housing homeless populations with local government funds
TRANSCRIPT
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 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
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
Costs of HomelessnessService Cost per Unit Total CostSouth Wilmington St. Shelter -
24 nights
$23 per night $552
1 Emergency Medical Services (EMS) Transport
$425, plus $5.75 mile $440
1 Emergency Department visit
to a local hospital
$893 $893
1 Raleigh Police Department
transport
$61-$368 $250
1 Wake County Human Services Crisis Assessment
$176 $176
1 stay at Dorothea Dix Hospital – 6 nights (average length of stay)
$594 per night $3,564
Total Approximate Monthly Costs
$5,875
Source: “Ending Homelessness: The Ten Year Action Plan”
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
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
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
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
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
Affordable Housing since Lennox Chase
Epiphany House: 4 units
Hopecrest: 10 units
Affordable Housing since Lennox Chase
Carlton Street: 10 units
Franklin Woods: 14 families
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
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
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
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
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
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
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
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
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
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.
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
Social Worker Perspective-Why has Lennox Chase been
SuccessfulSecond Chance Program
Considers applicants for tenancy that have barriers to conventional housing.
Standard property manager approval processIf 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.
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
Social Worker Perspective-Why has Lennox Chase been
SuccessfulCommitment 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
Social Worker Perspective-Why has Lennox Chase been
SuccessfulTenant 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
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
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
Questions/More Information
Annemarie Maiorano, Director, Housing and Community Revitalization, Wake [email protected], (919) 856-5268
Gregg Warren, President, [email protected], (919) 832-4345, ext 3005
www.dhic.org Ed Stelli, Supportive Housing Team
[email protected], (919) 754-8893