Webinar
Innovative Approaches to
Supportive Housing
Development in
Massachusetts
October 30, 2014
PRESENTERS
Aaron Gornstein
Undersecretary for Housing and Community Development
Department of Housing and Community Development (DHCD)
Roger Herzog
Executive Director
Community Economic Development Assistance Corporation (CEDAC)
Madeline Nash
Senior Program Officer for Lending
Greater Boston Local Initiatives Support Corporation (LISC)
Tom Plihcik
Executive Director
New Lease for Homeless Families
Sara Barcan (Moderator)
Housing Development Program Manager
Community Economic Development Assistance Corporation (CEDAC)
SARA BARCAN
Sara Barcan is the Housing Development Program Manager for the
Community Economic Development Assistance Corporation (CEDAC), a
position she has held since August 2011. In that capacity, she oversees
CEDAC’s predevelopment and acquisition lending programs, which
provide non-profit affordable housing developers across the
Commonwealth with the necessary capital to advance their projects
from the earliest stages through construction closing. Sara also
manages CEDAC’s supportive housing programs, which provide soft
debt to housing developers through the Housing Innovations Fund,
Facilities Consolidation Fund, Community Based Housing and Housing
Preservation and Stabilization Trust Fund programs. Sara brings 25
years in the affordable housing industry to her position, and has
developed both affordable housing and commercial real estate in a
non-profit setting. Sara has also expanded training opportunities for
community development professionals in Massachusetts both at CEDAC
and as a member of the Steering Committee of the Mel King Institute
for Community Building. Sara holds a bachelor’s degree in American
History and Literature from Harvard University, and a Master in City
Planning from MIT’s Department of Urban Studies and Planning.
AARON GORNSTEIN
Governor Patrick appointed Aaron Gornstein to serve as the
Undersecretary for Housing and Community Development in December
2011, and he started his new position on January 31, 2012. Mr.
Gornstein oversees the Department of Housing and Community
Development, which administers nearly $1 billion in state and federal
funds for a variety of programs for affordable housing production,
community development, municipal assistance, local and regional
planning, energy conservation, rental assistance, public housing, and
others. He also serves as the chief housing policy advisor to the
Secretary of Housing and Economic Development and to the Governor,
and serves as Chairman of the Community Economic Development
Assistance Corporation, which provides technical and financial
assistance to non-profit developers of affordable housing.
Prior to his appointment, Aaron served as the Executive Director of
Citizens’ Housing and Planning Association (CHAPA) for 22 years.
CHAPA is a private, non-profit research and advocacy organization
working on affordable housing and community development issues in
Massachusetts.
Aaron received his undergraduate degree from the University of
Wisconsin--Madison and his graduate degree from Tufts University’s
Department of Urban and Environmental Policy.
He has received more than 25 local and national awards and
fellowships for his work in advancing affordable housing and
community development initiatives and has served on numerous local
and national advisory boards and commissions.
DHCD RESOURCES
o State Operating Budget: $380 million, includes
prevention, rental assistance, public housing,
emergency services, and housing services
o State Capital Budget: $190 million, includes key
programs for permanent supportive housing. Most
assistance structured as deferred payment loans.
o Other Key Funding: State and federal low income
housing tax credits; HOME; and Section 8
o Four quasi-public state housing agencies providing
pre-development, construction financing, permanent
financing, homeownership, and other resources
o Sophisticated non-profit and for-profit development
sector and provider agencies
RECENT INITIATIVES TO MEET THE NEEDS OF
EXTREMELY LOW INCOME HOUSEHOLDS
Have taken a comprehensive approach that includes prevention,
diversion, rapid-rehousing, permanent supportive housing, and
self-sufficiency initiatives.
o Expansion of homelessness prevention programs (RAFT) from
$240,000 to $11 million. Helped 6,000 families over past two
years.
o Doubling of state rental assistance (MRVP) from $35 million
to $70 million. Issued or in process of issuing 3,000 mobile
vouchers and 1,000 project-based vouchers over past two
years.
o Expansion of short-term rental assistance and rapidrehousing funds (HomeBASE). Assisted approx. 15,000
households over past three years with placement and
housing stabilization services.
o New workforce development program (Secure Jobs) for job
training and placement. Placed approx. 600 families over
past 18 months ($2.5 million)
RECENT INITIATIVES TO MEET THE NEEDS OF
EXTREMELY LOW INCOME HOUSEHOLDS
o Creation of Housing Preservation and Stabilization Trust
Fund (HPSTF). Capital investments of $20 million plus
depository for savings from emergency assistance accounts
o New Lease Program for Homeless Families with private
sector
o Modified Qualified Allocation Plan (QAP) to focus on
extremely low income households
o Community Investment Tax Credit for certified CDCs to
increase non-profit capacity
o Interagency Council on Housing and Homelessness
o Section 811 Program utilizing project-based vouchers for
supportive housing for people with disabilities
o Preservation of existing public and subsidized housing
ROGER HERZOG
Roger Herzog brings over 25 years of experience in Massachusetts in
the housing and community development field, including work in both
the public and non-profit sectors. Roger currently serves as the
Executive Director for the Community Economic Development
Assistance Corporation (CEDAC), where he works with community
development corporations (CDCs) and other non-profit organizations
on affordable and supportive housing development and preservation.
Roger also serves as the chair of the Interagency Supportive Housing
Working Group, a Massachusetts initiative to create 1,000 units of
permanent supportive housing and improve interagency collaboration.
Prior to coming to CEDAC in 1999, Roger worked on affordable housing
programs for the City of Cambridge Community Development
Department as the City’s Housing Director. While in Cambridge, Roger
led the City’s efforts to respond to major changes in the local housing
market following the end of the City’s 25-year old rent control system in
1995. Prior to joining the City, Roger served as the Community
Development Director of Inquilinos Boricuas en Accion, Inc., a large
Boston-based CDC. Roger earned his B.A. from Brandeis University and
Master of City Planning degree from the Massachusetts Institute of
Technology. His Master’s thesis addressed strategies for rehousing
homeless families.
INTERAGENCY SUPPORTIVE HOUSING INITIATIVE
o Supportive Housing Law, “An Act Relative to Community
Housing and Services”, signed in March 2012 required 18
state human services and housing agencies to execute a
MOU.
o MOU executed December 31, 2012 provides for
interagency collaboration to develop supportive housing:
 Permanent supportive housing where services are
voluntary: acceptance of services is not a requirement
of housing
 Other supportive housing models including transitional
housing
o Key constituencies: homeless individuals and families,
elders, people with disabilities, veterans, unaccompanied
youth
o Goal to create up to 1,000 new permanent supportive
housing units by December 31, 2015
o MOU established Interagency Supportive Housing Working
Group and Steering Committee to implement initiative
PROGRESS TOWARD 1000-UNIT GOAL
o “Facilitate the creation of a Demonstration Program that
creates up to 1,000 units of Permanent Supportive
Housing that includes coordination of operating and/or
capital subsidies and voluntary Core Community-Based
Supportive Housing Services by December 31, 2015”
o Since January 1, 2013, almost 1,200 units of permanent
supportive housing have been awarded funds by DHCD
o Funding process: annual rental housing funding
competition, allocations of federal and state housing tax
credits, multiple sources of soft debt, and project-based
rental assistance
o Priority category for supportive housing production for
homeless and other vulnerable populations
o New funding source and process: Housing Preservation
and Stabilization Trust Fund; consolidated funding round
with allocations of capital, rental assistance, and
supportive services funds
INTERAGENCY SUPPORTIVE HOUSING WORKING GROUP
o Met monthly since January 2013
o Representatives from state human services agencies, housing
agencies, Corrections, and Administration and Finance
o Conducted, for each of the constituent populations:
 A preliminary assessment of needs for permanent
supportive housing and other supportive housing
 an inventory of available resources
o Developed a list of current programs representing good practices
utilized in Massachusetts to provide supportive housing for
different populations
o Will develop a long-range action plan to meet the need for
supportive housing among the Commonwealth’s residents
through
 coordination of procurement of capital & operating subsidies
& supportive services
 establishment of benchmarks to assess financial savings
resulting from the avoidance of institutionalization, shelter,
or nursing care
FOCUS FOR 2015
Coordinating Housing and Services Funds
Stabilization Services Model
Case Manager Training
Increasing Resources for PSH Expansion
Measuring PSH Outcomes
MADELINE NASH
Madeline Nash has worked in the field of community development for
over twenty years. She recently joined the Local Initiatives Support
Corporation in Boston as a Senior Program Officer for Community
Development and Real Estate Lending where she provides financial and
technical assistance to community development corporations.
Previously, she served for eight years as the Director of Real Estate
Development for the Coalition for a Better Acre Community
Development Corporation in Lowell, MA; and for seven years as the
Director of Real Estate for the Salem Harbor CDC in Salem, MA. At CBA,
she oversaw the development of seven affordable housing initiatives
totaling 390 units, and served as the asset manager for the
organization’s portfolio of properties. Combined, these efforts
contributed to the stabilization of one of Lowell’s most distressed
neighborhoods and helped CBA to be recognized as a highly capable
developer and property manager. Madeline has a Masters Degree in
Regional Planning from UMass Amherst and a Bachelors Degree in
Political Science from Clark University. In 2012, Madeline received a
certificate from the Harvard Executive Education Achieving Excellence
Program. Madeline is active in her community where she has served for
many years on the local Planning Board, Community Preservation
Committee, and Affordable Housing Trust.
The Coalition for a Better Acre
Lowell, Massachusetts
• Community Development Corporation
founded in 1982.
• Property portfolio of 425 rental housing
units and 33 commercial units; plus 51
rental units under construction.
TWO APPROACHES TO
SERVICE ENRICHED HOUSING
Properties with 25% of units for
homeless families with limited
supportive services;
•
• Properties with 100% of the units
for homeless veterans in
partnership with a service provider.
Moody Street Before Demolition
23 New Construction Units – 8 Units
Service Enriched for Homeless Families
Gorham Street - 24 new construction units with
8 service enriched units for homeless families
EIGHTEEN STUDIO APARTMENTS
FOR SINGLE VETERANS
SIX ONE BEDROOM
APARTMENTS FOR VETERANS
THREE BEDROOM APARTMENTS
FOR VETERANS AND THEIR FAMILIES
KEY COMPONENTS TO THE PROMOTION
OF SERVICE ENRICHED HOUSING
 State development funds provide incentives to developers;
 State gives priority to projects with service enriched housing
for extremely low income households;
 State provides project based rent subsidies;
 Under the HPSTF Program, State provides funds for
supportive services over time;
 Property management companies with the capacity to
provide supportive services;
 Developers partner with service providers with strong track
records;
 Sites are centrally located with access to services and public
transportation.
THOMAS PLIHCIK
Tom Plihcik is the Executive Director of New Lease for Homeless
Families, a Massachusetts non-profit organization comprised of
affordable housing owners and shelters that place homeless families
into permanent housing. Before launching New Lease, Tom served for
almost 10 years as the Director of the Massachusetts Legislature’s Joint
Committee on Housing where he worked on the State’s Expiring Use
law, Chapter 40T, Smart Growth law Chapter 40R, foreclosure
protection act and several affordable housing bond and tax credit
authorizations. Prior to the State House, Tom also worked in affordable
housing at Abt Associates, The Community Builders and the City of
Greensboro, NC.
New Lease for Homeless Families
Mission:
To reduce the number of homeless families in Massachusetts by
implementing a homeless preference in affordable housing rental communities;
building effective relationships between properties, providers and clients; and
standardizing supportive services to empower families to maintain healthy
tenancies.
CREATION OF NEW LEASE
• Homelessness Crisis, 2012 Affordable Housing
Owners came together, in partnership with the Dept. of Housing
and Community Development (DHCD) to address the homeless
family crisis in Massachusetts.
• Alarming Numbers As of October, 2014 there are
about 4,600 families in the shelter/motel system which costs
Massachusetts over $175 million a year.
• Action from the Owner Community The
depth of the problem spurred Affordable Housing Owners to
take action by starting a non-profit, New Lease, to administer a
homeless preference for affordable rental units in HUD
Multifamily developments.
THE NEW LEASE HOMELESS PREFERENCE:
HOW IS IT STRUCTURED?
With the help and flexibility of HUD, New Lease created a homeless preference
that fit the needs of our community.
 Homeless Definition: New Lease’s homeless definition includes homeless
families in certain state-funded family shelters in Massachusetts, in order to
target the resource to where the crisis is.
 Referral System: Referrals are taken from 3-4 generalist family shelter
providers in each region.
• The pilot can learn best practices with a small cohort of stakeholders before expanding.
 Alternating Selection: Participating Owners have the option to balance their
waitlists by alternating the admission of New Lease preferenced applicants
with general waiting list applicants.
 Streamlined Approval Process of the Homeless Preference with HUD: New
Lease submits required documents to HUD on behalf of its owners to swiftly
implement the homeless preference on each development.
NEW LEASE MODEL
 Participating Affordable Housing Owners are dedicating 10-15%
of vacant units (family, Project Based S8) to homeless families.
• New Lease is working on recruitment strategies to include PBV’s, MRVP’s, LIHTC, etc.
in our portfolio.
• Recently New Lease was awarded 30 MRVP’s to project-base in participating
developments.
 Goal: House 400 families over the two-year pilot.
 The Homeless Preference targets families in the regions of the
state with the highest demand on shelters/motels.
• Boston, Springfield-Metro, South Shore, North Shore/Merrimack Valley and
Framingham
• 16 Participating Shelter/Motel Providers who act as referral sources to New Lease.
 Predictable, timely Referral Process to Vacant Units:
•
•
•
Ensures faster screening process
Builds tight communication plans between all parties
Technical Assistance is provided by New Lease so applicants are effective at mitigating
housing barriers prior to screening at a development.
RESULTS, THUS FAR…
 Standardized Housing Placement Approach among 14 Providers
•
Participating providers are now checking housing history, criminal backgrounds and
credit reports to prepare mitigating documentation
◦ Speeds up screening times; less of a reactionary approach to Owner background checks.
◦ 4 Business Days: New Lease delivers complete referral packages (all upfront screening
documents) to properties with vacancies in an average of 4 business days
◦ 18 Business Days: The average length of time from when a property manager begins
the screening process, to when an applicant is fully approved.
◦ Mitigation: The mitigation training and process works; to date 96% of families who
have screened for vacant units have been accepted into the developments.
 Standardized and Enhanced Stabilization Services
•
•
Participating providers have agreed to certain frequencies of contacts and visits with
participating families.
New Lease is leveraging its partners to provide enhancements to existing stabilization
supports (ex. Self sufficiency services)
 Creation of Innovative Emergency Fund
•
•
•
Rental/utility arrearages
Self-sufficiency goals (ex. Books for school)
Fee for Service models to engage families in further self-sufficiency
RESULTS THUS FAR, CONTINUED…
 66 New Lease Units since November, 2013
• 66 families have signed or are about to sign leases.
• Thus far all families who have moved into New Lease units have sustained their
tenancies.
◦ One family left voluntarily to relocate with family in a different state.
◦ 5% of families have had minor nonpayment issues that have been resolved through
coordinated services and communication.
 Yesenia, Housed in New Lease’s Springfield Region
• Yesenia, 25 years old, single mother of a two year old daughter.
• State-funded motel stay- 1.5 years; Housed at a New Lease development
11/26/13
• Interviewed, screened and signed lease quickly; 4-6 day turnaround time at New
Lease development in Springfield, MA.
• Yesenia’s feedback on accessing the New Lease unit: “The process was very
smooth, very fast, and less than a week.” “The property manager took care of
me, she was very nice”.
• Yesenia’s update on her transition into housing: “I love it here. Jenia is doing
great. I didn’t think this home was really mine, but when I got my keys and
furniture I knew it was real, that this was my home.”
• What’s next for Yesenia? Now that Yesenia is in a stable home, she plans to start
working on obtaining her GED.
WHAT’S NEXT FOR NEW LEASE?
 Recruitment of Additional Affordable Housing Owners
• NL is in process, we could always use more ideas and leads.
 Additional subsidies
• Recently awarded 30 MRVP subsidies for New Lease families by
DHCD.
• Currently working with HUD’s Office of Public Housing (New England)
to outreach to Housing Authorities re: Project Based Vouchers that our
existing owners have.
 Research and Evaluation
• Currently working with UMASS Boston for the duration of our pilot to
evaluate the pilot.
 Compilation & Distribution of Best Practices
• Expanding Mitigation Practices
• Efforts towards a Universal Pre-Application
Q&A
For additional
information please
contact CEDAC at
617-727-5944