access to Files • Grantee, Sponsor and Participants must allow HUD access to all case files related to housing, assessment of services needed and matching support services. See HIPAA legislation that allows government access as part of an audit or investigation. • Refer to grant agreement with HUD • Suggest sponsors and participants be aware of this requirement through the participation agreements , leases and Memorandum of Understanding • Funds have been suspended when access has been denied to HUD Officials!!!!

30. Issues for Project with Layered funding • Other funders may have conflicting requirements? • Chronic Homeless narrower than Long-term homeless term • HUD requires a disabling condition • HUD limits to unaccompanied adults • HUD requires last residence to be the streets or a shelter • HUD definition of eligibility for Permanent Housing may appear to conflict with other agencies • Other S+C projects are expected to be kept full even if new candidates are not long-term homeless household • Grantee must work it out to HUD’s satisfaction and may need aggressive outreach plan to find candidates that meet requirements of all funders

31. Document, Document & Document • Homeless status and housing inspection • On going assessment of clients • Support services provided • Client income with third party verification and rent calculation • Rent to owner (Reasonable Costs) • Damages and Deposits • Administration Costs • Disabilities with qualified diagnosis • SSDI or licensed individual • Due process and follow up • Basis for fund draws from LOCCS

32. Memorandum of Understanding Who recruits & approves participants? Who finds housing units? Who documents match? Who does HQS inspections? Who does the Annual Progress Report and HMIS? Who reviews disabilities or gets a diagnosis? Who works & talks with property owner and when? How to change the MOU? Who determines rent is reasonable? How is due process carried out? What’s the appeals process? Who & how often are participant assessments made? Who provides what support services? Who gets how much and what administration costs? What are the lines of communication? M O U

33. Compliance, Compliance & Compliance • McKinney Vento Act • NOFA funding requirements for year funded • Note any special requirements for bonus funding if applicable • 24 CFR 582 Shelter Plus Care Regulations • Approved grant agreement • HUD approved grant application and latest HUD approved changes

34. Remedy for Default • Work with HUD to Correct problem! • Change policy or actions of grantee or sponsor! • Other outcomes occasionally • Reimburse grant if costs were ineligible • Change sponsor or grantee • Other outcomes for illegal or extreme situations

35. S+C is Not Section 8 !!!!!!!!!! S+C is funded under separate legislation from Sect. 8 • No criminal background restrictions required • Check with your attorney about aliens who are illegally in the country or undocumented • No credit check or rental history required beyond homeless status/disability status • Chemical addiction can be the only disability • No set HAP payment for all clients-each case varies • No minimum rent paid by participants Know the difference between S+C, Section 8 and other rental assistance programs!!!!!!!!!

36. S+C is Not Section 8 !!!!!!!!!!! • Tenant cannot pay more than 30% of adjusted income • Different process for documenting program administration • Costs must be earned • Reasonable rent only standard for renting a unit- be aware of your budget • No portability beyond service area as defined by the sponsor and grantee • In order for case managers to make home visits, etc. • Different requirements for household survivors • No penalty in rent for those sanctioned under MFIP (TANF) • You may only terminate clients from the program for significant problems.

37. Some Issues on Precedents • Section 8 and other administrative policies by the housing authority may be good to address in some situation • However, do not always defer to Section 8 policies when in doubt. Think of the S+C clients and their unique or special needs! • Look to your partners to resolve problems such as annual certification appointments, need to move, special circumstances not addressed in the regulations or resource manual. • Remember you are serving a population that needs reasonable accommodation and a frail population with special needs! When you have a question or a doubt-- call or email your HUD representative to work out a policy appropriate for the S+C participants

38. Certifications • Equal Opportunity & Civil Rights • In hiring and client participation's • Drug Free Workplace • Uniform Act and Relocation • Lead based paint measures • Environmental Review and Compliance and assumes the role of inspecting for compliance • Anti-lobbying-no Federal funds used

39. Certifications Continued • Maintenance of effort • -not replacing local and state government funds • Provide services specified in application • Non-profit board members are not paid • No participant or its board members or contractors are debarred • Applicant/grantee is qualified to participate as a unit of local government

40. Cycle of Grant • Local ranking and fund announcement by HUD • Compliance with special conditions if any • Grant begins when agreement is executed • Start of operations • Renewal projects start where last grant ends • First Annual Progress Report (APR) to HUD 15 months after start date (27th, 39th etc) • see latest APR version • HMIS answers questions 2-15 • HUD determines risk annually and may visit and monitor grantee • Grantee renews project in fourth operating year

41. Minnesota Grantees • Bemidji HRA • Carver County HRA • Clay County HRA • Crookston HRA • Dakota County CDA • Duluth HRA • Hennepin County HRA • Itasca County HRA • Mankato HRA • Metro Council HRA • Minneapolis PHA • Olmsted County HRA • Rice County HRA • St. Cloud HRA • St. Louis Park HRA • St. Paul PHA • HRA of St. Paul • Virginia HRA • Washington County HRA • Willmar HRA • Blue Earth County* • Grant County* (serving 4 counties) • Hennepin County* • Olmsted County* • Ramsey County * • Scott County * • Minnesota Housing(State agency) (all grants transferred) • * Grantee is the county government -usually Human services

42. Minnesota Granteeswith some dedicated units for the Chronic Homeless • Bemidji HRA • Clay County HRA • Crookston HRA • Duluth HRA • Itasca County HRA • Olmsted County HRA • St. Cloud HRA • Hennepin County HRA • St. Louis Park HRA • St. Paul PHA & HRA • Virginia HRA • Blue Earth County* • Grant County* • Hennepin County* • Ramsey County* *Grantee is the county government -usually Human services

43. Minnesota Experience-- Sponsors Hennepin, Anoka, Grant, Scott, Carver and Ramsey Counties’- Human Services Departments, Range Mental Health, Human Development Center, Northfield Community Action Center, Zumbro Valley Mental Health, Perspectives, Lutheran Social Services, Human Services Inc., Landland Mental Health, Hearth Connection, Central Minnesota Health Center, Catholic Charities, Community Involvement Programs, Southwestern Adult Mental Health Consortium, and Others

44. S+C Renewal Process as of 2009 • Apply for a renewal in the year prior to depletion of funds • All FY2002 and FY2003 • Many FY2004 new projects through ESNAPS • Include Renewal request in the ranking by COC • Renewal funding not part of COC’s pro rata or need share • Renewal is for one year only • First renewal based on number of households under lease at renewal time not the number in the contract • ( more or fewer from original number of approved units) • Second and further renewals • may adjust bedroom size but not increase units • New Participants coming into a renewal grant must conform to the current definition of homeless.

45. S+C Renewal Process as of 2008 and Term Extensions • Any unused funds must be returned to HUD • May extend initial 5 year term of FY 2004 grant to avoid the renewal process • Remaining funds for must go to at least January 31, 2011, but not beyond September 30, 2011. • No funds added to grant

46. Final Funding End Datesfor 5 Year Grants FY 2003 funded new projects cannot go beyond Sept. 30, 2010 latest renewal year 2009 FY 2004 - Sept. 30, 2011 latest renewal year 2010 FY 2005 –Sept. 30, 2012 latest renewal year 2011 FY 2006 – Sept.30, 2013 latest renewal year 2012 FY 2007– Sept. 30, 2014 latest renewal year 2013 FY 2008– Sept. 30, 2015 latest renewal year 2014 Hearth Act likely to come into effect in 2011.

47. Some More Issues Use your public money wisely, in a way that makes sense, complies with the requirement of the program, your approved application, grant agreement and the intent of Congress When in doubt could you explain your actions to HUD or the 6:00 pm news????!!!

48. Practices To Avoid • Do not make clients homeless in order to serve them • Instead serve people already homeless in shelters or on the streets as required by the regulations !!!! • Do not serve agency staff’s friends and relatives (if needed, discuss with HUD first and seek waiver) • Do not serve people in housing they already occupy • Avoid recruiting clients from facilities in which a discharge plan needs to be in place • Do not use units owned by participant's relatives

49. Be Above Board! Problems with case managers misrepresenting clients with pre-arranged placement of clients in homeless programs for one night! Can you really house a homeless person from identifying a potential client, approving and moving in in one day? Reach out to those who truly are without current housing resources!

50. “Enhancing Shelter Plus Care Operations” • Introduction • Getting Your Project Off the Ground • Property Acquisition and Financing • Participant Outreach and Retention Strategies Calculating support services • Tracking Supportive Services Delivery & Outcomes • Grant Administration • Moving Beyond S+C • Conclusion