Community Housing for People with Disabilities:
Integrating Affordability and Supported Living: A White Paper
By Dale DiLeo
Lack of Affordable Housing is a Barrier to Supported Living
Does The Existence of Affordable Housing in a Neighborhood Lower Property Values?
Keys to Developing Affordable Housing
Overview of an Innovative Affordable Housing Project in Florida
Recommendations for Expanding Local Affordable Housing for People with Disabilities
Resources for Affordable Housing
Appendix
Recommendations for Federal Policy Changes to Increase Affordable Housing
Other State and Local Housing Initiatives
Overview of an Innovative Affordable Housing Project in Florida:
Grove House Project
Over the last three years, Grove House, a not-for-profit 501c3 organization, developed an innovative approach to developing affordable housing for people with disabilities, based on a successful program in Sarasota, FL. Grove House, with support funding from The Florida Developmental Disabilities Council, has purchased a number of homes using below-market financing, which reduces the debt service on the houses. The Duval County Housing Finance Authority and the Housing Services Division of the City of Jacksonville have provided funding during the initial term of the grant, (subject to annual approval) to cover up to 45% of the purchase price of the homes in the form of interest-free loans, as well as waiving any property taxes due. The loans are forgivable after fifteen years if Grove House continues to own the homes and they continue to be used for the same purpose. A private mortgage provides financing for the remaining amount of the purchase price.
The project's outcomes are significant because they directly confront an area of great need, that of small-scale, affordable and attractive community housing, while at the same time utilizing significant generic community resources in its pursuit of supports for people with disabilities. However, over the course of this project, several important issues have emerged, mostly related to administrative concerns, property management, and long-term issues related to control and choice. In particular, the project design has utilized one entity, in this case Grove House, to purchase the homes, be the landlord, and also provide support when chosen by the consumer. To date, all but one resident is supported by the agency.
The project has completed three years of activities. Grove House currently owns sixteen homes that provide housing for 30 individuals. Two additional homes are expected to close by February 2004. Rents have averaged between $200-$250 per month per person.
The project's outcomes are significant because they directly confront an area of great need, that of small-scale, affordable and attractive community housing, while at the same time utilizing significant generic community resources in its pursuit of supports for people with disabilities. However, over the course of this project, several important issues have emerged, mostly related to administrative concerns, property management, and long-term issues related to control and choice.
One key concern was the financial viability of the housing entity. Subsequent financial analysis conducted by a consultant from the Florida Housing Coalition demonstrated the entity could not be financially viable without changing the debt load, adding sufficient development fees, and restructure the rents or obtain operating subsidies to improve cash flow.
Another concern relates to the project design originally utilizing one entity, in this case Grove House, to purchase the homes, be the landlord, and also provide support when chosen by the consumer. To date, all but one resident is supported by the agency.
The Florida Developmental Disabilities Program Office is in agreement with the previous recommendations from this evaluation, that home ownership/property management interests be kept organizationally separate from all supports including supported living. The Grove House Board has focused on answering how Grove House can reduce its control as the provider over housing management functions, and thus reduce the inherent conflict of interest. The focus of this project year is to monitor Grove House's efforts at organizing another non-profit agency in order to operate the housing program separate from services.
Grove House has undertaken the very challenging step of initiating the paperwork and board-related processes to begin the separation into two distinct agencies, one focusing on housing, and one on support services. This has been difficult for the agency because of the enormous energy involved in planning the separation, as well as the level of difficulty (and emotional strain) in negotiating the disentanglement of two agencies from one.
Prior to the project, the organizational chart for Grove House is represented below:
The original corporation, Grove House of Jacksonville, Inc. (GHJ), has become the housing corporation, due to the financial relationship between the corporation and the housing finances, mortgages, grants, etc. A new executive director with a primary background in affordable housing development has been hired for this corporation. They have established separate offices conveniently located two doors down from the original Grove House offices.
The new support agency, named Grove House Supportive Services, Inc., (GHSS) is run by the long-time Grove house executive director, and will continue to utilize the office space it currently occupies.
There are two distinct boards, although there will be two to three board members who will overlap both organizations during this time frame. The chart below demonstrates this new proposed organizational relationship.
Grove House Housing Services believes that the rents need to be standardized to the HUD limits of 30% of income. This will cause some rents to go up, potentially to the maximum single room rate of $425 per month. This will be a substantial increase for several of the current tenants and will likely cause some difficulty, but, according to the agency, will be more equitable in the long run, and will make the GHJ more financially secure.