June 16 at 10:00 a.m. Presented by the John Burton Foundation & California Coalition for Youth

1. Mental Health Services Act Housing Program June 16 at 10:00 a.m. Presented by the John Burton Foundation & California Coalition for Youth Call-in phone number for live audio: 484-589-1011 Access code: 696-195-868

2. Webinar Technical Details • Call-in phone number for live audio: 484-589-1011 • Access code: 696-195-868 • To submit live questions, click on the “Questions” panel on your screen, type your question, and click “Send”

3. Outline of Presentation • Overview of Mental Health Services Act Housing Program • Case studies of MHSA programs for Transitional Age Youth • Available funding in selected counties • Q and A

4. Today’s Presenters • Debbie Raucher, John Burton Foundation • Sandy Rose, California Institute for Mental Health • Lisa Blakely, Corporation for Supportive Housing • Susanna Marshland, Fred Finch Youth Center • Lila Wiggs, Step up on Second

5. Using Mental Health Services Act Housing Program Funds with Transitional Age Youth Lisa Blakely-CSH Sandy Rose, CiMH The Homeless Youth Capacity Building Project June 16, 2010 www.csh.org

6. Our Mission CSH helps communities create permanent housing with services to prevent and end homelessness.

7. What Does Housing Have To Do With The MHSA? The MHSA asks the State of California to transform the way in which it has delivered mental health services to individuals with serious mental illness. The transformation process has begun with several State implemented pilot programs which included a housing component and goal of: Moving beyond the mental health clinic setting to offer a much wider array of services and support to consumers in community settings, enhancing their recovery efforts and opportunities for independent living.

8. MHSA Housing Priorities Reducing homelessness, involuntary service and incarceration are all major focuses of MHSA implementation and performance measurement.

9. The Role of Housing Parents  Support Services  Housing  Children/Youth Community Resources Safe, affordable, stable housing is a foundation for resilience and recovery

10. MHSA Housing Program Highlights

11. MHSA Housing Program Highlights: A Collaboration Who created it? The California Department of Mental Health (DMH), the California Housing Finance Agency (CalHFA) and the County Mental Health Directors Association collaborated to develop the MHSA Housing Program.

12. MHSA Housing Program Highlights: Housing Types Rental Housing Developments Shared Housing Developments “House Mate program for unrelated adults” • Generally consist of single family home or two-four-unit building. • Must have at least two bedrooms. • Must provide a lease and locked bedroom for each tenant. • Spouse, adult partner & children can share bedroom with qualified tenant. • Allowable to submit one application for multiple dwellings. • 5 or more units. • General and Special Occupancy. • 5-100: 10% set aside for MHSA members, minimum of 5 units. • 100 or more: at least 10 units set aside. • Must set aside adequate space for supportive services. • No SRO Must have at least a stove top

13. MHSA Act Housing Program Highlights: Funding Capital Funding $75 Million per year ($375 Million) for Capital Costs associated with development, acquisition, construction and/or rehabilitation of permanent supportive housing. Rental Housing Developments may apply for up to 1/3 of the capital costs up to a maximum of $109,893 Predevelopment Loans Predevelopment loan available, $500 K for rental development and $200 K for shared housing; factored as part of funds allocated. Must have evidence of MHSA loan commitment, evidence of other financing and evidence of site control or purchase agreement and appropriate zoning. Predevelopment loans can be used for acquisition. Rolled into permanent financing at close of construction, 3% interest forgiven. Cannot be larger than permanent commitment.

14. MHSA Act Housing Program Highlights: Funding Capitalized Operating Subsidies (COSR)? An additional $40 million per year ($200 Million) in capitalized operating reserves. Rental Housing Developments and Shared Housing Developments may apply for $109,893 per targeted unit. Qualified applicants for capitalized operating reserves must receive capital funding from the MHSA Housing Program and require operating subsidies to cover the operating costs. The operating subsidy is intended to last 18-20 years.

15. MHSA Act Housing Program Highlights: Funding Capitalized Operating Subsidies (COSR)? COSR means an account held and invested by the Agency to cover shortfalls in unit income available for payment of approved operating expenses attributable to MHSA Housing Units. Funds are set aside at the MHSA permanent loan closing date in a reserve for the purpose of supplementing development income for the payment of approved operating expenses associated with the MHSA Housing units that will receive the COSR

16. MHSA Act Housing Program Highlights: Funding How Dost the COSR Work? Example: A project has a $200 K annual Operating Budget. Rental Income is projected in the first year to be $150 K The development will draw down $50 K from the COSR to cover the difference. The difference could be the result of the projects’ assumptions related to rental income: Some tenants will not have enough resources to contribute to rent until they are receiving SSI/SSP (i.e. with TAY it could take a while to get SSI). The simple difference between the portion of rent the tenant will pay (i.e. no less than 30% off monthly SSI/SSP or household income which ever is greater) and the rental income required to meet the projects operating expenses.

17. MHSA Act Housing Program Highlights: Project Owner Who is a Qualified Borrower? Must be a non profit or an affiliate of the County. Examples: Collaboration is possible with a for-profit entity by forming a limited partnership (LP) This is typically true when the project includes tax credit financing or when a for profit developer has a non profit affiliate. The managing general partner of the LP must be a 501(c)(3) corporation or a limited liability company (LLC) whose sole member or members are 501(c)(3) corporations). A 501(c)(3) corporation A LLC whose sole member or members are 501(c)(3) corporations. An affiliate of a local redevelopment agency. An affiliate of the county created to hold properties financed with the MHSA Housing Program funding, or (i.e. a separate legal entity) An affiliate of a local housing authority created to hold MHSA Housing Program Properties.

18. MHSA Act Housing Program Highlights: Rent and Income What are The Rent Requirements? Targeted to households earning 50% AMI and less for both shared and rental housing. Encouraged to restrict MHSA targeted units and occupancy to households earning 30% or less of AMI, and to restrict rents to 30% of income. Rents in MHSA Housing Program capitalized operating subsidy, the tenant portion of the rent must be set no lower than 30% of the current SSI/SSP income or 30% of total household income, whichever is greater.

19. MHSA Act Housing Program Highlights: Housing Program Application Who Submits the Application? Applications are submitted by the County Mental Health Department (CHMD). Both developer and county sign the application. Developer = Borrower CMHD = Service commitment for term of the loan.

20. MHSA Housing Program Highlights: Housing Options Rental: Dedicated buildings (single population) Set aside units (mixed income population) Set aside units in a special needs SH development Shared Housing: Duplexes, triplexes and four-plexes Single family homes and condominiums All units exclusively house MHSA tenants

21. Homeless and at risk of homelessness low-income adults and older adults (SMI) Children or adolescents (SED) At Risk of Homelessness Discharged from Hospitals and Institutional facilities. Released from local city or county jails Temporarily placed in Residential Care Facilities. Crisis and transitional residential settings. Transition Age Youth (TAY) MHSA Housing Program Highlights: Target Population • All participants must be certified by the county mental health department.

22. What Models Make Sense for My Community?

23. Rental versus Shared Housing

24. New Construction versus Rehabilitation

25. Not For Profit Affordable Housing Developers Youth Service Providers Public Housing Authorities SH Providers Who Only Create and Run SH Mental Health Providers Who Has Created MHSA Permanent Supportive Housing Units

26. What Are some Partnership Models? Set-a-side Units in a Mixed Income Affordable Housing Building. Dedicated Building Owned by Non Profit Developer/Contracted Service Provider or County. Turn Key – Developer Oversees Development for Owner ( County or Provider). Property Management is variable directly impacted by the partnership (i.e. in house or third party).

27. MHSA Project in The Pipeline

28. Publications / TAY Resources

29. Online Resource Library: www.csh.orgMHSA Toolkit for Ending Long-term HomelessnessPublications: New homes, Brighter Futures: Profiles of Housing Programs for Young AdultsKey Issues in Supportive HousingSupportive Housing for Youth

30. Resources

31. Susanna Marshland, Fred Finch Youth Center

32. Fred Finch Overview • Organization History • Current TAY Programs • 3 mental health programs • 2 funding by MHSA services dollars • Permanent Housing • Coolidge Court • Harmon Gardens (in progress)

33. Coolidge Court • 18 units of studio apartments • Target population: 18-24 with mental health disability • Staffing: part time resident mgr and full time case manager • Development funding from HUD for housing for people with disabilities • Utilized development partner for construction • Property Management done by Fred Finch

34. Lessons of Coolidge Court • Laws can be changed – preference for homeless youth • Studio units ideal size: provide incentive for moving on and offer private living space • Grouping TAY together works well

35. Lessons of Coolidge Court (cont.) • Crucial to establish funding for services • Average length of stay longer than transitional housing • Pros: youth can take more risks (e.g. go back to school) • Cons: less opportunity to bring new youth into program

36. Harmon Gardens • 15 units plus one resident mgr unit • 10 units to be funded by MHSA • Project will receive both MHSA capital and operating funds • Development funding also includes Low Income Tax Credits, and State Multi-Family Housing Program for Homeless Youth • Operations funding includes Project based Section 8 for non-MHSA units

37. Harmon Gardens Process • Fred Finch approached by Affordable Housing Associates to partner • Corporation for Supportive Housing and Foster Youth Housing Initiative provided assistance with pre-development funding • Design modeled after Coolidge Court • Included TAY in planning process including neighborhood meetings and city hearings. This facilitated project approval process.

38. Harmon Gardens – Lessons Learned • Crucial to be good collaborator • Mix of multiple funding sources challenging • Need to track eligibility for all funding sources • Occupancy limit questions in process • Services plan in process. Challenges include: • Services for non-MHSA tenants • Funding for resident services coordinator • Inability to restrict to Fred Finch clients

39. Partner Roles • AHA obtained development funding and is providing all construction and development services • AHA to provide property management services • Fred Finch knows populations and is advising on youth needs Fred Finch providing services once project operational

40. Lila Wiggs, Step Up On Second

41. Daniel’s Village - Overview • 7 units dedicated to mentally ill TAY plus one unit for resident manager • Located in Santa Monica • Renovation of existing motel • Step Up functions as developer, service provider and property manager • Opened in August 2009

42. Project Development • Development Financing • $700,000 MHSA funding • $2.02 million City of Santa Monica • $200,000 capital campaign • 50% from private donors • 50% from foundations • Team of brokers used to identify possible sites • Development consultant and construction manager hired for development process

43. Operational Financing • Clients pay 30% of income towards rent • MHSA operating subsidies • Local TAY rental subsides • Other options for cities without designated subsidies include project based section 8 and Shelter Plus Care • MHSA subsides can cover operating costs until client begins receiving SSI

44. Program Features • On call resident manager who lives on site • One full time life skills coordinator • Access to services through Daniel’s Village and FSP if enrolled • Housing first model • Provide lap tops, flat screen tvs, and cable in all units

45. Lessons Learned • Relationship building process takes longer with TAY than with adults • Committee of consumers to make architectural and program recommendations • Life skills coordinator crucial • Have pizza at all functions

46. Available Funding • Of the original $400 million about ½ has been allocated by the State • Many counties have funds still available • Check with your local MHSA coordinator to determine the status of your county’s funds.

47. Upcoming Trainings • June 17th – RegionalTraining: What do Foundations Really Want, Riverside County • July 8th: Bridging the Gaps: Connecting Young Adults to Housing and Services, Oakland • July 22nd: HYCBP annual meeting, Los Angeles • August 18th – Webinar: California Youth Crisis Line • Individual Technical Assistance available for HYCBP members

48. Questions or comments? Enter questions on your screen now by clicking the “Questions” panel, typing your question, and clicking “Send.” Or direct later questions or comments to: Debbie Raucher John Burton Foundation (510) 593-8382 debbie@johnburtonfoundation.org www.cahomelessyouth.org