Network Newsfeed

Joint Venture Guidebook released

Feb.21.2018

The Supportive Housing Network of New York and Enterprise Community Partners Inc. have developed a Joint Venture Guidebook as a resource for organizations interested in developing supportive and affordable housing to better understand joint venture options. The Guidebook is sponsored by Capital One. 

As the housing market has become more competitive and complex, developers and community-based organizations are forming joint venture partnerships (JVs) to leverage their strengths and address critical housing needs. The Guidebook provides tools to help our partners navigate challenges and maximize capacity. 

Partnership dynamics and critical questions surrounding the development of affordable housing are both explored throughout the Guidebook, giving readers a deeper understanding of JV partnerships. Below are some highlights:

• Guiding principles & framework for starting your joint venture
• 11 case studies for turn key, long-term, faith-based, and social service agency JVs
• Ready to use worksheets and checklists to help organize your work

Executive Budget for FY 2019 released

Feb.15.2018

The White House released its FY 2019 budget on Monday February 12, 2018.  It largely repeats last year’s attempt by the executive branch to gut federal spending; a budget that was considered dead on arrival.  This proposed budget ignores the increased spending limits for FY 2018 and 2019, signed by the president earlier this year. Worse, it would shift major costs to the states and to people in poverty, especially the working poor.

Below is a chart that shows how the FY 2019 executive budget compares to the enacted 2017 budget, as well as the Network’s recommendations for FY 2018 funding levels. 

Note that the executive budget would eliminate both the HOME and CDBG programs, cutting $4 billion in block grant funding to states and localities, a $400 million loss in New York State.

Take Action:

The House and Senate continue to work on an omnibus budget bill for FY 2018, with a March 23rd deadline. We will report on the details if and when they become available. Meanwhile the FY 2019 budget process is moving forward.  Please join the Network in calling on your member of Congress and ask them to sign on to three 'Dear Colleague' letters:

Rep Gwen Moore has sponsored a 'Dear Colleague' letter to fund the McKinney-Vento Homeless Assistance Grant at $2.8 billion. The deadline is March 16th.  House Members my sign on here: talia.rosen@mail.house.gov.

Rep. Marcia Fudge is sponsoring a 'Dear Colleague' letter to fund the HOME Program at $1.2 billion in FY 2019. The deadline for Representatives to sign on is COB Tuesday, March 13. House offices can sign on using this link.

Rep. Jerrold Nadler is sponsoring a 'Dear Colleague' letter urging the THUD Subcommittee to support Section 8 funding at $22.8 billion. The deadline to sign is March 15th. Members can sign on by contacting: melissa.connolly@mail.house.gov.

You can call the congressional switchboard at (202) 224-3121 and ask to be connected to your member of congress.

Thank you for your advocacy and support!

Governor Cuomo Releases 2019 Executive Budget

Jan.18.2018

Governor Cuomo released the SFY 2019 executive budget on January 16th which starts the clock ticking for budget season in Albany! Here is our first analysis of the budget areas important to the supportive housing community.

5 YEAR HOUSING & HOMELESSNESS PLAN

Included in the executive budget is a re-appropriation of last year’s $2.5 billion 5 year housing and homelessness plan that includes funding for 6,000 units of supportive housing over 5 years. This specifically includes $950 million in capital funding and $124.5 million for service and operating expenses for the first 6,000 units over the next 5 years.

In addition to this funding other budget areas of interest include:

OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE

• Homeless Housing Assistance Program (HHAP) - $64 million – Same funding amount as last year
• Homeless Housing Preventative Services Program  - $36.8 million - $1.4 million INCREASE
  The Executive Budget increased the Homeless Housing Preventative Services (HHPS) Program by $1.4 million over last year’s final budget.  HHPS funds the New York State Supportive Housing Program (NYSSHP), the Solutions to End Homelessness Program (STEHP) and the Operational Support for AIDS Housing (OSAH) Program. 

HOMES & COMMUNITY RENEWAL

• Housing Trust Fund - $44.2 million – Baselined
  The Executive budget proposes funding the Housing Trust Fund at $44.2 million which is $21 million less than last year when there was additional funding added from the mortgage insurance fund. 

OFFICE OF MENTAL HEALTH

• OMH Supportive Housing – $10 million Increase to Enhance Support for Existing Residential Programs.
  The budget increases funds for supported housing and single residence occupancy programs by $10 million. This is significantly less than what is needed to maintain the existing units and will be an advocacy priority for the Network this year.
• Workforce Increase
  The Budget includes $255 million to support the 6.5 percent salary increase provided to direct care professionals and 3.2 percent salary increase for clinical staff to support the increase included in last year’s budget.

DEPARTMENT OF HEALTH/MEDICAID REDESIGN TEAM (MRT)

• MRT Supportive Housing Fund - $63 million – Same funding amount as last year
  Last year, the funding was cut by $20 million and funded at $63 million.  The cut did not impact any existing programs, but rather impacted programs outlined in the allocation plan that had not been implemented.  This year, DOH is proposing to keep it funded at the same level, with no additional cuts.

Delays Cost of Living Increases for Staff

The Budget language defers a COLA increase for 2017 until 2019.

The budget now must be passed by the Legislature and signed by the Governor no later than April 1st. In the next few weeks, the Senate and the Assembly will hold budget hearings and negotiate with the Governor. The Network’s advocacy in the upcoming weeks will focus on the proposed initiatives outlined above. We are currently planning a March 6 Advocacy Day. We encourage all Network members to participate.  Please email Steve Piasecki at spiasecki@shnny.org to register. 

Affordable/Supportive Housing Breaks Ground in Mt. Hope, the Bronx

Jan.18.2018

State, city and local luminaries were on hand January 9th to break ground on a new three-building affordable/supportive housing project in the Mt. Hope section of the Bronx, a collaboration of Thorobird Companies and ACMH. The project is unique on a number of fronts: it is the first and largest ground-up affordable project developed by an African American firm since 2011 and is among the few developments to mix supportive, affordable and middle-income housing. Of the 138 units, 41 will be supportive – funded through the Empire State Supportive Housing Initiative; of the affordable, 14 are set-aside for households earning 90% of AMI and the rest for families and individuals at 40-60% AMI.

Thorobird’s Thomas Campbell welcomed the crowd saying “The Grand is the first step to providing one of the city’s most economically-challenged areas with quality affordable homes.”

HCR Commissioner RuthAnne Visnauskas echoed those sentiments, adding “the Grand is a profound statement that when we build our city and our state, we include everyone in the process.”

Bronx Borough President Ruben Diaz emphasized the project’s income/unit mix "Creating affordable housing units was a top priority since my first day in office, and the work we have done in the Mount Hope and Morris Heights neighborhoods are a testament to the efforts we are putting in to make this happen. These 138 units in three buildings will provide true mixed-income housing, addressing the needs of low- and middle-income residents, providing supportive units for our most vulnerable residents. I want to thank Thorobird and ACMH on this partnership, as well as Gov. Cuomo and all the New York City agencies that lent their leadership to continue our growth, as a borough."

 

ACMH’s Executive Vice-President and CEO Dan Johansson closed out the program with these words: “Supportive housing is the golden thread, or better still, the iron thread, that runs through the fabric of great projects like this one.  It’s gold because it brings the experience and mission-driven commitment of non-profits to everything from the design to the operation; its iron because it brings underwriting that makes projects durable, sustainable, and resilient. It’s a thread because when you step back and look at the fabric of the community, supportive housing is neither seen nor heard.  Think about it: people down on their luck due to age, disability or poverty are only seen when they are on the street.  When they have permanent, affordable housing and access to a lifeline of social supports like here at the Grand, they are just like you and me, going about their daily lives and contributing to their community.  “They” are no longer them; they are us.”

Funding for the project came from NYS Homes and Community Renewal, NYC’s Housing Preservation and Development Department, and NYSERDA. The Bronx Borough President, Councilmember Ritchie Torres and Councilmember  Fernando Cabrera each contributed Reso A funds with the councilmembers contributing $250,000 and the Borough President contributing $500,000. On-site supportive services are funded through the Empire State Supportive Housing Initiative and will be provided by ACMH. The tax credits were syndicated by CREA, the architect is GF55 and the contractor is M. Melnick & Co., Inc.

NYC 15/15: Guest Blog from HPD Commissioner Maria Torres-Springer

Jan.09.2018

Addressing homelessness is a moral imperative, and a central goal of Housing New York, Mayor Bill de Blasio’s plan to create 300,000 affordable apartments by 2026.  At the forefront of this effort is supportive housing – a proven, effective model that pairs affordable housing with on-site services, saves public dollars, and meets the special needs of the most vulnerable New Yorkers.  That is why, in November 2015, Mayor Bill de Blasio announced the NYC Supportive Housing Initiative to create 15,000 new units of supportive housing in New York City over the next 15 years.

This far reaching initiative includes a projected 7,500 newly-constructed congregate (single-site) units, which will be financed by the NYC Department of Housing Preservation and Development (HPD) and 7,500 scattered-site apartments that will be created by the NYC Human Resources Administration (HRA). NYC DOHMH will manage the service contracts on an ongoing basis.

HPD has a strong track record of financing new construction and preservation of supportive housing through its various loan programs.  To date under Housing New York, the agency has financed over 3,000 supportive housing units, which includes early progress towards the NYC Supportive Housing Initiative.  And we recently launched the NYC 15/15 Rental Assistance Program to subsidize rent for homeless individuals and households living in permanent, rent stabilized supportive housing units.  This City-funded project-based rental assistance is modelled after the project-based Section 8 program, but is not subject to changes in federal funding levels and requirements, making it a particularly critical and timel innovation.

HRA is the lead agency for procuring service awards for the scattered site and congregate units through a Request for Proposals (EPIN: 09617I0006 available through HSS Accelerator).  HPD will match NYC 15/15 Rental Assistance to units that are awarded services under HRA’s RFP.  Once a project receives a tentative award letter, the application for rental assistance is quick and straightforward – sponsors only need to fill out a two-page application with basic project information. HPD will then work with applicants to issue a commitment letter for NYC 15/15 Rental Assistance that aligns with the HRA award.

Similar to Section 8, the initial contract rents for NYC 15/15 congregate units will be up to the Fair Market Rent (FMR), and owners may request annual increases. Similar to Section 8, owners receive an Agreement to enter into Rental Assistance Contract prior to construction closing. Once the project has a Certificate of Occupancy and units have passed a Housing Quality Standards (HQS) inspection, the owner can allow tenants to move in and sign a Rental Assistance Contract (RAC) to begin payments.

We do this work in the face of incredible uncertainty.  For decades, the federal government has been chipping away at programs and resources for affordable housing.  Today, it seems all of the programs we rely on –the HOME Investment Partnership Program, Section 8, the Low Income Housing Tax Credit, Private Activity Bonds – are under threat.  And while ultimately we are in a better place because of the fierce and coordinated advocacy of the Network and affordable housing groups across the country, the fight is far from over. 

While there are many threats and challenges on the course ahead, there are also opportunities.  Indeed, New York City has long been a leader in showing how the supportive housing community can adapt and innovate.  Now, more than ever, we need creative solutions like this new rental assistance program to serve those who are most in need of supportive housing, while demanding that no level of government walk away from its obligation to house our most vulnerable.  

More information about the NYC 15/15 Rental Assistance Program can be found on HPD’s website. If you have a site in mind, we encourage you to talk to us! We are open for business and eager to work with you to make your supportive housing project a reality.

We are grateful to our friends at the Network for their tireless advocacy and support to develop these buildings, and to all the providers who turn them into homes. We wish you all the best for a happy, healthy New Year, and look forward to continuing our partnership to provide safe, high-quality affordable housing and services for New Yorkers across the five boroughs.

NYC 15/15 Rental Assistance Program Frequently Asked Questions
NYC 15/15 Rental Assistance Application Package