OHFA Annual Plan - Ohio Housing Finance Agency

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a permanent supportive housing unit is $33 a day or $12,093 per year. This is much lowerthan the comparable cost for institutional care such as state prison which is over $25,000 ayear.In Ohio, the number of available units of permanent supportive housing, estimated tobetween 8,000-8,500 units, is inadequate for the number of persons needing it. Personsidentified as best served by permanent supportive housing include1) Homeless Persons;2) Persons with severe mental illness;3) Persons with chronic alcohol and drug addiction disorders;4) Youth aging out of foster care; and5) Offenders exiting Ohio Department of Rehabilitation and Correction’s institutionIt is estimated that nearly 20,000 Ohioans within these five populations are in need ofpermanent supportive housing. Methodologies exist to calculate a production goal for newunits to serve identified populations, but these rely upon local and state data consistentlyacquired and commonly tabulated. A research based calculation converting the number ofpeople into a production goal of permanent housing units has been done in several localcommunities in the state. The state lacks an equivalent conversion.The creation and operation of permanent supportive housing requires funding for threedistinct and necessary components: 1) Capital to acquire property, rehabilitate existingunits, and/or to construct new units; 2) Operating subsidies to offset the rents which areusually beyond the ability of most tenants to pay (generally tenants in PSH are at or below30 percent of AMI) or to cover the cost of having security and support at the front door ofan apartment building; and 3) Service funding which pays for the staff which assists thetenants in accessing and utilizing community based services such as treatment.Nonprofit providers of PSH are at times cobbling together 10-25 different funding sources tomake these “deals” work and to operate their projects successfully. Added to the challengesin making these deals work, is the fact that historically capital is readily available, but theneeded operating subsidies and or the service funding is inadequate. Across the state,providers and local communities (referred to as Continuums of Care) have relied uponfederal and local resources, yet due to a low statewide production pipeline some of thesefunds are still underutilized. Furthermore, for this particular housing need in Ohio, the stategovernment plays little to no part in financially assisting on-going operations and serviceprovision.Research and data collected around PSH provides policy makers with irrefutable evidencethat PSH is a very strategic investment with an excellent rate of return. Ohio and its citizensare paying dearly for a lack of investment in PSH – through avoidable trips to emergencyrooms, involvement with the criminal justice system at the state and local level, demandsupon shelters and behavioral health crisis services, and other emergency services. There isalso the human cost associated with the expensive option of status quo.Therefore, the permanent supportive housing workgroup reached consensus aroundseven (7) recommendations to address the need in Ohio for increased production andsustainability of PSH.1. Better coordinate existing state resources with Federal Home Loan Bank (FHLB) tocapture more FHLB money in Ohio for PSH development.2. Facilitate an easier, coordinated process for access to multiple state resources that fosterspartnership with local organizations for PSH development and operations.108
3. Assist local Continuums of Care that have underutilized federal HUD McKinney Ventofunds available for PSH.4. Develop performance measures and common standards for quality PSH and adopt themacross multiple state agencies that invest in PSH.5. Develop a business plan across the state agencies whose constituents are identifiedin this report needing supportive housing. The business plan should include a multi-yearapproach to developing units to meet the need; common terminology and definitions; local/state collaboration; methods for complimentary use of resources; consistent methods fordata collection across multiple systems; method for reporting out results; identify an easiercoordinated process for accessing state resources.6. Preserve existing state resources targeting PSH in the current biennium and keep thedoor open for future investment7. Create a new state funded PSH Gap Program to provide funding for services andoperations.Housing Need Description and its Urgency to OhioThe need addressed by this workgroup has been defined as follows.“Permanent Supportive Housing Production”Supportive housing is nationally recognized as a model for reducing homelessness and fortargeted populations; it is a better investment of public dollars than crisis and institutionalcare. Supportive housing experts opine that a significant increase in the number of unitsin Ohio is necessary to have a meaningful chance of ending homelessness and improvingoutcomes for people. Currently, there is no clear means for creating the number of unitsneeded, providing services to the tenants of those units, and insuring units have adequatesubsidy for long-term viability.Urgency to OhioHomelessness is an ongoing problem in the State of Ohio. This is especially true whereconditions that contribute to homelessness are being addressed by systems that are notdesigned to support the needs of people experiencing homelessness (e.g. emergencyrooms, correctional facilities, etc.) National studies state that keeping a person homelesscosts essentially the same as housing them in permanent supportive housing. Locally, theaverage cost of a permanent supportive housing unit is $33 a day or $12,093 per year. Thisis much lower than the comparable cost for institutional care such as state prison which isover $25,000 a year. 1Additionally, people experiencing homeless are in income strata (i.e. extremely low income)insufficiently addressed by most housing resources. In purely economic terms, the efficiencyof addressing homelessness by the means detailed in this report is compelling.The human and societal urgency of efficiently addressing homelessness cannot beunderstated. People experiencing homelessness are among the most vulnerable peoplein our society. And if our society is judged by how is treats the least of its citizens, thoseexperiencing homelessness are among the most deserving of attention.1091Community Shelter Board, Rebuilding Lives: New Strategies for a New Era (2008) page 43,
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OHFA Annual PlanThe Ohio Housing Fi
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Mission StatementsThe OHFA Annual P
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The State’s Housing NeedsAffordab
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Subject Matter Expert (SME) Workgro
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3. Financial LiteracyOHFA and other
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Affordable Housing Preservation & D
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federal subsidies. To achieve this
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Accessible HousingBackground DataOh
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3) Create dedicated funding streams
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• Recommend that Ohio support the
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Rural and Appalachian RegionsBackgr
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6. Annual Set-Asides and Incentives
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• Several cities in Ohio current
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OHFA should provide funding, traini
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Permanent Supportive Housing Produc
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3. The State should assist local Co
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PrioritizationThe challenge of prio
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Agency RecommendationsThe Annual Pl
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APPENDIXWorkgroup 1: Affordable Hom
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Executive SummaryHousing Need Descr
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efficiency and resource conservatio
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554. Home Buyer Education in OHFA F
Page 57 and 58: Estimated Units in Need of Some For
Page 59 and 60: Ohio County Foreclosure Filings (19
Page 61 and 62: Operating Costs - Met and Unmet Nee
Page 63 and 64: Workgroup #2:Affordable Housing Pre
Page 65 and 66: Secondary Recommendations• Explor
Page 67 and 68: Executive SummaryOhio’s supply of
Page 69 and 70: Met Housing Needs (“Resource Inve
Page 71 and 72: Ohio Deptof MentalRetardation andDe
Page 73 and 74: Unmet Housing NeedsData OverviewThe
Page 75 and 76: ody, and will be built within the C
Page 77 and 78: • OHFA will continue to maintain
Page 79 and 80: Best Practices, Policies and Progra
Page 81 and 82: addition, 60,111 one-person househo
Page 83 and 84: Across Ohio, people with very low i
Page 85 and 86: • Responsible for Rent - The pers
Page 87 and 88: Seattle, St. Louis, and Washington,
Page 89 and 90: Primary Recommendations• Create a
Page 91 and 92: Unmet Housing Needs:• Due to the
Page 93 and 94: • The cost of construction often
Page 95 and 96: Recommendations for Annual Plan Adv
Page 97 and 98: capacity to quantify vacant propert
Page 99 and 100: distributed on or about January 15,
Page 101 and 102: Action is needed at the State level
Page 103 and 104: a “user-friendly” data system,
Page 105 and 106: 5) Incentivize the formation of bro
Page 107: Workgroup #8:Permanent Supportive H
Page 111 and 112: Program and Resource InventoryNonpr
Page 113 and 114: Table 2PopulationsPersons whoexperi
Page 115 and 116: Examples: A national model for succ
Page 117 and 118: oles, so they create a contract bet
Page 119 and 120: Workgroup #8:Appendix ANameProgramD
Page 121 and 122: or remedyingneglect, abuse,or the e
Page 123 and 124: ased healthcare, and earlyintervent
Page 125 and 126: “Bob” of Stark County, OhioPubl
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OHFA Annual Plan - Ohio Housing Finance Agency

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