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Putting the deal together:
Leveraging in the Continuum of Care Planning Process

Ann V. Denton
The Enterprise Foundation, Austin, TX

Communities planning for a system of housing and services for people who are homeless cannot rely exclusively on HUD Continuum of Care resources to solve these problems. It is essential that communities examine the total universe of available resources and plan to make creative use of many sources of funds to address the problem of homelessness.

Communities should be encouraged to consider housing resources available through HUD's Consolidated Planning process. These resources include HOME, the Community Development Block Grant, the Emergency Shelter Grant and Housing Opportunities for People with AIDS.

Communities should be encouraged to consider local and state sources of funds for services and supports, including mental health services, substance abuse services, child care services, etc. These resources should be counted towards leveraging ONLY IF a written agreement documents the commitment of resources.

Communities should be encouraged to access private sources of funds: foundations, corporate donors, banks and others. These sources can often provide the funding for program components that are not eligible for assistance with public funds.

The following scenarios are offered as examples of ways in which communities might put together comprehensive plans for assisting people who are homeless.

Scenario #1:
Transitional Housing using Continuum of Care (C of C) funds

Community has identified transitional housing as the number one priority and a large, multifamily property has been donated for the purpose. The property needs rehabilitation, and the transitional housing program itself requires operating funds and related supportive services. The total Year One cost of the project will be $686,000, using funds as follows:

Activity Source of Funds Amount
Rehab property HUD Supportive Housing (C of C) $200,000
Rehab property HOME, Rental Project Assistance (City) $200,000
Operating expenses HUD Supportive Housing (C of C) $136,000
Support Services TCADA contract with local providers,
committed treatment "slots"
$50,000
Support Services City funded interagency case
management, two case managers
dedicated to the project
$50,000
Support Services Child Care services, from Welfare
to Work funds
$50,000
Total Project Cost, Year One $686,000
Total SHP Request (C of C) $236,000
Total amount leveraged $450,000

Scenario 2:
People with HIV - Exit from Homelessness

People who are homeless and also infected with HIV have been identified as a vulnerable sub-population in the community. A program is created that combines emergency shelter slots with on-site health care and pre-paid substance abuse slots. Also, the community identifies the need for 10 units of transitional housing, and 15 units of permanent housing for this group of homeless persons.

Activity Source of Funds Amount
Emergency Shelter City Emergency Shelter Grant funds, 15 slots $44,000
Substance Abuse Treatment,
6 slots
City/County service funds $32,000
Transitional Housing Support for 10 units of housing,
C of C SHP funds
$110,000
Permanent housing 15 slots of tenant based rental assistance
from local HOME funds
$140,000
Health Care Services 15 slots, Ryan White funds (federal) $52,000
Total Project Cost, Year One $378,000
Total SHP Request (C of C) $110,000
Total amount leveraged $268,000

Scenario 3:
Exit from homelessness - Hard to serve homeless adults

The community has identified a core group of about 50 "hard to serve" homeless adults (Defined as individuals who use many, many services with little perceived benefit for the individual). The decision has been made to make a concerted effort to help these individuals in a concentrated fashion, using a combination of a low demand shelter, transitional housing, permanent housing, and case management.

Activity Source of Funds Amount
Low demand shelter Emergency shelter grant funds for
operations/maintenance($75,000).
Shelter site and some operations funds
from private donor (value of site = $50,000)
$125,000
Transitional housing, 16 units Community Development Block Grant
funds, match for acquisition
$100,000
Transitional housing Chase Bank, pre-development
recoverable grant, construction loan
$300,000
Transitional housing SHP, Acquisition of property =
$100,000; Operations = $120,000
220,000
Computer Tracking system System and operating funds donated
by Dell, Inc.
180,000
Permanent housing 30 slots of tenant based rental
assistance from local HOME funds
280,000
Case management Dedication of two case managers from
existing faith based activity, plus
operating funds
88,000
Total Project Cost, Year One $1,293,000
Total SHP Request (C of C) $220,000
Total amount leveraged $1,073,000

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