SSVF Temporary Financial Assistance Temporary Financial Assistance Types

SSVF Temporary Financial Assistance

Temporary Financial Assistance Types 2 n n n n Ø Rental assistance Utility-fee payment assistance Utility deposits Security Deposits Moving costs Emergency supplies Child care Transportation All funds are to be issued to a 3 rd party

Unallowable Financial Assistance 3 See SSVF Program Guide (p. 56)! n Cash assistance n Credit Card bills n Extensive Car repairs (> $1, 000) n Car Payments for participants n Medical Supplies n Food n Mortgage costs n Travel costs (bus passes for work are eligible) n Home furnishings n Telephone n Entertainment Cost (inc. cable, satellite TV, etc. ) n Internet Services n Pet care

Habitability Standards 4 Grantees are encouraged to assure that participants’ housing is safe and sanitary by conducting a Habitability Inspection. See SSVF Program Guide: Exhibit B, p. 68 -69 for detailed Habitability Standards

Financial Assistance & Participant Plans 5 n “If the participant receives temporary financial assistance to pay rent, utilities, or child care, grantees must help the household develop a reasonable plan to address their future ability to pay…” n “Grantees must assist participants to implement the plan by providing any necessary assistance or helping the participant to obtain any necessary public or private benefits or services. ”

The Plan 6 The plan is based upon income vs. expenses: increase/stabilize income and/or reduce expenses. What is a “reasonable” plan? n n A plan that has a reasonable chance of success AND The best plan that can be developed under current circumstances. What is “unreasonable”? n n <Most of the time> A plan that assumes the participant will no longer be very low-income AND/OR <Most of the time> A plan that assumes the participant will quickly and significantly change a long-term lifestyle.

The Plan affects re-housing/ relocation housing choices 7 n Consider likely income when deciding where to re-house or relocate a household n Don’t select a unit that likely cannot be retained once rental assistance ends n Look for the cheapest housing that is safe n The household can upgrade their housing as their income improves

Example: The Larssons 8 The Veteran family (the Larsson family) has two parents and 3 children under 6. They have been staying in a homeless shelter because the father was in an accident, couldn’t work for a month and lost his $11/hour job. The mother has been staying at home to care for the children. You are assisting the Larssons to move into housing. n What are your “reasonable” assumptions? n How should these assumptions affect the household’s choice of housing?

What are your assumptions for this household? 9 n INCOME ASSUMPTION? – Mr. Larsson will find a full-time job that pays: $11/hour? $13/hour? $9/hour? – The family will find affordable daycare and Ms. Larsson will get a part-time or full-time job? n RENT BURDEN ASSUMPTION? – The household can pay 30% of their income on rent? 50%? 75%?

Analyze your assumptions! 10 Highest income Medium income Low income $XXXXX Highest Rent Burden (X%) Rent: $___ Medium Rent Burden (X%) Rent: $___ Lowest Rent Burden (X%) Rent: $___

The Larssons: Assuming 1 wage-earner 11 Highest possible income Medium income Lowest expected income $11/hour FTE $22, 880 $9/hour FTE $18, 720 (65%-80%) Rent: $1235$1525 Rent: $1015$1250 Rent: $450 -$555 Medium Rent Burden Rent: $950 -$1220 Rent: $780 -$1000 Rent: $350 -$445 Rent: $575 -$934 Rent: $470 -$765 Rent: $208 -$340 Highest Rent Burden (50%-64%) Lowest Rent Burden (30%-49%) $8/hr, 0. 5 FTE $8, 320

Plan for Larsson Family 12 Reasonable Assumption: $9/hour (Medium Income) 50% Rent Burden Rent ~$800 In your community, it is possible to find a decent 1 -BR apartment for $800/month. Family has 3 children under 6. Reasonable Plan: Second job or higher pay/hour? OR Higher rent burden? OR Less desirable neighborhood so HH can afford apartment with 2 BRs? OR Children sleep in BR + parents sleep on sofa-bed in living room?

Financial Assistance & Participant Plans 13 n “If the participant receives financial assistance for security or utility deposit or moving costs, the grantee must help the participant develop a reasonable plan to address the household’s future housing stability. ” n “Grantees must assist participants to implement the plan by providing any necessary assistance or helping the participant to obtain any necessary public or private benefits or services. ”

Financial Assistance & Participant Plans 14 The plan is based upon addressing (not assuring) the participant’s ability to remain housed. What is a “reasonable” plan? n A plan that has a reasonable chance of success AND n The best plan that can be developed under current circumstances. What is “unreasonable”? n <Most of the time> A plan that requires the participant to quickly and significantly increase income and/or change a long-term lifestyle. n <Most of the time> A plan that presumes the household will have no future financial crises, will not move to different housing, and will exhibit a high level of skill in all aspects of housing.

What is necessary for housing stability? 15 n n Ability to pay the rent Ability to comply with the lease Ability to care for the unit (or at least not damage it!) Ability to get along with the landlord and other tenants (or at least not escalate into open conflict)

Ability to pay the rent… 16 n n Income vs. Rent. Ideally, rent should not be more than 60% of income, but this will not always be possible. Emergency reserves. Ideally, a household should have enough savings to cover emergencies without sacrificing rent, but this will not always be possible. Budgeting. Reduce discretionary expenses, increase use of in-kind assistance. Last resort: Representative payee or vendor-paid benefits for rent.

Ability to comply with the lease… 17 n n Understand landlord-tenant rights and responsibilities “Translate” important lease language Identify patterns of past noncompliance and plan to prevent recurrence Illegal drugs—buying, selling, using

Ability to care for the unit (or at least not damage it)… 18 n n n Fire-safety Sanitation Plumbing! “Soft” expectations for housekeeping Knowledge of cleaning methods and products Avoid “do-it-yourself”

Ability to get along…. 19 n “Soft” expectations/norms for noise, odor, interactions, children’s behavior n Ability to respond appropriately to complaints n Ability to make appropriate complaints n Ability to talk to landlord and negotiate for rent extension, guests, etc. n Boundaries for friends/family who visit

When does a participant need more than SSVF can offer? 20 n Look at your targeting, screening and assessment. Are you screening out too many households? Are your participants failing immediately after services end (participants may experience another crisis in the future)? n Does a participant need longer-term or more intensive assistance than you can offer? Is that assistance available and acceptable to the household? If not, you may be their only hope. n May need to refer participants to other services. Know what is available !

How much and what kind of financial assistance? 21 n Just enough for participant to get or keep housing n If household isn’t expected to be able to sustain costs of current housing once financial assistance ends, just enough to relocate to less expensive housing n Does not exceed the SSVF time/frequency limits for each category of financial assistance n Within your program’s budget cap for total temporary financial assistance spending (30% of grant)

Financial Assistance Requirements and Limitations 22 n Third party payments only n No assistance if the participant is already receiving another form of Federal/state or local assistance for the same time period and cost type (e. g. LIHEAP and SSVF utility assistance) n Costs must be reasonable and documented

Rental Assistance 23 n Maximum of 8 months over a 3 -year period, or 5 months over a 12 -month period (months of arrears assistance are included in these totals!) n Includes the payment of rent, penalties or fees to help a participant remain in or obtain permanent housing n Legal lease or written occupancy agreement must be in place n Rents must comply with HUD’s “rent reasonableness” standard; FMRs do not apply

Rental Assistance Considerations 24 n How can you design a subsidy that is extremely short-term? Avoid the “cliff effect. ” n How much does the household pay (vs. SSVF) toward rent? n Can the amount of rental subsidy be designed so the family can use some of their income to build emergency reserves for future crises? n How can you increase income, reduce expenses and/or re-house or relocate the household ASAP before rental assistance ends? n Can you bargain for a rent reduction?

Utility Assistance 25 n Maximum of 4 months over a 3 -year period; or 2 months in a 12 -month period – Months do not need to be consecutive or concurrent with rental assistance n Includes arrears n Eligible utilities: heat, electricity, water, sewer and garbage collection – Ineligible: telephone, cable, others

Utility Assistance Considerations 26 n Can you help the household quickly obtain another longer-term source of utility assistance? n Can you assist the household to reduce utility expenses significantly through an energy audit? n Can the household obtain housing where utilities are included in the rent? Is that option a fair trade-off of expenses? n Can the household sign up for a “budget plan” billing that allows the same monthly heating payment year round? (This is not necessarily tied to income—any household can choose this billing method and it makes monthly budgeting easier. )

Utility & Security Deposits 27 n Maximum of one payment of each deposit over a 3 -year time period n Does not count towards utility or rental assistance limitations n Utility & security deposits covering the same period of time in which assistance is provided through other housing subsidies are eligible.

Deposit Payment Considerations 28 n When the participant owes substantial utility arrears and thus cannot get utilities connected in another apartment, consider renting a unit where the landlord is responsible for utilities; it may be less expensive than paying all arrears. n Security deposits MAY be negotiable—up or down (sometimes a higher deposit is the only way to obtain housing for a tenant with a very poor rental history, criminal history, etc. )

Moving Costs 29 n Includes moving company expenses, and short-term storage fees —all are limited to one time in a 3 -year period. n Storage: Maximum of three months or until the participant is in permanent housing (whichever comes first) n Transportation costs for participants related to a move (e. g. , bus, train) are not eligible n Grantees are responsible for determining “reasonable” costs and any limits that apply. This will be monitored. n If a grantee decides to help a client relocate to another geographic area, the grantee still retains responsibility for ensuring all program requirements are met.

Transportation Assistance 30 n n No limit on amount of public transportation assistance (within program budget) No time limit on public transportation assistance Maximum of $1, 000 car repairs/maintenance over a 3 -year period Eligible only if such assistance will help enhance housing stability – E. g. Local bus pass so a participant can travel to her new job while she relocates to a closer apartment.

Child Care Assistance 31 n n Maximum of 4 months over a 3 -year period, per household (even if household includes multiple children) Payment must be made to an eligible child care provider “A provider of child care services for compensation, including a provider of care for a school-age child during non-school hours, that: (1) is licensed, regulated, registered, or otherwise legally operating, under state and local law, and (2) satisfies the state and local requirements, applicable to the child care services the provider provides. ”

Child Care Assistance Considerations 32 n Is the need for child care temporary? Until a relative can help… or a parent recovers from an illness/injury… or a couple can find jobs on different shifts? n Know the waiting lists for affordable child care—is a 4 -month subsidy long enough to bridge the time until the household is accepted?

Emergency Supplies 33 n n n Maximum of $500 over a 3 -year period Includes supplies that the grantee deems necessary for the participant’s life or safety Examples: food, medical supplies, baby formula or diapers, etc. – These supplies are only eligible when the participant is in an emergency situation

Associated Costs 34 n Costs associated with processing and implementing financial assistance are eligible costs within the 90% of grant funds that must be spent to provide or coordinate supportive services (not an administrative cost). Examples: – Time spent cutting checks to landlords – Habitability inspections

Adequate Source Documentation 35 n Evidence that costs were: – Incurred during grant period – Actually paid (or properly accrued) – Expended on allowable items for eligible participants – Approved by responsible official (within your agency) prior to expenditure

Adequate Source Documentation 36 Examples: § Rental Assistance: § Lease confirming participant and landlord’s names, rental unit address, term (length) of lease, utility inclusion (if any), a bill or paid invoice, and official recommendation and approval by agency for payment § Moving Costs: § Invoice or payment request from the moving company to the participant

Common Errors 37 n n Missing or insufficient documentation for expenses paid No comparison to determine that costs were reasonable – No rent reasonableness for units assisted – No comparison costs reviewed for moving, and storage expenses n n Ineligible expenditures Paid more than is allowable – E. g. Rental assistance for 6 months within 1 year

Final Considerations 38 n “Just enough”: Provide only the assistance that is needed to assure the household can get and keep housing. n Stretch your financial assistance; e. g. limiting participants’ rent contributions at 30% of their income will reduce funds available to assist others. You may—and probably should– charge “co-pays. ” n Prioritize who you will serve and what needs you must address. n You are encouraged to target households who, but for this assistance, would become or remain homeless.

39 Questions?