Affordable Housing and Homelessness Services Program Inventory

Production of Affordable Housing

The production of affordable housing involves creating new units, transforming properties that were either previously unaffordable or naturally affordable into permanently affordable housing. This is achieved through several strategies:

• Financing non-profit developers to build new properties, with an agreement to maintain a portion of units, typically 50-70% of the Area Median Income (AMI), as affordable.
• Utilizing the right of first refusal (ROFR) to facilitate property purchases by non-profit entities, with a commitment to keep rents affordable.
• Implementing rental agreements that require landlords to cap rent rates for a specified period, often incentivized through tax benefits, grants, or reduced-interest loans.
• Enforcing the Moderately Priced Dwelling Unit (MPDU) policy in new multi-family developments, mandating 12.5% to 15% of units for individuals earning 70% or below the AMI, as per Montgomery County's inclusionary zoning policies.

Preservation of Affordable Housing

Recent studies indicate Montgomery County has around 18,000 deed-restricted housing units and approximately 25,900 NOAH units. Preservation efforts focus on maintaining or establishing long-term affordability, either by extending the affordable status of deed-restricted units (units that are only available for sale to income-eligible borrowers at an affordable price) or converting NOAH into deed-restricted housing. Strategies include:

• Encouraging ownership transfers through financing.
• Using rehabilitation funds or property tax incentives to offset property upgrade costs.
• Establishing rental agreements to support lower rental rates or providing property tax benefits.
• Promoting equitable redevelopment with financing and property tax discounts.

Supportive Programs for Affordable Housing

• The Single-Family Weatherization Program aids low-income homeowners in maintaining their homes and improving energy efficiency.
• The Group Home Program renovates group homes for elderly and disabled individuals with low to moderate incomes, focusing on safety and accessibility improvements.
• The Rental Assistance Program, which is managed by The Housing Opportunities Commission (HOC) and Health and Human Services - Services to End and Prevent Homelessness (SEPH), offers subsidies to reduce rent burdens, prevent homelessness, and mitigate the impact of expiring rent restrictions, particularly aiding senior households at risk of homelessness.

This comprehensive approach highlights Montgomery County's commitment to not only increasing the availability of affordable housing but also ensuring its sustainability and accessibility for various community segments.

Production and Preservation Performance

A review of Montgomery County's housing data from Fiscal Year 2009 to Fiscal Year 2023 provides valuable insights into the evolving landscape of housing preservation and production. This analysis is critical in understanding the county's approach to affordable housing and identifying areas for strategic improvement.

• Cost Trends in Housing: An overarching trend observed is the variability in costs associated with both preserving existing housing and producing new units. These costs have generally been on the rise, influenced by factors like inflation, market conditions, and the affordability of financing options. This upward trend in costs reflects the broader economic challenges faced in the housing sector and necessitates careful financial planning and resource allocation.
• Preservation Efforts: A key finding in recent years is the increasing emphasis on preservation efforts. Specifically, there has been a marked increase in activities aimed at maintaining aging and expiring deed-restricted units. This shift towards preservation has even surpassed the efforts in producing new affordable housing in the last five years. It highlights the county's commitment to not just expanding its affordable housing stock but also ensuring the longevity and viability of existing units.
• Dynamics of Housing Production: The production of new affordable housing units in Montgomery County is largely driven by market forces, reliant on the sale and development of properties. This market dependency introduces a level of unpredictability and challenges in consistently meeting affordable housing goals. It underscores the importance of having flexible strategies that can adapt to market fluctuations and ensure the steady creation of affordable housing.
• Implications for Strategic Housing Management: The data from this period underscores the ongoing challenge faced by Montgomery County in balancing the dual objectives of preserving existing affordable housing and generating new units. The rising costs and fluctuating production numbers highlight the critical need for strategic planning, effective resource management, and the consideration of potential policy changes. These measures are essential to address the growing demand for affordable housing and to ensure that the county's housing strategies remain responsive to the needs of its residents.

Overall, this performance analysis serves as a guide for Montgomery County in refining its approach to affordable housing. By focusing on both the preservation of existing units and the production of new ones, the county can better meet the diverse housing needs of its community, ensuring affordability, sustainability, and accessibility for all residents.

*Note: The production and preservation data presented above have been compiled from a decentralized, independent review at the program level, which may not be consistent with the official statistics released by the Department of Housing and Community Affairs. Rental agreements are typically documented upon renewal. It's significant to recognize that these agreements usually pertain to the same housing units annually. This characteristic is distinct to rental agreements; in contrast, other methods of producing and preserving affordable units (with greater longevity) typically accumulate benefits/units over time, creating a more dynamic measure of affordability. CountyStat is currently collaborating with the Department to harmonize this data using a unified and centralized approach.

Additional Tools

Administrative Information and Data Consolidation: The Department of Housing and Community Affairs (DHCA) has invested in resources, skills, and time into administrative information management across department service areas. Over the next 24 months, DHCA will focus on data-warehousing, analytics, and performance management to support data-driven decision making.

Implement Project-Based Rental Assistance: Applying project-based rental assistance to redeveloped or rehabilitated units can achieve the goal of maintaining net operating income for the property owner.

Implement Rent Stabilization: DHCA developed regulations for rent stabilization and submitted them to the County Register on January 23, 2024, for publication and public comment. Once the 30-day public comment period expired, the County Executive submitted the regulations to the Council. The Planning Housing and Parks (PHP) Committee has scheduled a work session for a preliminary review and to allow the public to testify. The PHP Committee may recommend approval to Council if specific amendments are adopted, or recommend disapproval to Council. The Council will then review and decide whether to approve the regulations at a subsequent public hearing. The Council by majority, may approve or disapprove the proposed regulation within 60 days after receiving it; however, the 60-day deadline may be extended by Council. If Council approves the regulations, they will take effect upon adoption of the resolution approving it or on a later date specified in the regulation.

Investigate Locally Funded Master Leasing: Non-profit and/or public entities can lease a specified number of units in private, market rate properties to preserve affordability while still providing the owner with a market-rate return. Such policies can be targeted toward improving neighborhoods and/or larger-scale properties.

Investigate Opportunities for Enhanced Property Tax Credits: The county could offer a property tax credit to owners or managers that voluntarily offer reduced rents to income-qualified tenants. Bill 26-21, which was signed in 2021, allowed for 100 percent payment in lieu of taxes for a housing development owned or controlled by the Housing Opportunities Commission (HOC) or a nonprofit housing developer with at least 50 percent of the dwelling units affordable to households earning 60 percent or less of area median income. Bill 26-21 also repealed the annual maximum aggregate amount of all payments in lieu of taxes approved under this law, which historically was not permitted to exceed an amount set annually by Council resolution for the following 10-year period.

Services to End and Prevent Homelessness

The programs of Services to End and Prevent Homelessness (SEPH) have a common vision: access by all people to safe, affordable housing, and opportunities to improve quality of life. The mission of SEPH is to make homelessness a rare, brief, and non-recurring experience. SEPH operates from a Housing First philosophy which prioritizes providing permanent housing to people experiencing homelessness as quickly as possible and then addresses the challenges that contributed to their homelessness while also providing additional supports.

SEPH provides a full continuum of services including homeless outreach, housing stabilization, homeless diversion, emergency shelter, and permanent housing; and employs evidence-based and promising practices. SEPH programs collaborate with public and private partners through the Interagency Commission on Homelessness.

SEPH has a targeted focus on special needs populations including veterans, individuals and families, persons with behavioral health challenges, individuals with developmental disabilities, youth, LGBTQ+ individuals, and seniors with disabilities experiencing or at risk of homelessness.

Coordinated Entry Program

The Coordinated Entry program is designed to assess the level of vulnerability and need of every household experiencing homelessness and equitably assist with housing placements. The performance of this program over the years shows mixed trends:

• Assessment Completion for Individuals: There's been a significant increase in the number of households experiencing homelessness with completed intake assessments, indicating improved process efficiency. However, there was a slight dip in FY23 compared to FY22.
• Assessment Completion for Households: The percentage of households with completed assessments has shown a marked improvement, especially in FY23. This suggests enhanced efforts by the service staff to engage with more households.
• Application to Placement Duration: The time taken from housing program application to placement has unfortunately increased, reflecting challenges in the housing market and possibly other logistical issues. This trend is concerning as it indicates longer wait times for those in need of housing.

Challenge/Issues

Completing Vulnerability Assessments: Increasing the percentage and number of homeless individuals with a completed vulnerability assessment to determine appropriate housing placement.

Reducing Housing Assignment Time: Decreasing the number of days from when a housing program is assigned to when individuals are actually housed.

Proposed Solutions

• Increasing Vulnerability Assessment Outreach: Aim to increase outreach to more homeless individuals to asesses and determine their housing needs.
• Reducing Housing Assignment Time: Focus on decreasing the time from housing program assignment to actual housing.
• Evaluating the Acuity Scale: Hire researchers to assess and potentially improve the acuity scale used for housing prioritization.
• Work Plan Development with CSH: Collaborate with the Corporation for Supportive Housing (CSH) to develop plans for the Coordinated Entry System (CES) Subcommittee.
• Revising the Landlord Risk Mitigation Fund: Review and update fund policies, to better support households exiting homelessness. The current fund policies provide participating landlords with an incentive and added security to provide housing to a tenant that is receiving social supports from a Permanent Supportive or Rapid Rehousing program.
• Addressing System Fragility: Identify solutions for any policy or infrastructure issues, ensuring equitable housing placements.

Health Care for the Homeless

The Health Care for the Homeless (HCH) program provides crucial medical services to one of the most vulnerable populations. The FY23 performance data sheds light on the program's operations and impact.

• Hospital Transfers from Shelters: A key measure of the program's interface with acute health care needs is the number of hospital transfers from year-round shelters. In FY23, there was a significant increase to 689 transfers, up from 395 in FY22, marking a notable increase of 74.43%. This increase far exceeds the historical average by 73.12%, highlighting a rising demand for immediate medical attention among shelter residents. The increase in client numbers in FY23 is a result of the program's expanded efforts to address more complex health issues directly within shelters, indicating both an increased need from the homeless population and an intensified response by the program.
• Primary Care Services Uptake: The number of households receiving primary care services within the program is another critical indicator of its reach and effectiveness. Here, there's a near doubling of service uptake, with 403 individuals served in FY23 compared to 202 in FY22. This almost 100% increase suggests that the program has significantly ramped up its service provision or that there is a higher prevalence of health issues requiring primary care among the homeless. The footnote for this measure points to a general increase in the number of individuals accessing healthcare services, which could be attributed to both an increase in the homeless population's health needs and improved access to services provided by the program.
• Interpreting the Data: The dramatic increase in both hospital transfers and primary care service uptake indicates that the Health Care for the Homeless Program is addressing an essential and growing need. The data suggests not only a rise in the complexity and volume of health issues faced by the homeless population but also an enhanced capacity and effort by the program to meet these challenges.

In conclusion, the Health Care for the Homeless Program has demonstrated a robust response to the health care needs of the homeless community in FY23. The increase in hospital transfers and primary care services reflects a program that is not only responsive but also proactive in its approach to health care delivery. As the program moves forward, the focus on maintaining and scaling these services will be critical in addressing the health care of clients.

Challenges/Issues

• Need for Other Benefits: Many families/households with minor children experiencing homelessness seeking assistance also require other benefits such as SNAP, TCA, etc. Dedicated staff to process these benefit requests would enable faster resolution of their housing crises.
• Easy Access to Wrap-Around Services: There is a need to deepen partnerships with other systems of care to ensure easy access to comprehensive wrap-around services. This is necessary to connect households to the resources they need.

Proposed Solutions

• Issuing an RFP for the Medical Respite Program: This involves creating a Request for Proposal (RFP) specifically for Federally Qualified Health Centers, focusing on enhancing the Medical Respite Program's reach and efficiency. The Respite Program currently provides short-term temporary relief to unpaid live-in primary caregivers who are providing full-time care to frail elderly adults, functionally disabled adults (including those with Alzheimer's disease and other dementias); children and adults with developmental disabilities; and children with severe medical conditions.
• Improving Documentation by Health Care for the Homeless Staff: Ensuring that Health Care for the Homeless (HCH) staff are consistently and accurately documenting service transactions in the Homeless Management Information System (HMIS).

Interagency Commission on Homelessness

The Interagency Commission on Homelessness has reported an uptick in the total number of households experiencing homelessness, which can be attributed to various factors including higher rents, increased evictions, and more restrictive policies regarding rental assistance. Additionally, the commission faces challenges in recruiting consistent membership for its committees, despite active efforts. On the financial front, the program experienced stability in funding from non-county sources, although it did not receive additional COVID-related grants in the recent fiscal years.

Challenges/Issues

• Insufficient care coordination with other systems of care, especially for households with behavioral and physical health challenges.
• Need to address gaps in the system as identified across program areas.

Proposed SolutionsPlan

• Further Developing the People’s Committee: This includes recruiting a broader membership with representation from different subpopulations and increasing the committee's involvement in the planning and decision-making of the homeless system, thereby expanding the role and influence of the People’s Committee.
• Filling Commissioner Vacancies: Focus on filling current vacancies among commissioners on the Interagency Commission on Homelessness and establishing a plan for rotating commissioners. This aims to maintain continuity in the work while also allowing for the integration of new perspectives and voices.

Rapid Rehousing Program

The Rapid Rehousing (RRH) Program is a pivotal element of the DHCA's strategy to combat homelessness, aimed at quickly transitioning individuals and families into permanent housing and providing the necessary support to increase earned income to eventually maintain housing independently. The performance measures for FY23 provide a view of the program's efficacy.

• Client Service Numbers: The program's ability to serve a high number of households is a crucial operational metric. In FY23, the number of households served slightly decreased to 833 from 966 in FY22, which is a 13.77% reduction. Despite this year-over-year decrease, the overall trend shows a 34.17% increase over the historical average, demonstrating the program's growth and expanded capacity over time. The footnote explains that the reduction in FY23 was anticipated and attributes it to various operational adjustments, suggesting that the program is in a phase of recalibration.
• Permanent Housing Exits: An essential outcome for Rapid Rehousing is the percentage of exits to permanent housing. The program maintained a high performance in FY23 with a 79% success rate, slightly lower than the 83% success rate in FY22, but still represents a positive trend. The relatively stable performance in this area signifies the program's consistent ability to achieve its primary goal of securing permanent housing for households.
• Income Growth: A remarkable achievement is noted in the increase of household income since program entry, with a rise to 31% in FY23 from 24% in FY22, marking a substantial increase of 29.17%. This significant change over the previous year and a 24.12% increase over the historical average suggests that the program is effective in not only rehousing but also improving the economic status of the households it serves, which is essential for long-term housing stability.
• Cost Efficiency: The cost per positive exit, a measure of the program's financial efficiency, saw a dramatic decrease in FY23, with the cost dropping to $4,785 from $18,480 in FY22. This 74.11% decrease in costs while maintaining service quality is a strong indicator of increased operational efficiency and fiscal responsibility within the program.

The Rapid Rehousing Program has shown commendable efficiency and adaptability in FY23, successfully balancing the dual objectives of housing stability and financial empowerment for its clients. Despite a transformative period, it has maintained strong outcomes in housing placements and significantly improved clients' incomes, underscoring its vital role in SEPH's efforts to tackle homelessness.

Challenges/Issues

• Staff Training and Technical Assistance: The Rapid Rehousing (RRH) staff require additional training and technical assistance to effectively connect households to mainstream resources (e.g. health care, mental health care, substance use treatment, and veterans supports) and implement a Housing First philosophy.
• Landlord Participation and Client Barriers: The program faces difficulties in finding landlords willing to participate, often due to applicants' poor credit, rental history, criminal records, and income requirements. This issue is compounded by the need for more education and enforcement of housing laws, despite existing source of income protections in Montgomery County.

Proposed Solutions

• Converting Contract Positions to Merit Positions: SEPH is currently transitioning broker positions, which are filled by contract workers, to merit positions. This strategy, approved by the Office of Management and Budget and recommended in the County Executive’s FY24 Operating Budget, aims to maintain and attract quality staff. It involves reallocating General Funds from rental assistance to staff conversion.
• Enhancing Staff Training and Technical Assistance: The Rapid Rehousing (RRH) staff will receive additional training and technical support. This is to improve their ability to effectively connect households to mainstream resources and implement a Housing First philosophy, ensuring more efficient and effective service delivery.

Rental Assistance Program

The Rental Assistance Program (RAP) is a critical initiative aimed at supporting community members who face economic barriers to maintaining their housing. The performance analysis for FY23 reflects the program's ongoing efforts and the shifts in its operational landscape.

• Households Receiving Rental Assistance: The program has seen a decrease in the number of unique households with an active rental subsidy, moving from 911 in FY22 to 806 in FY23. This represents an 11.53% decrease year-over-year and a more significant 43.85% decline from the historical average. The data points to a lower utilization of rental subsidies, which may indicate a variety of factors, including potential changes in eligibility criteria, availability of funds, or shifts in housing market conditions. The footnote provides insight, suggesting that despite available funding, enrollment in the Rental Assistance Program has continued to decline, possibly due to market factors and the end of pandemic-related housing instability measures.
• Utilization of Housing Stabilization Services: A key aspect of the program's success is the percent of clients who utilized housing stabilization services effectively. In FY23, there was a notable reduction in this metric, with 27% of the rental assistance program clients utilizing these services compared to 45% in the previous fiscal year. This 40% reduction is substantial and raises questions about the barriers to service utilization. The historical context is important, as this figure is also below the average, indicating that the program's reach or the efficacy of its services may be facing challenges. The department adds that the FY23 figures are based on cases initiated in FY22, pointing to a lag effect in the reporting of this data due to the nature of case management and follow-ups.
• Interpreting the Trends: The downward trends in both the number of households receiving assistance and the effective utilization of stabilization services suggest that the Rental Assistance Program is in a period of recalibration. It is highly likely that the post-pandemic environment, characterized by a complex interplay of economic recovery, housing market fluctuations, and the sunset of emergency support measures, has influenced the program's trajectory.

As the program adapts to the current conditions, the focus may need to shift to understanding the barriers to enrollment and service utilization. There is an opportunity to re-evaluate outreach strategies, streamline the application process, and ensure that the services provided align closely with the evolving needs of the community. The overarching goal remains to stabilize housing for vulnerable populations, a mission that is ever-critical in the face of economic uncertainty. The Rental Assistance Program's performance in FY23, though facing declines, sets the stage for a strategic review and potential reinvigoration of its services to meet the demands of the times and continue its vital support for housing stability.

Cross Jurisdictional Analysis

Several local jurisdictions in the United States provide shallow rental assistance subsidies, which are designed to offer modest financial support to help individuals and families maintain stable housing. 

• San Diego County's Shallow Rental Subsidy Program: This program is targeted towards older adults who are severely rent-burdened. It requires that the head of the household be 55 years of age or older and the household's income be at or below 50% of the Area Median Income (AMI). This program is particularly aimed at assisting low-income older adults who may be at risk of losing their housing without financial assistance.
• Supportive Services for Veteran Families (SSVF) Program’s Shallow Subsidy initiative: This initiative provides rental assistance to very low-income and extremely low-income veteran households. The subsidy provided is based on 35% of the Fair Market Rate (FMR) for their unit and can continue for up to 2 years. The program also includes case management services and other housing stabilization services.
• Friendship Place Veterans Services Division's Shallow Subsidy Program in Washington, D.C.: This program, as a component of the SSVF grant, assists eligible veterans whose income is 50% of the AMI or below. The subsidy amount is a 35% flat rate based on the unit size FMR, and participants generally cover their own utilities. The program provides "light touch," housing-focused case management for up to two years, with the possibility of re-certification for another 2-year period if needed.
• Philadelphia's Shallow Rent Program: Launched by the Philadelphia Housing Development Corporation (PHDC), this program provides rent assistance for tenants living in affordable housing projects who are rent burdened (spending more than 30% of their income on rent). The program aims to provide monthly rent vouchers not exceeding $500 for eligible participants.

These programs represent a growing trend among local governments to address the challenges of affordable housing and homelessness by providing targeted, sustainable financial support to vulnerable populations. They demonstrate a commitment to preventing homelessness and aiding in the stabilization of housing for those in need.

Challenges/Issues

• Program Size and Focus: There is a need to evaluate the program to ensure it is appropriately sized and focused for the community's needs. This includes ensuring that the program works effectively with homeless services and housing stabilization services for appropriate referrals and full enrollment.
• Eligibility Criteria Limitations: The eligibility criteria and executive regulations of the Rental Assistance Program (RAP) were revised to limit eligibility to households with a member who has a documented disability or is 55+. This change was made as the program can only support about 1700 households annually. However, the ongoing economic challenges, particularly those stemming from COVID, may necessitate a review of the program's goals and focus.

Proposed Solutions

• Program Evaluation: Conducting an evaluation of RAP to ensure it is appropriately sized and focused to meet the community's needs. This is to ascertain that the program is optimally structured and serving its intended purpose effectively.
• Enhancing Collaboration with Homeless and Housing Services: Continuing to work closely with homeless services and housing stabilization services to ensure that appropriate referrals are received. This is vital for the program to be fully enrolled and to serve the target population efficiently.
• Evaluating the SHaRP Pilot Program: There will be a focus on assessing the Short-term Housing Resolution Program (SHaRP) to determine if this pilot program should be continued as a long-term initiative. This evaluation will help in understanding the effectiveness and impact of this program and decide on its future scope.

Permanent Supportive Housing Program

The Permanent Supportive Housing (PSH) Program focuses on helping its clients to find and retain permanent housing:

Clients Served: The program has expanded to serve over 2,300 clients annually an increase of 61% over FY17.

Client Housing Retention: The program has consistently maintained a high rate of clients retaining permanent housing, with little fluctuation over the years. This stability is a positive indicator of the program’s effectiveness.

The program has demonstrated substantial progress in transitioning clients to less supportive housing arrangements, which is a key indicator of client independence and program success. In FY23, the graduation rate to more independent living situations rose significantly, registering an approximate 90% increase when compared to the historical average. This metric is particularly noteworthy as the program primarily serves individuals with disabilities—a group that typically faces more barriers to housing independence. Despite these challenges, the graduation rate reached 14% in FY23, reflecting the program's effectiveness in supporting its clients towards greater self-sufficiency.

Challenges/Issues

• Variance in Cost and Quality: There is a significant variance in the cost and quality of PSH programs within the county. Some programs are more expensive than others, but the outcomes do not significantly vary. To address this, programs are advised to consider partnering with behavioral health providers and other mainstream resources.
• Need for Resource Shift: There's a need to shift resources from PSH programs serving households with low acuity of need to those that are truly low barrier and can serve those with the most severe needs. For instance, some PSH providers face challenges due to staffing patterns and service philosophy that restrict its ability to serve high-acuity households. Additionally, rising rents, which range from 10-50% increases, are a concern as they affect the ability of programs to serve the same number of households within their budgets​.

Proposed Solutions

• Implementing Coordinated Entry for All PSH Programs: This involves ensuring that all permanent housing programs are integrated with the Coordinated Entry System for streamlined and efficient housing allocation.
• Updating and Amending Contracts: Focus on ensuring that contracts are updated to emphasize person-centered services with a housing focus.
• Training Staff on Housing First Principles: Training all PSH staff in Housing First principles and strategies, emphasizing low barrier access and client choice.
• Conducting Housing First Fidelity Assessments: Evaluating all PSH programs for their adherence to the Housing First model, ensuring that they are effectively implementing its principles.

Homeless Services for Adults Households Program

The Homeless Services for Single Adults Program has been re-named adult households, as this included multi-person households such as couples, adult parent and adult child(ren) households. Dedicated to addressing the unique challenges faced by all adults experiencing homelessness. This program's performance over recent years sheds light on its effectiveness, challenges, and areas of focus.

Outreach and Engagement: The program has put significant effort into outreach and engagement, aiming to connect with adults who are experiencing homelessness and often hard to reach. The success in this area is notable, with increased engagement rates over the years. However, the program continues to face challenges in reaching all segments of the homeless adult population, particularly those who are resistant to traditional outreach methods.
Emergency Shelter and Transitional: Providing emergency shelter has been a key component of the program. It has been relatively successful in offering immediate shelter solutions. However, the transition from temporary to more stable, long-term housing remains a significant challenge, partly due to the scarcity explains that this increase is likely due to limited housing options and longer processes for securing permanent housing.

While the Homelessness Services for Adult Households Program has improved permanent housing outcomes, challenges persist with rising homelessness and longer periods of instability. The program must continue to tackle the underlying causes of homelessness, streamline housing placements, and improve access to affordable housing. Effective service delivery, increased housing options, and strong community partnerships remain key to its success.

Proposed Solutions

• RFP for Men’s Shelter and Rebidding Women’s Shelter Contract: This involves issuing a Request for Proposal (RFP) for the Men’s Shelter and rebidding the contract for the Women’s Shelter, aiming to optimize service provision and management.
• Implementing EveryMind and SEPH Diversion Program: Focus on the implementation of this program, with an emphasis on documenting efforts in the Homeless Management Information System (HMIS).
• Improving Survey Kiosks Utilization: Enhancing the use of these kiosks to gather valuable feedback and data, aiding in service improvement.
• Developing External Communication Strategies: Creating communication strategies to dispel myths about homelessness and provide clearer access to outreach and diversion services, enhancing public understanding and support.
• Developing Partnerships for Street Homelessness Support: Strengthening collaborations with business districts, communities, and other stakeholders to provide better support to individuals experiencing street homelessness.
• Expanding Critical Intervention Teams (CIT): Broadening the use of CITs to provide more person-centered engagement and services, focusing on the specific needs of each individual experiencing homelessness.

Housing Stabilization Services Program

The Housing Stabilization Services program, also know as the Prevention program, is designed to provide a safety net for those at risk of homelessness due to financial instability. The program has navigated a year of transition as reflected in the performance data for FY23. The work of improving housing stabilization also includes the Office of Home Energy Programs (OHEP), which provides assistance to households struggling to pay their utility expenses.

• Emergency Grants Performance: Initially, the program's capacity to offer emergency grants to prevent eviction spiked, likely driven by the influx of COVID-19 relief funds and heightened community needs during the pandemic. However, as these emergency measures tapered off, the program's numbers adjusted accordingly. The sharp 44.21% drop in households receiving grants in FY23, compared to FY22, signals a return to pre-pandemic operations and the cessation of temporary financial aid. This reduction, while significant, was an anticipated reversion to the mean after an atypical period of heightened support.
• Long-Term Housing Stability Following Prevention Grants: The program has recorded a slight increase in the proportion of households maintaining their housing for a year after receiving prevention grants. The percentage rose to 2.7% in FY23, up from 2.0% in the previous year. Although this figure is lower than the average before the pandemic, it highlights the program's resilience and effectiveness amid shifting economic conditions and the changing needs of the community. This improvement signals the program's success in offering not only immediate assistance but also in fostering enduring stability for the households it supports.
• Rehousing Efficiency: Perhaps the most telling indicator of the program's agility is the significant improvement in the speed of rehousing clients who receive financial assistance. The increase to 19% of households being rehoused within 45 days in FY23 reflects a concerted effort to streamline processes and address housing instability more efficiently. This marked improvement over the historical average suggests that the program has not only absorbed the lessons from an unprecedented period of need but has also refined its approach to meet the ongoing challenges faced by those at risk of homelessness.

As the Prevention program looks beyond the FY23 performance data, SEPH reveals a multifaceted response to a complex issue. The data shows a program adjusting to the post-pandemic reality, maintaining a focus on sustainable housing outcomes, and enhancing its rehousing processes. While the decrease in emergency grants points to a challenging landscape ahead, the improved outcomes in housing sustainability and rehousing efficiency offer a counterbalance of optimism and a testament to the program's essential role in community support.

Challenges/Issues

• Realigning Services and Community Expectations: There's a critical need to realign services and community expectations with the anticipated program budget cut. This challenge arises from the drastic shift in the program over the past 2.5 years, especially with the distribution of significant direct emergency rental assistance.
• Staffing Needs and Retraining: The program needs to fill vacant positions and assess staffing needs due to a shift in service delivery. Additionally, there's a requirement to retrain staff to effectively leverage data/case input systems for relevant data extraction.
• Mismatch of Processing Expectations and State Supported Staffing: The Office of Home Energy Programs (OHEP) is struggling with a mismatch between the expectations for processing applications and the staffing support provided by the state. This challenge affects the program's ability to meet service demands efficiently.

Proposed Solutions

• Expanding Outreach into Underserved Areas: The primary focus is on increasing outreach efforts in underserved areas of the county. This initiative aims to boost enrollment and utilization of OHEP services, ensuring that more residents benefit from the program, especially those in communities that have been historically underserved or overlooked.
• Reviewing Business Processes: There is an ongoing effort to continually review and refine business processes. This is to ensure that the program remains in compliance with case processing expectations. By optimizing these processes, OHEP seeks to enhance its efficiency and effectiveness in providing vital assistance to low-income residents struggling with utility costs.

Homeless Services for Families

The Homeless Services for Families Program is dedicated to supporting families with minor children in overcoming the challenges of homelessness and securing stable living conditions. The FY23 performance data offers insights into the effectiveness and impact of the program's services.

Number Served: The number of families experiencing homelessness is down from pre-pandemic levels.

Household Re-entry into Homelessness: One of the critical measures of success for the Homeless Services for Families program is the percent of households that return to homelessness after receiving services. This measure reflects the program's ability not only to provide immediate assistance but also to ensure long-term stability for families. In FY23, there was a reduction in the rate of return to homelessness to 9%, down from 13% in FY22, but still below the pre-pandemic levels, in FY17 and FY18 approximately 5% of previously severed families returned to homelessness. Furthermore, the length of stay in emergency shelter has increased by over 36% over the historical average.

Challenges/Issues

• Need for Additional Benefits: Many families seeking homeless services also require other benefits like SNAP, TCA, and childcare subsidies. A dedicated staff to process these benefit requests would enable quicker resolution of their housing crises.
• Access to Wrap-Around Services: There is a need to deepen partnerships with other systems of care to ensure easy access to comprehensive wrap-around services. This is necessary to help households access the resources and supports they need.

Proposed Solutions

• Reducing Length of Time Homeless for Families: A major focus is on decreasing the duration that families remain homeless. This involves streamlining processes and enhancing support mechanisms to ensure faster transition from homelessness to permanent housing.
• Expanding Shelter Offerings: There is an initiative to specifically expand shelter offerings for pregnant women and mothers who recently delivered. This targeted approach aims to provide specialized support and care for this vulnerable subgroup.
• Deepening Partnerships with Other Systems of Care: Strengthening collaborations with other care systems is a priority. This is to ensure that families have easy access to comprehensive wrap-around services, which are crucial for enabling households to receive the resources and supports they need. By integrating various support systems, the program aims to provide more holistic assistance to families experiencing homelessness.

Housing Initiative Program

The Housing Initiative Program (HIP) has shown a mix of stability and challenges in its performance. The number of households served has been stable, reflecting a gradual increase in program capacity due to additional subsidies. However, the program faces hurdles in retaining permanent housing for households. This issue is exacerbated by increasing rents and more restrictive landlord policies, necessitating more intensive support for households. On a positive note, the program has made improvements in reducing the acuity score, which measures the severity of issues impacting housing stability. This improvement is attributed to the program's expansion and the hiring of more direct service staff, including a social worker for assessment training. Despite these efforts, the time taken from housing program assignment to housing has been a challenge, with efforts underway to strengthen landlord relationships and improve housing locator services.

Challenges/Issues

• Completing Vulnerability Assessments: Increasing the percentage and number of homeless individuals who complete vulnerability assessments to determine suitable housing placement.
• Reducing Housing Assignment Time: Decreasing the time from housing program assignment to actual housing of individuals.

Proposed Solutions

• Fully Implementing the ACIS Pilot: The main goal of the Assistance in Community Integration Services (ACIS) pilot is to provide Medicaid-Eligible individuals with low- or no-barrier access to stable housing and well-integratred medical care with wrap-around services. Services to End and Prevent Homelessness (SEPH) aims to fully implement the ACIS pilot and perform effectively. The department has been awarded additional vouchers and is recognized as a top provider in the state. There is also an ongoing effort to engage with the state for increased ACIS reimbursement rates.
• Administering Housing Stability Vouchers with Partners: SEPH is collaborating with the Housing Opportunities Commission (HOC) and Rockville Housing Enterprise to administer the Housing Stability Vouchers, should they be awarded. The intent is to pair these new vouchers with ACIS for services, thereby adding more HIP slots.
• Conducting Housing First Fidelity Assessments: There is a consideration to explore options for conducting annual or biannual Housing First Fidelity Assessments for service coordination agencies. This is to ensure adherence to the Housing First model and to assess the effectiveness of these agencies in providing services.
• Adding Criteria for Success Payments: The department is considering adding other criteria for success payments, such as reductions in rates of incarceration and hospitalization. This would help in measuring the broader social impact of the program beyond housing stability.

Housing Opportunities Commission

The Housing Opportunities Commission of Montgomery County (HOC) was established in 1974 to better respond to the County's need for affordable housing. HOC is authorized to acquire, own, lease, and operate housing; to provide for the construction or renovation of housing; obtain financial assistance from any public or private source to assist its housing activities; and arrange for social services, resident services, and day care.

The mission of the Housing Opportunities Commission is to provide affordable housing and supportive services that enhance the lives of low- and moderate-income families and individuals throughout Montgomery County, Maryland.