MHSA AND HOUSING: Understanding the Relationship – Recognizing the Opportunities MHSA Regional Training II Corporation for Supportive Housing .

MHSA AND HOUSING:

Understanding the Relationship – Recognizing the Opportunities

MHSA Regional Training IICorporation for Supportive Housing

www.csh.org

HOUSING

– PERMANENT: Not time limited, not transitional;

– AFFORDABLE: For people coming out of homelessness; and

– INDEPENDENT: Tenant holds lease with normal rights and responsibilities.

SERVICES

– FLEXIBLE: Designed to be responsive to tenants’ needs;

– VOLUNTARY: Participation is not a condition of tenancy; and

– INDEPENDENT: Focus of services is on maintaining housing stability.

HOUSING AND SERVICES

Who Is Supportive Housing For?

People who are homeless or

at-risk for homelessness

- and -

face persistent obstacles

to maintaining housing,

such as mental health issues,

substance use issues,

other chronic medical issues,

and other challenges.

Supportive Housing Is For People Who:

BUT FOR HOUSING cannot access and make effective use of treatment and supportive services in the community; and

BUT FOR SUPPORTIVE SERVICES cannot access and maintain stable housing in the community.

MHSA OVERVIEW

The First “Four” Fiscal Years:– FY 2004/05 (Already completed!)

• $254,000,000

– FY 2005/06• $683,000,000

– FY 2006/07• $690,000,000

– FY 2007/08• $733,000,000

MHSA Fund Allocation – Year 1

Education/Training = 45%

Capital Facilities/ Technology = 45%

State Imp/Adm = 5%

Local Plan = 5%

Prevention = 0%

CSS = 0%

Ed&Tr

Cap&T

State

Local

Prev.

CSS

MHSA Fund Allocation – Years 2-4

Education/Training = 10%

Capital Facilities/Technology = 10%

State Imp/Adm = 5%

Local Plan = 0%

Prevention = 20%

CSS = 55%– (5% of Prev & CSS for

“innovative programs)

Ed&Tr

Cap&T

State

Local

Prev.

CSS

Capital and Technology

Total estimated funds through year 4 = $325 million

State has yet to determine split between technology and capital facilities

State has yet to determine allocation formulas and procedures

MHSA Fund Allocation – Years 5+

State Imp/Adm = 5%

Prevention = 20%

CSS = 75%– (5% of Prev & CSS for

“innovative programs)

NOTE: Capital Facilities is no longer a “set aside” but counties can choose to devote CSS funds to meet capital needs on an ongoing basis!

State

Prev.

CSS

“One Time” Funding

In the current fiscal year only, every county will have access to “One Time” funds.

These are Community Service and Support funds.

They can be used in a variety of ways. They can be used for capital expenses but

should not be confused with “Capital Facilities and Technology” set aside funds

What Does MHSA Have to Do With Housing?

Lots of agreement among consumers and family members, county mental health directors and other stakeholders Safe, affordable, stable housing is a foundation for

recovery, resiliency, and wellness Reducing homelessness is a major focus of MHSA

implementation and performance measurement Consumers and families need a range of housing

options

Preliminary Findings from the AB2034

Housing Strategies Evaluation

Purpose of Evaluation

Identify the range of housing strategies implemented by the 34 counties that have received AB2034 funding;

Determine if there is any correlation between the housing strategies or range of strategies that a county (or program within a county) employed and successful housing outcomes for AB2034 participants;

Begin to calculate the immediate and projected long-term costs associated with each housing strategy.

Housing is Really Important!

If you give consumers housing, they are MUCH more likely to stay enrolled in the

program.

Major Findings

Consumer Preferences

Most consumers want their own apartment without roommates

Majority of consumers don’t want the structure and rules associated with “clean and sober” housing, but program staff think consumers need a mix of housing models (including “clean and sober” and “low demand” housing)

Nearly all counties report that there is not enough affordable housing available in their community

Major Findings

Housing Outcomes

Programs that enroll “more challenging” consumers (those that have had longer histories of homelessness or more barriers to housing stability) are not getting worse results in terms of housing outcomes, in fact sometimes the results are better

“Housing readiness” is not a good predictor of housing outcomes

Major Findings

Housing Makes a Very Big Difference

There is wide variation among counties/programs in the proportion of ever-enrolled consumers who are now in stable housing. The range is 11% to 62%.

There is a very strong correlation between having a high proportion of ever-enrolled consumers who are in housing and having a very low proportion of consumers who dis-enroll.

Major Findings

Housing Strategies

Some strategies are being used by nearly every county – and offered to virtually every consumer. These include:

Advocacy on behalf of individuals to help them find and get housing

Supportive services to help people keep housing Back-up problem-solving help for landlords

Major Findings

Housing Strategies, cont’d

Other widely implemented housing strategies include:

Assist consumers to apply for housing subsidies Provide short-term subsidies or help with move-in

costs Provide long-term rent subsidies to some consumers

(This strategy may have negative cost implications over the long term, particularly if Section 8 becomes less available.)

Provide temporary or transitional housing to get people off the streets and/or for respite/crisis

Major Findings

Housing Strategies, cont’d

Some strategies are used in about half of the counties/programs:

Actively recruiting landlords, systematically finding available units, making arrangements with landlords to secure the next vacant unit

Master-leasing buildings or apartments within buildings and sub-leasing units to consumers

Use AB2034 funds to secure dedicated or set-aside units for consumers

Major Findings

Housing Strategies, cont’d

Strategies more likely to be implemented in large/urban counties:

Administer Section 8 or Shelter + Care rent subsidies that are available to consumers

Partner with Housing Authority or other public agencies that control rent subsidies

Work with other supportive housing providers

Major Findings

Housing Strategies, cont’d

Strategies more likely to be implemented in smaller/rural counties:

Offering maintenance or cleaning – either ongoing to help tenants keep housing or when tenants move out to keep landlords willing to rent to other consumers

Major Findings

Housing Strategies, cont’d

A small, but growing number, of counties/programs are getting involved in

developing or operating permanent supportive housing.

Major Findings

Overall Focus of Housing Strategies

About a third of counties/programs report that the primary focus of their housing activities is on helping INDIVIDUALS

About two-thirds report that their housing activities focus on BOTH helping INDIVIDUALS and EXPANDING HOUSING OPPORTUNITIES by working to develop housing and/or build partnerships with landlords

Major Findings

What is Most Needed?

More affordable housing Permanent supportive housing Landlords and property managers who are

tolerant and understanding of consumers “Wet/Damp” and “Harm Reduction” housing

models for people with substance use problems Support for both landlords and tenants Wide range of housing options

The Financial Structure of Supportive Housing

Priority Populations for Housing

Adults/older adults with serious mental illness who are homeless or inappropriately housed in restrictive settings

Youth and young adults diagnosed with SED/mental illness who are at risk of homelessness

Families with children/youth diagnosed with SED who are experiencing housing instability or homelessness that interferes with treatment and recovery / resiliency

1. Housing Choice

2. Housing and Services Roles are Distinct

3. Housing Affordability

4. Integration

5. Tenancy Rights / Permanent Housing

6. Services are Recovery-Oriented and Adapted to the Needs of Individuals

What is Supportive Housing?6 Dimensions of Best Practice

Strategies for Creating More Housing Options for Consumers

Development of new buildings Acquisition and renovation of existing buildings Long-term lease agreements with private landlords

for single units or entire apartment buildings (master-leasing)

Identifying private landlords who rent directly to consumers– “Rent Plus” strategies

Three Types of Financing for Supportive Housing Costs

Capital (land or buildings) Operating costs (or rent subsidies) Services

MHSA Capital facilities funds may be used for capital costs and/or for capitalized reserve for operating costs of capital projects

MHSA Community Services and Supports funds may be used for operating costs and/or services (and in years 5+ may be used for capital)

The Three Fundamental Elements of Capital Facilities

Create Housing& other Facilities

Manage the Asset

Support Tenants / Clients

STAYSWORKS

EFFECTIVE

The Three “Flavors” of Money

Capital Operating

Services

Targeting Investments to Change the Equation

Capital Operating

Services

ADDING HEREReduces Costs Here

$$ Here can be a magnet for capital and

operating funds.

ADDING HERE

Can ‘leverage’ debt

Purchasing land or buildings Construction or rehabilitation costs for

buildings or office / meeting spaces Adequate reserves for projects to cover gaps

in operating costs in future years Related “soft” costs for development including

strategies to build community acceptance for projects

Capital Facilities Costs May Include (Proposed)

Decisions about how to use MHSA funds for capital facilities must be guided by the MHSA Vision and Guiding Principles

Investments in capital facilities should help achieve desired outcomes of MHSA– Safe and adequate housing; reduction in

homelessness– Timely access to needed help, including times of

crisis– Reduction in involuntary services and incarceration

Guiding PrinciplesThe Same Goal = Transformation

County’s proposed uses of these funds must be aligned with planning for Community Services and Supports – Meet identified mental health needs in the

community– Focus on unserved and underserved individuals and

reducing ethnic disparities– Support implementation of identified strategies

Guiding PrinciplesThe Same Goal = Transformation

Produce long-term impacts with lasting benefits for clients, such as reduction in hospitalization, incarceration, and the use of involuntary services, and increase in housing stability

Increase the number and variety of community-based facilities supporting integrated service experiences for clients and their families

Support a range of options that promote consumer choice and preferences, independence, and community integration

Capital Facilities Priorities

Invest in options that will be available for the long-term, such as housing that will be affordable and dedicated to consumers for many years

Leverage additional funding from other local, state, and federal sources – and support projects that are financially viable

Capital Facilities Priorities

Other Capital Facilities Priorities

Housing is essential – but not the only need

Consumer / peer operated wellness & recovery support centers

Family Resource Centers Crisis stabilization, residential treatment, and other

alternatives to hospitalization Mental health services co-located with community-

based services including schools, primary care clinics, and supportive housing sites

MHSA Funds Can Leverage Other Sources of Funding for Capital Facilities

Resources available for housing include: MHP Supportive Housing and Special Needs Programs (Prop 46

Housing Bond) administered by Department of Housing and Community Development (HCD)

Special needs loan program from California Housing Finance Agency (CalHFA)

Low Income Housing Tax Credits Federal funding from US Department of Housing and Urban

Development (HUD) including Homeless Assistance Programs coordinated through local “Continuum of Care” and resources administered by public housing authorities (PHAs)

Other resources controlled by City and County governments, which may be coordinated through 10-Year Plans to End Homelessness” or other inter-agency collaborations

State Departments of Mental Health, Housing and Community Development, and California Housing Finance Agency come together to leverage housing and services funds Up to $40 million from Prop 46 Housing Bond funding

redirected to provide loans to housing developers $3.1 million from State’s share of Prop 63 MHSA funds

for rent subsidies

Governor’s Initiative to End Chronic Homelessness

Key Challenges

NIMBY, community acceptance & fair housing Timelines for developing housing or other

facilities Risks related to future costs to sustain new

facilities Partnerships that effectively leverage resources,

skills and experience of different organizations & public agencies

Solutions Will Require Changing Systems

A Few of the Building Blocks

Where to begin …

Collaborative Planning Investment and Leveraging Resources Coordination, Streamlining, and Integration

of Funding Building Provider Capacity

Expect Resistance

The tools of System Change are meant to unsettle old systems while building new ones.

Old systems will resist – they exist because they have survived pressures and onslaughts before.

Services & Housing are not just separate systems, but (many) separate cultures, disciplines, and sets of values.

Who Creates Supportive Housing

A wide variety of entities can create and operate

supportive housing

The deciding factors include the type of SH and

the population to be served, the organization’s

experience and capacity, the competitive

environment, and even the funding sources

Partnerships are also prevalent in SH creation

– Project specific partnerships

– System wide partnerships to build capacity

Who Creates Supportive Housing

Mental Health and other Service Providers

Homeless Service Providers

NFP Affordable Housing Provider

Public Housing Authorities

Private Developers and Private Landlords

SH providers who only create and run SH

Who Creates Supportive Housing

Models for Supportive Housing: Traditional Development

Creates a permanent asset to the community Involves acquisition and construction and the full

compliment of development activities, including finding capital funding.

Can take 2-3 years (or more) to develop Involves establishing on-going funding sources

and providers for operating and services

Models for Supportive Housing: Accessing Existing Housing

Also might be referred to as Scattered Site Housing

Integrates residents into the community Can “retrofit” existing affordable housing and add

services in a single site Once secure rental subsidy secured, can move

very quickly Involves establishing ongoing funding sources

and providers for operating and services

Developing Supportive Housing

Additional CSH Resources: Publications: Not a Solo ActBetween the Lines: Legal Issues in Supportive HousingLaying A New the FoundationFamily Matters

WEB resources: On-line financing summaries (via Resource Library link) MetLife Toolkit to End Long-term Homelessness

Making the Pieces Fit

Organization

Services

Place

Money

Peop

le

Housing Collaborative Training-2006

Who writes your “Housing Element” (google)? Who controls HOME funding? Is there a Redevelopment Authority? Who participates in your Continuum of Care? Who allocates CDBG capital dollars? Is there “affordable” or “workforce” housing in

your community? Find partners through NPH, SCANPH and SDHF

To learn more

about supportive housing

visit our website

www.csh.org