Affordable housing advocates are gearing up to take advantage of a new source of funding, which they hope will be a long-term resource to help them build more housing for people with disabilities and extremely low incomes. But much work needs to be done by the agencies to prepare solid projects to be ready to go when funds become available, policy wonks warned today at a forum hosted by the Citizens Housing and Planning Association.
The federal Low Income Housing Trust Fund was created as part of the 2008 economic reforms; under the law, a small portion of the fees generated by the sale of Fannie Mae and Freddie Mac mortgages is to be put into the trust and distributed to each of the 50 states as a block grant. The creation of the trust fund was temporarily put on hold while Fannie and Freddie were getting back on their feet, but Mel Watt, director of the Federal Housing Finance Agency, authorized the launch of the program last year and the first grants are anticipated to be handed out next summer.
“My major message is, go buy a house with a conventional mortgage this year so you can up the funds available [from Fannie and Freddie] for the trust fund. You’ll be doing a service,” joked Shelia Crowley, president and CEO of the National Low Income Housing Coalition, a longtime advocate for the trust fund.
The vast majority of the funds are to be used to help create and operate rental housing for poor households and those with disabilities. Creating new housing for extremely low income households (those whose incomes are 20 percent or less of local median incomes) is an important priority for the agencies but had often proved a difficult goal to meet, since the gap between average rents in most area and what such households can afford is substantial. The Low Income Housing Trust Fund could be a crucial resource in meeting the goal, Crowley advised, since it is meant to be a permanent source of funds that won’t face the threat of cuts every year in the federal budget process, unlike most HUD programs.
“The process of getting federal funding for low-income housing is fundamentally broken because the appropriations process is broken. The best we’re going to do is prevent further loss,” said Crowley. “If we’re going to make any strides, we’re going to have to think outside the box.”
Crowley warned that having solid projects ready to go in the first year of the program will be crucial to ensuring its long-term success, since many in Congress are already skeptical of it. But, she said, the trust fund grants, especially in the beginning, will likely not be sufficient to fund large-scale projects on their own.
“We need to be thinking about how you all who know how to do housing development can come up with new and creative models to do this … the trust fund [should be] the flexible funds to bring those deals together,” she said.
Based on the coalition’s calculations, Massachusetts would be likely to receive about $13 million per year from the trust fund once the program is fully in gear. However, grants for the first year will almost certainly be less than half that. Final figures will not be available until early next year, since the amount of funding available will depend on the amount of fees generated by Fannie and Freddie in 2015.
States have wide latitude to use different programs to meet that goal. James Yates, senior associate at the Technical Assistance Collaborative, a nonprofit that analyzes housing policy, pointed to pilot programs in Pennsylvania, North Carolina, Maryland and Illinois as potential models for how to fund rental housing for extremely low income households and permanent supportive housing for people with disabilities. North Carolina, for example, established its own long-term capital fund to meet this goal, which was initially capitalized with about ten year’s worth of funding. This created a cushion to enable projects to go forward even if the state reduced that year’s funding, Yates said. Illinois and Maryland have worked in partnership with a private philanthropy, the Weinberg Foundation, to help create long-term capital funds of about $100,000 to $125,000 per unit, enabling the housing agencies to fund the subsidies necessary for the housing for 30 years.
But existing state programs can only provide limited guidance on how to use the trust fund money, Yates warned, since creating more such housing has proven so difficult relatively few attempts have been made. “The [extremely low income] challenge is pretty daunting for states. Vouchers can’t really meet that need,” Yates said. “Using trust dollars, using a variety of sources, to meet that need is something we encourage.”
In Massachusetts, the funds will be administered by the Department of Housing and Community Development (DHCD). Put on the spot by a question from the audience, Associate Director for the DHCD Kate Racer said that the agency had not yet come up with a formal plan for how it wants to allocate any trust funds it receives since the project has been held up so long with red tape.
“We’ve been talking about it a long time but have been waiting for it to get a lot more real,” she said, explaining that DHCD Director Crystal Kournegay will almost certainly invite various affordable housing groups to meet with the agency to offer their ideas for the funds, and the department also plans to consult with other states to see how they’re using the money. Many of DHCD’s existing programs would also be eligible to be supplemented with the funds, also. But Kournegay has made clear that she’s very much in favor of using some of the trust fund money for supportive housing.
Tag: Funding
Patrick Administration Funds 235 New Units Of Supportive Housing
Department of Housing and Community Development Undersecretary Aaron Gornstein today announced more than $15 million in funding to create over 235 new units of supportive housing for veterans, homeless and very low income households across the commonwealth. With these new units, the Patrick Administration has funded a total of 3,065 supportive housing units, tripling the amount of Gov. Deval Patrick’s goal a year earlier.
In December 2012, Patrick announced a goal of creating 1,000 new units of supportive housing across the commonwealth by December 2015. To reach this goal, 18 state agencies participated in a task force dedicated to encouraging collaboration and removing obstacles that hindered development.
Supportive housing helps individuals and families who are homeless or institutionalized, people with disabilities and the elderly. Additionally, the agencies continue to assess the extent of public cost-savings generated as a result of providing permanent supportive housing and will recommend strategic reinvestments. Supportive housing can include services such as childcare, access to job training, mental-health care and other opportunities that give participants a hand up towards stability and success.
Alongside these new supportive housing units, the Patrick Administration also awarded 149 project-based vouchers from the Massachusetts Rental Voucher Program (MRVP). The vouchers are available to owners of existing, affordable rental properties, who provide services or partner with an agency that has experience with successfully stabilizing homeless or very low-income households. Funds for supportive services in the amount of $2,500 per unit will be used to provide a wide array of services, including job search and training, financial literacy and planning, self-sufficiency training and coaching, counseling, parenting, early education and childcare, mental health and addiction treatment, adult education, and GED and skills training.
“The commonwealth of Massachusetts has recognized the importance of creating quality supportive housing for communities in need and has been pro-active in creating an active pipeline for these projects,” Roger Herzog, executive director of the Community Economic Development Assistance Corp., said in a statement. “The awards that have been granted today will make sure that both much-needed housing and services are available to homeless families and individuals, persons with disabilities, veterans, seniors, and youth, among others.”
The following projects were included in the funding round:
Harborlight House, Beverly
Harborlight House in Beverly is a supportive housing project serving frail low-income seniors who need various services in order to live with some degree of independence. The sponsor is an experienced non-profit, Harborlight Community Partners. When rehabilitation is finished, the project will house 30 seniors in a prime Beverly location.
Residences Betances, Boston
Residences Betances is located in the South End of Boston. Sponsored by the non-profit Inquilinos Boricuas En Accion, the project will house extremely low-income individuals with developmental challenges and diagnosed mental illness. The residents of the completed property will receive numerous services tailored to their individual needs. The completed property will feature four studios and seven single rooms.
Howard House, Brockton
Howard House in Brockton is a historic rehabilitation project that will offer 14 units of permanent supportive housing for homeless veterans on the site of the Brockton VA Medical Center. The sponsor is a joint venture including Peabody Properties, Windover Development and Father Bill’s Mainspring. The project will receive extensive support from the federal Veterans Administration, as well as from the state. The homeless veterans who become Howard House residents will be offered numerous services tailored to fit their needs.
O’Connor Sisson, Dartmouth
O’Connor Sisson in Dartmouth is a rehabilitation project intended to serve homeless veterans in need of support services. The sponsor is the Dartmouth Housing Authority. The completed project will offer nine efficiency units for extremely low income veterans, who will receive extensive services such as employment counseling, financial planning and therapeutic counseling. In addition to state subsidies, the project will receive Community Preservation Act funds from the town of Dartmouth.
4 Leighton Street, Fitchburg
4 Leighton St. in Fitchburg is a project that will provide 15 units of supportive housing for extremely low-income individuals, including individuals making the transition from homelessness. The experienced sponsor is the non-profit Twin Cities CDC. The completed project will offer extensive services to the new residents, including services to help residents maintain sobriety.
Harvard Elms, Harvard
Harvard Elms in Harvard is a new construction project intended to serve low and extremely low-income families, some of whom will participate in DHCD’s supportive housing initiative and will receive support services. The sponsor is the experienced nonprofit CHOICE, based in Chelmsford. The project has been permitted locally through Chapter 40B. When completed, Harvard Elms will offer nine affordable units, including supportive housing units for families making the transition from homelessness.
20 Willis Street, New Bedford
20 Willis St. in New Bedford is a project intended to serve homeless veterans. The sponsor is the non-profit Southern Massachusetts Veterans Housing Program. When completed, Willis Street will offer 40 units of single-room supportive housing for homeless veterans, as well as community space, a kitchen and dining room, and service space. Extensive services will be available to the veterans who become Willis Street residents.
St. Mary’s, Boston
St. Mary’s Center for Women and Children is developing a 12-unit transitional housing program for pregnant and parenting young adults. Priority will be given to homeless families who face numerous obstacles to independent living. A full-time support service coordinator will help identify the services most needed by each young family.
Gifford Street, Falmouth
The Falmouth Housing Corp. will add support services for three homeless families to the Gifford Street project with funding from the Massachusetts Rental Voucher Program. Supportive services will be provided by the Falmouth Housing Authority’s existing housing stabilization program. Specific services will include transition counseling, job placement assistance and direct case management.
Columbia Park, Haverhill
Emmaus Inc. will create 16 units of permanent, supportive housing for homeless families currently residing in emergency shelters/motels. Fourteen units will be located at Columbia Park Apartments in Haverhill, a 32-unit complex that Emmaus has owned since 1992. Two units will be sited in a two family house, also in Haverhill. Services will be provided through an expansion of Emmaus’ existing supportive housing program.
Redfield, Pittsfield
The Berkshire Fund in Western Massachusetts will use the Housing Preservation and Stabilization Trust Fund to provide MRVP subsidy and support services for four units of existing housing within a 23-unit supportive housing program serving high risk pregnant and parenting young adults. Families served by the program will receive specialized support services designed to help them become responsible tenants, self-sufficient and committed members of the community.
Harbor and Lafayette Homes, Salem
Sponsored by the North Shore Community Development Corp., Harbor and Lafayette Homes will preserve two existing single room occupancy properties in Salem’s historic Point Neighborhood as 26 service-enriched, affordable apartments for low-income individuals, and one apartment for a resident manager. The 16 service-enhanced MRVP subsidies will serve extremely-low-income youth aging out of the foster care system. These tenants will receive a comprehensive package of supportive services from North Shore CDC.
Bixby Road, Spencer
This project will incorporate 11 supportive housing units within a 42-unit townhouse style family development in Spencer. The supportive housing units will be designed and structured for formerly homeless occupants who face particular life challenges, such as a chronic physical illness or disability, and who need support services. The services will be provided through a tenant supportive services program operated by the project sponsor, South Middlesex Opportunity Council.
Kenwyn and Quadrangle, Springfield
HAP Housing in Springfield will use eight Housing Preservation and Stabilization Trust Fund service-enhanced MRVP subsidies to assist homeless families as they transition from shelters, such as HAP’s Residential Resource Center, a temporary housing facility that provides shelter for 36 families. The MRVP subsidies will allow families to move into permanent rental housing at either Kenwyn or Quadrangle Court, and the support service dollars will permit the continuation of service delivery to the families in their new location. Services will include parenting classes, domestic violence counseling and financial education seminars.
E. Henry Twiggs Estates, Phase I, Springfield
Better Homes, Inc. is working on a plan to support the comprehensive redevelopment of 75 scattered site units in the Bay and Upper Hill neighborhoods of Springfield. As an integral part of the first phase of the project, Better Homes will convert 13 affordable rental units into permanent supportive housing for low income families. Services will be provided through an expansion of Better Home’s existing supportive housing partnership with HAP Housing, also of Springfield.
Ludlow selectmen pleased that Stevens Memorial Senior Housing is now open
Selectmen say they are pleased that the newly renovated HAPHousing’s Sevens Memorial Housing project for senior citizens is now open.
“This is a welcome addition to the town,” said Selectman William Rooney.
Located in the center of Ludlow, the Stevens Memorial Senior Housing offers 28 affordable rental apartments for senior citizens, ages 62 and older, in the newly-renovated historic building.
The Stevens Memorial Building was built in 1906 by the Ludlow Manufacturing Co. as a recreation facility for its employees. It was acquired by the town of Ludlow in 1949 and operated as the Ludlow Boys & Girls Club until 2005.
Stevens Memorial Senior Housing was made possible by funds provided by the United States Department of Housing and Urban Development, Massachusetts Department of Housing and Community Development, MassHousing and the Community Economic Development Assistance Corporation.
Rooney said selectmen were frustrated with the slow pace of the building, but are very happy that it is now open.
“The building is impressive and the integrity of the building has been maintained,” Rooney said.
Patrick Administration Announces Fundinf For Homeless Projet in New Bedford
The Patrick Administration today announced nearly $900,000 in funding for Sister Rose’s House in New Bedford, a shelter for homeless men that is run by Catholic Social Services (CSS). The funding was awarded through the Housing Innovations Fund, which was created in 1987 to provide financial assistance for alternative forms of housing for low-income persons and families. Undersecretary Aaron Gornstein, of the Department of Housing and Community Development, made the announcement during a visit to CSS on Friday.
“Catholic Social Services and Community Action for Better Housing have an outstanding track record in serving low and moderate income families and individuals in the New Bedford area,” said Aaron Gornstein, Undersecretary for the Department of Housing and Community Development. “We are proud to fund this important project and appreciate the support of Mayor Mitchell, the state delegation, the neighbors of Sister Rose House, and the residents of New Bedford for their compassion and commitment.”
The $856,822 in funding announced on Friday will help the shelter relocate to St. Hedwig’s Church, a larger space in New Bedford. The new space will be comprised of 25 beds, including some for single women, and will also feature a kitchen, food pantry, GED classes and a job training program. This new plan, developed by the non-profit Community Action for Better Housing (CABH), CSS, the City of New Bedford and the Community Economic Development Assistance Corporation, also includes a plan for renovating St. Hedwig’s.
“There is a great need in the New Bedford area for homeless services, particularly for women,” said Senator Mark Montigny. “I applaud the efforts of the Patrick administration in addressing my concerns in supporting these critical and vital services, particularly in providing funding for more beds for women, a concern I had brought to the attention of the Secretary of Housing and Economic Development in recent months. It is wonderful that the incredible work of Sister Rose will continue on. No one should ever be homeless or hungry, it is our duty to show compassion and humanity to those less fortunate who have fallen on hard times and need assistance.”
“Sister Rose House provides critical services to homeless families by providing them immediate support to stabilize their families and preparing them to address future challenges,” said Rep. Antonio F.D. Cabral.
“This funding is a great use of state funds to support an institution that does great work in our community,” said Representative Christopher Markey. “I am very happy the administration has put our money to such good causes.”
Under the Housing Innovations Fund, DHCD gives preference to projects that provide transitional and permanent housing for homeless individuals and families, and in order to be eligible for this funding the project must be financially feasible, ready for construction and meet the affordability requirements of the capital subsidy program. Only non-profit developers are eligible.
Since 2008, the Patrick Administration has taken action to protect and strengthen the safety net that state-aided public housing’s 45,600 units provides for the Commonwealth’s most vulnerable families, senior and people with disabilities. These initiatives are a part of a broader strategy being implemented to reform the state’s public housing system. Other reforms have included requiring local housing authorities to provide DHCD with the salaries of the five highest-paid management staff and setting a maximum salary for local housing authority executive directors, require greater reporting of financial information and instituting a vacant unit initiative
Gov. announces $25M in housing for veterans, others
Vietnam War veteran Richard Yarde listened intently to Gov. Deval Patrick as he announced millions of dollars in funding to create affordable housing for veterans in communities across the state and in Haverhill.
Yarde’s thoughts soon turned to a time 15 years ago when he was in need of an apartment he could afford and was referred to Veterans Northeast Outreach Center in Haverhill. He also thought about the many veterans he’s met in recent times who’ve told him they need the same kind of helpful hand in finding safe and affordable housing as he did so many years ago.
“It’s absolutely wonderful,” Yarde said about Patrick’s announcement yesterday at Veterans Northeast Outreach Center on Reed Street.
“This will give veterans what they deserve for their service to their country,” Yarde said. “For many, it will be a start as a lot of returning veterans come home and live with family as a lot of them can’t afford the cost of market-rate housing. And in addition to housing, they’ll have opportunities for job training, retraining and other services that Veterans Northeast can provide.”
Yarde, house manager for the Veterans Mansion on Cedar Street, a program of VNOC, said the 27 new units planned for the Mount Washington neighborhood should fill up as quickly as they are built.
“Most housing is not affordable for a lot of veterans and trying to find a job that will support them in the current economy is almost impossible,” Yarde said.
Patrick was in Haverhill yesterday to announce more than $25 million in funding to create over 335 new units of supportive housing for veterans, homeless and very low income households across the state. He said the funding is part of an aggressive plan by his administration to end chronic homelessness of veterans.
The governor also announced that with these units, his administration has reached its goal of creating 1,000 units of permanent, supportive housing in Massachusetts a year early. Patrick made the announcement at the Reed Street campus of Veterans Northeast Outreach Center, which will receive funding assistance in creating 27 new units of housing for veterans.
“Government’s role is to help people help themselves, and I am extremely pleased that we have reached out ambitious housing goal early, ensuring that more of our families have the resources to get back on the feet,” Patrick said to a crowd of people that included other state officials along with city officials and members of Veterans Northeast Outreach. “Helping our most vulnerable families transition into stable housing is vital to supporting our economy and creating a stronger Commonwealth for the next generation.”
The local organization that provides a range of services to veterans and their families plans to begin construction this summer of 27 additional units of affordable rental housing in the Mount Washington neighborhood, where it is based.
John Ratka, executive director of Veterans Northeast Outreach, said that nationally, there is no larger single demographic that has a greater need for affordable housing than veterans and their families.
He said his organization works with veterans in their early 20s to those in their 80s who have a need for affordable housing as some are low-income and some are living on disability compensation.
Mayor James Fiorentini addressed the crowd as well saying this new housing project is part of the city’s ongoing efforts to revitalize the Mount Washington neighborhood.
Fiorentini told The Eagle-Tribune that police have instituted additional patrols in the area to combat crime, while other quality of life initiatives include the revitalization of Swasey Field, which has a new water park that is expected to open this summer with more improvements planned.
“We’re also instituting more street sweeping and inspections of vacant housing,” Fiorentini said.
On Jan. 15, the city’s Zoning Board of Appeals unanimously approved the application for a Comprehensive Permit submitted by the Veterans Northeast Outreach Center to create more housing for veterans.
Ratka said the $5.7 million project involves creating 27 affordable rental units on three sites in the Mount Washington neighborhood. The largest, a two-story building with 18 enhanced studio apartments, will be built along the Reed Street side of the parking lot for VNOC, which is located in the former St. Rita’s Church at 10 Reed St.
Ratka said a three-story building is planned for 74 Temple St. and will provide six, one-bedroom units with six off-street parking spaces, while a three-story three-unit building is planned for 17 to 19 Tremont St. and will provide one two-bedroom apartment and two three-bedroom apartments with five off-street parking spaces.
The two smaller buildings will be located within a hop, skip and a jump from Veterans Northeast Outreach Center so that veterans don’t have to travel far to receive any of the many support services this agency provides.
The architect for the project, Davis Square Architects of Somerville, designed the buildings to blend in with neighboring homes, many of which are flat-roofed multi-family homes.
“We want them to look like part of the neighborhood,” said Michelle Granick, a project architect with Davis Square Architects.
The project’s engineer, Joe Peznola of Hancock Associates in Danvers, said the homes will have many green energy-saving features such as high levels of insulation, high efficiency heating and cooling systems and light reflecting roofs.
Peznola said construction contracts will be going out to bid and that he expects construction to begin as early as this summer, with a possible opening next spring.
Ratka said a lot of careful planning went into the size of the project and how it would affect the neighborhood while maintaining the history of the St. Rita’s property for those who have lived in the community for a long time.
The project is a collaboration between Veterans Northeast and the Coalition for a Better Acre (CBA), based in Lowell, Ratka said.
The non-profit community development corporation has developed 425 affordable rental units, 33 commercial units, and more than 50 units for first-time home-buyers in Lowell, Ratka said. The Haverhill initiative is CBA’s first residential development project outside of Lowell.
Madeline Nash, CBA’s director of real estate, said the CBA will be seeking funding through the Low Income Housing Tax Credit Program and other state affordable housing development sources. Pre-development financing has been provided by the Community Economic Development Assistance Corporation (CEDAC). Funding for this project is from The North Shore HOME Consortium, the city of Haverhill and the state’s Housing and Preservation Stabilization Trust Fund.
Worcester, Oxford ‘supportive housing’ projects get state funds
Projects in Worcester and Oxford are among housing units for veterans, the homeless, and low-income families and individuals across the state that will receive a share of $25 million in state funds approved Tuesday by Gov. Deval L. Patrick.
The distribution of the money follows efforts launched in 2012 to add 1,000 units of so-called supportive housing by December 2015, the governor said. Administration officials said with the new grant awards, the state is reaching that goal one year ahead of that timetable.
Both of the Worcester County projects are being undertaken by the South Middlesex Opportunity Council.
A project at 16 Cottage St. in Worcester involves the upgrade of an existing 15 single-room occupancy building for $474,000. The other project is at 266 Main St. in Oxford and will provide 16 single-room occupancy units with supportive services for residents, for $350,000.
Charles Gagnon, chief operating officer at SMOC, said the agency is already running the single room occupancy program at the Cottage Street building, which is a former rest home. He said the group will use the new state funding to enhance handicapped accessibility features, install more efficient building systems and upgrade the facility. The funds also will help pay for supportive services to residents.
Mr. Gagnon said the Oxford development is a new project in the final stages of renovation of a historic Main Street building. He said the state funding will be used to complete the project, provide long-term financing and support services for residents. He said it will open this summer.
“Government’s role is to help people help themselves, and I am extremely pleased that we have reached our ambitious housing goal early, ensuring that more of our families have the resources to get back on their feet,” Mr. Patrick said in a press release. “Helping our most vulnerable families transition into stable housing is vital to supporting our economy and creating a stronger commonwealth for the next generation.”
The state’s supportive housing program is operated in conjunction with a network of nonprofit agencies to provide assistance, including child care, access to job training and mental health care.
The program “will provide a clear pathway for participants from homelessness and emergency shelters towards stabilization and growth in permanently affordable housing,” said Aaron Gornstein, undersecretary for the Department of Housing and Community Development.
Roger Herzog, executive director of the Community Economic Development Assistance Corp., who chaired a working group that developed the initiative, said 18 state agencies cooperated on the program.
“The supportive housing will help seniors, veterans, homeless individuals and families, and persons with disabilities, among others, all of whom will benefit from the services connected with this affordable housing,” he said in a prepared statement.
Mr. Patrick also awarded 208 project-based vouchers from the Massachusetts Rental Voucher Program. The vouchers are available to owners of existing affordable rental properties that provide services or partner with an agency that has experience with successfully stabilizing homeless or low-income households.
Those vouchers allow homeless families to move into existing housing developments with long-term affordability restrictions. The nonprofit agencies that own the properties provide participating families with comprehensive services to help ensure that they do not fall back into the cycle of homelessness and emergency shelter.
Support services funding of $2,500 per unit will be used for job search and training, financial literacy and planning, self-sufficiency training and coaching, counseling, parenting, early education and child care, mental health and addiction treatment, adult education and skills training.