Crest Manor – A New Beginning

1. Crest Manor – A New Beginning Presented by MCHA to the Homes Within Reach Conference October 30, 2018

2. Housing Authority Overview Housing Authorities: Are typically enabled under State law. • MCHA was chartered 80 years ago under PA law. It is led by a Board of Directors appointed by the County and is primarily funded by the federal government. Serve local jurisdictions (cities, municipalities, counties, etc.) • MCHA is the sole HA serving 62 municipalities comprised of approx. 800,000 residents. Administer Federal Funds, tenant rent and other privately generated revenue. • In 2018, MCHA administered approx. $30M in federal funds across HCVP and PH programs -assisting over 3,000 income qualified households.

3. MCHA Snapshot ofVouchers and Units Housing Choice Vouchers Public Housing Serves 558 public housing households across 7 properties for seniors, general occupancy and special needs populations. Provides rental units mainly owned and operated by MCHA. Participants pay 30% of household income towards rent. Wait list is currently over 13,000 households. • Serves 2,350 voucher households including special needs households. • Provides subsidies to support income qualified households w/in privately owned rental units. Participants pay 30% of household income towards rent. • Wait list is currently approx. 500 households. MCHA accepted HCV applications for 8 days in November, 2015 and received almost 16,000. A lottery yielded 1,000.

4. Crest Manor – Before ⌂ Built in 1963 by MCHA ⌂ 40 Public Housing Units for General Occupancy ⌂ “Twins” ranging from 1 to 5 bedrooms ⌂ Housing Authority responsible for all utilities ⌂ Crestmont neighborhood of Abington Township

5. Crest Manor Opportunity • Existing Mixed Income Community. • Crestmont - a stable working class community of 68.4% HO. • High Performing School District. • 95% of students entering 9th grade graduate high school. • In 2012, US News & World Report ranked Abington HS in the top 6% of High Schools in country. • Fully Occupied with Very Few Social Issues. • Owned by MCHA since built in 1963.

6. Crest Manor – Location • Strategic Location: • High amenity municipality and 1 mile from Willow Grove Park Mall. • Easy Access to SEPTA Regional Rail and Bus Line. • 4.48 acres physically integrated within the neighborhood.

7. Crest Manor - Challenges • Antiquated & Failing Building Systems (Plumbing, Electrical, Heating, etc.). • Legacy common gas distribution system difficult to maintain. • Structures within the 100-Year Federally Designated floodplain. • Limited accessibility features. • Encapsulated environmental issues. • Insufficient federal capital funding to meet needs. • 100% occupied (general occupancy) with limited community resident relocation options. • Significant over housing due to household sizes decreasing.

8. Timeline • Abington Township Commissioner, John E. Gibson championed Crest Manor from its inception in 1956 through its completion in 1963. • In August 1963, the family of a Marine Corps veteran became the first occupant of the property.

9. Crest Manor - After ⌂ 46 LIHTC Units (incl. 24 PH, 16 PBV, 6 LIHTC-only) ⌂ Tenant-paid utilities, but for sewer ⌂ 1 to 5 Bedrooms – general occupancy ⌂ LEED-Gold ⌂ 4 ADA units (incl. 2 BR)

10. Transaction Structure structure Development budget • MCHA continues to own the land (long-term 99 year ground lease to partnership). • Limited Partnership owns the structures with the General Partner comprised of both Pennrose and MCHA entities. • Pennrose Management Company provides property management. • Subject to a mixed-finance agreement with HUD to maintain 24 public housing units (16 PBV, 24 PH/ACC, 6 LIHTC only).

11. Project Goals and Features • Maintain the existing and historically mixed income neighborhood. • Expand Unit Count by 15% with no new land acquisition and expansion of greenspace and addressing the over housing situation. • Provide on-site resident relocation and financial counseling.

12. Preserving Mixed Income Opportunity in an Established Neighborhood September 2014 May 2018 March 1963

13. Preserving a Mixed Income Neighborhood (cont.) • Built by MCHA in 1963 for $650,000, it was unique in its setting. • Contrasted by then Congressman Richard S. Schweiker to the conventional high rise public housing of the time, Crest Manor: • Location, school district, transportation and amenities. • Our responsibility: to maintain affordable options in this neighborhood. “…fit in with the suburban setting of Abington Township and preserved considerable open space around them for yards, parking and recreation.”

14. Unit Count Expansion • New Crest Manor needed to meet the needs of: • Existing CM tenants who were over/under housed. • The MCHA wait list. • Accessibility and UFAS. • From 40 to 46: • Net gain of 6 affordable units with no net loss of subsidized units. • Incl. additional one bedrooms to address over housed. • Incl. 4 new UFAS /ADA compliant units including a two bedroom previously not available, 16 new visitable units and an ADA compliant community building. • Adding Greenspace: • Southeast Corner is Zone A 100 year flood plain and contained community building and two units. Removal of buildings in Zone A reduced risk of flood damage to property and neighborhood and redirected rain water.

15. Site Plan - Before

16. Site Plan - After

17. On-Site Resident Relocation • In typical PH redevelopment efforts, residents are issued housing choice vouchers to move, with the right to return post construction. • Beginning around 2014, intentionally started to stockpile vacancies as tenants moved out. In 2016, at closing had 12 (30%) vacant units; affects PHAS score for HAs. • Residents moved from original unit to ‘temporary’ unit for approx. 6 months, then to ‘final’ unit. Each move was paid for by the development budget. Given Fair Market Rents, there are limited options for utilizing Housing Choice Vouchers in Abington Twp; thus many families would have had to relocate outside of the Twp and School District.

18. Relocation Map (Phase 1 of 6)

19. Financial Counseling • Conditions for residents to be eligible to move to new units: • Remain income eligible for new development; • ‘Good Standing’ (fully compliant with the lease). To assist residents in meeting this goal, MCHA provided: • Free Financial Literacy Counseling through on-site workshops and one-on-one sessions. • Partnered with Clarifi to provide free and confidential financial counseling to help tenants with credit, cash flow and other financial management issues

20. Resident Income Profile • Originally 40 PH/ACC units at CM. • At closing, 28 households transferred to Pennrose. • 12 vacant stock piled. • Currently 26 of the 28 households are still served at CM (9 PBV and 16 PH/ACC). • 3 Over incomes • 2 are currently vouchers. • 1 received relocation benefits and was ineligible for vouchers. • 100% of tenants in ‘Good Standing’ at financial closing.

21. Lessons Learned • Why not RAD? • DEBT: FMRs for PBV > than RAD rents. • Right to Return requirements at the time impacted project – had 3 over income families. • SAC Approval and Disposition approval based upon Obsolete Status. • Know your Relocation. • Is this under the URA, PIH Section 18 or 104 (d) • PIC – how does this get entered and tracked? • How are EIDs compensated when move from PH to PBV? • Importance of Property Management / Communication During Transition.

22. Project Partners

23. Contact Joel A. Johnson, AICP, P.H.M. Executive Director Montgomery County Housing Authority 104 W. Main Street, Suite 1 Norristown, PA 19401 610-275-5720 ext. 315 PA Voice Relay 800-654-5988 joel.johnson@montcoha.org Ribbon Cutting 1963 Ribbon Cutting 2018

24. Northwest 9 Program Administered by the Clarion County Housing Authority

25. Clarion County Housing Authority • Section 8 Voucher Program Administration – Clarion, Forest and Elk Counties • Combined – almost 600 vouchers • Specialized vouchers for persons with disabilities and veterans • Own and Manage 5 Properties in Clarion County: • Cherry Run Estates and Edenburg Court – elderly/disabled developments • Medardo Estates, Penn Court Apartments and Hillside Apartments – family developments • Management and Supportive Services Provider for LIHTC Property – Regency Commons • Administrator of the Family Self Sufficiency and Home Ownership Programs

26. Housing Challenge: To provide decent, safe and sanitary housing to individuals with serious mental illness, substance abuse disorders or co-occurring mental health and substance abuse disorders.

27. Partners & Purpose Partners Purpose Department of Public Welfare Office of Mental Health & Substance Abuse Services (OMHSAS) Behavioral Health Alliance of Rural PA (BHARP) Behavioral Administrative Unit (BHAU) Community Care Behavioral Health BHAU and Community Care manage the North Central Health Choices Program Northwest 9 Program Area Housing Authorities • To assist in the transformation of the behavioral health system to a recovery oriented system • Assist individuals with mental illness, substance abuse disorders, and co-existing mental health and substance abuse disorders who are Medicaid eligible • To assist with obtaining decent, safe and sanitary housing in their county • Assisting with coordination of services through interagency collaborations • Although not the Program’s original intent, facilitate with reentry and reducing recidivism

28. Requests for Proposal • Requests for Proposals submitted in March 2012 • Goal of the RFP: leverage limited reinvestment funds to maximize access to mainstream affordable housing resources provided by the federal and state government programs for very low to low income households who are Medicaid eligible • Successful Applicant must have the following: • Experience in the rental housing market and working with individuals with mental illness, substance abuse or co-occurring mental health and substance abuse disorders • Technology – housing resources database • Housing management, negotiation and mediation skills • Required submission of a detailed plan for the following: • Coordination with behavioral health service providers, community services and supports • Coordination of the Bridge Subsidy program with the NW 9 PHAs • Establishing partnerships with PHAs, landlords, and housing developers • Strategy for implementation of all program types: Master Leasing, Bridge Subsidy and CRAFT • Strategy for data tracking and collection and quality control • Strategy for maximizing funding • Tentative Program End Date: 6/30/2016 • Extended through March 2018

29. Service Area

30. Funding • Reinvestment funding from 2008-2009 HealthChoices North Central State Option contract year. • Original HAP allocation: $840,000 • 2016 – Additional HAP Funding Received - $378,605 • PHFA TBRA Funding – beginning 8/1/2013 • Disabled participants • Maximum of 12 months • CRAFT Funding: $145,000 (Elk, Potter and Cameron only) • Additional PHARE Funding in 2016 - $46,631

31. Master Leasing • Solicitation of private or non profit landlords interested in leasing individual units, or a block of units, for use as permanent supportive housing in the NW 9 Program • Participants are not expected to be eligible for any federally subsidized housing options within the next 2-3 years • Megan’s Law registrants, severe criminal history, severe drug related criminal history, reentry • Clarion County Housing Authority leases a unit(s) from the landlord and is responsible for the monthly rental amount • The program participant sublets the unit from CCHA and pays their rent directly to CCHA • The unit is required to meet all HQS guidelines • Calculation of the participant’s rent based on approximately 30% of the tenant’s income mirroring the HUD Section 8 Housing Choice Voucher Program • Facilitate linkages with other services and supports and assist individuals in maintaining housing

32. Bridge Subsidy • Management of tenant based rental subsidies temporarily until a more permanent subsidy is available through the Section 8 Housing Choice Voucher Program • Administration based on the rules and regulations of the Section 8 Housing Choice Voucher Program • Participants are expected to be eligible for the Section 8 Housing Choice Voucher Program within 2 years of NW 9 participation • Owe housing authorities money, moderate criminal history, Section 8 Program waiting lists closed • Collaboration with the county/local housing authorities to keep informed of Section 8 Program availability • Participant seeks and obtains housing with local landlords and submits a request for tenancy establishing an agreement between the landlord and the tenant • Calculation of the participant’s rent based on approximately 30% of the tenant’s income mirroring the HUD Section 8 Housing Choice Voucher Program

33. CRAFT • Only applicable to Cameron, Elk and Potter counties • Funding strictly for criminal justice involvement individuals • Program determination is completed at referral • Calculation of the participant’s rent based on approximately 30% of the tenant’s income mirroring the HUD Section 8 Housing Choice Voucher Program • Participant seeks and obtains housing with local landlords and submits a request for tenancy establishing an agreement between the landlord and the tenant • Additional PHARE Funding received in 2016 in the amount of $ 40,631 • Funding used to maintain subsidy for current participants only

34. Program Implementation • Collaboration with other agencies: • Service Access & Management, County MH/MR Offices, County D&A Agencies, County Human Services, Local Housing Authorities, prisons, probation and parole • Coordination with the NW 9 Program Steering Committee • Software Modifications for program tracking and reporting • Staff Training • Program Marketing • Applicant referral process • County Point of Contact • BHARP • CCHA • Development of the Northwest 9 Administrative Plan

35. Current Program Data 2017 National Association for Housing and Redevelopment Organizations (NAHRO) Merit Award Winner • Housed since 2014 : 274 • Average Assisted Per Month: 75-85 households • Transitioned to other subsidy: 49 • Transitioned to self-sufficiency: 38 • Average cost per inmate per year $42,727 • NW 9 $5609 per year • National recidivism average: 44.7% • NW 9 recidivism rate: 5.1% • Total Program Costs: $1,355,255 • Cost to house an average of 72 households per month for 4 years at an average monthly cost of $399.31 per unit 2018 Pennsylvania Association of Housing and Redevelopment Agencies (PAHRA) Bellamy Award Winner

36. Questions & Contact Information • Clarion County Housing Authority ccha@clarionhousing.com • Penny Campbell, Executive Director – 814-226-8910 Ext. 105

37. The Housing Authority of the City of Pittsburgh Project Based Voucher and Gap Financing Program 200 Ross Street Pittsburgh, PA 15219 412-456-5000 www.hacp.org

38. The Housing Authority of the City of Pittsburgh (HACP) HACP Snapshot: • MTW Agency since 2001 • Serves approximately 20,000 individuals or 7% of all City of Pittsburgh residents • Owns and operates 2,700 low-income public housing units • Supports 700 public housing units in mixed-income sites • Administers 6,200 Housing Choice Vouchers

39. PBV and Gap Financing Program The Problem: Limited Supply Landlords refuse to take housing Choice Vouchers. Current use rate = 27% Aging housing stock and limited supply of new construction. Older housing in decent neighborhoods at a premium. PHA is at capacity with development projects. (14 Projects currently in Development) Community developers have limited capacity and feel they have no access to PHA development resources. The Solution: Gap Financing Expands housing choices for low and moderate income families in Pittsburgh through an open, fair and inclusive process. Part of a city-wide revitalization strategy; locations will be dispersed across multiple communities and neighborhoods. Multiple project awards depending on budget availability, not limited to one bidder. Fosters collaboration with community development organizations and other entities.

40. HACP releases a Request for Proposal (RFP) for residential development projects planning affordable units. Program Design RFP • Competitive proposals are awarded Project Based Vouchers for a certain number of units. • Competitive proposals may also be awarded Gap Financing in the form of a loan. Award • HACP Development staff provides technical assistance to awardees to help navigate the HUD approval process. Project Refinement • Execution of loan agreement to repay gap financing, Housing Assistance Payment contract, and other financial closing documents are executed. • HACP will continue to monitor the project during construction and beyond to ensure compliance. Closing

41. Program Requirements Accessible to private, for-profit and/or non-profit Owner/Developers Compliance with Federal regulations – (UFAS, Davis Bacon Wages, WBE/MBE, Section 3, URA, etc.) PBV assisted units cannot exceed the greater of 25 units or 25% Units must remain affordable for a minimum of 15 years from placed in service date Meet Housing Quality Standards (HQS) Meet PBV Site Selection Standards per 24 CFR Section 983.57 Owner/Developer to enter into Housing Assistance Payment Contract (HAP) prior to construction Evidence of Site Control Initial Gross rents not to exceed 110% (120% for UFAS units) Other requirements may apply

42. Program Exclusions No Shared Housing Units aligned with penal, reformatory, medical, mental or similar public/private institutions Nursing homes or facilities providing psychiatric, medical, nursing, service, board and care, or intermediate care HACP may allow assistance for a dwelling unit in an assisted living facility that provides home health care service such as nursing and therapy for residents of housing Manufactured homes

43. Evaluation Criteria Site Location/Community Amenities – 25 points Owner/Developer Capacity – 30 points Methodology – 15 points Design/Unit Amenities and Public Purpose – 10 points Project Feasibility/Readiness – 15 points MBE/WBE Participation – 10 points Section 3 Goals Note: Points may be deducted for failure to submit all required information

44. PBV Deal Income Projections 1Assumption that 1 person = 1 bedroom 2Based on a household earning of 50% area median income and paying 30% income for rent 3Based on HACP 2018 PBV Payment Standards, determined by 110% of HUD Fair Market Rents 4Based on 4.5% interest and 30 year amortization

45. First Two Funding Rounds 2015-2017 *Crawford Square was developed in partnership with HACP.

46. Miller Street Residences Project Summary New construction apartment building consisting of 36 units, all affordable Awarded: • 9 Project Based Vouchers • $419,998 in Gap Financing Developer: Bridging the Gap, LLC Other Financing: • 9% LIHTC Equity Project closing was held in December 2017 and is currently under construction

47. Lessons Learned Plan and Understand Staff Time Commitment • Some less experienced developers and community groups required more technical assistance than originally anticipated. Future PBV/Gap projects will be planned keeping in mind HACP staff capacity. Write RFP and Program Guidelines with Flexibility • As we all know, development is a fast-paced industry. Writing an RFP and Program Guidelines that provide enough flexibility for the inevitable project changes is critical. Choose the Right Projects • Where possible, choose projects that are far enough along in the planning process that they could come to fruition without HACP’s assistance. • Proposals that have been submitted without the proper due diligence will likely fail.

48. Questions? 200 Ross Street Pittsburgh, PA 15219 412-456-5000 www.hacp.org