INDIANA HOMELESS PREVENTION AND RAPID RE-HOUSINGContinuum of Care

Contracts and BudgetsAugust 14, 2009

Indiana Housing and Community Development Authority

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IHCDA Community Services Staff Rodney Stockment, Manager

317.233.1814 rstockment@ihcda.in.gov

Lynn Morrow, Department Assistant 317.233.1810 lymorrow@ihcda.in.gov

Lori Dimick, Homeless Program Manager 317.232.7117 ldimick@ihcda.in.gov

Megan Maxwell, HOPWA and IPSHI Representative 317.233.1517 mmaxwell@ihcda.in.gov

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IHCDA Community Services Staff Kelli Barker, ESG and HPRP Program Representative

317.233.4611 kbarker@ihcda.in.gov

Kirk Wheeler, HMIS and HPRP Project Director 317.709.3441 kiwheeler@ihcda.in.gov

Kelly Pickell, HMIS Program Representative 317.709.6447 kpickell@ihcda.in.gov

Suzanne Grenough-Patrick, HMIS Program Representative 317.730.2883 sgrenough@ihcda.in.gov

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Resources IN - HPRP Power Point Posted

http://www.in.gov/ihcda/3120.htm HUD – HPRP Notice and Webcasts – wealth of good information!

www.hudhre.info Virtual helpdesk and searchable FAQs

National Alliance to End Homelessness www.endhomeless.org Best Practices, guides

Corporation for Supportive Housing www.csh.org Information on permanent supportive housing

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Allocations Allocations were distributed via e-mail on

Monday, August 10th. The figures are set unless a region chooses to

give up its allocation. Entitlement city allocations were reduced to allow a minimal allocation to smaller C of C regions.

No money can be drawn down until contracts are approved by the IHCDA Board and executed by both parties.

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AllocationsEach Subrecipient must demonstrate that at

least 65% of IHCDA HPRP funds allocated to Financial Assistance are used for Rapid Rehousing.

HPRP funds cannot be used to substitute for other program or grant funds. They may be used to augment certain types of support, e.g. paying security deposits for recipients of HUD VASH vouchers.

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Contracts

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Contracts HUD and IHCDA distinguish between Sub-

recipient/ Sub grantee contracts and vendor contracts.

A Sub-recipient/ subgrantee for HPRP is a formally designated fiscal entity with which IHCDA has a HUD compliant contract and which meets minimal accounting requirements, including an A-133 audit.

A Vendor is an organization or individual who provides a defined, ongoing portion of the HPRP program to a subgrantee , e.g. case management or housing inspections.

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Sub-recipient ContractsIHCDA will generally award one sub-recipient

contract per Continuum to the designated “Central Access agency.” In a few cases, joint sub-recipient contracts will be awarded to fiscal agents and service providers.

Sub-recipients must be non-profit or governmental organizations with well established accounting systems.

IHCDA will require that each sub-recipient set up a distinct bank account into which IHCDA may directly deposit funds.

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Sub-recipientsSub-recipients are subject to standard HUD

and OMB requirements, including a contractually defined right of access to records for compliance monitoring.

Only the sub-recipient entity in each C of C will directly receive HPRP funds from IHCDA. Other provider entities must deal with the sub-recipient.

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Vendor ContractsA vendor contract is necessary only when

there is a consistent and usually program-wide relationship. If an organization is to provide all the housing inspections for the HPRP, they should probably have a vendor contract.

Contracts are not necessary for client-level services, e.g. individual landlords. IHCDA will furnish sample MOUs that should suffice in most cases.

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Contract Format IHCDA will use a standard Sub-recipient

contract for its direct sub-recipient agencies. IHCDA will offer “templates” for Vendor

Contracts. When rental assistance is provided, HUD

requires standard language in leases subject to rental assistance. IHCDA will furnish a lease addendum which meets HUD requirements.

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Additional Contract ResourcesWe strongly encourage the standard use of lease

addendums and short term rental agreements across the HPRP program, whether funded by IHCDA or an Entitlement city.

Vendor contracts should be on an annual basis with easy extension over the three years of the program.

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MonitoringThe IHCDA monitoring program will review all

contracts and agreements in place for each randomly selected file. For this reason, each Central Access Agency should create separate files for participants served with Entitlement city funds versus IHCDA funds. We do not allow mixing of funds for a given participant.

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MonitoringMonitoring will include both remote file

audits and on site inspections of participant practices.

An audit will review all services and supports provided to a participant and reconcile data from the financial and HMIS systems.

Audit findings may be the basis of Plans of Correction or, in extreme cases, withdrawal of the IHCDA contract.

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Budgeting

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BudgetsEach Sub-recipient is to complete and submit a

Pro Forma Budget to IHCDA by August 31, 2009.

The Budget is to reflect planned allocation of HPRP funds into the eligible categories and must include projected personnel expenses.

The overall proportion of allocation to Financial Assistance versus Housing Relocation & Stabilization Services should mirror the RFQ.

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Budgets Each Sub-recipient must develop and submit a

detailed budget for the HPRP. If a sub recipient also receives funding from an entitlement city, these funds cannot be co-mingled.

The submitted budget should show only IHCDA funded services.

If a sub-recipient chooses to exhaust one source of funding first, the BOS funds must be used before those from an Entitlement city.

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BudgetAlthough each eligible category in the budget

should be addressed, the Sub-recipient will not be limited to the specific line-item budget.

However, budgeted amounts allocated to the broad category of Financial Assistance or Housing Relocation & Stabilization Services will be followed. Significant changes in allocation will require formal negotiation with IHCDA.

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Budgets An overall program budget is to be submitted but

IHCDA will allow an accelerated rate of usage if so requested. For example, a Sub-recipient agency may find it can usefully spend down its allocation in 24 months, rather that 30.

While many areas of the budget will be estimates since they will be based upon actual assistance rendered to participants, budgeting of personnel and overhead,, e.g. check writing or contracted inspections, should be as accurate as possible.

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BudgetsSubmitted budgets should tie out to the

announced C of C allocation from IHCDA.Please note the detail for Case Management

costs on sheet 2 of the budget. Budget spreadsheets were sent out along with this Powerpoint.

Budgets are due back to IHCDA by COB on August 31st. Contact Kirk Wheeler (KiWheeler@ihcda.in.gov or 317 709-3441) with any questions.

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Next Week’s topics: Rent Reasonableness Lease up Landlord Solicitation

Training: September 22 - 24, 2009 at the Indiana Community Action Association, 1845 W. 18th Street, Indianapolis, IN 46202. See the web site for directions: www.incap.org

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