Indianapolis Integrated Supportive Housing Initiative August 4, 2017

1. Indianapolis Integrated Supportive Housing InitiativeAugust 4, 2017

2. Agenda Supportive Housing Key Concepts Overview of the Indianapolis Integrated Supportive Housing Initiative Application and Selection Process Next Steps for Selected Teams Q&A

3. Supportive Housing Key Concepts

4. What is supportive housing? Permanent, affordable housing with flexible services Designed to help the most vulnerable live w/ autonomy, stability, and dignity Looks not only at “bricks and sticks” but at the quality of services provided Success is measured by determined outcomes (ending homelessness, reducing public costs, etc.), not by unit creation Supportive housing is NOT transitional housing, group homes, or licensed care centers

5. Supportive Housing Philosophy Homelessness is first and foremost a housing problem and should be treated as such​ People experiencing homeless or at risk of homelessness should be returned to or stabilized in permanent housing as quickly as possible and connected to resources necessary to sustain that housing​ Issues that may have contributed to homelessness can best be addressed once an individual is housed

6. supportive housing CORE PRINCIPLES Core principles: • Housing First, not Housing Readiness • Harm Reduction • Eviction Prevention (a.k.a. Housing Retention) • Voluntary Wraparound Services • Not a condition of occupancy • Individualized case management & services provided based on tenant’s specific needs and goals with an emphasis on individual choice • Residents have leases and tenant rights • No timeframe to leave (i.e. not transitional housing) • Tenant selection w/ low barriers to entry • No credit or landlord history • Remove criminal background barriers

7. Who does supportive housing serve? Persons experiencing homelessness who: BUT FOR HOUSING cannot access and make effective use of treatment and supportive services in the community: AND BUT FOR SUPPORTIVE SERVICES cannot access and maintain stable housing in the community.

8. What resources are needed? Alignment of three funding components: Capital Operating Service Partnership between actors with unique roles: Developers Property Managers Service Providers

9. Integrated Supportive housing IHCDA Definition • No more than 25% of the units designated as supportive housing • Remaining units affordable and/or market rate Why this model? • Provide the most integrated setting for residents • Attract new partners to supportive housing

10. Overview of the Indianapolis Integrated Supportive Housing Initiative

11. Goal of the initiative Create 4 integrated supportive housing developments • Approximately 500 units total • 25% of units (~125 units) integrated supportive housing for persons experiencing homelessness Goal • Decrease homelessness in Indianapolis through supportive housing • Increase access to affordable housing in Indianapolis • Increase collaborative efforts between IHCDA and City of Indianapolis re: affordable housing and homelessness issues through an innovative financing mechanism • Build local capacity and resources by establishing a revolving loan fund

12. The Need Data proves we need a focused effort on supportive housing in Indianapolis • Need an estimated 845 additional supportive housing units in the city to end chronic homelessness • Approximately 40% of the homeless population in the State of Indiana is in Indianapolis • Since 2008, 182 units of supportive housing have been developed or are underway in Indianapolis as a result of the Indiana Supportive Housing Institute

13. The Players: Funders IHCDA Award 4% LIHTC and tax exempt multifamily bonds Potential gap funding as loans through the Indiana Affordable Housing and Community Development Fund Award approximately $4.6M in CDBG-D funds to establish a revolving loan fund through a CBDO City of Indianapolis Award reasonable gap financing • Dependent upon funding availability and project eligibility Serve as bond issuer Provide project-based rental assistance through Indianapolis Housing Agency vouchers • Vouchers will only cover supportive housing units

14. The Players: respondents Two separate RFQs RFQ for development teams • 4 teams will be selected • Team must include a developer, management company, and supportive service provider • Developer MUST have successfully completed a 4% LIHTC / multifamily bond development RFQ for CBDO • Must be an entity that is currently certified as a Community Based Development Organization (CBDO) through IHCDA, or must demonstrate ability to obtain CBDO status • If not currently an IHCDA-certified CBDO, RFQ response must include an application for CBDO status • CBDO will establish a revolving loan fund

15. Financing Structure Each of the 4 development teams will develop a separate project Each project will have its own ownership structure However, all 4 projects under 1 bond issuance to reduce soft costs • Teams will receive technical assistance on this model during the mandatory workshop

16. Revolving loan fund Approximately $4.6M in CDBG-D awarded to the selected CBDO CBDO will work with IHCDA to establish underwriting criteria and loan terms Initial awards to be made to the 4 development teams • Contingent upon project eligibility and underwriting • Amount awarded to each team may differ based on subsidy layering review • Subject to CDBG compliance As funds are repaid, these are retained by the CBDO, not returned to IHCDA • These funds are “washed” of CDBG requirements • CBDO will use recycled funds to fund additional supportive housing work in Indianapolis • IHCDA and the City will work with the CBDO during the mandatory workshop to discuss award terms and expectations

17. Application and Selection Process

18. application- Development teams DUE BY AUGUST 18, 2017 AT 5:00 PM EASTERN TIME Submission must include: • Qualifications Coversheet (template form included in RFQ) • Certification of Company (template form included in RFQ) • Narrative summary of developer’s experience • Narrative summary of management company’s experience • Narrative summary of supportive service provider’s experience • Financials for developer, management company, and supportive service provider • 2016 financial statements • 2017 YTD balance sheet, income statement, and cash flow statement • Lead person identified and resume provided for each of the following 4 roles: • Development Finance • Property Management & Compliance • Supportive Services • Built Environment • Narrative response addressing readiness to proceed as defined on Page 7 of RFQ • Description of potential sites • Summary of previous collaborations / explanation of team

19. SELECTION CONSIDERATIONS- development teams Selection is based on qualifications and experience of the development team, not on a project concept. Experience & Capacity • Demonstrated experience with LIHTC, supportive housing, rental assistance, and supportive services will be considered. • Developer MUST have successfully completed a 4% LIHTC / multifamily bond development • Financial capacity Readiness to Proceed • Identification of appropriate team leads • Identification of potential sites • History of successful collaboration between team members Conflict of Interest • Respondent or related entity to the respondent may not also respond under the RFQ for CBDO

20. application- CBDO DUE BY AUGUST 18, 2017 AT 5:00 PM EASTERN TIME Submission must include: • Qualifications Coversheet (template form included in RFQ) • Certification of Company (template form included in RFQ) • IHCDA CBDO application if entity is not already an IHCDA approved CBDO • Questions about CBDO application form should be directed to sspergel@ihcda.in.gov • Narrative summary of experience • Financials • 2016 financial statements • 2017 YTD balance sheet, income statement, and cash flow statement • Lead person identified and resume provided • Sample underwriting criteria and tools

21. Selection Considerations- CBDO Experience & Capacity • Knowledge of CDBG program requirements and restrictions • Demonstrated experience with lending, underwriting, and loan servicing • Demonstrated experience with administering a revolving loan fund • Financial capacity Readiness to Proceed • Identification of appropriate team lead • Established underwriting criteria and tools to conduct subsidy layering review Conflict of Interest • Respondent or related entity to the respondent may not also respond under the RFQ for development teams

22. Selection Process All respondents must present to the selection committee on August 22 at IHCDA • Additional logistics will be announced on August 18 • Potential respondents should hold their calendars for 9:00-5:00 Eastern Time on this date • 30 minutes per team- approximately 15 minutes for presentation + 15 minutes of questions from the selection committee Selection committee consists of staff from IHCDA, City of Indianapolis, CSH, and the Coalition for Homelessness Intervention & Prevention (“CHIP”)

23. Next Steps for Selected Teams

24. What happens after selection? • Announcement of selected respondents by August 31 • Each selected respondent submits $1000 fee to CSH to cover costs of workshop • Mandatory workshop September 12-14 • Training will cover supportive housing and the financing structure • Trainers from CSH, Ice Miller, IHCDA, & City of Indianapolis • Location = Ice Miller office at One American Square

25. Questions?Matt Rayburnmrayburn@ihcda.in.gov