Monday, May 16, 2022

CORRECTED: Portland Metro Housing Authorities Getting Creative with Use of Metro Supportive Services Funds. I Project Per Unit Average Clackamas Project Based Assistance Cost, Including Services, at $2,338 Per Unit Per Month.

After feedback and interaction with the Clackamas County Housing Authority Monday I have made these corrections to the prior post:

  1. The monthly rent for the 3 bedroom unit has been reduced below 120% because HACC determined it was above their rent reasonableness determination. So instead of $2,941 the 3 BR rent was reduced to $2,888. This impacts the 3 bedroom monthly subsidy cost which was reduced from $2,110 to $2,057 AND the average monthly subsidy cost per unit for the 40 units which was reduced from $1,563 to $1,493.
  2. The monthly average per unit cost for turnover deposits was reduced from $2,143 to $179. This was a BIG error and the result of my math error. 
  3. The monthly per unit cost for supportive services increased from $250 to $667. This was the result of my math error and feedback from HACC that they were projecting $8,000 per unit in annual supportive service costs and not the $10,000 I had used. 
  4. As a result the average monthly subsidy cost for the 40 supportive service units [housing, turnover deposits, and supportive services] was cut from $3,965 to $2,338. While the average housing subsidy cost per unit of $1,493 was only reduced slightly from $1,563 there was a BIG net reduction in my projected turnover deposit and supportive service costs. 
  5. I have also made reductions in the Total Development Cost to reflect suggestions from HACC.

I also note that my subsidy projections do NOT include any property tax reductions nor does the Total Development Cost include any of the supportive housing subsidy costs. 

I regret the errors and appreciate the feedback and interaction with  HACC.  

I have changed the text and table pasted in to reflect these changes


I recently tweeted that Home Forward  was planning on using Metro supportive services funds to pay $2 million in back rent for some of their tenants, with no clear data on how many tenants this will cover and under which programs rent was owed. The tweet is HERE

In reading through the upcoming agenda for the Clackamas County Commission I noticed that there was a consent agenda item to approve use of $3 million in Metro bonds to help finance a 100 unit affordable rental project on the Marylhurst campus in Lake Oswego.

This project currently has funding from a variety of state sources that HACC totals to $41.1M , a development cost of $411,000 per unit.

Projected Metro Supportive Services Voucher Monthly Cost --Housing, "Deposits", and Supportive Services--$2,338

Current HACC HUD Voucher Per Unit Cost--Housing Only-$946

In reading through the briefing materials I noticed that the housing authority was also asking for authority to project base 40 units. 

Instead of using HUD vouchers as the traditional source the plan is to use Metro supportive housing services funding to pay for project basing.

Since these aren't HUD vouchers they can use the supportive service funds for anything that is acceptable to Metro and the county.  I note for example that the briefing materials use don't use FMR but instead 120% of the FMR to value the cost of the vouchers . Rents are still subject to a housing authority rent reasonableness determination and HACC advises that for this project 3BR units have been limited to $2,888 instead of 120% of FMR which would be $2,941 . Under the Metro long range rent assistance program the tenant share of rent is 28.5% of gross income, with no income deductions permitted.

The projected 7 year $5.6 M cost for 40 vouchers includes $600,000 for turn over "deposits" expected at once per unit per year.

This however does NOT yet include supportive services that will be contracted for at a later date. After consultation with HACC I have used an average annual estimate of $8,000 per unit for supportive service costs. This adds another $2.24 M increasing TOTAL 7 year subsidy cost to $7.8 M.  [property tax exemption not included].

The term is for 7 years [the supportive service program is authorized for 10 years and the project is not expected to be online until 2023]. 

Below is a table with MY projected estimate of the monthly and annual costs for this project. 

  • Average monthly subsidy, including "Deposit" costs and a projected $8 K per unit in additional supportive service costs= $2,338. 
  • Annual subsidy for 40 units=$1.12M
  • The current Clackamas county average HUD voucher per unit cost is $946; the projected average monthly housing only subsidy for the 40 Metro supportive service units  is higher at $1,493. This is primarily because of the use of rents higher than the HUD FMR.
  • Average share of rent for the tenant is $723 a month.
  • Total 7 year subsidy costs (without property tax exemption) is projected at $7.8 M. 

The Clackamas County Supportive Services web page is HERE.

As I previously noted I have created a folder with Metro supportive services documents including progress reports and intergovernmental agreements HERE.

Originally created and posted on the Oregon Housing Blog.

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