Housing Homeless Populations With Local Government Funds.

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