Housing Authority may have small fix to big problem

The Housing Authority is embarking on a pilot program that could provide rental housing for chronically homeless veterans in what are called “small houses” on a roughly quarter-acre vacant lot in Modesto.

The four one-bedroom, one-bath rental homes will be 450 to 650 square feet each, and the four veterans who live in them will receive case management and other services from the U.S. Department of Veterans Affairs. Veterans could be living in them as soon as November.

Barbara Kauss, executive director of the Housing Authority of the County of Stanislaus, said this is the first time her agency has built small houses, and the project may be the first of its kind in the county.

She said this project has advantages over traditional affordable housing projects for the chronically homeless. These clients may struggle living in multifamily complexes because of their mental health issues.

“Lots of our clients don’t do well in an apartment complex,” Kauss said.

She added that these small-home projects can be done for less money and faster than traditional affordable housing and can be built on small pieces of land, making them ideal for infill development. She said this project could cost as much as $400,000.

The houses are slated for a vacant lot on Glendale Avenue that the Housing Authority owns. The lot is near Trask Lane and Yosemite Boulevard, major bus routes and other services. Modesto is providing a $300,000, no-interest, 55-year loan for the project from federal money it receives for affordable housing. Kauss said the Housing Authority will provide the balance of the project’s funding, which could be as much as $100,000.

The Housing Authority is doing this project through its Great Valley Housing Development Corp. Kauss said Great Valley is what is called an affiliate nonprofit that the Housing Authority manages. She said this arrangement has become common among housing authorities across the nation as their traditional funding sources have declined. She said affiliate nonprofits can tap into funding not available to housing authorities.

The project is for chronically homeless veterans whose incomes are 80 percent below the median income for the area. They would contribute 30 percent of their income toward their rent. The Housing Authority hopes to use federal housing vouchers for the balance of the rent. Kauss said her agency has asked Veterans Affairs and the U.S. Department of Housing and Urban Development for permission to use some of its existing veterans housing vouchers for this project.

Kauss said the homes will be of modular construction. She expects the Housing Authority will send out requests for proposals this week to companies that build modular housing. The houses will have amenities built into them, such as dressers or what is called a captain’s bed, which has drawers built in under the frame.

The Housing Authority considered using what are called tiny houses but decided against that for several reasons. Housing Authority Director of Asset Management Scott Fitzgerald said tiny houses are not built as well or last as long as modular homes. They also have a second story or loft that makes them impractical for disabled tenants. Tiny homes are typically no bigger than 450 square feet.

Kauss said if this project succeeds, she envisions her agency doing one of these projects annually.

“We think this can be replicated for other vulnerable populations,” she said. “There is no reason not to do it for other homeless people.”

The Housing Authority is asking for donations – including groceries, bedding, dishes, silverware and similar items – for the veterans who will move into the homes. Those interested in helping can call Kauss at 209-557-2000.

This story was originally published May 1, 2016 at 6:13 PM with the headline "Housing Authority may have small fix to big problem."