SAMPLE
MEMORANDUM OF UNDERSTANDING
BETWEEN A HOUSING DEVELOPER/OWNER, SERVICE PROVIDER AND PROPERTY MANAGER
FOR A HOUSING DEVELOPMENT WITH SUPPORTIVE HOUSING
 
ABC Housing Corporation, XYZ Services Incorporated and
People's Management Company for My Home Apartments

This sample is for a mixed-use project with some units (eight) designated for permanent supportive housing for homeless households (all eight high priority homeless (HPH) eligible, of which four are also HUD chronic homeless eligible) and four units for people with disabilities. Amend to reflect your project type and include all supportive housing units.
 
I.	PARTIES
 
This Memorandum of Understanding is between ABC Housing Corporation (the owner), a nonprofit corporation, XYZ Incorporated (the service provider), a nonprofit corporation and People's Management Company (the management company), a for-profit corporation. 

II.	BACKGROUND AND INTENT

WHEREAS, the sole purpose of this Memorandum of Understanding is to encourage cooperation between ABC Housing Corporation [ABC], XYZ Services [XYZ], and People's Management Company [PMC] and to further detail the separate and distinct roles and responsibilities of each party; 
 
WHEREAS, ABC owns a 24-unit apartment building at 201 Gibson Street, Anywhere, MN, also known as My Home Apartments, which provides housing to low-income individuals and housing with supportive services to homeless individuals. The building will have a front desk, community room and office (specify for service provider and/or management).
 
WHEREAS, of these 24 units, ABC will provide 16 units of permanent affordable housing for low income persons and eight (8) units of permanent supportive housing for low-income persons as outlined in Section VI. Eligibility Matrix. 
 
WHEREAS, ABC understands that persons with a history of homelessness (option: and disability) require a set of services that are unique and specialized, and that residents of My Home Apartments will be responsible for the provision of their own personal needs (meals, personal care in hygiene and health, etc.) and the availability of supportive services is critical to helping the residents to live successfully. 
 
WHEREAS, ABC will provide supportive housing using [INSERT HOUSING MODEL HERE – Specify Housing First or program housing] and [add additional principles such as harm reduction, trauma informed care, etc.] For descriptions, refer to Chapter 6, Supportive Housing Information and Resources. It is understood that XYZ DOES plan to offer full-service case management (as defined by the former Minnesota Interagency Task Force (ITF); refer to Supportive Housing Information and Resources (Chapter 6), [OR, option for service coordinator: It is understood that XYZ DOES NOT plan to offer full-service case management but will provide tenant service coordination to assist those tenants in need of these services in linking them with appropriate providers.] 

WHEREAS, XYZ will offer supportive services as outlined in Section VI. B (Role of Service Provider) to eight (8) households residing at My Home Apartments and has staff that are trained and experienced working with the target populations, including persons who are high-priority homeless (HPH). 
 
WHEREAS, tenants voluntarily participate in the services provided by XYZ. 
WHEREAS, My Home Apartments will have 24/7 front desk security that will be staffed by PMC.
WHEREAS, PMC provides property and asset management services and ABC will contract with PMC to manage and maintain the property; 

Therefore, ABC Housing Corporation, XYZ Incorporated and People’s Management Company agree that it is in the best interests of all concerned to enter into this Memorandum of Understanding for My Home Apartments. 
 
III.	GUIDING PRINCIPLES

WHEREAS, all parties under this Memorandum of Understanding jointly recognize that tenants with low incomes, a history of homelessness and who may also have disabilities:
•	Are diverse in terms of their strengths, motivation, goals, backgrounds and needs; 
•	Are members of the community with all the rights, privileges, opportunities accorded to the greater community; 
•	Have the right to meaningful choices in matters affecting their lives; and therefore
•	Tenant input will be sought in designing and implementing services; and, 
•	Not all persons living at My Home Apartments will need to be clients of XYZ or linked to supportive services in order to live successfully. 
•	Include additional principles

IV.	DEFINITIONS: Include all definitions pertaining to the population served at the development. Delete the definitions that do not apply.  Below are some examples.
 
For the purposes of this Memorandum of Understanding:

Unit Eligibility and Unit Restriction Definitions:

Permanent supportive housing is defined as permanent affordable rental housing with supportive services necessary for individuals, youth and families with children to maintain housing stability, live in the community, and lead successful lives. Permanent supportive housing has no time limits for occupancy. A person can remain in permanent supportive housing as long as they want to stay and are complying with terms of the lease. Twelve (12) units have been identified and are intended to meet this definition. 

Behavioral Health (BH): Units that are specifically designated to serve persons with behavioral health service needs (for mental health or substance use disorder) Twelve (12) units have been identified and are intended to meet this definition. 

High Priority Homeless (HPH) is defined as households (individuals, families with children or youth) prioritized for permanent supportive housing (PSH) through the Coordinated Entry (CE) system.  

Coordinated Entry (CE) is defined by the statewide CE standards and protocol as adopted by the local Continuum of Care (CoC), or such successor system as determined by Minnesota Housing. Eight (8) units have been identified and are intended to meet this definition. 

Units for People with Disabilities (PWD): Units that will be set aside and rented to people with disabilities. Four (4) units are specifically restricted by Minnesota Housing to serve this population. The target population for these units is: [individuals with mental illness, substance use disorder, developmental disability, brain injury or physical disabilities].

A chronic homeless person (HUD) is defined as an unaccompanied homeless individual with a disabling condition who has either been continuously homeless for a year or has had at least four episodes of homelessness in the past three years.  Four (4) units have been identified and are intended to meet this definition. 

A person with a disabling condition (HUD units) is defined as a person with a physical, mental or emotional impairment, which is expected to be of long, continued and indefinite duration, which substantially impedes the person's ability to live independently, and which is of a nature that such ability could be improved by more suitable housing conditions.  The four (4) HUD CoC funded permanent supportive housing participants and chronic homeless persons served will meet this definition. 

Housing Support is a state funded income supplement for low-income seniors and individuals with a disabling condition. The funds are used to pay for room and board for the tenant. The supplemental service rate is also available for individuals who are long-term homeless (LTH) or from an allocation of banked beds from the county. 
The eight (8) HPH [and/or] the four (4) PWD units will have Housing Support for room and board and four (4) HPH units will have the Housing Support Supplemental Service Rate, requiring LTH eligibility. 
Long-term homelessness (LTH) is defined as persons including individuals, unaccompanied youth, and families with children lacking a permanent place to live continuously for a year or more or at least four times in the past three years.  Any period of institutionalization or incarceration shall be excluded when determining the length of time the household has been homeless. Four (4) units with Housing Support have been identified and are intended to meet this definition. 

Project Relevant Definitions:
Coordinated Entry (CE) means a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals.  A centralized or CE system covers the geographic area, is easily accessed by individuals and families seeking housing or services, is well advertised, and includes a comprehensive and standardized assessment tool.    

Local Continuum of Care (CoC) planning groups have implemented CE for all homeless assistance and housing programs. All supportive housing providers are expected only to take referrals for the supportive housing and HPH units from the CoC CE system. Property management must notify the CoC CE contact whenever a supportive housing vacancy occurs and agree to accept referrals for eligibility screening for the unit. Referrals are made by the CoC CE contact when a unit is listed as available for leasing. The exact process is determined by the local CoC and participating providers. 

Very low income is defined as households with incomes 50 percent or below the Area Median Income (AMI) for Anywhere County.  All 24 units will meet this income eligibility definition. [Extremely low income is defined at 30 percent aim.]

Supportive Housing Program Model X means: insert description of the specific components of the program housing (for example, requirements for sobriety or participation in services or daily activities). Refer to Section 6.02 in the Supportive Housing Information and Resources publication.
 
Example: Housing First – A type of permanent supportive housing with no requirements for entry (e.g. a period of sobriety) and no requirements for keeping housing, except those of a normal lease. Individuals, youth and families are not required to accept services. Service providers are, however, required to make a broad spectrum of services available on an ongoing basis and to engage people in accessing services. The intent is that an individual, youth or family with children that is experiencing homelessness first gets a place to live. The household can then access the services they need. 

Supportive services means services offered to residents for the purpose of enhancing the residents' ability to maintain independent living. Supportive services must address the special needs of the residents to be served. These are described in Section VI. B. Role of the Service Provider. 
[Include other definitions as needed: CoC rental assistance or leasing, severe mental illness, LTH, etc.] 

V.	ELIGIBILITY DETERMINATIONS AND TENANT SELECTION

Eligibility for this project will be based on income, homeless status [and any additional eligibility such as disability, behavioral health needs, etc.] as described in Section IV – Definitions (include all funding program guidelines applicable to this development)

Homeless Status: Applicants of My Home Apartments applying for the eight HPH units must have their homeless status and history verified by the service provider. HPH eligibility documentation will be obtained from the HMIS report or CE. XYZ will obtain the document and provide to PMC to retain in tenant file.

Disability: A qualifying disability must have written verification from a physician that the condition or illness is disabling to be considered for the [four (4) identified chronic homeless or four (4) PWD units.] During the process of tenant screening, the potential tenant will need to complete a standardized form that authorizes his/her physician to release such information. PMC will obtain this documentation and retain in the tenant file.
 
Referrals: Potential tenants for the HPH units will be referred through the local CoC CE system [Briefly describe]. Coordination of this process will be outlined further in the marketing and tenant selection plans. 
[Add referral process for PWD and any other PSH units if not going through CE.]

Assessment for need for permanent supportive housing (for applicants not referred by CE): Describe how applicants will be assessed to determine need for supportive housing.

Tenant Selection: Tenants will be selected by the management agent, PMC, based on criteria developed by ABC, XYZ and PMC and described in the tenant selection plan. Selection of tenants for My Home Apartments will not rely solely on traditional property management standards. Standards will be established that reflect a commitment to housing very low-income people and those who meet the homeless definitions and who may have disabilities, poor rental or credit histories, criminal histories, etc. (Refer to Minnesota Housing Tenant Selection Plan Guidance  for more information on screening practices for supportive housing units. The guidance provides principals that address the inherent barriers for this population to be successfully admitted into the housing.)

Potential tenants will undergo a two-stage screening process for the supportive housing units. 

•	Stage 1: The prospective tenant will be evaluated by PMC to determine if s/he/they meet(s) the income, homeless and [disability or other eligibility] requirements. 
o	XYZ will assist in assessing and documenting HPH eligibility provided by the CE system. 
o	PMC will obtain disability documentation verified by a physician (for the four (4) chronic units only).
o	PMC will run a standard credit, eviction, criminal history and some housing checks as part of the selection process.  

•	Stage 2: PMC and XYZ will meet and jointly decide if the applicant meets the tenant selection criteria.  While all parties will respect and seek input from each other, in the case of disagreement over tenant selection, ABC will make the final determination. 
•	[If the project has Project-based Section 8, LTH Housing Support or other rental assistance programs, outline the eligibility process here]

VI.	ELIGIBILITY MATRIX 
Outline the eligibility for all units and funding sources. The income and rent restrictions listed for Minnesota Housing funding sources must align with the final underwriting before approval can occur. In Section (VII) below, include definitions that relate to eligibility that applies to the project.
Refer to the selection letter and workbook for rent and income restrictions associated with Minnesota Housing funding. 

Designated units	Funding Source/Eligibility	Funding Source Subsidizes Rent?	Income Limits	Rent Restrictions	
24 units	Tax Credit: general occupancy	No	50% AMI	50% AMI	
12 units	Housing Support: disabling condition. 4 units must be LTH	Yes	Housing Support Limit	N/A	
8 units	HPH: meets HPH definition	No	30% AMI	30% AMI	
4 units 	HUD COC Rental Assistance eligibility: meets chronic homeless and disability definitions	Yes	N/A	FMR	
    4 units	Minnesota Housing PWD units: requires a disability	No	30% AMI	50% AMI	
[If HIB Project, include all unit designations]

VII.	ROLES AND RESPONSIBILITIES

A.	Joint Roles of owner, management agent and primary service provider: Roles of ABC, PMC and XYZ

It is understood that ABC, PMC and XYZ staff must work together as a team to effectively meet the needs of the tenants. This level of collaboration will require exceptional, thorough and timely communication between all parties; therefore, ABC, PMC and XYZ agree to collectively communicate any cause of concern pertaining to any and all items that affect the overall success of the residents/and or development(s) in a timely manner. In addition, to help ensure smooth processes and communication, all three parties will meet [insert time period- i.e., weekly, monthly, quarterly] to review roles and practices, and PMC and XYZ staff will meet [insert time period] to discuss specific concerns.

However, the parties to this Memorandum of Understanding also understand the importance of their separate and distinct responsibilities. XYZ agrees in the performance of services, PMC agrees as the manager of the housing and ABC agrees as the owner of housing, that tenant and client rights are respected and complied with not only as a matter of principle, but as a matter of practice. 
 
It is understood that XYZ’s role will be that of advocate for residents and PMC’s role will be that of landlord dealing with tenant issues and protecting the housing asset and health and safety of residents. 
 
ABC, PMC and XYZ agree to advise one another of highly pertinent matters in the referral and selection process as well as tenancy issues, and understand that each is bound by confidentiality standards regarding the exchange of applicant and resident information. Informed consent will be provided to residents and appropriate releases will be secured when confidential client information needs to be shared. 

B.	Role of Service Provider for HPH/PWD and other Supportive Housing Units – XYZ Services, Inc. (XYZ):
XYZ agrees to assign a minimum of [one (1)] staff member to My Home Apartments to offer and provide supportive services (or coordinate services) for the eight (8) households in HPH units four (4) households in PWD units. In accordance with the supportive services plan and the property management plan, the case manager (or service coordinator), employed [.75 FTE] by XYZ, will be responsible for providing [case management and/or coordinating the delivery of services with other service providers].  

The [case manager or tenant service coordinator] will be responsible for offering and providing direct services to the HPH [and supportive housing] residents of My Home Apartments and/or coordinating the delivery of services from other providers. XYZ assumes all costs for the [case manager or service coordinator]. XYZ will:

1.	Assist in developing the tenant screening criteria; 
2.	Work with the CoC CE process to identify referrals for eligible households in need of supportive housing to the property manager, PMC; 
3.	Add role in assessment and referral process for all other supportive housing applicants that will not come through CE.
4.	Assist PMC in screening all potential tenants, specifically in determining the HPH and chronic homeless eligibility. 
5.	It is understood that XYZ [does/does not] plan to offer full-service case management (the former Minnesota Interagency Task Force (ITF) definition). Those in need of services not provided by XYZ will be linked with appropriate providers. XYZ will perform the following supportive services functions: 
(a)	Actively work to engage residents in services and the community: Provide and promote information and supportive activities that will help residents develop the skills and abilities needed to maintain housing and access the resources of the My Home Apartments community as well as the larger community, including family, friends, work and school. 
(b)	The [case manager/service coordinator] will be on site [Monday – Friday for 6 hours (times will be adjusted to accommodate resident needs and planned activities)]. XYZ has an emergency contact person for after hours and weekend emergencies.
(c)	Offer and provide supportive services as described in the service plan [attached]
(d)	Assist residents in understanding their rights and responsibilities under a tenant lease. This includes reviewing the house rules and explaining the eviction and appeals process.
(e)	Provide crisis intervention as needed or when requested by PMC or provide consultation to resolve conflicts between residents and property management.
(f)	Advocate for and provide eviction mitigation services, in cooperation with property management, for tenants with lease infractions or in jeopardy of lease termination.
6.	Provide the following administrative services:  
(a)	Assist in the development of the tenant selection plan, tenant handbook, etc. with PMC. 
(b)	Collect required file documentation to verify homeless eligibility for HPH units. This will be provided to the management agent for file retention.[add disability verification for PWD units if the service provider will provide the documentation; if not, add it to the property management responsibilities]
(c)	Administrate the Homeless Management Information System (HMIS), including data collection, data entry and submitting reports for the HPH units as required by Minnesota Housing. XYZ will be responsible for all HMIS costs.  
(d)	Provide annual reporting required submissions for the HPH units and assisting the management agent with completion of the HPH reporting requirements as needed.
(e)	Cooperate with ABC in monitoring and/or conducting audits or other reporting requirements to project funders. 

7.	Address training and professional development: XYZ provides regular in-service staff training on agency processes and service delivery best practices. Case managers are required to attend [x hours] of professional development courses. Staff members attend annual conferences covering social work, supportive housing and homeless services topics (be specific).

C.	Role of Owner: ABC Housing Corporation (ABC)
ABC is strictly the developer and owner of My Home Apartments and will be responsible for asset management and overseeing the property management duties contracted to the management company, PMC and the supportive services provided by XYZ. ABC will directly: 
 
1.	Oversee the contract and duties of the management company
2.	Oversee the service contract/agreement with XYZ
3.	Make sure that all regulatory and funding requirements are met 
4.	Oversee all budgets and cost estimates related to My Home Apartments, excluding budgets related to the provision of social services 
5.	Arrange for liability and property insurance for My Home Apartments
6.	Pay all taxes associated with My Home Apartments 
7.	Address training and professional development: [insert training needed, for example, if the target population, housing model or partnership is new to the ownership, describe what training resources will be pursued to help support the success of the housing]

D.	Role of Management Agent: People's Management Company (PMC)
PMC will be responsible for the overall operations of My Home Apartments. In accordance with the supportive services and property management plan, PMC is contracted by ABC Housing to provide the following property management activities: 
 
1.	Determine, verify and document eligibility of tenants [list eligibility documentation property management will be responsible for, such as: income, homelessness and disability]; 
2.	Selects tenants following the tenant selection plan and criteria: 
(a)	Property management will only take referrals for HPH applicants through the CoC CE system.
(b)	Property management will assist the service provider to engage with CE staff to provide details about the property including: target population, eligibility criteria and the tenant selection criteria to help ensure the CE referral process is in place and will provide appropriate referrals.
(c)	Referrals for PWD units will come from [coordinated entry, the county human services office for X population]
(d)	[If there are other PSH units, specify: Referrals for other Permanent Supportive Housing (PSH) units will come from (coordinated entry, institutional release, etc. for X population…)]
3.	Development and implement a management plan (including house rules and tenant selection plan) that results in successful management practices for all residents of the housing. 
4.	Actively market apartments to obtain a fully leased building in compliance with the Affirmative Fair Housing Marketing Plan and the marketing plan. 
5.	Will be on site the following days/hours/time period:[xxxxxxx].
6.	Carry out rent collection and administration. 
7.	Oversee tenant relations with positive management processes with respect to: 
(a)	Notices 
(b)	Evictions 
(c)	Enforcement of house rules, policies and procedures 
(d)	Conflict Resolution – Work with the service provider to have a response system for tenant crises and a plan to address lease compliance issues
(e)	Work with the service provider and tenant to address lease infraction issues with the goal of eviction prevention and tenant retention.
8.	Provide building and equipment maintenance and repair 
9.	Address safety concerns as needed
10.	Perform housing inspections for lease compliance and safety.  The site staff will perform periodic unit inspections following move-in to monitor that there are no unsanitary conditions, pests, fire hazards or other conditions. 
11.	Provide janitorial services (common areas only)
12.	Pay project bills 
13.	Provide monthly financial reports and any other required information to ABC for regulatory and funding agencies  
14.	Provide for the collection of required file documentation for the HPH households in coordination with XYZ. 
15.	Provide for the annual reporting requirements and submissions as needed from funders [name specific funders].
16.	Establish or make sure an accounting system is in place for providing budgets and year-end operating reports on MHFA formats.
17.	Provide capital improvements, including acquisition and maintenance of furnishings for common areas such as the lounge or dining room. 
18.	Address training and professional development: [Describe all that may be pertinent to the population(s) served (e.g., if serving persons with mental illness, consider the training needs for site staff that may be needed)].

ABC and PMC will enter into a property management agreement which further details these activities. 

IF APPLICABLE, add the following to the appropriate roles section:

E.	Front desk and security: Describe the responsibilities of front desk and security staff and the party that will provide oversight (usually management agent).
F.	Rental Assistance Administration: Describe administrative roles for rental assistance programs (project-based Section 8, HUD CoC, Housing Support, etc.) including which entity holds the contract, how funds are received, additional eligibility processes, HQS inspections, etc. (could be done by the management agent, service provider, housing authority, other partner or as a contracted service).
G.	Operating Subsidy Administration: Describe how funds will be used and the administrative roles for an operating subsidy in regard to budgets and disbursements (usually management agent)

H.	Other funding sources (list any funding source that will provide any type of oversight or monitoring to the property): Discuss administration, coordination and compliance for developments that may also have funding sources such as housing tax credits, HOME funds,  Housing Support, McKinney-Vento CoC funding, including referral sources, HUD match requirements and  reporting, etc. (roles of service provider and management agent)
I.	Other parties to this Memorandum of Understanding: May want to include rental assistance, administrator, service provider partners, etc.

VIII.	FUNDING
 
Service Funding: XYZ currently has the funds to provide the supportive services identified in this Memorandum of Understanding and anticipates continuation of this funding. Funding sources include [insert funding sources here]. XYZ is committed to providing appropriate and exceptional services to the tenants of My Home Apartments and is committed to providing these services over the long term, pending available resources. Where necessary, ABC and XYZ will co-apply for service funds. 
 
The case manager and supportive services identified in this Memorandum of Understanding will be funded as outlined in the service budget and will continue so long as the funding is renewed. 

Unique Operating Costs: If applicable, describe how the front desk or other unique costs will be funded (could include Minnesota Housing or Department of Human Services (DHS) operating subsidy, the development’s operating budget, specific grants, etc.)

Rental Assistance Funding: If applicable, describe how rental assistance will be funded (a contract with the public housing authority (PHA), Housing Support, Minnesota Housing rental assistance, HUD operating funds, etc.)

Shared Costs or Administrative Fees: May include description of how HMIS costs will be paid, how administrative fees will be distributed, etc.
 
IX.	GENERAL TERMS 
 
Terms. This Memorandum of Understanding will begin effective the date of January 1, 20XX. Lease up is anticipated to begin in July 20XX. XYZ’s and PMC’s responsibilities begin on January 1, 20XX to coordinate the start-up of My Home Apartments. This Memorandum of Understanding will be reviewed [define time period – annually, etc.] and updated to incorporate changes and clarification of roles and responsibilities. 
 
Termination. Any party may terminate this Memorandum of Understanding for any reason or no reason by giving the other parties ninety (90) days prior written notice. The party wishing to terminate this Memorandum of Understanding must provide notice and a written intent to terminate to the other parties.   

Confidentiality. ABC, PMC and XYZ agree that by virtue of entering into this Memorandum of Understanding they will have access to certain confidential information regarding the other party's operations related to this project. ABC, PMC and XYZ agree that they will not at any time disclose confidential information and/or material without the consent of that party unless such disclosure is authorized by this Memorandum of Understanding or required by law. Unauthorized disclosure of confidential information shall be considered a material breach of this Memorandum of Understanding.  Where appropriate, client releases will be secured before confidential client information is exchanged.  Confidential client information will be handled with the utmost discretion and judgment. 
  
Nondiscrimination. There shall be no discrimination of any person or group of persons on account of race, color, creed, religion, sex, marital status, sexual orientation, age, handicap, ancestry or national origin in the operation of the project of program at A Typical Supportive Housing Apartments by ABC, PMC or XYZ. 
 
Severability. In the event any provision of this Memorandum of Understanding shall be found to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the validity, legality and enforceability of the remainder of the Memorandum of Understanding. 
 
Amendments. This Memorandum of Understanding may be amended only in writing and authorized by the designated representative of ABC, PMC and XYZ. 

Signed:

Print name and title, ABC Housing Corporation  
 
Signature:_______________________________          Date: ____________      

Print name and title, XYZ Services, Incorporated 

Signature:_______________________________          Date: ____________       

Print name and title, People's Management Company

Signature:_______________________________          Date: ____________