Housing within Reach
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 TDMHDD dollars to be used more efficiently and effectively. By leveraging TDMHDD 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.
