INDIANA HOMELESS PREVENTION AND RAPID RE-HOUSINGContinuum of Care

LeasingAugust 21, 2009

Indiana Housing and Community Development Authority

IN - HPRP

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, Special Needs Representative 317.233-1517 mmaxwell@ihcda.in.gov

IN - HPRP

IHCDA Community Services Staff Kelli Barker, Special Needs 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

IN - HPRP

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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Rental AssistanceAll rental assistance under the HPRP is tenant

based, i.e. requires a lease in the householder’s name.

Rental assistance may be given under existing leases if it is clear that the assistance allows the individual or family to remain in housing they would otherwise lose within the next 7 days.

Although the program recognizes “short term rental assistance” up to 3 months and “medium term rental assistance” from 4 -18 months, funds may not be obligated for longer than 90 days.

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Rental AssistanceRental subsidies must be renewed at least every

3 months. Many Agencies will do monthly “renewals” as required case management contacts before writing a check to the landlord.

In general, rental assistance cannot be provided to a housing unit that is owned or controlled by the subgrantee agency. Exceptions may be possible upon written appeal to the HUD Regional Office.

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Rental Assistance IHCDA requires that its HPRP funds be

allotted for rental assistance based on a calculation of 30% of household eligible income as a tenant portion.

An Excel worksheet to facilitate this calculation is available from IHCDA. Some agencies may have their own HUD Section 8 calculation forms. In any case, the file must contain evidence of a tenant portion calculation.

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Rent ReasonablenessRental assistance must be based on a

determination of “rent reasonableness.’ This requires at least three comparables, as defined as units that are similar in “location, quality, size, type and age” as well as “any amenities, housing services, maintenance and utilities to be provided by the owner.”

IHCDA will provide quick rent reasonableness forms but wants to move to the use of the GoSection 8 software in the fall. Training on the software will be provided.

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Rent ReasonablenessWe suggest pairing the rent reasonableness

determination with the habitability inspection. This assures that units are ‘as advertised” and allows adjustment for amenities, e.g. microwaves or a community pool.

The rent reasonableness determination may include other units owned by the same landlord but must also include at least one other owner/ property manager.

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LeasingRental support requires a lease in the household

name. In general, we expect these to be standard 0ne year leases for commercially available rental units. IHCDA does not require a specific lease format but does require a standard Lease Addendum, which assures that the lease complies with all federal and state requirements.

Lease Addendums will be required to receive HPRP rental assistance for existing leases. Refusal to sign an amendment on the landlord’s part will result in exclusion from the program.

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LeasingRental assistance for a new unit cannot be

provided until (1) the habitability inspection is approved, (2) rent reasonableness is determined and (3) the lease and lease amendment are signed. The participant file must contain evidence of all these steps.

Rental assistance for existing units require only the signing of the lease addendum unless the unit is subject to inspection for lead (on the basis of having children under 6 y/o in residence.)

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LeasingIHCDA will not provide a standard short term

rental assistance contract due to the very short period of rental assistance for many households (e.g. one month.) An example MOU from another jurisdiction will be distributed if an agency wishes to have a written agreement with landlords.

Please be reminded that IHCDA requires that at least 65% of the financial assistance funds be used for rapid rehousing. These will, by definition, all be new leases.

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Lease AddendumThe Addendum does not replace a lease; it is

simply an attachment to the standard lease.Communication with landlords should clearly

state that assurance of rental support is on a month-by-month basis.

Information about the form and format of rental payment, including remittance address, must be returned to the Central Access agency at the time of leasing.

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Lease UpThe lease up process has several steps:Solicitation of willing landlordsDetermination of HPRP eligibility and need for

rental assistance.Issuance of “voucher” to participantFinding of possible eligible unit (participant

and case manager)Unit application and landlord process

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Lease UpHabitability InspectionRent Reasonableness DeterminationTenant portion rental calculationLease signing with lease amendmentMoving and utility assuranceOn going case managementDetermination of continuing need and check

request

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Lease UpEligible Activities:Security depositsUtility depositsMoving costsIneligible Activities:Construction or rehabilitationHome furnishingsChild care (0r pet care)

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Rental Assistance VoucherThe voucher is a document intended to allow a

participant to seek out a suitable rental unit and assure the landlord that some level of rental assistance will be provided.

The voucher is not a guarantee of payment or a contract.

Vouchers are time limited, in the spirit of prevention and/or rapid rehousing. The 10 day limit should also include all necessary habitability inspection and rent reasonableness calculation.

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Landlord SolicitationC of Cs are expected to work with Central Access

agencies to identify rental resources in their region.In general, HPRP supported units should be

comparable to other affordable rental housing – neither the cheapest nor the most expensive.

Property Managers and landlords may be encouraged to list their properties on the GoSection 8 website and/or the Indiana Housing Now site. If they choose to list on the GoSection 8 site, their units will have rent reasonableness calculated.

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Landlord SolicitationPrior to October 1, 2009, each subgrantee

must provide evidence of at least some available rental units in their region. Available means that there has been direct contact with the property manager/ landlord and some assurance of a willingness to house HPRP participants.

By January, 2010, IHCDA will require that each subgrantee demonstrate capacity to house the number of households they project to serve.

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Landlord SolicitationAttractive features of the HPRP – no change in

lease, prompt rental payment by HPRP agency, ability to fill empty units without formal Section 8 approval, limited commitment on a unit-by-unit basis.

Added value – free listing on GoSection 8 and Indiana Housing Now. Ability to pay security deposits and, if necessary, utility assistance.

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Comments and Questions

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