Kentucky Supportive HousingAcademyKentucky Housing CorporationPROVIDED BY HOMELESS & HOUSINGCOALITION OF KENTUCKY
Kentucky Interagency Council onHomelessness
Kentucky Interagency Council on Homelessness:Supportive Housing CommitteeThe committee’s purpose is toencourage the constr...
Recovery Kentucky
Kentucky Supportive HousingAcademyService providers know how to providecase management services and helphomeless families ...
Homelessness & Mental HealthIn comparison to other adults, those whohad been homeless were six times morelikely to have ha...
Supported housing definedDedicated housing resources or subsidiescombined with Human ServicesHuman Services are community-...
Pennyroyal RegionalVeteransProgram Center
Kentucky Supportive HousingAcademyHands-on technical assistance hasstrengthened numerous communitydevelopment practitioner...
Goals & ObjectivesHelp participants understand the existingworld they are entering in thedevelopment of affordable housing...
Why do non-profits participate inhousing development?Social Services ProvisionPercentage of Developer Fee supportsmissionO...
Community Development Corporation orCDC.Also called, non-profit housing developmentcorporations (NDC’s)Typically the corpo...
Kentucky Supportive Housing Academy willinclude topics such as:There are 3 phases in the life of the projectDevelopment St...
The DevelopmentTeam – part 1Developer - responsible for developing project,overseeing construction and overseeing rent-upa...
The DevelopmentTeam – part 2Attorney - responsible for review andnegotiation of loan and investor documentsProperty Manage...
How to choose the siteRehab vs. new constructionAvailability of rental subsidyLocal community & government support (vs.NIM...
How to choose the financingWe’ve considered the market – now whatis the appropriate number of units todevelop?Low-income h...
Kentucky Supportive HousingAcademyHow TrainingWill Be Organized:The training will occur over four monthsand cover a range ...
Kentucky Supportive HousingAcademyTraining session 1: Project concept development, selecting a project size anddesign to f...
Kentucky Supportive HousingAcademyThe training will only be available toorganizations, including CHDOs, with acommitment t...
Pre-Development:Forming project plansAnalyzing project budget to identify costsavings opportunitiesIdentifying understated...
Financing:Negotiating with private and public lendersfor funding to achieve the desired structureConfirming financing comm...
Construction:Working with developersManaging construction and improvementsNegotiating construction contracts
Management:Identifying potential tenantsHandling marketing and pre-leasingNegotiating leasesSelecting and retaining a mana...
SMI Housing, Cincinnati, OH
LIHTC Organizational Structure
Primary risks to non-profit duringdevelopment phaseRisk should be commensurate to level ofcontrol – the non-profit sponsor...
Leasing PhaseTax credit adjustersThe tax credit proforma contains certaintime limits for the lease up of units. It isonly ...
Kentucky Supportive HousingAcademy
Kentucky Supportive HousingAcademy
For more information & to register:FrancesW.AlvisExecutive Director(502) 223-1834 ext. 1114falvis@hhck.org306W Main St, St...
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Kentucky Supportive Housing Academy

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Powerpoint accompanying workshop session from the Homeless and Housing Coalition of Kentucky's 2013 conference. Presented by Bill Kerley, Pennyroyal Center
Permanent supportive housing is a successful, cost-effective combination of affordable housing with services that
helps reduce homelessness for people facing complex challenges and live more stable, productive lives. A major
barrier to the construction of supportive housing is a lack of capacity among non-profit social service/homeless
providers and housing developers. Service providers know how to provide case management services and help
homeless families apply for rental assistance and other public benefits, but they don’t know how to structure tax-
credit projects and access other funds available for affordable housing construction. Low-income housing developers
know how to apply for tax credits and structure deals, but they don’t know how to provide supportive services to
low-income families. This session will benefit all housing and service agencies interested in forging partnerships to
develop permanent supportive housing projects

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Kentucky Supportive Housing Academy

  1. 1. Kentucky Supportive HousingAcademyKentucky Housing CorporationPROVIDED BY HOMELESS & HOUSINGCOALITION OF KENTUCKY
  2. 2. Kentucky Interagency Council onHomelessness
  3. 3. Kentucky Interagency Council on Homelessness:Supportive Housing CommitteeThe committee’s purpose is toencourage the construction of moresupportive housing projects in Kentucky.The committee has identified capacitybuilding among non-profit socialservice/homeless providers in affordablehousing development as an opportunitywhich will result in more SupportiveHousing development.
  4. 4. Recovery Kentucky
  5. 5. Kentucky Supportive HousingAcademyService providers know how to providecase management services and helphomeless families apply for rental assistanceand other public benefits, but they dontknow how to structure tax-credit projectsand access other funds available foraffordable housing construction. Low-income housing developers know how toapply for tax credits and structure deals, butthey dont know how to provide supportiveservices to low-income families.
  6. 6. Homelessness & Mental HealthIn comparison to other adults, those whohad been homeless were six times morelikely to have had an alcohol or drugproblem and three times more likely to havehad a psychiatric illness(Greenburg and Rosenheck n.d.)
  7. 7. Supported housing definedDedicated housing resources or subsidiescombined with Human ServicesHuman Services are community-based mentalhealth services and practical assistance of thesocial work profession.They must be intense,flexible and sustained for many years.(Ellen and O’Flaherty, How to House the Homeless, NewYork, 2010)© 2012 Stephanie Sweeney & Associates
  8. 8. Pennyroyal RegionalVeteransProgram Center
  9. 9. Kentucky Supportive HousingAcademyHands-on technical assistance hasstrengthened numerous communitydevelopment practitioners’ capacity. Ithas bridged the gap between theclassroom and the neighborhood, helpingturn ideas into solid realities.
  10. 10. Goals & ObjectivesHelp participants understand the existingworld they are entering in thedevelopment of affordable housingHelp participants understand risks &rewardsHelp participants understand the conceptof “asset management”
  11. 11. Why do non-profits participate inhousing development?Social Services ProvisionPercentage of Developer Fee supportsmissionOwnership interest in a significant assetWhat organizations typically participate inHousing Development?
  12. 12. Community Development Corporation orCDC.Also called, non-profit housing developmentcorporations (NDC’s)Typically the corporation’s charter identifies thedevelopment of affordable housing as the purposeof the organizationCommunity Housing Development Organizations(CHODO’s) commit to an additional level ofcommunity participation. In return they can receiveoperating support.
  13. 13. Kentucky Supportive Housing Academy willinclude topics such as:There are 3 phases in the life of the projectDevelopment StageLeasing StageOperational Stage
  14. 14. The DevelopmentTeam – part 1Developer - responsible for developing project,overseeing construction and overseeing rent-upand oversight of on going project operationGeneral Contractor – responsible for obtainingbuilding permits and insurance not specifically thedeveloper’s responsibility, building the project asdesigned by the architect, working withconstruction inspectors, and completingconstruction on time and within budgetArchitect - responsible for project design andoften construction supervision
  15. 15. The DevelopmentTeam – part 2Attorney - responsible for review andnegotiation of loan and investor documentsProperty Manager – responsible for tenantcertifications and the day-to-day operationof the projectAccountant - reviews the closing financialprojection, confirms the carryover basis ofcosts in the allocation year, preparespartnership tax returns, and prepares thecost certification required to begin the flowof tax credits.Consultant - Contributes projectdevelopment expertise to the process
  16. 16. How to choose the siteRehab vs. new constructionAvailability of rental subsidyLocal community & government support (vs.NIMBY)Local community & government financialsupportMarket considerationsConsiderations of impaction of affordablehousing & concentrations of populationswith special needs
  17. 17. How to choose the financingWe’ve considered the market – now whatis the appropriate number of units todevelop?Low-income housing tax credits workbest on projects of at least 32 unitsThere are a variety of other toolsavailable to subsidize housingdevelopments of smaller size
  18. 18. Kentucky Supportive HousingAcademyHow TrainingWill Be Organized:The training will occur over four monthsand cover a range of topics critical tosupportive housing development. On thelast day of the training, the teams will makeformal presentations to a panel of funderswho will critique the proposals and makesuggestions for improvements to theprojects.
  19. 19. Kentucky Supportive HousingAcademyTraining session 1: Project concept development, selecting a project size anddesign to fit the community and target population, community support andbudgetingTraining session 2: Service planning for special needs populations andbudgeting; targeting other project partners and commitments,understanding rental assistance options, and supportive housing bestpracticesTraining session 3: Property management, operating budgets and operatingissues, and fair housingTraining session 4: Presentation to funders, with training completed beforeKentucky Housing Corporation releases its Qualified Allocation Plan.Submission of project to KHC’s Qualified Allocation Plan tax credit orappropriate program.
  20. 20. Kentucky Supportive HousingAcademyThe training will only be available toorganizations, including CHDOs, with acommitment to developing low-incomesupportive housing. Participants will berequired to form development teams inorder to apply for the training. The teamswill include three people: representatives ofa service provider; property managementagency; and housing developer.The trainingwill have the capacity for up to ten three-person development teams.
  21. 21. Pre-Development:Forming project plansAnalyzing project budget to identify costsavings opportunitiesIdentifying understated project costs toprevent overrunsRecommending modifications to the budget,financial structure and terms of the financialcommitment to enhance project viabilityDeveloping the financial package forsubmission to private and public sources offunding for financing
  22. 22. Financing:Negotiating with private and public lendersfor funding to achieve the desired structureConfirming financing commitments fromlenders and investorsAssistance with FHLB Affordable HousingProgram applicationsFinding equity investors to purchase taxcredits or become partners in ownershipLoan servicing
  23. 23. Construction:Working with developersManaging construction and improvementsNegotiating construction contracts
  24. 24. Management:Identifying potential tenantsHandling marketing and pre-leasingNegotiating leasesSelecting and retaining a management firmManaging assets
  25. 25. SMI Housing, Cincinnati, OH
  26. 26. LIHTC Organizational Structure
  27. 27. Primary risks to non-profit duringdevelopment phaseRisk should be commensurate to level ofcontrol – the non-profit sponsor shouldbe cautious of responsibility of costoverruns.Should the non-profit sponsor take onresponsibility for areas where it lacksexpertise such as building permits?How to hold the development teamaccountable.
  28. 28. Leasing PhaseTax credit adjustersThe tax credit proforma contains certaintime limits for the lease up of units. It isonly through the lease up of units thatinvestors can actually take their credit.The limited partnership agreement (LPA)will protect the investors in the case unitsdo not lease up as quickly as forseen!
  29. 29. Kentucky Supportive HousingAcademy
  30. 30. Kentucky Supportive HousingAcademy
  31. 31. For more information & to register:FrancesW.AlvisExecutive Director(502) 223-1834 ext. 1114falvis@hhck.org306W Main St, Ste. 207 (McClure Building)Frankfort, KY 40601

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