Enterprise Community Partners Founded in 1982 by urban visionary Jim Rouse and his wife Patty. Our mission is to create opportunity for low- and moderate-income people through fit, affordable housing and diverse, thriving communities. Enterprise has invested more than $11 billion to build or preserve 280,000 homes across the United States. Serving very-low income people and environmental sustainability are embedded in our mission and incorporated into all of Enterprise’s activities. We work across the nation but also have 11 markets where we bring all our resources to bear implementing comprehensive solutions to core problems. HOUSINGfirst Leveraging Resources to Fund Your Supportive Housing Program July 17, 2012
Transcript
Enterprise Community Partners
Founded in 1982 by urban visionary Jim Rouse and his wife Patty.
Our mission is to create opportunity for low- and moderate-income people through fit, affordable housing and diverse, thriving communities.
Enterprise has invested more than $11 billion to build or preserve 280,000 homes across the United States.
Serving very-low income people and environmental sustainability are embedded in our mission and incorporated into all of Enterprise’s activities. We work across the nation but also have 11 markets where we bring all our resources to bear implementing comprehensive solutions to core problems.
HOUSINGfirst
Leveraging Resources to Fund Your
Supportive Housing Program
July 17, 2012
Enterprise Community Partners
Founded in 1982 by urban visionary Jim Rouse and his wife Patty.
Our mission is to create opportunity for low- and moderate-income people through fit, affordable housing and diverse, thriving communities.
Enterprise has invested more than $11 billion to build or preserve 280,000 homes across the United States.
Serving very-low income people and environmental sustainability are embedded in our mission and incorporated into all of Enterprise’s activities. We work across the nation but also have 11 markets where we bring all our resources to bear implementing comprehensive solutions to core problems.
HOUSINGfirst
Enterprise in Ohio Enterprise provides finance and policy leadership across Ohio while serving Cuyahoga County with on-the-ground solutions.
Focus • Build and preserve long-term affordable housing
• Stabilize communities hard-hit by poverty and the foreclosure crisis
• Provide permanent solutions to chronic homelessness through Housing First
• Build green, sustainable housing through Enterprise Green Communities
• Help low-income working families build wealth by leveraging the Earned Income Tax Credit
Key Results • 14,000 affordable homes and $318M in investment across Ohio since 1987
• 471 supportive housing units for adults with long history of homelessness in the County
• 44,000 tax returns for low-income people in the County resulting in $57 million in refunds
• 3,500 affordable homes meeting Green Communities Criteria
HOUSINGfirst
Housing First Initiative – Start Up
• Started in 2001
• Wanted to find and develop lasting solutions to street
homelessness and long-term shelter use
• Brought together housing and service provider agencies,
public systems and advocates
• Educated ourselves and our community’s leaders on best
practices in permanent supportive housing
• Assessed our need
• Mobilized our community around a bold goal – 1,000 units
• Staffed by Enterprise Community Partners
HOUSINGfirst
Important Start-Up Lessons
• City-County Office of Homeless Services was on board
and motivated – source of Continuum resources
• The Sisters of Charity Foundation of Cleveland played a
leadership role and provided very necessary flexible funds
• Essential to have a strong community engagement
process and obtain persuasive champions
• Originally thought that every CDC could develop a project
– quickly learned that this would not work
HOUSINGfirst
Housing First Key Providers
Lead Providers • Cleveland Housing Network
• EDEN Inc.
• Mental Health Services
Lead providers bring their specific
expertise to supportive housing
Additional Providers • AIDS Task Force of Cleveland
• Connections, Inc.
• Famicos Foundation
• Louis Stokes Cleveland VA Medical Center
Additional providers bring their expertise as well as resources—Ryan White, Dept. of
Health, Housing Subsidies, Medical Care, VA Benefits
HOUSINGfirst
Affordable Housing
Property Management Supportive Services
Housing First Apartment Buildings
South Pointe
Commons
Clark-Metro
$12.2 Million
Northridge
Commons
Cudell
$1.2 Million
Emerald
Commons
Detroit-Shoreway
$8.6 Million
1850 Superior
Downtown
$4.4 Million
The Liberty
at St. Clair
Glenville
$11.3 Million
Emerald
Alliance VII
Lorain Station
$9.5 Million
Greenbridge
Commons
Fairfax
$12.6 Million
Emerald
Alliance VI
Buckeye
$10.5 Million
Edgewood
Park
Slavic Village
$10.5 Million
576 apartments
completed or
underway
Total Investment
= $70 Million
first
Funding for Housing First
Permanent Supportive
Housing Projects
Capital Sources
Equity
City
State
FHLB
Other
• Single-site projects contain 50 –
70 apartments, depending on
the site (new construction) or
size of building (rehab of an
existing structure).
• Total development cost averages
around $10 million.
• Total cost per household of
operations and services =
$14,300
• Daily cost of Housing First = $39
Operating and Services Sources
Continuum of Care
Medicaid
ADAMHS
SAMHSA
HUD Vouchers
Ohio Housing Trust Fund
Rent
Other
HOUSINGfirst
Keys to Assembling Capital Resources
• Understand What You Need – How many people require PSH?
– How many units + turnover can meet this need?
• Understand What Fits in Your Community – Housing Market
– Size & Design
– Feasibility—must be able to achieve stable operations
– Community & Political Support
• Determine Your Competitiveness – Alignment with Broader Strategies
– Funding Priorities
• Work with the Right Partners – Experience, Track Record
– Capacity
HOUSINGfirst
Essential Funding Partners
• State Housing Finance Agency (HFA) – Low Income Housing Tax Credits – 9% and 4%
– Tax Exempt Financing
– HOME Funds and other Gap Financing
• Federal Home Loan Bank – Affordable Housing Program (Gap Financing)
• Banks – Construction Financing
• Syndicators/Investors – Equity (from sale of Tax Credits)
• Local & State Government – HOME and CDBG funds
– Department of Mental Health Capital funds
– Ohio Housing Trust Fund
HOUSINGfirst
Case Study – Greenbridge Commons
70 apartments
Certified Green Communities
24-hour Front Desk
Outdoor Pavilion and Patio
Computer Lab
Internet-wired Suites
Laundry Facility
Pantry
Community Room w/Kitchen
Community Garden w/Orchard
Art Gallery/Therapy Space
All units for chronic homeless
HOUSINGfirst
Case Study – Greenbridge Commons
Capital Sources
LIHTC Equity $ 9,206,813
City HOME $ 1,200,000
County HOME $ 300,000
FHLB $ 1,000,000
HUD SHP $ 350,000
Deferred Fee $ 504,733
TOTAL $12,562,046
Development Costs
Acquisition $ 522,000
Construction $ 8,463,976
Design $ 347,000
Soft Costs $ 446,000
Finance Costs $ 565,451
Developer Fee $ 1,749,750
Reserves $ 467,869
TOTAL $12,562,046
HOUSINGfirst
Case Study – Greenbridge Commons
Operating Sources
Shelter + Care $ 428,400
ODOD (OHTF) $ 136,320
Tenant Rent $ 75,600
TOTAL $ 640,320
Operating Costs
Personnel $ 315,875
Professional Services $ 10,800
R.E. Taxes $ 8,400
Utilities $ 93,000
Insurance $ 35,000
Security $ 45,000
Maintenance $ 35,712
Office & Admin $ 22,900
Prop Mgmt/Asset Mgmt $ 41,419
Reserves $ 23,750
TOTAL $ 632,856
HOUSINGfirst
Cedars/Fox Hall, NY
Owner/ Sponsor: Lantern Organization
• 95 units of affordable and supportive
housing for low-income and chronically
homeless families
• Historic rehabilitation in the Bronx
• LEED Gold rating
Tenant Profile:
• 67 of the newly constructed units
house low-income families and
individuals of the local community.
• 28 of the units are reserved for
chronically homeless families, or
families at serious risk of
homelessness.
Capital Sources
NYC HDC First Mortgage $ 2,525,000
NYC HDC Second Mortgage $ 5,170,000
NYS Office of Temporary and Disability Asst,
Homeless Housing Assistance Program $ 4,500,000
Borough President Capital Funds $ 750,000
NYS Energy Research Dvlpt Authority $ 423,857
Low Income Housing Tax Credits $12,003,830
Private Funding $ 1,165,644
Developer Equity $ 1,788,000
Total $28,326,332
Operating (Annual) Sources New York New York III,
NYC Dept of Health and Mental Hygiene $108,000
Services (Annual) New York New York III,
NYC Dept of Health and Mental Hygiene $699,879
Prioritizing Permanent Supportive Housing
• Prioritizing PSH helped the Continuum score more
competitively and obtain the permanent housing bonus
• Took City Council members, government reps, and
providers on multiple trips to see quality PSH in
Columbus, Chicago and New York. Wanted to replicate it;
set-aside HOME funds to make it happen.
• Convinced County to set-aside HOME funds since the
costs of homelessness are borne by the County—never
previously used their HOME funds in Cleveland
• Worked with the State HFA—additional points for PSH and
eventually an annual set-aside of LIHTC.
HOUSINGfirst
Growing Production
• Diversification – Project-Based Vouchers
– Scattered Sites/Mixed Populations
• Advocacy & Leadership – Resource Commitments and Prioritization
– Creation of Advocacy/Leadership Entities
• Capacity Building for Providers – Property Management Business Plan
– Training on Evidenced-Based Practices
• Program Infrastructure Development – Policies & Procedures Manual
