Attachment III
Additional Information about Shallow Rental Subsidy Programs Review of Shallow Rental Subsidy (SRS) Programs and Outcomes In recent years, several Shallow Rental Subsidy (SRS) programs have been piloted throughout the Country to evaluate their effectiveness as tools for homelessness prevention. In California, jurisdictions including Oakland, San Francisco, Los Angeles County, and San Diego County have all launched SRS pilot programs. Other city-level pilots outside of California include programs in Philadelphia and Washington, D.C. At the national level, the US Department of Veterans Affairs initiated a pilot shallow subsidy program in 2019 to address housing insecurity among veterans. While it is too early to draw conclusions from most of these pilots, data from a handful of older or more well-established programs implies that SRS may be an effective tool for preventing homelessness and encouraging economic stability.
Current Shallow Rental Subsidy (SRS) Programs and Pilots In addition to Hayward, several other California jurisdictions have implemented shallow rental subsidy programs. In the Bay Area, the City of Oakland launched an initiative that is in many ways similar to Hayward’s SRS Program. Oakland’s Shallow Subsidies Housing Pilot Program began in July 2021 and currently serves 200 participating households. Households were selected from a pool of severely cost-burdened, low-income renters living in neighborhoods with high rates of gentrification and displacement of people of color. The program will be evaluated throughout its pilot period by researchers at the UCSF Benioff Homelessness and Housing Initiative. The Oakland pilot shares common elements with the City’s program, including its partnership with BACS as primary operator, its limited 18-month duration, its eligibility criteria, and its cap of $800 per household per month.
The City of San Francisco began offering its own SRS program in May of 2021, the San Francisco Emergency Rental Assistance Program (SF ERAP). SF ERAP began as an extension of the rent relief program initiated by the state in response to the COVID-19 pandemic. It differs from SRS programs in Oakland and Hayward in its shorter program term and less stringent eligibility requirements. Assistance is capped at $7,500 per participant and is intended to assist with six months to one year of rent or other eligible household expenses. To qualify, participant income must be less than 50% of area median income (AMI), they must demonstrate risk of homelessness, and their current rent must be less than 150% of fair market rent.
Other programs in the state include Los Angeles County’s Salvation Army Community Integration Services Shallow Subsidy Program, San Diego County’s Pilot Shallow Rental Subsidy Program, and Tulare County’s Moving to Work Demonstration Program. Los Angeles County’s $12 million program is administered by the Salvation Army and focuses on households that have received rapid rehousing (RRH) assistance. The program will provide 240 participating households with up to 35% of monthly rent for up to five years and 20% of enrollment is reserved for adults over age 62. In order to qualify, participants must currently be paying over 60% of their income towards rent and not have need of additional case management services. San Diego County’s Pilot Shallow Rental Subsidy Program is available exclusively to adults over the age of 55 whose income is less than half of the area median income (AMI) and are severely cost-burdened. The San Diego County pilot prioritizes seniors over age 60 whose income is less than 30% of AMI and reside in historically disadvantaged communities. The program is expected to provide up to 220 households with a flat rental subsidy $500 per month for a period of 18 months.
Tulare County’s Moving to Work (MtW) Demonstration Program is significantly different in design from the programs in Hayward, Oakland, Los Angeles County, and San Diego County. Participants in the Demonstration Program may choose between public housing units with flat, below-market rents or a fixed rental subsidy paid to landlords. The program’s shallow subsidy option provides between $460 and $905 per month, based on the number of bedrooms in the rental unit. Households may continue to participate in the program for up to five years, or until their income exceeds 120% of AMI, whichever is first. In addition to allowing participants to choose their preferred form of assistance, the MtW Demonstration Program is also notable for having been in operation since 1999.
Outside of California, the cities of Philadelphia and Washington, D.C. have launched their own pilot programs. Philadelphia’s Shallow Rent Pilot Program is similar in design and eligibility requirements to programs in California, with the exception that the participants may remain in the program until they are no longer considered to be cost-burdened. Washington, D.C.’s DC Flexible Rent Subsidy Program differs significantly from other comparable pilot programs in that it provides an annual flat amount of $7,200 directly to participating households via a program-specific bank account. Participants may decide how much to withdraw per month, up to their total rent amount. At the end of the year, households with remaining balances also have the option to withdraw up to $500 for household expenses.
At the federal level, the US Department of Veterans Affairs (VA) Supportive Services for Veteran Families Shallow (SSVF) program launched its Shallow Subsidy pilot in 2019. The two-year pilot was implemented in eleven jurisdictions across five states, including Alameda, San Francisco, Contra Costa, and Santa Clara Counties in the Bay Area. Participants were selected from a pool of households enrolled in the VA’s RRH and homeless prevention assistance programs. Participating veteran households were provided with fixed monthly rental assistance based on local housing costs. The program also offered, but did not obligate participants to accept, assistance with other housing costs and other supportive services as needed.
Overview of Potential Shallow Rental Subsidy Program Outcomes Data regarding the outcomes of SRS programs throughout the country is currently limited, as most programs are pilots implemented within the last five years. However, some insights regarding outcomes of SRS can be taken from evaluations of more established programs, although variations in program design mean that results may not be directly comparable to Hayward’s SRS program.
One of the earliest ongoing SRS programs in the US is Project Independence (PI; note that this is different from the City’s HOME-funded program by the same name), established in Alameda County in 1996 to assist residents living with HIV/AIDS, and, as of 2023, still provides between $204 and $496 in housing cost assistance to qualifying participants. The stated goals of the PI program are homelessness prevention and assisting individuals in remaining independently housed. A study commissioned by the Alameda County Community Development Agency during the program’s pilot period of March 1997 through October 2001 found that participating households were able to remain in their rental housing for an average of 3.9 years out of the 4.5-year evaluation period. Researchers compared program participants to a control group of low-income renter households with an HIV/AIDS diagnosis in the family. After one year, 99% of PI participants remained housed, compared to 32% of non-participating households. After two years, 96% of PI participants were still housed, while only 10% of non-participating households remained in their rental units. The study implies that SRS programs are helpful in preventing homelessness, but results may not be generalizable based on eligibility being limited to individuals with HIV/AIDS diagnoses.
The Tulare County Moving to Work (MtW) Demonstration Program is another long-running US program that fits the criteria to be considered an SRS. Unlike PI, participants in Tulare’s MtW are only required to meet economic criteria and represent a wider cross section of potential participants. As noted above, participants have the option to receive either shallow rental subsidies or below market rate public housing for up to five years. One of the key metrics Tulare reported to HUD from 2014 through 2021 is the number of households re-applying to the SRS program after reaching their five-year limit. Of the 2,422 households served between 2014 and 2021, 76% (n=1,832) did not require additional rental assistance within three months of exiting the SRS program. As of 2022, the MtW Demonstration Program revised its annual metrics and no longer tracks re-application to the program. Additionally, the differences in design and focus from other SRS programs may result in outcomes that cannot be directly compared to Hayward’s SRS program.
Early data from the VA’s SSVF Shallow Subsidy Program also indicated that access to SRS programs may positively impact economic stability and prevent homelessness. In FY21 the program served 1,113 veterans, of which 70% (n=775) were literally homeless, with the remaining 30% (n=339) of participants being imminently at risk of literal homelessness. At the end of their two-year program period, SRS program participants across the board demonstrated an increase in monthly income compared to households that were receiving health and case management services from the VA, but were not enrolled in the SRS program. The greatest gains were seen at the lower end of the income spectrum. Half (50%) of veterans who entered the SRS program with no income had improved their financial stability by the end of the program, compared to 29% of those not receiving SRS. Of the SRS participants making up to $500 per month, two thirds (67%) had increased their monthly income, compared to 29% of non-participants. Households entering the SRS program at higher income levels also reported gains, though to a lesser extent. The VA expects that these income increases should improve housing stability, but additional long-term follow-up will be needed. Given that the SSVF Shallow Subsidy Program was only open to veterans, these results may not hold true for low-income civilians.
City of Oakland. Oakland Launches Rental Subsidy Pilot to Stop Displacement, Prevent Homelessness. Retrieved from https://www.oaklandca.gov/news/2021/oakland-launches-rental-subsidy-pilot-to-stop-displacement-prevent-homelessness Oakland Fund for Public Innovation. Oakland Shallow Subsidy Pilot. Retrieved from https://www.oaklandfund.org/oakland-shallow-subsidy-housing-pilot/ US Department of Housing and Urban Development. Homeless System Response: Shallow Rental Subsidies. Retrieved from https://files.hudexchange.info/resources/documents/COVID-19-Homeless-System-Response-Shallow-Rental-Subsidies.pdf The Salvation Army. Shallow Subsidy Program. Retrieved from https://www.chirpla.org/sites/chirpla.org/files/u107/Shallow%20Subsidy%20ppt-07.2020.pdf County of San Diego. Board Votes to Create Rental Subsidy Program for Older Low-Income San Diegans. Retrieved from https://www.countynewscenter.com/board-votes-to-create-rental-subsidy-program-for-older-low-income-san-diegans/ US Department of Housing and Urban Development. Homeless System Response: Shallow Rental Subsidies. Retrieved from https://files.hudexchange.info/resources/documents/COVID-19-Homeless-System-Response-Shallow-Rental-Subsidies.pdf Housing Authority of Tulare County. Moving to Work. Retrieved from https://www.hatc.net/moving-to-work.php?nbl=MTW Housing Authority of Tulare County. Moving to Work. Retrieved from https://www.hatc.net/moving-to-work.php?nbl=MTW US Department of Housing and Urban Development. Homeless System Response: Shallow Rental Subsidies. Retrieved from https://files.hudexchange.info/resources/documents/COVID-19-Homeless-System-Response-Shallow-Rental-Subsidies.pdf US Department of Housing and Urban Development. Homeless System Response: Shallow Rental Subsidies. Retrieved from https://files.hudexchange.info/resources/documents/COVID-19-Homeless-System-Response-Shallow-Rental-Subsidies.pdf Department of Veterans Affairs. FY 2021 Annual Report: Support Services for Veteran Families (SSVF). Retrieved from https://www.va.gov/HOMELESS/ssvf/docs/SSVF_Annual_Report_FY21.pdf October 18, 2022 Alameda County Board of Supervisors Meeting Agenda and Materials: https://alamedacounty.granicus.com/DocumentViewer.php?file=alamedacounty_af62152e77d8f698503f55ff0f32970d.pdf&view=1 Lisa K. Dasinger and Richard Spiegelman. Homeless Prevention: The Effect of a Shallow Rent Subsidy Program on Housing Outcomes among People with HIV or AIDS. AIDS and Behavior (2007). Retrieved from: https://www.academia.edu/27049179/Homelessness_Prevention_The_Effect_of_a_Shallow_Rent_Subsidy_Program_on_Housing_Outcomes_among_People_with_HIV_or_AIDS Housing Authority of Tulare County. Moving to Work. Retrieved from https://www.hatc.net/moving-to-work.php?nbl=MTW US Department of Housing and Urban Development. Housing Authority of the County of Tulare. Retrieved from https://www.hud.gov/program_offices/public_indian_housing/programs/ph/mtw/tulare Department of Veterans Affairs. FY 2021 Annual Report: Support Services for Veteran Families (SSVF). Retrieved from https://www.va.gov/HOMELESS/ssvf/docs/SSVF_Annual_Report_FY21.pdf
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