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: [email protected]
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