ADF 2007-09 Application February 2008

Oregon Department of Human Services

Addictions and Mental Health Division

2007-2009 APPLICATIONS MATERIAL FOR

ALCOHOL AND DRUG FREE HOUSING DEVELOPMENT FUNDS

This document provides information for applicants requesting Alcohol and Drug Free
(ADF) housing development funds. These funds are available to assist with the
establishment of new housing for people in recovery from alcohol and drug abuse.

Background

The ADF housing development awards were initiated in 1999 when the Oregon
legislature approved funds for the expansion of alcohol and drug treatment services.
Recognizing the importance of stable housing for people new to recovery, a portion
of these funds were reserved for the creation of ADF housing. As of July 2006,
housing awards totaling $4 million have assisted 28 housing projects in 13 counties
throughout the state. These projects accommodate over 250 persons who are in
recovery from substance use disorders. Every ADF housing development dollar
invested in housing, on average, has leveraged $16 from other sources. The housing
developed with these awards to date is valued at over $65 million.

Funding

A total of $1 million in ADF housing development funds is available in 2007-09.

Funding will be available for real property expenses related to establishing new
community housing. Eligible uses include pre-development and up-front costs (e.g.
site acquisition, architect fees, survey costs, site development, construction, and other
activities directly related to establishing new housing. The housing development
funds cannot be used for furniture purchases, replacement reserves, administrative
expenses, operating reserves, service delivery costs and costs incurred more than six
months prior to the application submittal. Awards will not exceed $200,000 per
project. AMH reserves the right to approve housing development awards for less than
the amount requested. Approval of an application will be conditional and subject to
further review of financial documentation.

Geographic distribution

To encourage development of projects throughout all regions of the state and ensure
an equitable, geographic distribution of funds, prior ADF housing awards will be
taken into account in prioritizing projects for funding. The chart provided as

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ADF 2007-09 Application February 2008

Attachment A summarizes ADF housing development awards made to date by

county. Applications are encouraged from areas relatively under-funded. Under-
funded areas are those where the percentage of previous awards received is less than
the percentage of general population and/or number served in the local alcohol and
drug treatment service system.

Who may apply

Substance abuse treatment providers, housing providers and other interested parties,
both public and private, are invited to submit applications. Applications must be
accompanied by a letter of endorsement from the Local Alcohol and Drug Planning
Committee (LADPC) and/or tribal authority. The letter from the LADPC must be
received from the county where the project will be located.

Resident population

The housing must be for persons (qualified tenants) who meet the following criteria:

1) The qualified tenant must be a recovering alcoholic or drug addict. A

“recovering alcoholic or drug addict” is an individual actively participating in
alcohol or drug abuse treatment or recovery activities. Other family members
may live with a qualified tenant who is the head of household.

2) The household earnings of the qualified tenant must be at or below 30 percent

of the Area Median Income (AMI) at the time of application for the housing.
The AMI is adjusted statewide for location and family size. Net income to rent
ratios specified in application criteria may not exceed two to one. In some
cases, exceptions to the household income requirement can be made if
approved by AMH.

Preference is given to housing for families with children; housing for other
households will be considered based on documentation of local needs. Housing for
families at risk of or involved with Department of Human Services (DHS) child
welfare services is encouraged.

Housing type priorities

The proposed housing must be integrated into residential neighborhoods of local

communities in Oregon. The proposed project must create new housing capacity for
people who are in recovery from alcohol and drug abuse. Renovation of existing
housing in need of repair does not qualify.

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ADF 2007-09 Application February 2008

ADF housing development objectives

Projects funded with ADF housing development funds must be consistent with the
following objectives:

(1) Decrease the length of stay for individuals served in residential facilities for
substance abuse treatment.

(2) Produce housing opportunities that will serve as an alterative to more intensive
programs (i.e. divert clients from residential treatment programs to less costly
housing options).

(3) Reduce recidivism for individuals using outpatient-based substance abuse

treatment programs.

(4) Support movement towards self-sufficiency for persons in recovery.

(5) Increase residential stability for person in recovery.

(6) Create additional, affordable housing capacity for individuals in recovery

from substance abuse.

Service model and philosophy

Applicants must describe evidence-based approaches or recognized best practices in

substance abuse treatment that will be offered to residents. The service provision
philosophy should support recovery and enable residents to live successfully in
independent community housing. The service design must be appropriate to the needs
of the anticipated residents.

Non-discrimination

Under civil rights and fair housing laws, it is illegal to discriminate based on race,
national origin, religion, sex, age, familial status, marital status, source of income and
physical and mental disability. Applicants must certify that they will not discriminate
in service delivery or housing provision.

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ADF 2007-09 Application February 2008

Project completion date

AMH expects housing projects to be open as soon as feasible. Applications

describing projects that can be effectively brought on line in the shortest time frame
will be rated more favorably. Projects that have not made sufficient progress by
January 1, 2009 will be reviewed and may have the funding commitment withdrawn.
ADF housing awards are comprised of State General Funds and must be disbursed by
June 30, 2009

Security of state investment

Applicants awarded an ADF award must enter into a housing development grant
agreement with AMH. The housing development grant agreement outlines conditions
under which ADF grants are made. Recipients must agree to execute a Promissory
Note and Trust Deed. The terms in the Promissory Note specify that a pro-rated
amount of the award will be paid back if the occupancy of the property changes. The
Trust Deed is recorded as a lien against the project property. Awards are disbursed
through escrow; it is the responsibility of the successful applicant to pay recording
and escrow fees or other charges associated with the transaction.

Compliance monitoring

Applicants approved for an ADF housing development award will be required to

complete annual reports at project completion to document the continued use of the
property for the agreed purpose.

Application selection process and criteria

Applications will be reviewed and rated by an AMH appointed review panel. The
review panel’s recommendations will be presented to the AMH Assistant Director
who will make the final funding decisions. The review panel will use criteria listed in
Attachment B to rate the applications.

Applications must meet all threshold criteria and score at least 120 points in order to
be considered for funding. AMH reserves the right to amend this ADF 2007-09
Application, reject any or all applications, to score applications, and to require
additional information as a condition of funding.

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ADF 2007-09 Application February 2008

Requirements for ADF 2007-09 Applications

1. Include a cover letter on the applicant’s agency stationary, signed by the

Executive Director or Chief Executive Officer. The applicant must have
authorization to submit an application as evidenced by a resolution of the agency’s
board of directors or other documentation.
2. Complete the Application Information Sheet; these pages should immediately
follow the cover letter.
3. Provide a letter of endorsement from the LADPC and/or tribal plans for the county
in which the project is proposed.
4. Applications must comprehensively provide requested information in the Project
Narrative section as concisely as possible. Use 14-point font. Please organize your
narrative responses to correspond to the numbering and questions.
5. Include budgets as requested in the Project Narrative Section in the format
supplied.
6. Do not put the application in a binder or report folder.
7. Include all required documentation; no missing material can be added to the
application after the deadline.
8. Mail or deliver an original and six copies of the application to:

Robert E. Nikkel, M.S.W

Assistant Director
Addictions and Mental Health Division
500 Summer Street N.E., E-86
Salem, OR 97301-1118

Applications must be delivered to AMH or postmarked no later than April 11 ,

2008. Applications will be reviewed based on the materials originally submitted. No
applications will be accepted via the FAX machine, e-mail, internet or other
electronic means of submission.

If you have questions or would like technical assistance, please call or email
Elizabeth Anguiano at 503-947-5544 or [email protected].

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ADF 2007-09 Application February 2008

ADF 2007-09 Application Information Sheet

MUST BE COMPLETED BY ALL APPLICANTS

Applicant information:

Applicant Entity Name

Address

City, State, Zip

Contact Person

Phone Cell Phone

Fax # E-mail

Ownership entity (if different from applicant entity):

Ownership Entity Name

Address

City, State, Zip

Contact Person

Phone Cell Phone

Fax # E-mail

Consultant information (if applicable):

Agency Name

Address

City, State, Zip

Contact Person

Phone Cell Phone

Fax # E-mail

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ADF 2007-09 Application February 2008

Project description

Project Name

Project Address/Location

Project City Project County

Total # of Units in Project # of Units for Persons in Recovery

Anticipated Opening/Occupancy Date

Will units be subsidy, if yes indicate type and source

_________________________________________________________________

Housing Type? Permanent Housing Transitional Housing

Will project have a community room or common area? Yes No

Will project have a residents manager’s/staff accommodations? Yes No

Indicate number of units:

Bedrooms in congregate household
SRO units
Studio units
1 bedroom units
2 bedroom units
Other:

Total Development Cost $

Amount Requested $

Brief description of proposed project:

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ADF 2007-09 Application February 2008

Authorization to apply for ADF 2007-09 funding from AMH:

LAPDC letter of endorsement. Attach a letter of endorsement from the LADPC

and/or tribal authority for the county or region in which the project will be located.
Project development authorization. Attach a copy of the board resolution or other
documentation confirming that the applicant is authorized to apply for funds to
support the proposed project. Include one set of organizational documents as filed
with Oregon’s Secretary of State’s Office and a list of current members of the Board
of Directors.
Non-discrimination certification. By signing below, applicant certifies that all eligible
individuals shall be considered for residency in the proposed housing and services
without regard to race, national origin, religion, sex, age, familial status, marital
status, source of income, or disability in addition to mental or emotional disorder.
The signature below is provided by a duly authorized official of the applicant and
indicates that the application has been reviewed and approved for submittal.

Signature:________________________________ Date:____________________

Print Name: Title:

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ADF 2007-09 Application February 2008

ADF 2007-09 Project Narrative

1. Occupancy. The housing must be for persons who are in recovery from alcohol
and drug abuse and are actively involved in an approved treatment program.
Units must be occupied or held for occupancy by a qualified tenant. A qualified
tenant is a recovering alcoholic or drug addict. A “recovering alcoholic or drug
addict” is an individual actively participating in alcohol or drug abuse
treatment or recovery activities.

a. Where do prospective residents currently reside and what are their

service needs?

b. Describe how the housing will be made available to qualified

individuals; include how the units will be marketed to those in recovery.
Indicate your primary referral sources.

c. Describe how you will enable persons in recovery who often have
many obstacles (poor credit and rental histories, criminal background,
lack of funds for security deposit and application fees) to have access to
your housing.

2. Consistency with ADF housing development objectives. The applicant must

demonstrate which objectives (see page 3) the proposed housing will achieve.

a. Please identify which objectives your project will achieve and describe
how each will be achieved.

3. Need. Documentation must confirm that proposed housing is a priority

need in the community where it will be located or that it will meet a
statewide need.

a. Provide a rationale for the proposed housing. Include documentation of

housing needs for persons described in response to question 1.

b. Describe your process for obtaining input from prospective residents

and/or alcohol and drug treatment providers. Provide evidence that the
proposed housing is consistent with preferences of prospective residents.

c. Describe how the project is consistent with plans and priorities of the
LAPDC and/or tribal plans that address the need for alcohol and drug
free housing.

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ADF 2007-09 Application February 2008

4. Description of services available to residents. Services available for residents

must be described and be responsive to prospective residents’ needs. The
program must assist residents with their sobriety while also helping them
toward self-sufficiency. Use of peer mentors is encouraged.

a. Discuss nearby community amenities, substance abuse treatment

providers, support groups and other services that will be made available.
Discuss how residents will access these services.

b. List the services that support recovery from alcohol and drug abuse that
will be available and indicate whether they will be provided on-site or
through an arrangement with an off-site provider. For on site services,
identify how many individuals (part-time and full-time) will be
employed as staff. Who is responsible for monitoring residents’
compliance with their recovery plans, and how will this monitoring be
accomplished?

c. Demonstrate that funding has been committed or is otherwise available

to support these services. Obtain commitment letters from service
providers as evidence of their intent to work cooperatively with persons
who will reside in your proposed housing. Attach copies of these letters.

5. Longevity of use. There must be a commitment, on the part of the owner and/or
developer that the proposed housing will be available to persons who are in
recovery for alcohol and drug abuse for at least 30 years. Preference is given to
housing that will be owned by public or nonprofit entities.

a. How long will the proposed housing be available for the residents
who are in recovery from alcohol and drug abuse?

6. Security of state’s investment. Funds awarded will be secured by a Housing

Development Grant Agreement, a Promissory Note and a Trust Deed.
Applicants must agree to execute these documents and accept a lien against the
ADF housing property. Applicants must agree to repay the pro-rated balance of
the award if the occupancy of the property changes without AMH approval.

a. Provide a signed statement confirming agreement on the part of the

property owner(s) to execute a Housing Development Grant Agreement,
Promissory Note and Trust Deed to secure the housing development
grant.

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ADF 2007-09 Application February 2008

7. Development plan and timelines. Applicants must articulate a clear work plan
and timelines for the proposed project. While not all resources must be
committed or a project site obtained, a reasonable plan must be presented that
demonstrates the proposed housing project is feasible and likely to be
completed in a timely manner.

a. Site information. Describe the site and proposed improvements

necessary to prepare the building for your proposed use. Attach, as
available, copies of (1) evidence of site control, (2) map showing
location of property and nearby community amenities (bus lines,
shopping, recreation, etc.), (3) floor plans or preliminary architectural
drawings, (4) photographs of the property, and (5) evidence of
permissive zoning. If a site is not identified, describe sites under
consideration and/or plans to locate an appropriate site.

b. Development timeline. Submit a project development timeline (see

Attachment C) summarizing key development activities and indicating
completion dates for major milestones.

c. Development budget. Submit a Sources and Uses of Funding budget

form. Use the format provided in Attachment D or a substantially similar
format. List all committed, conditional and tentative funding sources
(e.g. grants, bank loan, donations). Indicate the funding source for each
expense so reviewers can determine if ADF housing funds are being
used for eligible costs. (Note: The project budget may change during the
development process; updated budget information will be requested by
AMH.)

d. Operating budget. Submit an annual housing operating budget that

identifies projected income, service revenues and other income. Use the
format provided in Attachment D or a substantially similar format.
Identify anticipated expenses for both the operation of the housing and
service delivery. Please provide budget notes that explain how expenses
were derived.

e. Development team. List the specific roles, function and services to be

provided by the development team members, including but not limited
to, owner, developer, architect, construction contractor, property
manager, service provider and consultant (as applicable). List their
qualifications and describe their experience with similar projects.

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ADF 2007-09 Application February 2008

8. Property management. Applicants must demonstrate administrative capability

to manage an effective project once it is operational.

a. How will the project be managed after its completion? Provide an

organizational chart that shows lines of responsibility. Who will be
responsible for program management? Who will be responsible for
property management and upkeep (if housing units are owned and
operated by applicant)? If a partnership is proposed, the plan should
include a description of each partner’s role. Specifically describe who
will responsible for (1) tenant referral and selection, (2) resident
supervision, (3) rent collection and (4) lease enforcement?

b. Describe your plan for administrative and fiscal operations. Who will be
responsible for paying bills and rent collection?

c. Describe the relationship between property management and service

delivery entities. Describe the experience of the property manager and/or
owner in operating similar housing.

d. Describe how residents will be selected and screened and who will be
responsible for ensuring that residents meet the eligibility criteria. Attach
tenant selection process, if available.

e. Describe how the units will be maintained alcohol and drug free.
Indicate whether the housing will be designated “drug and alcohol free”
under ORS 90.243, and describe how you will implement these
provisions of landlord-tenant law.

9. Affordability. The housing developed must be affordable within the

incomes of the proposed residents.

a. What rent amounts will be charged? Demonstrate that this is affordable

for the prospective residents. If rent subsidies are being provided, a letter
from the organization confirming the availability of the subsidy must be
included. If rent subsidies are not provided discuss how the residents
will deal with the potential rent burden.

b. What will be the required income to rent ratio?

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ADF 2007-09 Application February 2008

ATTACHMENTS

Attachment A: ADF Housing Development Awards to date by County

Attachment B: Application Review Criteria

Attachment C: Housing Development Timeline

Attachment D: Housing Development Budget Forms

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