New Hampshire Supportive Housing Toolkit
Introduction Overview of Permanent Supportive Housing for Persons with Developmental Disabilities Exploration Development Housing Operations Supportive Services Other Living Expenses of Individuals Putting It All Together: Budgeting For The Individual Developing and Maintaining Your Nonprofit Tax-Exempt Entity Additional Resources Glossary |
A) Tenant SelectionThe Visions Experience:
|
Recently Visions Has Charged |
Approximate Actual Visions Cost |
$700 including board and room |
$950 including board and room |
c |
$600 rent $100 utilities $50 TV/Internet __$200 Food__ $950 Total |
While Section 8 housing vouchers can only cover rent and owner-paid utilities, the additional revenue vouchers provide would bridge all or most of the gap between current charges and actual charges.
We will not be increasing any Visions residential fees for those residents who cannot access other sources of funding, such as Section 8 housing vouchers.
We will not be increasing any Visions residential fees for those residents who cannot access other sources of funding, such as Section 8 housing vouchers.
2) Sources of Funding
a) Social Security Disability Benefits
Supplemental Security Income (“SSI”) is a federal income supplement program funded by general federal tax revenues (i.e. not Social Security taxes).[1] SSI provides a cash benefit aimed at meeting basic needs for food, clothing, and shelter. To be eligible for SSI, a person must either be aged, have a disability, or be blind and must meet income and resources limits, which are quite low. A person can be eligible for SSI from birth if these requirements are met.
SSI provides monthly cash benefits up to a maximum benefit level known as the Federal Benefit Rate (“FBR”). The FBR represents both the SSI income limit and the maximum federal monthly SSI payment. For 2019, the FBR increased 2.8% to $771 per month for individuals and $1,157 for couples. The FBR increases annually if there is a Social Security cost-of-living adjustment. How much of the FBR an individual or couple is actually eligible to receive in a given month depends on a number of factors, including earnings and unearned income received from other sources. Because SSI supplements these other types of income, the more a person has in earnings and unearned income, the less they receive in SSI. As a result, income support provided by SSI may vary from month to month as an individual’s or couple’s financial situation fluctuates.
There are two categories of SSI beneficiaries:
Social Security Disability Insurance (“SSDI”) is a payroll tax-funded, federal insurance program.[2] SSDI provides supplemental income to people who are restricted in their ability to be employed because of a disability, usually a physical disability. SSDI can be either temporary or permanent, depending on whether a person's disability is temporary or permanent. The dollar amount of a person’s SSDI benefit is based in large part on their (or their qualifying spouse’s or parent’s) level of contributions to the Social Security Trust Fund: how much the person earned and how long they worked. As a result, the amount of the monthly cash benefit varies significantly from person to person. Once calculated, a person’s SSDI benefit is fixed and won’t fluctuate as a person’s SSI benefit can. An SSDI beneficiary will either receive their full cash benefit in a given month or no income support at all.
Because SSDI disability benefits are not based on economic need, resources are not considered and have no bearing on either eligibility or payment amount. Earnings from a job or self-employment may affect eligibility since the benefit is designed for persons whose ability to work is impacted by a disability. After a beneficiary has worked for a period of time, the SSA will determine whether or not they should continue receiving their benefit.[3] Earned income and SSDI benefits are not absolutely mutually exclusive. There are a number of work incentives[4] in the program that make it possible for beneficiaries to work and to continue to receive their SSDI benefit.[5]
There are three categories of SSDI beneficiaries:
Both SSI and SSDI are administered by the federal Social Security Administration; both apply the same criteria in determining whether one has a qualifying disability. The fundamental difference between SSI and SSDI eligibility is that SSDI benefits are available to workers (or in some cases the worker’s spouse or child) who have accumulated a sufficient number of work credits, while SSI benefits are available to low-income individuals who haven't earned enough work credits to qualify for SSDI. Because of the SSDI work history requirement, persons with I/DD who qualify for federal disability benefits typically receive SSI rather than SSDI. There is a five month waiting period after a beneficiary is determined to be disabled before the beneficiary begins to collect social security disability benefits.
Providers and guardians must be vigilant in anticipating where an individual may earn income, receive unearned income, or acquire assets which may render an individual under their care ineligible for benefits. While the specifics of how the Social Security Administration calculates income and resources are beyond the scope of this Toolkit, the limits are low. For example, as of 2019, an individual’s resources must amount to $2,000 or less for the individual to remain eligible for SSI.
SSI provides monthly cash benefits up to a maximum benefit level known as the Federal Benefit Rate (“FBR”). The FBR represents both the SSI income limit and the maximum federal monthly SSI payment. For 2019, the FBR increased 2.8% to $771 per month for individuals and $1,157 for couples. The FBR increases annually if there is a Social Security cost-of-living adjustment. How much of the FBR an individual or couple is actually eligible to receive in a given month depends on a number of factors, including earnings and unearned income received from other sources. Because SSI supplements these other types of income, the more a person has in earnings and unearned income, the less they receive in SSI. As a result, income support provided by SSI may vary from month to month as an individual’s or couple’s financial situation fluctuates.
There are two categories of SSI beneficiaries:
- Supplemental Security Income benefits are paid to low-income recipients who are disabled, blind or elderly and have limited resources.
- Child's Disability benefits are paid to children up to age 18 who are disabled or blind and whose families meet income and resources criteria.
Social Security Disability Insurance (“SSDI”) is a payroll tax-funded, federal insurance program.[2] SSDI provides supplemental income to people who are restricted in their ability to be employed because of a disability, usually a physical disability. SSDI can be either temporary or permanent, depending on whether a person's disability is temporary or permanent. The dollar amount of a person’s SSDI benefit is based in large part on their (or their qualifying spouse’s or parent’s) level of contributions to the Social Security Trust Fund: how much the person earned and how long they worked. As a result, the amount of the monthly cash benefit varies significantly from person to person. Once calculated, a person’s SSDI benefit is fixed and won’t fluctuate as a person’s SSI benefit can. An SSDI beneficiary will either receive their full cash benefit in a given month or no income support at all.
Because SSDI disability benefits are not based on economic need, resources are not considered and have no bearing on either eligibility or payment amount. Earnings from a job or self-employment may affect eligibility since the benefit is designed for persons whose ability to work is impacted by a disability. After a beneficiary has worked for a period of time, the SSA will determine whether or not they should continue receiving their benefit.[3] Earned income and SSDI benefits are not absolutely mutually exclusive. There are a number of work incentives[4] in the program that make it possible for beneficiaries to work and to continue to receive their SSDI benefit.[5]
There are three categories of SSDI beneficiaries:
- Disability Insurance benefits are paid to people who have worked long enough to earn sufficient credits under the Social Security system but are now disabled.
- Disabled Widow's, Widower's or Surviving Divorced Spouse benefits are available to a person whose deceased spouse’s work history qualified for coverage. The surviving spouse must be over age 50, must have a disability, and must meet some additional requirements.
- Childhood Disability benefits are available to an individual who is at least eighteen years old, developed a disability prior to the age of twenty-two, and who has a parent who worked and either receives a Social Security benefit based on his or her work history, or who has died. The payment to the child is based on the earnings record of a qualified parent who is retired, disabled or deceased.
Both SSI and SSDI are administered by the federal Social Security Administration; both apply the same criteria in determining whether one has a qualifying disability. The fundamental difference between SSI and SSDI eligibility is that SSDI benefits are available to workers (or in some cases the worker’s spouse or child) who have accumulated a sufficient number of work credits, while SSI benefits are available to low-income individuals who haven't earned enough work credits to qualify for SSDI. Because of the SSDI work history requirement, persons with I/DD who qualify for federal disability benefits typically receive SSI rather than SSDI. There is a five month waiting period after a beneficiary is determined to be disabled before the beneficiary begins to collect social security disability benefits.
Providers and guardians must be vigilant in anticipating where an individual may earn income, receive unearned income, or acquire assets which may render an individual under their care ineligible for benefits. While the specifics of how the Social Security Administration calculates income and resources are beyond the scope of this Toolkit, the limits are low. For example, as of 2019, an individual’s resources must amount to $2,000 or less for the individual to remain eligible for SSI.
Supplemental Security Income (SSI) Program Rates & Limits - 2019
Monthly Federal Payment Standard (dollars) |
b |
Individual |
771 |
Couple |
1,157 |
Cost-of-Living Adjustment (percent) |
2.8 |
Resource Limits (dollars) |
c |
Individualb |
2,000b |
Couple |
3,000 |
Monthly Income Exclusions (dollars) |
c |
Earned Income (a) |
65 |
Unearned Income |
20b |
Substantial Gainful Activity (SGA) Level for the Nonblind Disabled (dollars) |
1,220 |
(a) The earned income exclusion consists of the first $65 of monthly earnings, plus one-half of remaining earnings.
Next Expected Update to Rates and Limits: October 2019. Subscribe to Updates
Other Editions: 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
For historical program data, see the Program Provisions section of the Annual Statistical.
Next Expected Update to Rates and Limits: October 2019. Subscribe to Updates
Other Editions: 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
For historical program data, see the Program Provisions section of the Annual Statistical.
The SSI benefit for an individual, as of 2019, is $771 per month. A provider may be receiving all, or almost all, of a served individual’s SSI benefit (through a guardian and/or payee). Absent other income flows, a Supported Housing provider could be providing room, board, and covering the costs of personal incidentals, such as toothpaste and clothing, for $771 per month.
View Footnotes
[1] SSI benefits are an entitlement arising under Title XVI of the federal Social Security Act.
[2] SSDI benefits are an entitlement arising under Title II of the Social Security Act.
[3] One of the measures the SSA uses in making this determination is Substantial Gainful Activity (“SGA”). The SSA reviews a person’s gross earnings over a period of time, applies certain deductions, and then decides if the remaining amount of countable earnings represents substantial work. A decision by SSA that a beneficiary’s work is “substantial” will result in a loss of their cash benefit. For 2019, the monthly SGA limit is $1,220 for non-blind SSDI or SSI applicants with a disability, and $2,040 for blind SSDI applicants (the SGA limit doesn't apply to blind SSI applicants).
[4] While beyond the scope of this Toolkit, SSDI work incentives include Impairment Related Work Expense offsets against income, Plan for Achieving Self-Support provisions (also available for SSI beneficiaries), and extended Medicare eligibility after cash benefits have stopped.
[5] The impact of earned income on SSDI can be phased in order to protect beneficiaries as they wean themselves off SSDI through resumed employment. In succeeding phases, protections allow for all or some of the monthly benefit to be retained while a beneficiary tests their ability to work.
[2] SSDI benefits are an entitlement arising under Title II of the Social Security Act.
[3] One of the measures the SSA uses in making this determination is Substantial Gainful Activity (“SGA”). The SSA reviews a person’s gross earnings over a period of time, applies certain deductions, and then decides if the remaining amount of countable earnings represents substantial work. A decision by SSA that a beneficiary’s work is “substantial” will result in a loss of their cash benefit. For 2019, the monthly SGA limit is $1,220 for non-blind SSDI or SSI applicants with a disability, and $2,040 for blind SSDI applicants (the SGA limit doesn't apply to blind SSI applicants).
[4] While beyond the scope of this Toolkit, SSDI work incentives include Impairment Related Work Expense offsets against income, Plan for Achieving Self-Support provisions (also available for SSI beneficiaries), and extended Medicare eligibility after cash benefits have stopped.
[5] The impact of earned income on SSDI can be phased in order to protect beneficiaries as they wean themselves off SSDI through resumed employment. In succeeding phases, protections allow for all or some of the monthly benefit to be retained while a beneficiary tests their ability to work.
b) Other Family/Person-Served Contributions
A supportive housing project must decide early in the development process whether or not to require residents or their families to contribute in excess of each resident’s public benefits. As a national matter, family-driven supportive housing development is often being built on a buy-in model, in which future residents, or their families, contribute significant up-front capital. There are also models in which rent exceeds what can be satisfied through public benefits. While the numbers are all the more challenging without such family financial contributions, this Toolkit does not assume they will be available. The Toolkit aims to provide a route forward for families whose resources may consist primarily of hope, commitment, and indomitable will.
The Visions Experience:
Keeping Our Housing Affordable by All
We made the decision not to require our residents or their families to “buy-in” with upfront investment. We also committed to making it possible for an individual to live a full life relying only on their public benefits. This does require a significant amount of fundraising. The numbers become significantly less challenging for each individual who becomes eligible for a Section 8 housing subsidy. Without the subsidy, all of the individual’s SSI must go towards rent and related costs.
c) Other Rents or Income From Mixed Use
One might consider possibility of operating an income-producing business, or renting out income-producing space, with the aim of financially supporting the housing setting. In addition to the common risks inherent in operating any business, one would have to proceed especially cautiously, evaluating the risks of coming into conflict with requirements of Medicaid, state regulations and the underwriting requirements of funders.
d) Section 8 Housing Subsidies For Individuals
Under the Federal Housing Choice Voucher Program (commonly known as “Section 8”), a qualified household pays a portion of their adjusted income towards rent and utilities, and New Hampshire Housing pays the remainder directly to the landlord. The rental unit is selected by the renter and must meet certain housing quality standards. The goal of the program is to provide safe, decent, sanitary and affordable housing to very low-income households.[1]
Section 8 in a nutshell:
Program eligibility is based on income. To be placed on the program, applicants must have incomes below 30% of the median income in the area they seek to live, which is usually going to be the case for a person with I/DD, if appropriate financial planning has been implemented.
The wait for a voucher can be as long as a decade. However, New Hampshire Housing gives preference for Section 8 vouchers to persons receiving services through a Medicaid Waiver.[2] In addition, a person with a disability may qualify for allocated vouchers under the Mainstream Housing Program.
Section 8 in a nutshell:
- Individual pays 30% of income in rent to landlord; the balance is paid to the landlord with funds from the US Dept. of Housing and Urban Development
- Section 8 eligibility will not affect SSI or Medicaid benefit eligibility
- The Section 8 waitlist is years long, but NH recipients of Waiver funds receive a preference allowing them to qualify for the subsidy more quickly.
- A family member can be an eligible landlord for a Section 8 unit, as a matter of reasonable accommodation, but the unit in which the tenant resides must qualify as a separate, independent living space.
Program eligibility is based on income. To be placed on the program, applicants must have incomes below 30% of the median income in the area they seek to live, which is usually going to be the case for a person with I/DD, if appropriate financial planning has been implemented.
The wait for a voucher can be as long as a decade. However, New Hampshire Housing gives preference for Section 8 vouchers to persons receiving services through a Medicaid Waiver.[2] In addition, a person with a disability may qualify for allocated vouchers under the Mainstream Housing Program.
View Footnotes
[1] “The Authority will coordinate its program with other local housing authorities, other state agencies and local agencies to make the most effective use of the monies available. This will include working with special interest groups attending to the needs of individuals with disabilities, elderly, terminally ill and extremely and very low-income families. The Authority will also assist families with housing needs through its programs and referrals to housing related services.” See Housing Choice Voucher Administrative Plan 2018, p. 15.
[2] Individuals on the waitlist for Section 8 vouchers are subject to preferences weighted in the following order:
(a) Special purpose vouchers [Non-Elderly Disabled families (NED), HUD-Veterans Affairs Supportive Housing (VASH), or FUP] if the total number of special purpose vouchers which make up the voucher allocation have not been filled due to a funding shortfall.
(b) Project-Based Voucher holders who are victims of domestic violence, dating violence, sexual assault or stalking who are eligible for protections under VAWA.
(c) Project-Based Voucher holders.
(d) Veterans Affairs Supportive Housing (VASH) turnover vouchers.
(e) NHHFA will make available up to 50 vouchers for households impacted by major federally declared disasters designated by the Board of Directors who are Section 8 voucher holders or public housing residents in another jurisdiction. Once this need is met, households who are non-participants will be eligible for this preference.
(f) Participants whose rental assistance was terminated due to insufficient funds.
(g) The following will have equal weight: Terminally ill; CFI (Choices for Independence formerly known as HCBC) preference; DHHS Transitional Preference; Transitional Housing; family Break Up and Income Targeting.
(h) The following will have equal weight: Veterans as defined in 6.3.2 (g) and Rent Burdened/At Risk of Becoming Homeless.
(i) All others without a preference.
Housing Choice Voucher Administrative Plan 2018, pp. 45-46.
[2] Individuals on the waitlist for Section 8 vouchers are subject to preferences weighted in the following order:
(a) Special purpose vouchers [Non-Elderly Disabled families (NED), HUD-Veterans Affairs Supportive Housing (VASH), or FUP] if the total number of special purpose vouchers which make up the voucher allocation have not been filled due to a funding shortfall.
(b) Project-Based Voucher holders who are victims of domestic violence, dating violence, sexual assault or stalking who are eligible for protections under VAWA.
(c) Project-Based Voucher holders.
(d) Veterans Affairs Supportive Housing (VASH) turnover vouchers.
(e) NHHFA will make available up to 50 vouchers for households impacted by major federally declared disasters designated by the Board of Directors who are Section 8 voucher holders or public housing residents in another jurisdiction. Once this need is met, households who are non-participants will be eligible for this preference.
(f) Participants whose rental assistance was terminated due to insufficient funds.
(g) The following will have equal weight: Terminally ill; CFI (Choices for Independence formerly known as HCBC) preference; DHHS Transitional Preference; Transitional Housing; family Break Up and Income Targeting.
(h) The following will have equal weight: Veterans as defined in 6.3.2 (g) and Rent Burdened/At Risk of Becoming Homeless.
(i) All others without a preference.
Housing Choice Voucher Administrative Plan 2018, pp. 45-46.
The Visions Experience:
§ 8 Individual Subsidies
At Visions, if we can get a § 8 subsidy for an individual, we get very close to covering the actual costs of housing that individual. Accordingly, if all residents received § 8, we would come close to covering real costs housing operations costs without having to allocate annual fundraising to covering operating costs.
In Enfield, we’re currently trying to get Section 8 funding for our residents. To date, only one has been approved. That individual’s subsidy is disbursed directly to Visions, as landlord.
A § 8 subsidy is calculated based on average housing costs in the local area and fluctuates with income. In Enfield $600 per month (not including utilizes) is the average rent. NHHFA can provide rent averages for your local area.
For § 8 purposes, New Hampshire imposes a cap of $661 on the amount one can charge for room and board (meaning rent, utilities, and client-consumable food).
In Enfield, we round up to $700 to include the allocated cost of internet and cable. Everyone pays that amount, through SSI or SSDI (everyone seems to get different amount) and often work income. SSI tops out at around $700 but SSDI can exceed that. The actual cost per individual is closer to $950 per month, but at Visions we are committed to keeping costs down for individuals so that no resident is in the position of relying on family contributions.
Some residents do have families who supplement the resident’s income, take them on trips, etc. We want those residents who don’t have such family subsidies to have money for clothing and going out to eat, etc.
In Enfield, we’re currently trying to get Section 8 funding for our residents. To date, only one has been approved. That individual’s subsidy is disbursed directly to Visions, as landlord.
A § 8 subsidy is calculated based on average housing costs in the local area and fluctuates with income. In Enfield $600 per month (not including utilizes) is the average rent. NHHFA can provide rent averages for your local area.
For § 8 purposes, New Hampshire imposes a cap of $661 on the amount one can charge for room and board (meaning rent, utilities, and client-consumable food).
In Enfield, we round up to $700 to include the allocated cost of internet and cable. Everyone pays that amount, through SSI or SSDI (everyone seems to get different amount) and often work income. SSI tops out at around $700 but SSDI can exceed that. The actual cost per individual is closer to $950 per month, but at Visions we are committed to keeping costs down for individuals so that no resident is in the position of relying on family contributions.
Some residents do have families who supplement the resident’s income, take them on trips, etc. We want those residents who don’t have such family subsidies to have money for clothing and going out to eat, etc.
Linked document: Housing Choice Voucher Administrative Plan 2019
Linked document: Section 8 Participant’s Handbook 2019
Linked document: Section 8 Voucher Income Limits 2019
e) Energy/utility Assistance Programs
The Visions Experience:
Energy Assistance
Any low income individual can get fuel assistance through New Hampshire’s counties, as long as they meet the income criteria. At Visions, we applied for that assistance for a couple living off campus, but they were found not to meet the income requirements.
f) Fundraising
The Visions Experience:
Sources of Operations Funding
For operations (aside from Medicaid-funded elements like direct care), SSI/SSDI are the prime sources of funding. Visions never functions as rep payee for a resident, which is a best practice, although not required. An area agency will charge $30 per month to perform the rep payee function, but in most cases someone in the individual’s family is the rep payee. Best practice is to avoid having either the vendor or area agency act as rep payee, if possible.
Some families also make annual donations. That is not a requirement for an individual to reside at Sunrise Farm, and not all residents have families in a position to contribute. We also raise money from foundations and individuals. We are in the process of encouraging our board of directors to be more on the fund raising side.
Funding for ongoing capital costs has come through the New Hampshire Community Loan Fund (loan for septic system) and NHHFA (grants for upgrades and a recently-closed mortgage which will permit major upgrades).
For those residents who receive housing subsidies, they fill the gap between SSI/SSDI and actual room and board costs which otherwise need to be covered through annual fundraising.
Some families also make annual donations. That is not a requirement for an individual to reside at Sunrise Farm, and not all residents have families in a position to contribute. We also raise money from foundations and individuals. We are in the process of encouraging our board of directors to be more on the fund raising side.
Funding for ongoing capital costs has come through the New Hampshire Community Loan Fund (loan for septic system) and NHHFA (grants for upgrades and a recently-closed mortgage which will permit major upgrades).
For those residents who receive housing subsidies, they fill the gap between SSI/SSDI and actual room and board costs which otherwise need to be covered through annual fundraising.
g) Putting it all Together: Practical Considerations in Financing Operations
The Visions Experience:
Financing Operations
Be prepared: it takes time for the State to process payments. For example, you can expect to get reimbursed for October billables in mid-November. When Visions first launched, Sylvia would put personal funds into its bank account to permit payroll to go out. It’s essential to have $20,000 or $30,000 in your operating account as working capital to buffer delayed receivables. For a small outfit like Visions, the delay is exacerbated because payment has to go through the area agency. Providers will start getting paid directly by the State, but Visions is probably too small to make that practical for us.
To finance its day-to-day operations, Visions relies principally on three categories of income.
Finally, there is the fourth important category of operations funding: Section 8 (and Section 811) vouchers (see discussion of these programs, above). If the time were to come that residents were approved for that form of housing subsidy and those additional HUD dollars begin to flow to Visions, aggregate government funding would come closer to accounting for the actual costs of housing and supporting Visions’ residents. Farmsteads of New England, whose residents in Hillsboro have vouchers, reports that SSI, Medicaid, and housing subsidy dollars, together, suffice to support each resident’s actual room, board and care costs.
To finance its day-to-day operations, Visions relies principally on three categories of income.
- SSI. Each resident receives monthly SSI payments from the federal government which goes to Visions to fund the resident’s room and board.
- Medicaid. As discussed more fully below (in “Funding Supportive Services”), Visions contracts with the local area agency, Pathways of the River Valley, to provide supportive services to residents. Pathways serves as the pass-through for Medicaid dollars that fund certain care costs, such as the labor costs of employees providing direct care to residents. Thus some operating costs of Visions, such as providing direct care, are funded by Medicaid. Additionally, a percentage of direct-care Medicaid funding to cover its administrative overhead.
- Grants and Fundraising. Proceeds from SSI are insufficient to cover the full costs of room and board, and proceeds from Medicaid are insufficient to cover the full costs of direct care and administrative overhead. Resulting budget shortfall is addressed through recurring grants and annual fundraising. Each of these categories of funding is essential for operating supported housing. For example, in recent years a well-organized, well-financed and sophisticated group of families sought to develop a housing setting for I/DD family members but was unable to proceed because the local area agency was unable to guarantee that the setting would be eligible to receive Medicaid dollars. (See the discussion of “Medicaid Home and Community Based Services Settings Requirements” in this Toolkit.)
Finally, there is the fourth important category of operations funding: Section 8 (and Section 811) vouchers (see discussion of these programs, above). If the time were to come that residents were approved for that form of housing subsidy and those additional HUD dollars begin to flow to Visions, aggregate government funding would come closer to accounting for the actual costs of housing and supporting Visions’ residents. Farmsteads of New England, whose residents in Hillsboro have vouchers, reports that SSI, Medicaid, and housing subsidy dollars, together, suffice to support each resident’s actual room, board and care costs.
The Visions Experience:
Debt
Visions pays the mortgage on Sunrise Farm, making monthly payments of $4,000, as well as monthly payments on its vehicles.
THANK YOU SO MUCH TO THE ORGANIZATIONS WHO HAVE HELPED SUPPORT OUR EFFORTS!