Match vs. Leverage

1. Match vs. Leverage Presented by the Coalition for the Homeless of Houston/Harris County, Inc. – Continuum of Care August 15, 2007

2. Welcome U.S. Department of Housing and Urban Development – Houston Community Planning Department (CPD) Field Office Eddie Violette, CPD Program Advisor Wayne Sidell, CPD Financial Analyst

3. Purpose To differentiate between Match and Leverage To determine how Match is calculated and when it should be expended To determine what can be used and cannot be used for Leverage How to document

4. Why The Emphasis? HUD requirement To ensure that the project is not fully funded by HUD Continuum of Care funds Demonstrates partnerships/collaboration

5. Match What is Match? CASH!!!!! Calculations Match is the difference between the total funding request and the amount of the funding category

6. Match (cont.) Resources Federal Government State Government Local Government Private Resources

7. Match (cont.) How Much Match is required? SHP Leasing – 0% SHP Operations – 25% SHP Supportive Services – 20% SHP New Construction, Acquisition and Rehabilitation – 100% S+C Programs - $ for $ in Supportive Services

8. Match – Supportive Services Cash payment for provision of supportive services SHP grant provides 80% of the funding Applicant provides 20% for cash match Match Amount Funding Request = $100,000 Match = $20,000 ($100,000 x .20 = $20,000)

9. Match – Operations SHP grantees are responsible for matching operation costs SHP grant provides 75% of the funding Applicant provides 25% for cash match Match Amount Funding Request = $200,000 Match = $50,000 ($200,000 x .25 = $50,000)

10. Match – Acquisition, Rehabilitation and New Construction An equal amount of funds from other sources $ for $ Project funding requests = $200,000 Cash match = $200,000

11. Match – Shelter Plus Care Must match with the aggregate amount of S+C rental assistance with supportive services Match Amount Funding Request = $200,000 Match = $200,000 in supportive services

12. Match – Shelter Plus Care Match Items Salaries paid to grantee’s staff to provide supportive services to participants The value of supportive services provided to participants by other organizations or by professionals volunteering their professional services Supportive services provided by volunteers at $10/hour The cost of outreach activities

13. Match Documentation How is Match documented? Letter on letterhead Clearly states amount Signed by authorized person When is Match documented? Time of CoC application Technical Submission

14. Match – Spending It! When is Match spent? During the course of the grant program year What are HUD’s requirements? Commitment letter(s) at time of Technical Submission Proof of match spent by end of grant term on the Annual Progress Report (APR)

15. Leveraging What is Leveraging? In-Kind Services Cash Include cash used for match Why is it required? To show partnerships and collaborations

16. Leveraging Contributions What can be used as Leveraging? Donations Volunteer Hours In Field volunteer – lawyer services, psychiatric services, etc. – going rate General volunteer - $10/hour Equipment Materials Services Cash Value of donated buildings/land – one time use

17. Leveraging Sources Sources CDBG HOME United Way Fannie Mae Federal Home Loan Bank Mainstream Housing Programs Social Service Programs

18. Leveraging What cannot be used as Leveraging? Multiple uses of donated land/buildings Same leverage for multiple programs How is Leveraging documented? Letter on company/organization letterhead Signed by authorized representative Dated within 30-days

19. Leveraging Ideas Receipt of clothes from the KIDDS Clothing Drive? Project clients receive food from the Feed the Children & Charlie Walker? Any projects utilize HCVM? Receive medical services from HHH? MHMRA services at discounted pricing or no cost?

20. Tracking Leverage When is a good time to track leverage? At the time it occurs Ask for a letter at time of donation/service Waiting until application time is too late Keep volunteer logs

21. Leveraging (cont.) How to track Form provided by Houston/Harris County CoC Record timely and accurately Include Type and Source Date of Written Commitment Amount of Written Commitment

22. Leveraging (cont.) Must report on CoC application Must submit at a minimum of 200% Funding request = $100,000 Leveraging request = $200,000 Recommend that the project exceed 200%

23. Last Thoughts Changes occur each year The application process will continue to be highly competitive Limited funds through HUD for new and renewal projects Benchmarks will increase yearly

24. Questions?????