Can federal financing support small home projects?

HW: In the past decade, permanent housing has been the cornerstone of federal homelessness policy. Why insist on temporary homes?

Funk: So you know, in the US our strategy to tackle homelessness in the past decade is very clearly mandatory. It is about permanent accommodation, because only permanent housing ends up homelessness.

And so the only valid use of tax money – quote from the hiding place of Unquote – was avoided because shelter does not work, which it does not work in a meaningful way. It keeps you out of the elements, but it is not a place where you are mentally ready to do something with your life, right?

But the problem is that, especially in California, where it costs an average of a million dollars per unit – more than $ 800,000 per unit – and it takes to build, we never get there. It’s just not practical.

HW: What is the alternative that you propose?

Funk: We believe that if we invest in something worthy that is in the meantime, a lot of things happen – one of which you prevent the trauma from on the street. We call this interim supporting housing. It functions as shelter in the system.

But (the Housing and Urban Development Department‘S) Definition of housing is your usual place of residence and you have individual sleeping areas. Well, if you have your own small room, small cabin, that is housing. It is a form of housing. It’s just temporary.

HW: Is there existing federal financing for this type of project?

Funk: There is very little financing – frankly, none of the federal level that goes to interim homes. Interim housing is such a new concept that it must wiggle.

We have had to apply for subsidies that are intended for one or the other bucket. They give the community development blocks and things that can be used for anything – prevention, street range – but it is a small amount and has to compete with many other things.

HW: Where does your financing come from?

Funk: Our financing is somewhat philanthropy and state financing. We apply for subsidies, such as the funds of the camp of the camp, and there is one Project Homekey That is a state financing program. Hospitals of course occur, because half of the costs of non -protected homelessness are borne by them.

“We are also experimenting with an investor model because our small huts are not technically classified under the tax code as a real estate – they are personal property because they move, just like a truck.

Thanks to (President Donald Trump) they are also eligible for accelerated bonus debit. So if an investor paid to build it, they can get half of the value back in a tax debit if they are in the tax bracket of 50%.

HW: But the long -term costs are in operations, not just building the units, right?

Funk: A unit may cost $ 50,000 to build, but it is another $ 50,000 a year to operate, and that is a constant costs that cities are very hesitation to bind to it. None of the financing programs has a face line for more than two years. Many of them are just a year, and everyone has that [looking like a] Hert in the headlights. ‘

HW: Are there federal programs that help compensate for these costs?

Funk: California has its own version of Medicaid called Calaim, and it has remote declarations from Medicaid with which it can be repaid for things that take place in hiding places and interim homes. It can repay for your case managers, specialists in the field of housing navigation, behavioral health care – all that stuff can be reimbursed.

The first thing we hope for is to ensure that this does not disappear. That is probably half of the operational budgets and it is reimbursed by the federal health care system. “

HW: And what about section 8 vouchers – can they be applied to interim homes?

Funk: Interim homes do not receive a section 8 vouchers, but those vouchers are called ‘housing choice’ for a reason. The person can choose his apartment. What if they have it in interim homes? They are now covered, they are paid, right? And if they want to stay a little longer because it is healthier for them, or if they cannot find an apartment, it will not expire. “

HW: That sounds like it can be controversial.

Funk: As soon as I am talking about section 8 vouchers for interim homes, all housing people in this Zero-Sum game come from ‘You steal our resources’. Every year we have to return unused vouchers to the federal government. We cannot find apartments. That is criminal.

HW: A report was also made of a transitional statement of six months via Calaim. What is the status there?

Funk: They wrote a concept document, sent it to the federal level, approved it and now we are waiting for the implementation. Everyone holds his breath. The medical system offers to pay six months of rent. As, what does that say about undisputed homelessness, right?

HW: Last thoughts. What is the wider vision for interim homes at national level?

Funk: This is not about us who try to grow a company. We are non -profit. We just try to change this thinking and get interim housing in the mainstream. We have literally put together a playbook – such as, someone in Toronto wants to build interim homes? Here is your site plan. Here is the modular manufacturer. Like, have it.