Permanent Housing Funding Scenarios

Community A conducts their first Creating Homes Initiative meeting and determines that 24-Hour, On-Site Staff, Permanent Supportive Housing is the highest priority for their community. After which, Agency B decides to research community housing resources and finds a house. The cost of this house is $250,000. This house can potentially be rehabbed to meet local zoning codes and state regulations for $100,000 to provide quality, affordable, safe, and permanent housing for eight individuals with mental illness. The agency projects that the annual operation costs (utilities, taxes, insurance, food, maintenance, etc) will be $50,000. In addition, they state that the support services (on-site and management staff) cost will be $150,000 annually.

The following represents different potential funding arrangements for the above housing:

  Scenario One Scenario Two Scenario Three

Housing Acquisition*

$250,000

THDA

$250,000

FHLBank

$200,000

TDMHDD

$50,000

HUD COC

$225,000

HOME

$25,000

Housing Rehab*

$100,000

CDBG

$100,000

FHLBank

$100,000

HUD COC

$75,000

HOME

$25,000

Operation**

$50,000

Section 8 / Tenant

$28,000 / $22,000

Foundation

$50,000

TDMHDD

$50,000

Support Services**

$150,000

TDMHDD

$150,000

ALF/CIO

$150,000

Foundation

$150,000

TOTAL PACKAGE: 

Dollars Leveraged: 

TDMHDD Contribution: 

$550,000

$400,000

$150,000

$550,000

$500,000

$50,000

$550,000

$500,000

$50,000

 *one-time costs

**annual costs

Community B determines that independent, permanent housing with no staff on site is their priority. Agency C finds an apartment complex which can be bought for $500,000. It is determined that the rehab cost will be $200,000. This apartment complex will provide up to 20 one-bedroom units of housing for persons with mental illness. In addition, they project that the operation cost (part-time housing manager) will be $20,000.

  Scenario One Scenario Two Scenario Three

Apartment Acquisition*

$500,000

THDA

$250,000

City

$250,000 

FHLBank

$400,000

TDMHDD

$100,000

HOME

$500,000

Apartment Rehab*

$200,000

City

$100,000

Foundation

$100,000 

FHLBank

$150,000

TDMHDD

$50,000

CDBG

$200,000

Operation**

$20,000

TDMHDD

$20,000

Section 8

$20,000

Tenant

$20,000

TOTAL PACKAGE: 

Dollars Leveraged: 

$720,000

$700,000

$720,000

$570,000

$720,000

$0

The above scenarios demonstrate a multi-leveraging process aimed at allowing TDMHSAS dollars to be used more efficiently and effectively. By leveraging TDMHSAS dollars with other federal, state, and local sources, we will be able to provide up to THREE TIMES as many housing units as compared to one-funding-stream practices.