New locally-funded incentives for landlords!
LA is offering new incentives to landlords who will help end the homeless crisis. It’s a double bottom line that allows landlords who are willing to do good to also do well. “Imagine getting your rent check the first day of each month, every month, and knowing that you did your part to end the homeless crisis,” said LA County Supervisor Sheila Kuehl. “That’s going to make any landlord feel just great!”
LA County, the City of Los Angeles, and cities throughout the region are taking unprecedented steps to address homelessness. Hundreds of millions of dollars are being invested in a range of interventions designed to get Angelenos down on their luck back into apartments of their own. Significant portions of these investments are dedicated to rental assistance programs and direct financial incentives for landlords. Multifamily building owners have a chance to help people experiencing homelessness transform their lives, while also benefiting their own bottomline.
Cities and the County have also dramatically expanded Rapid Re-Housing programs. Rapid Re-Housing programs provide short term rental assistance to people who are experiencing homelessness solely due to economic challenges. Rapid Re-Housing combines short term social services and short term rental assistance to help these households quickly get back on their feet and back into homes. Many of these households are already employed and just need a financial boost to get back into an apartment. Once settled these households gradually take over making rent payments.
Some non-profit organizations are also exploring master leasing agreements. Master leases are long term (5 to 15 year) leases guaranteed by the non-profit organization that in turn subleases to households experiencing homelessness. The nonprofit often takes over a portion of the property management function in these agreements. Local governments hope to expand these agreements in the coming years.
Each of the models highlighted above has different benefits for landlords. To find out more, visit www.brilliantcorners.org
Landlords who participate in these programs also benefit from experienced non-profit services providers who support each and every tenant who is housed. Non-profits ensure that tenants succeed in their new apartments – successfully paying rent on time, being good neighbors, and having good relationships with their property managers. Many non-profits have 24-hour call lines for landlords to ensure that problems are resolved quickly 24/7.
While many owners and property managers are familiar with the Housing Choice Voucher program (commonly called Section 8), few know about the new locally-funded incentives for landlords through the Homeless Incentive Program that fund holding fees, security deposits, and a damage mitigation fund. It is also important to note that there are nineteen public housing authorities throughout Los Angeles County. Each public housing authority is taking unique steps to make the Housing Choice Voucher program more attractive to landlords. Now is the time to take a new look at this legacy program and explore if it is right for you.
In addition to the Housing Choice Voucher program, there are unique incentives created to support the Veteran Affairs Supportive Housing (VASH) program. The federal, county, and city government have all committed to ending veteran homelessness in 2017, but this goal cannot be realized without a strong partnership with landlords. To build that partnership the County and City created the Veteran Incentive Program, which also provides holding fees, security deposits, and a damage mitigation fund.This program has been combined higher Fair Market Rents. Landlords who rent to veterans with VASH vouchers can receive 120% of Fair Market Rents for their area.
The County is also expanding the Flexible Housing Subsidy Pool. The Department of Health Services created the Flexible Housing Subsidy Pool (the Pool) in 2012. The Pool was one of the first locally-funded rental assistance programs created in the country. It provides maximum flexibility and customer service to support landlords who rent apartments to frequent users of County services who are experiencing homelessness. Rental payments are provided through Brilliant Corners, a local nonprofit organization.