To: Affordable Housing Advisory Committee Agenda Section: Division: Department: Matters for Consideration Social and Community Services Children and Community Services Item Number: AHA - 17-015 Meeting Date: April 21, 2017 Subject: Home For Good Program Guidelines, Expression of Interest Overview and Next Steps Recommendation That Item AHA 17-015, dated April 21, 2017, regarding the Provincial Home For Good funding, Program Guidelines, Expression of Interest, and next steps, be received. Executive Summary In the latter part of 2015, the Province of Ontario announced its commitment to ending chronic homelessness by 2025. This commitment was recently reaffirmed when new provincial funding was announced to support housing assistance and support services across the province (Schedule 1). Entitled Home For Good (HFG), this new funding initiative: Invites Expressions of Interest (EOI) from Consolidated Municipal Service Managers (CMSMs) and District Social Services Administration Boards (DSSABs); Provides approximately $25 million in 2017-2018, and $50 million in 2018-2019, for housing assistance and supports across the province; and Commits to funding approximately 400 new capital units in each of the two years. To apply for funding through HFG, the County is required to submit an Expression of Interest (EOI) to the Ministry of Housing (MHO), on or before May 19, 2017. Only one application per Service Manager may be submitted, however, the EOI may include both operational funding and single or multi-site capital funding projects. EOI submissions will be evaluated by the Province during the period May through July, 2017. The Province will notify successful CMSMs and DSSABs across August and September, with funding flow to Service Managers beginning October 2017. With respect to this initial round of HFG funding, successful CMSMs and DSSABs will continue to receive operating dollars, beyond the two year period, in order to support longer term project April 21, 2017 Affordable Housing Advisory Committee - AHA 17-015 Page 2 viability. That said, the continued operating funding will be subject to annual provincial budget approvals and Service Manager fulfillment of accountability requirements. Staff has identified two prospective projects that could be potentially resourced through the Home For Good provincial initiative. The first of the two projects, a suggested motel conversion pilot, finds its origin in recent discussions from the Affordable Housing Innovations Forum (Item AHA 17012, April 21, 2017). The second project would build upon an existent homelessness hub model for service delivery that includes longer term plans for provision of transitional and affordable housing. Background/Analysis/Options Home for Good (HFG) objectives align with Our Community 10-Year Affordable Housing and Homelessness Prevention Strategy and the Ontario Supportive Housing Policy Framework, respectively. More specifically, this funding targets improved outcomes for the same priority client populations as those articulated within the provincial Community Homelessness Prevention Initiative (CHPI) Guidelines: Chronic Homelessness; Youth Homelessness; Indigenous Homelessness; and Homelessness following transitions from provincially-funded institutes and service systems such as hospitals and prisons. On March 30, 2017, staff participated in a Ministry of Housing (MHO) Webinar which detailed HFG relative to i) key program objectives; ii) eligibility for operating and capital funding; iii) application processes/timelines; and iv) service agreements and accountability requirements. Since this webinar, and recognizing the significance of this funding opportunity, staff has initiated planning and preparatory discussions regarding a proposed submission and potential next steps in moving an Expression of Interest (EOI) forward. Project Design The Province is open to varying project concepts. Proposed initiatives may include housing assistance and support services, in conjunction with new capital units for targeted client groups. Evidence from Simcoe County’s 20,000 Homes Campaign, in conjunction with additional evidence from the County’s emergency shelter housing program, continues to identify the need to better target and support individuals experiencing chronic and longer-term episodic homelessness. This target population comprises other priority sub populations including Indigenous persons and/or those transitioning from public institutions. Expressions of Interest A County of Simcoe EOI submission would utilize local evidence as the basis for a proposed approach to addressing system priorities and improving client access to housing supports. It would include a request for both operating and capital funding, would reflect diverse community partnerships, and would convey commitment to improved service coordination and housing access. Should the County’s EOI be approved by the Province, additional items would be brought to County Council providing greater details, and requesting authorization to move forward with next steps. April 21, 2017 Affordable Housing Advisory Committee - AHA 17-015 Page 3 An Expression of Interest (EOI) provides the opportunity for Service Managers to describe a proposed project and to speak to how the project: Focuses on at least two of the four provincial priority target areas and reflects communitydriven solutions for preventing and/or transitioning people out of chronic homelessness Advances Ontario’s long term goal of ending chronic homelessness by 2025 Responds to the supportive housing needs associated with the targeted populations Builds on existing and/or new system services/programs Demonstrates collaboration with system partners and broader stakeholders Reflects readiness and capacity to deliver both operating and capital project components Aligns with Our 10-Year Affordable Housing and Homelessness Prevention Strategy These project indicators would be captured through six EOI components including i) overview; ii) business case; iii) organizational capacity/risk management; iv) partnerships and collaboration; v) project delivery plan and budget; and vi) capital project details. Home For Good (HFG) Project Planning Next Steps: Operating The County of Simcoe’s 2017-18 Community Homelessness Prevention Plan (CHPI) Investment Plan (IP) identifies the critical importance of Housing First (HF) for Simcoe County (CCW 17-039; March 14, 2017). The IP additionally reflects extensive community engagement and planning regarding a HF program design and strategies for implementation. Planning to date has been undertaken with a range of key community stakeholders including the Simcoe County Alliance to End Homelessness (SCATEH), social justice organizations, Local Health Integrated Network (LHIN) allied service providers, corrections, youth serving organizations, and homelessness service providers. Over the last year, and reflective of locally driven solutions, staff has developed a business case for a comprehensive, regionalized HF model, premised on improving homelessness system coordination that: i) better identifies recipients who fall within one or more of the four provincial homelessness priority areas; ii) better facilitates and brokers necessary referrals; and iii) provides direct housing and ongoing support programming as appropriate. This HF program reflects a regionalized strategy that builds upon ongoing community partnerships and collaborations. The proposed HF model demonstrates commitment to addressing the housing and support needs of individuals experiencing chronic and high acuity homelessness. The proposed HF model directly aligns with provincial HFG funding guidelines and articulated priorities. More specifically, eligible activities under the HFG operating component include: Rent supplements (paid directly to the landlord), or housing allowances (paid directly to the recipient); First and last month’s rent, as well as regular monthly rent; and Housing assistance and support services including case management support service plans, harm reduction, basic needs, landlord relations, life skills training, counselling and personal support, all provided through a variety of external community agencies and housing provider partnerships. HFG Program Guidelines encourage applicants to target varied housing models including transitional and dedicated supportive housing programs. Operating funding may be used on its own or in conjunction with funded capital projects. For proposed capital projects, the EOI must demonstrate an integrated approach, one that links housing access and support services to any new units created. April 21, 2017 Affordable Housing Advisory Committee - AHA 17-015 Page 4 Home For Good (HFG) Project Planning Next Steps: Capital Staff identified two priority projects for the capital component of an Expression of Interest (EOI) submission which address the two primary areas that experience critical mass of homelessness, the Cities of Barrie and Orillia. Both Cities experience homelessness clustering due to persons who migrate to these urban settings. The priority projects include a motel conversion project within the City of Barrie focused on transitional and supportive housing units. The second proposed capital project also speaks to transitional and supportive housing, building upon a hub model for service delivery currently operating in the City of Orillia. With respect to both projects, staff is currently exploring their respective business cases to further determine project viability, in collaboration with local stakeholders such as non-profit organizations. If either project should be determined non-viable, the EOI would be written in such a way as to allow staff to explore other similar projects within each of the two Cities. Eligible activities under the HFG capital component include: New construction, including additions and extensions; Acquisitions and/or rehabilitation of existing residential buildings to maintain or increase the affordable rental housing stock; or Conversion of non-residential buildings or units to purpose-built rental building/units. Approved capital projects must remain affordable for a minimum period of twenty years. Affordability is defined as having project rents at or below 80% of the Canadian Mortgage Housing Corporation (CMHC) Average Market Rent (AMR), at the time of occupancy. These are elements that have been required under previous rounds of federal-provincial affordable housing funding programs. No up-front construction financing will be provided for capital projects. The County may, under the capital component, consider construction financing. Approved capital funding would be advanced by the Province to Service Managers on a quarterly basis, over a twenty year period, beginning with the first required payment for long-term financing. Payments would then be forwarded to proponents on a monthly basis by the Service Manager, and would be used to help service the proponent’s monthly principal and interest payments. Under recent rounds of capital programs, the funding was flowed during the construction phase, based on project milestones. Since this is not the case under HFG, proponents will have to secure construction financing from other sources. There may be a role for the County under the capital component to consider provision of construction financing to a proponent should the Province approve the HFG capital funds. Project Evaluation Based on HFG program guidelines, it is anticipated that the County would be required to undertake an evaluation component. Staff is currently participating on Ministry of Housing (MHO) working groups to help inform a comprehensive housing and homelessness data strategy intended to: identify and facilitate the collection of outcome-based data to better inform program designs enable strategic partnerships to continuously innovate This work will help to better inform best practice guidelines that align with the provincial Supportive Housing Policy Framework. This framework essentially underpins HFG guidelines and requirements for EOI. Service Manager Liability As with previous federal/provincial programs, the Service Manager is required to indemnify the Province for funding losses and the Service Manager must assume full responsibility and liability April 21, 2017 Affordable Housing Advisory Committee - AHA 17-015 Page 5 for funding partner organizations with Home For Good (HFG) funds. Therefore, if any projects are selected by the Province as a result of the Expression of Interest (EOI) process, the County will need to be satisfied regarding project viability before any Transfer Payment Agreements and/or Contribution Agreements are signed with third parties. Financial and Resource Implications Operating funding through HFG is approximately $25 million for 2017-18 and $50 million for 201819. In addition, capital funding will be available to develop approximately 400 new capital units (funded at a maximum of $150,000 per unit) in each of the first two program years. Up to 10% of the funding may be used to cover administration of operating expenditures and an additional 5% may be allocated to capital administration costs. In-year, unutilized funds would be recovered by the Province and cannot be carried over to the next fiscal year. With respect to this initial round of HFG funding, successful Consolidated Municipal Service Managers (CMSMs) and District Social Services Administration Boards (DSSABs) will continue to receive operating dollars, beyond the two year period, in order to support longer term project viability. That said, the continued operating funding will be subject to annual provincial budget approvals and service manager fulfillment of accountability requirements. Under recent rounds of capital programs, the funding was flowed during the construction phase, based on project milestones. Since this is not the case under HFG, proponents will have to secure construction financing from other sources. There may be a role for the County to consider provision of construction financing to a proponent should the Province approve the HFG capital funds. Relationship to Corporate Strategic Plan Strengthen Social, Health and Educational Opportunities: Establish partnerships to identify opportunities for strengthened Human Services and Education to support improved health and well-being of our residents. Growth Related Service Delivery: Create and strengthen partnerships with key stakeholders to support communities through the delivery of sustainable services. Specifically, the Social and Community Services strategic initiative: Develop and implement a Long Term Affordable Housing Strategy This Item is consistent with Our Community 10-Year Affordable Housing and Homelessness Prevention Strategy. April 21, 2017 Affordable Housing Advisory Committee - AHA 17-015 Page 6 Reference Documents AHA 17-008 (February 17, 2017) Provincial Housing and Homelessness Data Forum CCW 17-039 (March 14, 2017) The Community Homelessness Prevention Initiative Investment Plan 2017-18 AHA 16-036 (October 21, 2016) Housing First Program Framework AHA 16-023 (May 20, 2016) Community Profiles: Informing Next Steps in Ending Chronic Homelessness AHA 16-021 (May 20, 2016) Simcoe County 20,000 Homes Campaign Registry Week AHA 16-006 (January 22, 2016) Summary of the Expert Advisory Panel on Homelessness Ontario Supportive Housing Policy Framework, March 2017, http://www.mah.gov.on.ca/Page13793.aspx Housing Our Future: Our Community 10-Year Affordable Housing and Homelessness Prevention Strategy Attachments Schedule 1 – ADM Letter Schedule 1 - ADM Letter.pdf Schedule 2 – Home For Good Expression of Interest Schedule 2 - Home For Good Expression of Interest.pdf Prepared By: Doriano Calvano, Manager, Social Policy and Planning John Connell, Manager, Implementation Manager, Social Housing Approvals: Jan Janssen, Director, Children and Community Services Arfona Zwiers, Director, Social Housing Greg Bishop, General Manager, Social and Community Services Trevor Wilcox, General Manager, Corporate Performance Mark Aitken, Chief Administrative Officer Date April 10, 2017 April 10, 2017 April 11, 2017 April 12, 2017 April 12, 2017
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