Homeless Facility Improvement and Operating Deficit Fund

2014 NCSHA ConferenceOctober 20, 2014

Carol Ventura, Deputy Director

Operating Deficit Fund Program

Need

• Homeless shelters and transitional shelter housing in Rhode Island need significant upgrades to: – Meet current health and safety standards– Provide accessibility– Make capital improvements– Address physical deterioration due to wear and

tear

Need (cont.)

• Organizations struggle with operating deficits• Require emergency funding to ensure services

are available• Operate in obsolete buildings• Lack funding and space• Residents and the shelters are at risk

Response to Need• Direct response to needs of shelter partners and 3,403

homeless that required shelter in 2013• Influx of difficult money to secure:– capital funds for deferred maintenance and operating funds

• Amount is small but critical• By strengthening financial condition of homeless

service providers – move more households to permanent housing

Purpose of the Program

• Ensure that individuals and families are housed in safe and decent structures

• Address operating deficits and provide emergency assistance to maintain provision of services

• Expand the provision of services for individuals and families

Current Program Awards• $1.2 million in capital for 10 facilities• Capital improvements include:– purchase of beds/mattresses– fire code upgrades/handicapped accessibility– energy improvements/hazard reductions

• $433,513 in operating funds for 6 agencies

Total Funding: $1,687,829

Increasing the Provision of Services

Case Study:

Amos House Community CenterA building that will reenergize our community, reorganize our campus and help Amos House to transition into the next phase as we continue with our mission of “helping people help themselves.”

Amos House

Before• Obsolete building with

inadequate space• Roof/siding needed to be

replaced• Major systems needing

improvement

Amos HouseFrom Homelessness to Self Sufficiency

After

• Expand dining hall and kitchen facilities

• Social Services dept. with “confidential”meeting space for guests

• Dedicated classroom and workshop space for education programs

• Meeting space for recovery based programs

Impact of Improvements

• Seat 20% more guests at each meal

• Accept 30-50% more students into Carpentry and Culinary Training and Entrepreneurial Programs

• Increase supportive housing from 175 beds to 197 beds

Impact of Improvements (cont.)

• Expanded space allows agency to accept additional candidates for ACT program, eventually doubling size of program

• Construction jobs • employ 25 individuals (existing jobs) at peak construction • create 18 new jobs; 9 of which are higher-wage jobs• expand training program = 40 additional individuals

annually gaining employment

Project FinancingUsesAcquisition $ 310,000Construction $4,973,733All Soft & Gen. Development Costs $2,226,267Bridge Loan Interest and Legal Fee to bridge lender $ 160,000Total Project Cost $7,670,000

SourcesSponsor Loan* ($1 million Rhode Island Housing) $5,307,260Net NMTC Equity $2,202,740Bridge loan proceeds to pay loan interest and legal fee $ 160,000Total Development Sources $7,670,000* To bridge existing, already committed pledges

Thank You!

Contact Information:Carol Ventura, Deputy DirectorPhone: 401-457-1129Email: Cventura@rhodeislandhousing.org