1

Shelter Plus Care:Focus on the Basics

Annual Technical Assistance Workshop for the SPC Project Sponsors of

Harris County October 15, 2008

2

Terminology

24CFR582 – SPC Program regulation citation Grantee - Harris County Participant = Tenant = Client Project Sponsors/Sponsor Agencies

AIDS Foundation Houston (AFH) HOPWA Housing Corporation (HOPWA) Mental Health Mental Retardation Authority of Harris County (MHMRA) Service of the Emergency Aid Resource Center for the Homeless

(SEARCH) Veterans Affairs (VA) Volunteers of America (VOA)

3

SPC Program Purpose 24CFR582.1

To provide permanent housing in connection with supportive services to hard-to-serve homeless persons with disabilities and their families.

Primary target populations are serious mental illness, chronic problems with alcohol and/or drugs, HIV/AIDS.

Refer to HUD website at: http://www.hud.gov/offices/cpd/homeless/programs/splusc/index.cfm

4

Program Components 24CFR582.100 Tenant-Based Rental Assistance (TRA)

All scattered site projects Sponsor-Based Rental Assistance (SRA)

AFH’s My Home, both VOA projects Project-Based Rental Assistance (with or

without rehab) (PRA)AFH’s WAMHOPWA’s Northline SRO

SRO-Based Rental Assistance (none)

5

Eligible Participants 24CFR582.1

A person must be both homeless and disabled

In the case of a homeless household, at least one adult member must meet the program’s definition of disabled

6

HUD’s Definition of Homeless On the street or in an emergency shelter Transitional housing for homeless persons who

came from the street or emergency shelter In one of the above places, but is spending up to

30 consecutive days in a hospital or other institution

The CSD Homeless Checklist with supporting documentation attached must be placed in each participant file

7

Chronic Homeless Unaccompanied homeless individual Disabling condition Continuously homeless for a year or more OR at

least four (4) episodes of homelessness in the past three (3) years

Must have been sleeping in a place not meant for human habitation (e.g., living on the streets) and/or in an emergency homeless shelter during that time

CSD’s Homeless Checklist with supporting documentation attached must be placed in each participant file

8

Examples of Inadequate Homelessness Documentation Letter from referral source states: “Client has

completed treatment and is ready for permanent housing.”

Letter from shelter states: “This letter is not to verify homelessness.”

Too much time between the date that the client was documented as being homeless and the lease start date. Stayed in shelter on 9/15/08 Lease start date 10/1/08

9

What’s wrong with this scenario?

Supporting homelessness documentation letter states: Ms. Smith was admitted to residential treatment on 1/2/08. Client was homeless at the time of admission to the residential treatment and is homeless at the time of discharge with no safe housing to return to that is healthy and supportive of recovery efforts and family reunification. She is financially indigent and will be living on the street or in a shelter if not able to obtain housing.

10

What’s wrong with this scenario?

The Homeless Status Checklist indicates Mr. Vines was residing in a transitional housing facility before entering the SPC program. The supporting homeless documentation denotes that the caseworker visually saw Mr. Vines residing in his car. He completed his transitional stay in 60 days.

11

What’s wrong with this scenario?

The Homeless Status Checklist indicates Mr. Anderson was living on the streets. The SEARCH mobile outreach team provided documentation that Mr. Anderson was living under the bridge at I45/Pierce. The physician’s note states that Mr. Anderson is looking forward to getting permanent housing so he can stop staying at his parents’ house.

12

Disability

Persons with disabilities - those who have a disability that Is expected to be of long-continued and

indefinite duration;Substantially impedes his or her ability to live

independently; and Is of such a nature that the disability could be

improved by more suitable housing conditions

13

Documentation of Disability That the impairment is of a long-continued and

indefinite duration AND it substantially impedes the person’s ability to live independently.

Written documentation must come from a credentialed professional trained to make such a determination.

Self-certification is unacceptable. “CSD’s Disability Verification” form must be

signed and placed in each participant file.

14

What’s wrong with this scenario?

Mr. Frazier entered the SPC program on 6/4/07. His disability verification came from a third party licensed social worker who provided source documentation verifying that he was a resident in their drug treatment program from 9/12/06 through 1/30/07.

15

What’s wrong with this scenario?

Mr. Garcia has been diagnosed with HIV. His source documentation was submitted by his physician indicating Mr. Garcia’s condition is long term and could be improved if he had a more suitable housing condition.

16

What’s wrong with this scenario?

Ms. Beautiful was referred to the SPC program by a local shelter. The shelter provided a copy of Ms. Beautiful’s Social Security Income Letter to prove she is disabled. The shelter also provided a letter signed by her physician that Ms. Beautiful has a diagnosis of Major Depression.

17

Eligible Activities 24CFR582.105 There are two activities eligible under SPC

Rental assistance for program participantsEligible administrative costs associated with

administering the rental assistance (not the costs of administering supportive services or preparing the application, reports or audits)Refer to HUD’s Homeless Resource Exchange website: http://hudhre.info/index.cfm?do=viewSpcResourceManSec2-1

18

Rental Assistance 24CFR582.105

Includes rent and a utility allowance (if it is not an “all bills paid” unit)

When necessary, includes a security deposit in an amount up to one month’s rent (to be discussed this afternoon)

Funds can be used for one month’s rent for housing units vacated by a program participant “Vacated” excludes brief periods of inpatient

care (limited to 90 days)

19

Administrative Costs 582.105(e)(2)Up to 8% of grant amount left over after Rental

Assistance has been covered can may be used for:

Receiving participants into the program Providing housing information and search assistance Determining participant income and rent contributions Processing rental payments to landlords and utility

companies Inspecting units for compliance with HQS (Grantee)

20

Leasing Requirements

Fair Market Rents Rent Reasonableness Utility Allowances Housing Quality Standards Lead-Based Paint Requirements Occupancy Agreements Termination of Assistance Fair Housing and Equal Opportunity Resident Rent Calculations

21

Fair Market Rents

The gross rent (amount of contract rent on the lease plus the amount of utility allowance) cannot exceed the Fair Market Rent for the unit.

FY2009 FMR’s effective October 1, 2008 for Harris County are: SRO $481 1BR $642 2BR $714 3BR $1154 4BR $1451

22

Rent Reasonableness 24 CFR 582.305The amount of rent charged must be certified as

reasonable

in relation to rents being charged for comparable unassisted units with similar features and amenities

and not more that rents currently being charged by the same owner for comparable unassisted units

Submit a Rent Reasonableness Request form for CSD approval before a new participant moves into the unit or before renewal lease begins.

If tenant pays utilities, also send the Utility Allowance worksheet.

23

Utility Allowance Worksheet When utilities are not included in the rent paid to

the landlord, the SPC participant is given a utility allowance to be deducted from their resident rent portion.

Complete the Utility Allowance Form issued by either the Harris County Housing Authority (or the City of Houston Housing Authority if the unit is in the City of Houston.) Remember there are different forms/amounts based on single

family, mobile home, up to 4 units, and 5 or more unit complexes.

The worksheet must be submitted along with the Rent Reasonableness Request form.

24

NEW

Once the unit contract rent amount has been certified as reasonable, the Rent Reasonableness Request form is effective for the participant’s stay in the unit. If the participant moves or the rent amount increases, a new Rent Reasonableness Request form is required.

If an “all bills paid unit” will change to requiring the tenant to pay the utilities, a new Rent Reasonableness Request form must be submitted before the change.

Tip: obtain a copy of the “Renewal Letter” which is usually mailed out 35 days before the end of a lease.

25

What’s wrong with this scenario?

On 9/12/08, a Rent Reasonableness Request for Mr. Smith was submitted indicating that the contract rent would be $450.00. CSD certified this amount as reasonable on 9/13/08. The lease submitted with the October 2008 reports had $460.00 as the contract rent amount for the time period 10/1/08 through 9/30/09.

26

What’s wrong with this scenario?

Rent Reasonable Request

Microsoft Word Document

27

Housing Quality Standards 24CFR582.305 HQS sets acceptable conditions for interior

living space, building exterior, heating and plumbing systems and general health and safety

Before any rental assistance may be provided the grantee, or other qualified entity, must physically inspect and pass each SPC unit

28

Housing Quality Standards 24CFR582.305(a) Problems must be corrected within 30

days from start of the lease Grantee must verify problems have been

corrected Grantee must conduct annual physical

inspections of all units

29

What’s wrong with this scenario?

An HQS was requested and passed on 6/16/07 for Ms. Hayes. In preparing the reports for July 2008 rents, Sponsor Agency staff notice that the annual inspection is past due. Ms. Hayes continues to live in the same apartment complex, so a new HQS request is submitted and the unit passed on 6/20/08.

30

Lead-Based Paint Requirements

Regulations at 24 CFR Part 35 Applicability Required activities Training requirements

Place a copy of the Disclosure Form signed by the participant in the file.

For more information (regulations, disclosure forms, training opportunities, guides): HUD Office of Lead Hazard Control homepage:

www.hud.gov/offices/lead EPA Clearinghouse: (800) 424-LEAD

31

Occupancy Agreements

Updated version now requires information on the names of the other persons living in the unit, their relationship to the participant, date of birth and gender. Remember, the information on the Occupancy

Agreement must match the information on the Lease, Rent Calculation Worksheet, Persons Served Worksheet and Household Characteristics Reports

32

What’s wrong with this scenario?

Occupancy Agreement lists 2 persons living with the participant: a 17 year old spouse and a 1 year old son

Rent Calculation Worksheet shows an allowance for 2 dependents

33

What’s wrong with this scenario?

An occupancy agreement dated 5/1/08 for Ms. Ritalin and two (2) dependents was submitted. As of today, 10/15/08, the participant has married and has one (1) additional dependent. The annual certification is not due until 5/1/09, however the original occupancy agreement is still on file.

34

Termination of Assistance

Rental assistance may be terminated if a participant violates conditions of occupancy

Regulations recommend that participants be terminated only for the most serious rule violations

If termination is necessary, the Project Sponsor must follow a formal process that recognizes the participant’s rights to the due process of law

May resume assistance to persons whose assistance was previously terminated

35

Fair Housing and Equal Opportunity Federally funded projects cannot discriminate in the

renting, selling, and advertising of dwelling units on the basis of race, color, religion, sex, familial status, or national origin, or on the basis of the renter or buyer being disabled.

Even though the SPC regulations permit housing providers to establish a target population, HUD’s position is that no homeless person with a disability can be denied admission to a SPC funded project just because he/she does not have that targeted disability.

Refer to Corporation for Supportive Housing, “Between the Lines”, Chapter Four: Serving Designated Populations, http://www.csh.org/html/btlnat1-6.pdf

36

Resident Rent Calculations24 CFR 582.310

Each resident of SPC must pay the highest of:

30 percent of monthly adjusted income 10 percent of monthly gross income portion of the family’s welfare assistance

designated for payment of rent

37

Calculating Tenant Rents Requirements for calculating tenant rent payments are

detailed in CPD Notice 96-03 Shows how to calculate rental payments using a worksheet Specifies items that must be included and excluded in

determining annual income Specifies allowable adjustments to income Discusses general rent topics Note: If the utility allowance for tenant-paid utilities is more than the

resident rent payment, the Project Sponsor can pay the difference to the utility company and request SPC reimbursement.

Use the rent calculation worksheet on CD or online at www.hud.gov/offices/cpd/homeless/programs/shp/rent.xls Use CSD’s form

38

Annual Income vs. Adjusted Income

Annual Income - The gross amount of income anticipated to be received by a household during the coming year

Adjusted Income – A household’s annual income less specified deductions based upon family circumstances

39

Income source documentation Unacceptable calculations

Using only one paycheck stub Using amount of food stamps in calculation Not including income from assets (401k, life insurance policy,

etc.) Not reporting total household income

People/dependents listed on the Occupancy Agreement, Persons Served Worksheet, and HCR must match

Use the “Non-Income Affidavit” form when the participant has no income nor assets.

Use the “Non-Income Affidavit Statement of Sole Support” if other adults in the household have no income.

40

What’s wrong with this scenario?

The participant receives a pension in the amount of $900.00 and provides this source documentation on 2/3/06. It is now Feb. 2008 and it is the second annual period of the recertification; the participant’s income has not changed, and the letter from 2/3/06 is used for verification.

Small Group

Rent Calculation Scenarios

42

Pre-approval for new SPC Participants - NEW Effective immediately, Project Sponsors

must submit an Individual Eligibility Form with supporting documentation for all participants entering the SPC program.

Microsoft Word Document

43

Lunch Break

44

Annual Certification - NEW

Annual Certification is the day that a new lease, a new Resident Rent Calculation Worksheet with supporting income source documentation, and a new Occupancy Agreement are completed.

“New lease” applies to a participant moving to a new unit, renewing a lease, or when the lease changes due to an increase in rent or change in the utilities paid by the landlord/tenant.

In order for a participant to move, Sponsor Agency has to approve the move, and the move must be justified (unit burned in fire, HQS failed multiple times) – no hopping around.

45

CSD Programmatic Reports

Monthly Reports:Project Status ReportSPC Household Characteristics Summary SPC Household Characteristics Report

Quarterly Persons Served Worksheet

46

CSD Financial Reports

Presented by CSD Finance Staff

47

Annual Progress Reports

Use the Persons Served Worksheet and the APR from the previous reporting period

Use the CSD APR Checklist

Submit electronic copies of the CSD APR Checklist and APR to Project Monitor; signatures will be obtained after CSD’s review is completed

APR is due to CSD no later than 30 days after the end of the operating year.

48

Mistakes when completing APR

Inconsistencies between related APR questions Wording in the objectives differs from previous

year’s objectives Project not at capacity on the last day of the

operating year, but no explanation is given on the last page

Numbers of adults/children on the Person Served Worksheet does not match the number of persons reported in APR (such as in item 2. first day, entered, left, last day)

49

Monitoring Areas Participant Eligibility

Housing

Project Progress

Match Documentation

Overall Management Systems

50

Purpose of Annual Monitoring

To determine compliance with HUD regulations, circulars and statutes

To determine whether activities are implemented as described in the application and APR

To verify that all required documentation is in the file

To determine if all income was used to calculate resident rent

51

Recordkeeping 24CFR 583.300(g)

When you receive the notice of an upcoming monitoring visit, review the attached Monitoring Checklist for areas which will be reviewed.

If your agency keeps electronic records, you need to print out all forms for monitoring purposes.

Even if a participant has been in the SPC program for years, CSD will check for eligibility (homeless and disabled documentation, date of entry into program/first lease, etc.) during annual monitoring visits.

Closed participant files are subject to review. Be careful when “thinning out” large files that all

required documentation is available for review.

52

Participant File (should include)

Application into the program which includes how your agency determined client met eligibility

Individual Eligibility Form with attached documentation of homelessness and disability

Initial assessment, service plan, ongoing assessments, progress notes

Rent calculations, income source documentation, occupancy agreements, and leases

Discharge summaries with exit dates

And other items deemed necessary for SPC

53

Other Files Approved application/amendments and

award documents

Program procedures (next slide)

Correspondence, regulations and program guidance

Financial

Property information, if applicable

54

Policies and Procedures Manual for your SPC program Not for the agency overall Should include CSD reporting forms for the SPC

program Outreach plan/how applicants are received Application process Determining eligibility for SPC Procedure for meeting SPC Participation of Homeless

requirement A copy will be obtained at the annual monitoring visit

55

Capacity - NEW

When a SPC project has not been at capacity for three (3) consecutive months, Harris County will issue a Finding. Sponsor Agencies will have 60 days to correct the deficiency. Future renewal requests may be jeopardized due to projects not operating at 100% capacity.

56

Participation of Homeless 24CFR582.300(a)(1),(2)

Must provide for participation of at least one homeless or formerly homeless individual on the board of directors or other equivalent policy-making entity, to the extent that the entity makes policies and decisions regarding the SPC project

If unable to do so, must otherwise consult with homeless or formerly homeless persons when considering and making policies and decisions regarding the SPC project

57

Documenting Participation of Homeless - NEW

Sponsor Agency should provide documentation, such as Board approval, of formal participation, listing the duties and responsibilities of how the person assists the Board with homelessness issues.

Sponsor Agency should obtain a written statement from the respective person detailing their current or formerly homeless situation.

A copy will be obtained at the annual monitoring visit.

58

Security Deposits - NEW Project Sponsors will be able to use SPC

grant funds for security deposits, not to exceed one month’s rent, paid directly to the owner/landlord.

Submit the “Security Deposit Request Form” along with the monthly programmatic and financial reports.

59

Another HUD resource available HUD has updated the Supporting

Housing Program Desk Guide. Portions on documenting homelessness,

calculating resident rent, and lease requirements can be helpful to SPC.

http://hudhre.info/documents/SHP_Deskguide.pdf

60

Questions/Answers