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CPC Subcommittee on Emergency Housing Relief 7-17-2020 FINAL.pdBeverly Community Preservation Committee (CPC) Subcommittee on Emergency Housing Relief Meeting Notes Meeting Date: July 17, 2020 at 9:00 AM CPC members participating: Heather Richter; Derek Beckwith; Thomas Bussone, II; Nancy Marino. Invited participant: Susan Gabriel, Executive Director, Beverly Bootstraps CPC Committee staff: Denise Deschamps As Chair of the Beverly Community Preservation Committee's Subcommittee Heather Richter called the meeting to order at 9:06 AM. Richter reads a description of changes to the Commonwealth's Open Meeting Law to accommodate remote meetings due to the COVID -19 pandemic, a description of the process by which public meetings are held remotely along with a description of how the public may access these meetings. Richter then asked that Committee staff, Denise Deschamps, call the roll. Deschamps calls the roll and asked Susan Gabriel to introduce herself. Richter begins the conversation with an overview of the CPC's efforts to create an Emergency Housing Relief Fund and states that the Subcommittee has developed some questions to ask Susan Gabriel to help direct the conversation. Derek Beckwith adds that the questions will not only help the Subcommittee to better understand Beverly Bootstraps (BB) but they will also inform Beverly Bootstraps about what the CPC is trying to accomplish. Gabriel asks the Subcommittee to describe its ultimate goal for the program. Richter responds by saying that the CPC is well aware that many people have lost their income, or had it radically reduced, due to COVID -19, they cannot pay their rent, and eventually the moratorium on evictions will be lifted. In addition, many residents in Beverly work in some sectors hardest hit by the pandemic such as healthcare, construction and hospitality. Unemployment went from 2.6% to 26 %. Despite there being a lot of people in need many won't qualify for assistance from existing, traditional programs and so the goal of the CPC is to keep people in their homes until we can all get to the other side of this crisis. The program being proposed by the CPC is temporary with an anticipated start date of September. It would be a three month long program or until funds are depleted. The CPC would check in after three months with the administering agency to determine if additional funding should be considered. Several other communities have similar programs in place including Salem, Peabody, Gloucester, and Manchester. Nancy Marino adds that the CPC views this program as purely transactional in that the administering agency would be expected to review applications, determine eligibility and make an award. That is the end of the relationship, at least from the perspective of the CPC. Beckwith added that while the program as envisioned by the CPC is designed to serve households earning 100% of AMI or below it is intended to help those households that are not eligible for other programs such as RAFT, which serves households at 50% or below AMI. So the CPC looks at the process of determining eligibility as not particularly arduous. Richter added that the CPC wants a streamlined program so that both the application process and the administration process is as simple as possible. Gabriel stated that the landscape has likely changed a bit since the CPC was first envisioning the creation of a program. Initially, there was a general belief that things would begin to return to some normalcy after a few months but now it is difficult to predict when the economy will rebound and people will find employment again. The people in economic distress need a long -term plan. One month's rent or three months' rent is just a stopgap that may not be helpful. Thomas Bussone stated that the CPC's approach was multi - pronged. They intended to give each eligible Page 1 of 3 household three months rent, and the landlord would need to promise there will be no eviction proceedings initiated /engaged in while the recipient is receiving assistance from the CPA. Bussone also stated that it may be possible to negotiate a lesser rent with the landlord during the crisis. Gabriel asked who would be negotiating with the landlords and Bussone suggested that it may be a role for the administering agency. Gabriel stated that BB has experience in negotiating with landlords but that it is a very time consuming endeavor. Richter asked if the BB has experience in administering the type of program described by the CPC. Gabriel responded in the affirmative stating that BB was founded 30 years ago. Its original mission was to address food insecurity but food insecurity is really a symptom of economic insecurity. There are many other related issues such as housing, employment, education /skill level. The BB wants to take a holistic approach and talk to the client about all of these issues to create self - sustainability. Currently, the BB appeals to Good Friday, Fischer Fuel, the Y and other programs for assistance to help the families that reach out to them asking for assistance with housing. Richter reminded Gabriel that CPA funds may only be used for rental assistance. Nancy Marino commented that she appreciated BB's holistic approach to serving its clients. Many families, busy, working multiple jobs, may not consider pursuing services that are available in the community unless an emergency occurs. Interaction with BB will make them aware of other services that may be available. It is difficult to anticipate the length of the crisis and the recovery from it. Richter moved on to the question of how the BB would administer the program. Gabriel envisions that each applicant would complete the BB's existing application form and evaluate the clients' situation and identify the source of assistance they should pursue for the client. BB would first look at federal or state programs that might have funding availability and look at local programs last in order to maximize community funds. Richter asked how clients would be prioritized, first come /first served, level of need, other? Typically, the BB reviews applications on a first come /first served basis but they could consider a different approach. Maybe reserve the CPA funds for those households that have dug a deeper hole, talk with their landlord, and determine their employability. CPA funds would be used as a last resort. Bussone commented that it sounds as if their approach to working with clients and evaluating their needs would not change from current methods. CPC would just be another funding source available to their clients. The workload may increase because of potential increases in the number of applicants. So the fee identified seems a bit high for the increased workload. Gabriel explained that BB had anticipated a surge in activity this fall but that may not be the case if a moratorium on evictions remains in place for an extended period and the economic recovery is longterm. BB did add a part-time staff person to their FY21 budget and that was initiated before they became aware of the CPA program. If they add administration of the CPA program to their current caseload it means more case manager hours and supervision and director involvement as well as HR and Finance. Gabriel added that after speaking with her staff she believes that BB can reduce the administrative fee to around $34,000. BB would have to fundraise to support a new position. Case managers do not work for free. These are salaried positions and there are other costs associated such as benefits. Beckwith described the CPA funded program as a three -month program that could potentially be extended if there was need and funding was available. He asked if the fee proposed by BB is their Letter of Intent was for a three -month period. Gabriel responded in the affirmative stating that it is not so much the length of the program that determines workload but the number of applicants. In addition, if the program is short in duration then demand may be crammed into a shorter time period which is stressful for staff. In addition, staff would need to be trained. Technology is another factor as is marketing the program. Gabriel said that despite the challenges BB could do it. Richter asked for clarification as to what the revised Page 2 of 3 administrative fee is that BB is proposing. Gabriel stated that it would be around $34,000. They want to help as many people as possible. The CPA program may want to encourage people to take advantage of other sources of funding as opposed to limiting CPA funds to those households that don't qualify for other funding. Richter clarified that the administrative fee would come out of the $240,000.00 set aside for the program so if $34,000.00 is subtracted from the $240,000.00 then approximately 57 households could be assisted with CPA funds (at $3,600 per household). Gabriel responded that they were basing their fee on usually 56% of applicants being funded, meaning about 150 would be interviewed. Richter asked Gabriel, based on the information supplied to her by the CPC, would she recommend any changes to the program parameters. Gabriel responded that the CPC may want to reconsider the 3 month time limit given that the moratorium on evictions has been extended. She doesn't want to use the CPA funds just to delay an inevitable eviction. However, Gabriel said that maybe a 3 -month program would be a good thing, encouraging a sense of urgency and forcing people to seek assistance before they get too deep in debt. But there is the matter of BB getting people trained or finding experienced people to administer the program. Richter suggested that a deeper conversation would be had on this topic with the administering agency once they are selected. Richter asked Gabriel how the BB would verify information provided by the applicant. Gabriel responded that they have a process in place that includes checking with landlords, employers, reviewing bank statements, etc. Richter asked Gabriel what Information she thought would be helpful to include in the report to the CPC /City. Gabriel responded by saying that BB invested in a robust data base, Salesforce, so it would be easy for them to produce very detailed reports. Richter asked Gabriel if the BB would be comfortable in reviewing applicant referrals submitted by other agencies (as opposed to individuals) or would the BB accept individual applicants only. Gabriel responded that they would accept applicants from other agencies and they work closely now with other agencies. Richter asked if the BB would feel comfortable in referring clients to another agency if this other agency were chosen to administer the program. Gabriel responded in the affirmative. Richter asked Gabriel if she could propose ways in which to make people aware that the program is available. Gabriel suggests that they would reach out to employers and the schools. BB has a great marketing team. Bussone asks Gabriel how many applications the BB is currently receiving per week for assistance. Gabriel states that the number is low right now. She can check with BB and get an exact number after this meeting. Requests for housing assistance, pre- COVID, was the most frequent type of request for assistance. People may not be worried at the moment because of the moratorium but they could be digging a hole for themselves. So it might be best to be proactive at this time. Encourage people to come in for help. Deschamps asked if BB assists people with budgeting. Gabriel responded by saying that if they needed assistance with budgeting it would be handled on a 1 to 1 basis but most of their clients are actually very good at budgeting. They just don't bring in enough income to cover their expenses. Richter thanked Gabriel for speaking with the Subcommittee members and adjourned the meeting at 10:02 AM Page 3 of 3