PUTTING OUR MISSIONS TO WORK:

Supporting housing stability and opportunity for our residents through Resident Services

Oregon Opportunity Network

Resident Services Opportunity Project

Agenda

1. Introduction2. Defining Resident Services3. Value of Resident Services4. Resident Services in Oregon5. Creating a sustainable funding system6. Oregon ON’s recommendations7. Q&A (20 minutes)

INTRODUCTION

Our Vision

All Oregonians should have the opportunity to succeed in life.

Why We Do This Work

Housing gives people the stability to meet their basic needs and the opportunity to build better lives.

The Role of Resident Services

Resident Services plays a key role in creating

successful residentssustainable propertieshealthy communities

The Challenge of Resident Services

Funding streams are Unstable Inadequate Uncoordinated

The Challenge of Resident Services

The industry lacks agreement about Definitions Best practices Outcomes Costs

A Crossroads for Our Industry

Inadequate and unstable funding for RS undermines our industry’s sustainability

Oregon is part of a national movement to address these challenges

Resident Services Opportunity Project

Goal: To develop a framework for a sustainable Resident Services delivery system.

Project LeadershipRSOP Steering CommitteeRSOP Advisory Committee

Resident Services Working Group (RSWG)Oregon ON Policy CouncilsNeighborhood Partnerships

The RSOP Research Resident Services Workgroup’s Logic Model Neighborhood Partnerships Demonstration Project Portland State University Cost Study Housing Development Center financial modeling Oregon ON member survey Funder & stakeholder interviews Local success stories & case studies National data

DEFINING RESIDENT SERVICES

Defining Resident Services

Resident Services connects residents of affordable housing to services and programs

that support housing stability, household opportunity and advancement.

Goals of Resident Services

Housing Stability

Household Opportunity and

Advancement

Services & Programs

Services: Provided to all

residents

Move-in orientationsEviction preventionInformation & referralResident council

supportCommunity building

Programs: Based on

population

Youth programsIDAs & financial

educationEducation &

employment Homebuyer trainingAdult education

VALUE OF RESIDENT SERVICES

Key Outcomes

Successful Residents

Sustainable Properties

Healthy Communities

Successful Residents – National Examples

>90% of children in after-school

programs maintain or

improve their grades

>70% of adults who participate in job training programs get

jobs

51% of families who participate

in financial education

coaching reduce their debt

Data compiled from NeighborWorks sites across the country.

Successful Residents - Local Examples

Resident Services staff prevented

an average of 70 evictions per

organization last year

Over 80% of afterschool

program participants

improved their academic

performance

67% of job program

participants got jobs or increased

their incomes

Sustainable Properties

Vacancy LossesBad DebtLegal Fees

Turnover Rates

Sustainable Properties - Local Examples

Eviction prevention

resulted in $3,736 saved

Eviction prevention

resulted in $1,320 saved

Justin, IHI resident Juanita, NHA resident

These are actual costs avoided to the property by preventing an eviction through Resident Services

(non payment of rent and turnover costs)

Healthy Communities

Building a sense of community Creating a strong social support system Supporting the work of partners Linking residents and the community

Healthy Communities - Local Examples

Resident Services participants feel more connected,

know their neighbors and feel

safe in their community

Because we work where people live, we connect them

to public benefits, the mental health

system, social services, and the

school system

Oregon ON members leverage $1.6 million a year

through volunteers, partnerships and

community support

RESIDENT SERVICES IN OREGON

Oregon ON Members

96% of Oregon ON owners

provide Resident Services

11,500 resident households

receive Resident

Services from Oregon ON members

115 FTE Resident

Services staff work in Oregon

ON member organizations

Services for Housing Stability

Programs that Support Household Opportunity and Advancement

Who is Being Served?

75% of the households served by Resident Services have incomes at or below 60% of median.

About three-quarters have incomes that are below the income guidelines for their properties.

Resident Services CostsAverage cost of Resident Services is

$400-$700 per unit per year $400 $700

Factors that can increase the cost of Resident Services

Lower incomesSpecial needsFormerly homelessFamiliesImmigrantsSmaller projectsScattered site

Factors that can lower the cost of Resident Services

Higher incomesLow rent burdenEmployableLife skillsEconomies of scalePartnerships

Funding is a Complex Patchwork

Private foundations54%

Public funding

29%

Individual donors 42%

Project operations

83%

Fee for service

21%

Funding Practices Vary Widely

Oregon Housing and Community Services allows

Resident Services in the operating

budget if the operating budget

can support it

Portland Housing Bureau funds up to $300 per unit per

year above the line for Resident

Services

Washington County will provide grant funding for core staffing costs for Resident Services starting in 2011

Funding Levels are Inadequate

87% of owners who pay for RS out of project operations said it did not cover the full costs

91% of owners said inadequate funding is a primary challenge to offering sustainable RS

75% who do not provide RS to all properties said it was because of inadequate resources

CREATING A SUSTAINABLE FUNDING SYSTEM

Where Could the Additional Resources Come From to Support Resident Services?

Oregon Housing and Community Services?

Private Foundations?

Owners?

Other State Agencies?

Cities?

Federal Government?

Counties? Local Participating Jurisdictions?

What Mechanisms Could Be Used to Fund Resident Services?

Project operating budgets Up front capitalized reserves Renewable grants

Is the Operating Budget the Answer?Operating Expenses Per Unit Per YearProperty Management $XXX

Maintenance $XXX

Asset Management $XXX

Resident Services $400-$700

Utilities $XXX

Taxes $XXX

Insurance $XXX

Administration $XXX

Marketing $XXX

Are Capitalized Reserves the Answer?

Life of Loan – 20 years

Year 1

Year 2

Year 3

Year 4

Year 5

. . . . . Year 20

Project Budget

Capitalized Reserve covers full 20-year cost

Are Renewable Grants the Answer?

Renewable Operating Grant

Year 1

Year 2

Year 3

Year 4

Year 5

. . . . . Year 20

Project Budget

There Is No Simple Answer

Diverse funding sources Multi-pronged funding mechanisms Options vary by location Every project is unique

Balancing Competing Goals for Owners and Populations

Unit productionLong-term sustainability

More households at higher rents

Fewer households with greater need

Flexible and population-specific services

Standardized industry-wide outcomes and expectations

RECOMMENDATIONS

Key Challenges

Industry lacks agreement on standards and best practices

Current funding levels are inadequate

Project operations cannot cover the full cost of Resident Services

Funding system is a confusing patchwork with unclear expectations

Oregon ON’s Recommendations

Industry standards and best practices

New resources to support above-the-line funding

New resources outside the underwriting process

Funder transparency and clarity

A WORTHWHILE CHALLENGE

QUESTIONS AND ANSWERS