Executive Summary. Capital Funding to End Homeless Initiative (CFEHI) Sources of Permanent Funding. Source Name Amount Loan Terms (if applicable)
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1 Executive Summary Capital Funding to End Homeless Initiative (CFEHI) Board Date: October 21, 2015 OHFA Analyst: Sylvia Accountius Tracking #: Project Name: Changing Destinies Project Address: Harsh Avenue SE between 20 th Street SE and Kaylynn Street Project City, County: Massillon, Stark Project Type: Permanent Supportive Housing Construction Type: Development # of Units: 11 Gross Square Footage: 6,000 CFEHI Amount: $260,000 CFEHI Source: OHFA Sponsor/Owner/Developer: Coleman Professional Services Architect: Perspectus Architecture Contractor: To Be Selected Property Manager / Operator: Coleman Professional Services Total Project Cost: $1,600,000 Total Project Cost per Unit: $145,454 Total Project Cost per Square Foot: $267 Sources of Permanent Funding Source Name Amount Loan Terms (if applicable) OHFA $260,000 NA OhioMHAS $500, years 0% Mental Health and Recovery $300,000 NA Services Board of Stark County Federal Home Loan Bank $275,000 NA Coleman Foundation $100,000 NA Local Support $164,500 NA Hometown Bank $500 NA Total $1,600,000 NA Page 1 of 8
2 Project Description: Coleman Professional Services will develop ten new units of permanent supportive housing for transitional age youth, ages The target population for this project is homeless youth with a diagnosed mental illness or co-occurring disability. This could be substance abuse, developmental disabilities or other health issues. This group often exhibits significant behavioral problems and are the greatest users of high end, high cost services such as frequent emergency room visits or interfaces with the criminal justice system. An eleventh unit will be constructed for an on-site manager. The project anticipates serving youth annually. It will be modeled after a similar Coleman project in Portage County known as Capling Apartments. The design will be the same: a twostory building with eleven units, ten for residents and one for a Resident Manager. Local Strategy: The Stark County Continuum of Care (CoC) began in 1988 as the Interagency Council on Homelessness, a group of local agencies concerned about affordable housing and homelessness. These agencies met regularly to discuss the need for new affordable housing, strategies for retaining existing affordable housing, and ideas for addressing homelessness. A major milestone for the group occurred in 1994, when the newly named Stark County Homelessness Collaborative (SCHC) formed committees to address different issues in housing and services. Their first accomplishment as a CoC was the creation of a coordinated intake system for all homeless providers. In 2004, the Stark County Regional Planning Commission accepted the role as lead agency for the Continuum. Within five years, the CoC completed a strategic plan focusing on community wide education and awareness on homelessness in Stark County. The plan added to the credibility of the organization and its ability to identify and assemble new members and to more effectively mobilize and coordinate resources to address homelessness. Subcommittees were developed within the organization. A formal process for reviewing and ranking applications was established. The CoC created its first ten year plan to end homelessness in It called for greater collaboration among service providers and capacity building using evidenced based practices. The plan was developed on the ideal that No one should experience homelessness no one should be without a safe, stable place to call home. The first goal of the plan was the development of new affordable housing and new permanent supportive housing. The Continuum identified a need for the creation of 80 units of permanent supportive housing for chronically homeless individuals and 80 units of permanent supportive housing for families. The CoC developed a process for prioritizing projects, determining which Page 2 of 8
3 projects were ready to begin and which were still in the planning stages, and how to get each to construction accordingly. Like several other continuums, Stark County s primary focus in the beginning was chronically homeless single adults, which at the time were most in need. Secondly, they began to look at the needs of at-risk families and ways to prevent homelessness or divert them from entering the shelter system. In recent years, they have developed an awareness of the growing number of homeless youth. During one month in 2013, 38 new homeless youth age entered the Stark County homeless system. Coleman Professional Services will provide a safe place for young adults to find stability, set goals and work towards independence. Homeless youth require a wide array of services due to the circumstances that led them to homelessness. Some have aged out of foster care, others are runaways or victims of abuse or neglect, and some were cast away from their family of origin because they reached the age of 18 or because of issues with gender identity. Coleman Professional Services recognizes that each will have different needs. They will provide participants with the tools, support, and resources needed to maintain permanent housing as part of the Changing Destinies program. In addition, when it is appropriate, they will work with residents on developing income through employment and locating permanent housing outside of Changing Destinies with or without subsidy. Building Information: The building will be modeled after a property owned by the developer in Portage County called Capling Apartments. Each unit will have a kitchen, bathroom and private bedroom. The units will provide 500 square feet of living space. Common areas include a tenant laundry and tenant storage. Services are designed to be off-site or one-on-one with the resident in the unit. Two of the eleven units will be fully accessible. Site Information: The site is located on Harsh Avenue on the southeast side of Massillon. The neighborhood is predominantly residential with apartment developments to the east and the north. The western part of the neighborhood is more industrial in nature. Businesses to the west include the Yokahama Tire Corporation, Republic Steel and Crown Cork and Seal, a company that cerates aerosol, beverage and food cans. The project site is one of many undeveloped lots in the neighborhood. The developer successfully had the property re-zoned from light industrial to multifamily for this project. The project is within walking distance of Washington High School, Paul Brown Tiger Stadium and Kiwanis Park. It is directly on a bus line and less than a mile from two shopping centers, two grocery stores, two large general merchandise stores and several restaurants. The bus stop is Page 3 of 8
4 0.3 miles from the property and provides transportation to a larger transit center that makes travel throughout the county accessible. The site provides recreation, employment opportunities and amenities. Development Team Information: Owner/Developer/Property Manager: Coleman Professional Services is a private non-profit corporation that has been developing and managing supportive housing for the homeless for 24 years. The organization operates behavioral healthcare and rehabilitative programming. Coleman provides supportive services to residents at 210 units of housing they both own and operate in four counties: Allen, Portage, Stark and Trumbull. They have successfully partnered with HUD, the Ohio Development Services Agency, and Ohio Mental Health & Addiction Services. Recently they celebrated the opening of Union Square, a 24 unit permanent supportive housing project in Lima funded with the Low Income Housing Tax Credit. They have also participated in OHFA s Capital Improvement Program. Architect: Perspectus Architecture is a full service architecture firm founded in 2001, and has offices in Cleveland and Columbus. They are experienced in healthcare facilities, schools, senior living, recreation and retail designs. They have received awards from the U.S. Green Building Council, Ernst and Young, and the Department of Homeland Security s Small Business Achievement program. They are the architect of record for the Louis Stokes Cleveland VA Medical Center, and the Wilce Student Health Center Renovation at the Ohio State University. They are also the architect for the Zelma George Shelter approved at the August Board meeting. Contractor: The contractor has yet to be selected. Program Information: Coleman will provide its residents with voluntary services to include comprehensive mental health services, case management, psychiatry, counseling and group therapy. A Resident Manager will live on-site to provide support and motivation. The Resident Manager will collaborate with service providers and will serve as the eyes and ears of the facility. All residents will be below 35% of Area Median Gross Income (AMGI) and homeless. Coleman has been working with residents and housing for 24 years. During that time, they have developed a strategic focus that includes fostering recovery through improved access to services; building independence through supportive housing; and changing destinies through obtaining and maintaining employment. Coleman will work with residents on individual goals related to employment and income and applying for social security benefit programs. Page 4 of 8
5 Coleman will use two evidence based practices in the program. These are the Transition to Independence (TIP) and Supported Employment (SE). Transitioning to adulthood is challenging for those youth with behavioral difficulties. They usually have higher dropout rates, higher arrest rates, incarceration and unemployment. The TIP model involves engaging youth at this most vulnerable time and helping them to set goals and achievements within a prescribed framework. They are encouraged to explore their interests and their futures as related to employment, living situation, personal well-being, and functioning in the community. Supportive Employment involves helping the resident obtain and maintain employment where they also have the assistance of a job coach or work within a job crew of their peers. Residents are employed, receive wages and become part of the community. Coleman believes when housing and supports are available, there will be a reduction in emergency room visits, inpatient care, jail and court system exchanges, and shelter admissions. Other services provided to residents include: support with daily living skills such as cooking, cleaning and budgeting; mentoring; and skill building in the area of being a productive citizen. Case managers will explore volunteerism, obtaining social supports, accessing legal services, and cultural and spiritual services. Finally, residents will have access to Coleman services on a 24/7 basis. Other agencies that Coleman works with on an on-going basis are the court system, county jail, Crisis Intervention and Recovery, Access to Behavioral Health Care and Community Services of Stark County. Funding Information: Coleman will receive a construction loan in the amount of $1,100,000 from Hometown Bank at 3.5% interest. They have received financial commitments from the Mental Health and Recovery Services Board of Stark County and Ohio Mental Health & Addiction Services. They have applied to the Federal Home Loan Bank s Affordable Housing Program, but awards will not be announced until November. They are fundraising locally, and the Coleman Foundation will also contribute to the project. Coleman Professional Services will apply for project based Section 8 vouchers from the Stark County Metropolitan Housing Authority for rental assistance. If any of these funding sources are not realized, Coleman will continue to seek local funds and will use their own funds to complete development. The longterm operating plan for services will be from Medicaid reimbursement, reimbursement from the local Mental Health and Recovery Services Board and other grants. It is expected that rent will provide for the long term operating costs. Outcomes: Coleman Professional Services has identified four goals for the project. These include: Page 5 of 8
6 1. Decrease Recidivism: Ten of the twelve residents will remain housed rather than be incarcerated or admitted to an inpatient psychiatric facility. 2. Decrease Homelessness: Ten of the twelve residents will maintain their housing for at least seven months. 3. Increase employment or education: Seven of the twelve residents will be employed or will attend school for at least seven months in a job or career track that aligns with their personal goals. 4. Maintain or increase income: Six of the twelve residents will maintain or increase their personal income either through employment or through Social Security benefits. Coleman will use HMIS to gather data on each resident. This data is provided annually to the CoC and to HUD. Coleman also uses an electronic health record to document and track the progress of residents. This data will be used in conjunction with Service Process Quality Management (SPQM) to manage utilization of services, efficiencies and service effectiveness. Page 6 of 8
7 Closing Conditions The CFEHI Recipient is required to provide the following information to OHFA prior to closing and drawing down the funds: 1. Recorded deed or long-term lease in the name of the project ownership entity for each real estate parcel. 2. Roster of street addresses, parcel numbers and legal descriptions of the project site. 3. Title Insurance Commitment, with Lien Search Report. 4. Hazard Insurance (Property / Builders Risk and Liability with OHFA named as Mortgagee or additional insured). 5. Flood Zone Designation. 6. Evidence of Appropriate Zoning Designation. 7. Building Permits, if required. 8. Construction Contract (AIA Agreement) executed by CFEHI Recipient and General Contractor (Construction Contract must include the Schedule of Values). 9. Firm and unconditional financing commitment letters for all other sources of financing for the project including operating and development subsidy. 10. Appraisal of the project site that complies with OHFA guidelines. The acquisition price included in the budget may not exceed the appraised value. 11. Most recently executed and filed organizational documents for the CFEHI Recipient. Draws will be held if Tax Information Disclosure results indicate outstanding taxes owed. Page 7 of 8
8 Funding Conditions 1. The project must have final approval from the OHFA architect. 2. The Ownership Entity must follow the CFEHI Physical Inspections Policy and any other compliance monitoring procedures for the CFEHI program. Page 8 of 8
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