SSVF Temporary Financial

Assistance

Temporary Financial Assistance Types

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 3rd party

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Unallowable Unallowable Financial Assistance

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

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Habitability Standards

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

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Financial Assistance & Financial Assistance & Participant PlansParticipant Plans

““If the participant receives temporary If the participant receives temporary financial assistance to pay financial assistance to pay rentrent, , utilitiesutilities, , or or child carechild care, grantees must help the , grantees must help the household develop a household develop a reasonablereasonable plan to plan to addressaddress their future ability to their future ability to paypay…”…”

““Grantees must assist participants to Grantees must assist participants to implement the plan by providing any implement the plan by providing any necessary assistance or helping the necessary assistance or helping the participant to obtain any necessary public participant to obtain any necessary public or private benefits or services.” or private benefits or services.”

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The Plan

The plan is based upon income vs. expenses: increase/stabilize income and/or reduce expenses.

What is a “reasonable” plan? A plan that has a reasonable chance of success AND The best plan that can be developed under current circumstances.

What is “unreasonable”? <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.

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The Plan affects re-housing/ relocation housing choices Consider likely income when deciding

where to re-house or relocate a household

Don’t select a unit that likely cannot be retained once rental assistance ends

Look for the cheapest housing that is safe

The household can upgrade their housing as their income improves

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Example: The Larssons

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. What are your “reasonable” assumptions? How should these assumptions affect the

household’s choice of housing?

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What are your assumptions for this household? 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?

RENT BURDEN ASSUMPTION? – The household can pay 30% of their income on

rent? 50%? 75%?

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Analyze your assumptions!

Highest income$XXXXX

Medium income$XXXXX

Low income$XXXXX

Highest Rent Burden (X%)

Rent: $___ Rent: $___ Rent: $___

Medium Rent Burden(X%)

Rent: $___ Rent: $___ Rent: $___

Lowest Rent Burden(X%)

Rent: $___ Rent: $___ Rent: $___

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The Larssons: Assuming 1 wage-earner

Highest possible income$11/hour FTE$22,880

Medium income

$9/hour FTE$18,720

Lowest expected income$8/hr, 0.5 FTE$8,320

Highest Rent Burden (65%-80%)

Rent: $1235-$1525

Rent: $1015-$1250

Rent: $450-$555

Medium Rent Burden(50%-64%)

Rent: $950-$1220

Rent: $780-$1000

Rent: $350-$445

Lowest Rent Burden(30%-49%)

Rent: $575-$934

Rent: $470-$765

Rent: $208-$340

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Plan for Larsson FamilyReasonable 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?

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Financial Assistance & Financial Assistance & Participant PlansParticipant Plans

““If the participant receives financial assistance If the participant receives financial assistance for for securitysecurity or or utilityutility deposit or deposit or moving moving costscosts, the grantee must help the participant , the grantee must help the participant develop a develop a reasonablereasonable plan to plan to addressaddress the the household’s future housing stabilityhousehold’s future housing stability.” .”

““Grantees must assist participants to Grantees must assist participants to implement the plan by providing any implement the plan by providing any necessary assistance or helping the participant necessary assistance or helping the participant to obtain any necessary public or private to obtain any necessary public or private benefits or services.” benefits or services.”

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Financial Assistance & Financial Assistance & Participant PlansParticipant Plans

The plan is based upon addressing (not assuring) the participant’s ability to remain housed.

What is a “reasonable” plan? A plan that has a reasonable chance of success AND

The best plan that can be developed under current circumstances.

What is “unreasonable”? <Most of the time> A plan that requires the participant to quickly

and significantly increase income and/or change a long-term lifestyle.

<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.

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What is necessary for housing stability?

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)

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Ability to pay the rent…

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.

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Ability to comply with the lease…

Understand landlord-tenant rights and responsibilities

“Translate” important lease language

Identify patterns of past non-compliance and plan to prevent recurrence

Illegal drugs—buying, selling, using

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Ability to care for the unit (or at least not damage it)… Fire-safety Sanitation Plumbing! “Soft” expectations for

housekeeping Knowledge of cleaning methods and

products Avoid “do-it-yourself”

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Ability to get along…. “Soft” expectations/norms for noise,

odor, interactions, children’s behavior

Ability to respond appropriately to complaints

Ability to make appropriate complaints

Ability to talk to landlord and negotiate for rent extension, guests, etc.

Boundaries for friends/family who visit

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When does a participant need more than SSVF can offer?

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)?

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.

May need to refer participants to other services. Know what is available !

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How much and what kind of financial

assistance? Just enough for participant to get or keep

housing

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

Does not exceed the SSVF time/frequency limits for each category of financial assistance

Within your program’s budget cap for total temporary financial assistance spending (30% of grant)

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Financial Assistance Requirements and

Limitations Third party payments only

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)

Costs must be reasonable and documented

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Rental Assistance

Maximum of Maximum of 8 months over a 3-year period8 months over a 3-year period, , or or 5 months over a 12-month period5 months over a 12-month period (months (months of arrears assistance are included in these of arrears assistance are included in these totals!)totals!)

Includes the payment of rent, penalties or fees to help a participant remain in or obtain permanent housing

Legal lease or written occupancy agreement Legal lease or written occupancy agreement must be in place must be in place

Rents must comply with HUD’s “rent Rents must comply with HUD’s “rent reasonableness” standard; FMRs do not reasonableness” standard; FMRs do not apply apply

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Rental Assistance

Considerations

How can you design a subsidy that is extremely short-term? Avoid the “cliff effect.”

How much does the household pay (vs. SSVF) toward rent?

Can the amount of rental subsidy be designed so the family can use some of their income to build emergency reserves for future crises?

How can you increase income, reduce expenses and/or re-house or relocate the household ASAP before rental assistance ends?

Can you bargain for a rent reduction?

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Utility AssistanceUtility Assistance

Maximum of Maximum of 4 months over a 3-year 4 months over a 3-year periodperiod; or ; or 2 months in a 12-month 2 months in a 12-month periodperiod– Months do not need to be consecutive or Months do not need to be consecutive or

concurrent with rental assistanceconcurrent with rental assistance

Includes arrearsIncludes arrears Eligible utilities: heat, electricity,

water, sewer and garbage collection– Ineligible: telephone, cable, othersIneligible: telephone, cable, others

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Utility AssistanceConsiderations

Can you help the household quickly obtain another longer-term source of utility assistance?

Can you assist the household to reduce utility expenses significantly through an energy audit?

Can the household obtain housing where utilities are included in the rent? Is that option a fair trade-off of expenses?

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.)

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Utility & Security Utility & Security DepositsDeposits

Maximum of Maximum of one paymentone payment of each of each deposit over a 3-year time perioddeposit over a 3-year time period

Does not count towards utility or rental Does not count towards utility or rental assistance limitationsassistance limitations

Utility & security deposits covering the Utility & security deposits covering the same period of time in which assistance same period of time in which assistance is provided through other housing is provided through other housing subsidies subsidies areare eligible. eligible.

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Deposit Payment Considerations

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.

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.)

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Moving CostsMoving Costs

Includes moving company expenses, and short-term Includes moving company expenses, and short-term storage fees—all are limited to one time in a 3-year storage fees—all are limited to one time in a 3-year period.period.

Storage: Maximum of Storage: Maximum of three monthsthree months or until the or until the participant is in permanent housing (whichever comes participant is in permanent housing (whichever comes first)first)

Transportation costs for Transportation costs for participantsparticipants related to a move related to a move (e.g., bus, train) are (e.g., bus, train) are notnot eligible eligible

Grantees are responsible for determining “reasonable” Grantees are responsible for determining “reasonable” costs and any limits that apply. This will be monitored.costs and any limits that apply. This will be monitored.

If a grantee decides to help a client relocate to another If a grantee decides to help a client relocate to another geographic area, the grantee still retains responsibility geographic area, the grantee still retains responsibility for ensuring all program requirements are met.for ensuring all program requirements are met.

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Transportation Transportation AssistanceAssistance

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.

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Child Care AssistanceChild Care Assistance

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.”

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Child Care Assistance Considerations

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?

Know the waiting lists for affordable child care—is a 4-month subsidy long enough to bridge the time until the household is accepted?

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Emergency SuppliesEmergency Supplies

Maximum of $500 over a 3-year period Includes supplies that the grantee deems Includes supplies that the grantee deems

necessary for the participant’s life or necessary for the participant’s life or safetysafety

Examples: Examples: food, medical supplies, baby formula or diapers, etc.– These supplies are only eligible when the These supplies are only eligible when the

participant is in an participant is in an emergency situationemergency situation

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Associated Costs Associated Costs

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

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Adequate Source Adequate Source DocumentationDocumentation

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

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Adequate Source Adequate Source DocumentationDocumentation

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

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Common Errors

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 Ineligible expenditures Paid more than is allowable

– E.g. Rental assistance for 6 months within 1 year

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Final Considerations

““Just enough”: Just enough”: Provide only the assistance that is Provide only the assistance that is needed to assure the household can get and keep needed to assure the household can get and keep housing.housing.

StretchStretch your financial assistance; e.g. limiting your financial assistance; e.g. limiting participants’ rent contributions at 30% of their participants’ rent contributions at 30% of their income will reduce funds available to assist others. income will reduce funds available to assist others. You may—and probably should– charge “co-pays.” You may—and probably should– charge “co-pays.”

PrioritizePrioritize who you will serve and what needs you who you will serve and what needs you must address.must address.

You are encouraged to target households who, You are encouraged to target households who, but but for this assistancefor this assistance, , would become or remain homeless.

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Questions?

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