Atlanta's targeted bond issue creates new supportive housing to end homelessness

$22 million in Homeless Opportunity Bonds issued by the Atlanta Development Authority are invested in 17 capital housing projects consistent with the goals of the Regional Commission on Homelessness' "Blueprint to End Homelessness," resulting in over 485 permanent supportive housing units.

Atlanta Mayor Shirley Franklin in 2002 called for a broad based community effort led by United Way to develop a practical plan to address homelessness. A 16-member Commission on Homelessness, chaired by retired King & Spalding law partner Horace Sibley, and co-chaired by civic leader Myrtle Davis and Dr. Louis Sullivan, president emeritus of the Morehouse College of Medicine, developed the Blueprint now in implementation.

While the Blueprint raised more than $30 million in new private investment towards initiatives such as the new 24/7 Gateway Center, another $20 million was identified as needed for housing investment to meet Blueprint goals.

Through the Mayor's commitment to investment by community partners and mobilization of public resources, a unique but indirect path to new resources was identified to meet the goal. Marking the path between the starting point of the Mayor's political will and the finish line of Homeless Opportunity Bond resources were the Atlanta Development Authority, a parking garage at Phillips Arena funded by a 3% car rental tax, existing bonds on the same garage, and tax increment funds in one district of the city that eventually led to a resource realignment across these sites and sources.

The $20 million Homeless Opportunity Bond issue came to fruition in 2005 (with @$2 million interest added). All but $800,000 of the bond revenue has been invested through the Atlatna Development Authority's Homeless Opportunity Fund program. Debi Starnes, a City Councilor at the time who chaired the Council's Finance/Executive Committee and helped forward the strategy, has subsequently served as Mayor Franklin's Policy Advisor on Homelessness as the Blueprint and its investments have moved forward.

The Homeless Opportunity Fund is the vehicle for bond revenue which is invested for permanent supportive rental housing, assessment centers for women and children, and public toilets consistent with the 10 Year Plan.

Though the specific resources in Atlanta may not be replicable in other communities, the broader commitment to solutions, search for resources, and focus on mission demonstrates the intent with which new partnerships and investments can be created to meet the goal of ending homelessness.

How it Works: To access the Homeless Opportunity Fund resources, applicants submit proposals to the Atlanta Development Authority for internal staff review and recommendations on financial feasibility and consistency with overall objectives. The Service Plan is reviewed and approved by the Opportunity Bond Committee of the Commission on Homelessness, and the project is reviewed and approved by the Housing Opportunity Fund Committee of the Atlanta Development Authority Board of Directors.

Projects seeking bond revenue resources are evaluated as to feasibility, consistency with Blueprint goals, cost effectiveness, project readiness, development timetable, financial feasibility, service plan and funding level, quality and size of development and mix of housing, relocation requirements, and ability to leverage other investment and resources. Awardees make a 15-year commitment to the targeting of the units.

According to the Atlanta Development Authority, measures of success for the Homeless Opportunity Fund include:
- Expansion of the number of supportive housing units in the city
- Reduction in the number of chronically homeless persons
- Reduction in justice and health care system resources directly attributable to homeless people entering supportive housing
- Reduction in overall homelessness in Atlanta Increases in the employment rate in supportive housing
- Overall cost-benefit considerations: applicants must describe how the project will capture data that shows the cost benefit of the project, including data on the dollar value of public resources saved in the justice and health care systems

Stand-along supportive housing projects have a maximum of 40 units, and where supportive housing units are mixed within larger residential developments, no more than 20% of the total units are dedicated to permanent supportive housing.

Individuals who have experienced chronic homelessness benefit from stable housing, improved health and well-being, and the opportunity for employment.

Women and children benefit from a safe and comprehensive assessment setting from which to take next steps in moving out of homelessness.

Atlanta benefits from neighborhoods with quality housing and stable residents, as well as the savings in health care and public safety costs from the new housing stability of consumers which reduces economic impact on costly community infrastructure, including health care, treatment, and law enforcement.

Housing and service partners to the Homeless Opportunity Fund initiatives benefit from having data that demonstrate the cost effectiveness of permanent supported housing as partners pursue more resources to create additional permanent supported housing opportunities.

Homeless Opportunity Fund resources have been invested in 17 capital projects providing over 485 permanent supportive housing units to date. The projects also provide over 635 workforce housing units.

Of almost $20 million disbursed across the 17 projects, the total of other financing sources is over $95 million. Bond resources are offered as "gap funds" to supplement other resources and can be invested for acquisition, soft costs, and construction or rehabilitation with costs capped per unit to encourage awardees to seek other resources to combine with this revenue. Most of the funded projects are substantial rehabilitation projects.

Atlanta's new 24/7 Gateway Center was one of the initiatives to secure Homeless Opportunity Fund resources. Statistically, the Gateway Center is one of the largest providers of homeless services in the state of Georgia. More than 16,000 homeless individuals have been served at the Gateway Center since its 2005 opening. The depth of collaboration and partnership makes the Gateway Center unique in the nation and a best-practices model. The Gateway Center, a key element of the Blueprint, has been operated since start-up by the Atlanta Union mission, which is now underway with a transition plan with the United Way for the Center to become an independent entity.

Atlanta's results in new partnership, innovation, and investment reflect the political will and commitment to the goal of ending homelessness of Mayor Shirley Franklin, 10 Year Plan Community Champion Horace Sibley, Regional Commission and United Way leadership, and an expansive partnership of public and private sector stakeholders who have consistently identified new strategies, broader collaborations, and cost effective investments to achieve results.

The complex set of transactions that led to the creation of the Homeless Opportunity Bonds and new housing and resources reflect solution-oriented partnership focused on consumers.

Learn more about Atlanta Mayor Shirley Franklin's commitment and partnership to end homelessness.

Learn more about Atlanta Regional Commission Chair and Community Champion Horace Sibley, who was recognized with the Interagency Council's "Home for Every American" Award.

Learn more about the Atlanta Development Authority's Homeless Opportunity Fund program.

Learn more about the investments of the Homeless Opportunity Fund.

Learn more about the Commission on Homelessness and the Blueprint to End Homelessness.

Learn more about the Gateway Center, a key element of the Atlanta Blueprint.

5 in 5, A Week of Innovations, concludes tomorrow with a State Visit: Special Issue #5 focuses on . . . New Jersey's Housing Trust Fund: Housing First for People With Special Needs . . .

Don't miss a single episode during this 5 in 5 Week of Innovations . . . but, if you do, you can always access the Council's "on demand" service and catch up. Just visit our web site at www.usich.gov/innovations

Does your state, city, or county target real estate transfer taxes, interest from escrow accounts, bond and fee revenues, document recording fees, real estate excise tax, condominium conversion fees, contributions from tax-exempt mortgage revenue bond projects, hotel/motel taxes, filing fees, property sales disclosure forms, building permit fees, real estate transfer taxes, impact fee on new commercial construction, tax increment revenues, parking garage proceeds, restaurant tax, inclusionary zoning in-lieu fees, property tax, sales tax, court settlements, or casino revenues specifically to the goals of your 10 Year Plan? Write to use at the Council's Innovations "Inn-box" - 20in20@usich.gov and give us more details.

email: ichnews@setechnology.com

web: http://www.usich.gov