HUD AND HHS PARTNER TO PROVIDE PERMANENT HOUSING AND SERVICES TO LOW-INCOME PEOPLE WITH DISABILITIES

$98 million in rental assistance will prevent homelessness and unnecessary institutionalization

WASHINGTON, DC – February 12, 2013 – (RealEstateRama) — To prevent thousands of people with disabilities from experiencing homelessness or unnecessary institutionalization, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Health and Human Services (HHS) today announced nearly $98 million in funding for 13 state housing agencies for rental assistance to extremely low-income persons with disabilities, many of whom are transitioning out of institutional settings or are at high risk of homelessness.

HUD’s support of these state agencies is made possible through the Section 811 Project Rental Assistance Demonstration Program (PRA Demo) which enables persons with disabilities who earn less than 30 percent of median income to live in integrated mainstream settings.  The state housing agencies are working closely with their state Medicaid and Health and Human Service counterparts to identify, refer, and conduct outreach to persons with disabilities who require long-term services and supports to live independently.

“By working together, HUD and HHS are helping states to offer permanent housing and critically needed supportive services to offer real and lasting assistance to persons who might otherwise be institutionalized or living on our streets,” said HUD Secretary Shaun Donovan.  “We’re helping states reduce health care costs, improving quality of life for persons with disabilities, and ending homelessness as we know it.”

“Our nation is strongest when all our citizens are able to fully participate and contribute,” said HHS Secretary Kathleen Sebelius. “This unique collaboration of federal and state agencies will enable thousands of Americans with disabilities to lead productive, meaningful lives in their communities.”

Today’s announcement reinforces the guiding principles of the Americans with Disabilities Act  and the landmark 1999 Supreme Court ruling in Olmstead v. L.C., which require state and local governments to provide services in the most integrated settings appropriate to meet the needs of individuals with disabilities.

The rental assistance announced today also supports the Obama Administration’s long term strategy to prevent and end homelessness.  The Dedicating Opportunities to End Homelessness (DOEH) Initiative is a joint effort by HUD and the U.S. Interagency Council on Homelessness (USICH) designed to help communities match their homeless supports with other mainstream resources such as housing choice vouchers, public housing, private multifamily housing units, and other federally funded services.  The initiative is beginning in 10 critically important communities: Atlanta, Chicago, Fresno County, Los Angeles County, Houston, New Orleans, Philadelphia, Phoenix/Maricopa County, Seattle, and Tampa.

The following state agencies have been awarded rental subsidy through HUD’s demonstration program (see attached state-by-state descriptions):

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.govand http://espanol.hud.gov.  You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

HHS is the principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves. All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news. You can follow HHS on Twitter @HHSgov and sign up for HHS Email Updates

Section 811 Project Rental Assistance Demonstration Program

California Housing Finance Agency
Sacramento, California
$11,870,256
Total Units – 335

The California Housing Finance Agency collaborated with the state’s Department of Health Care Services, the state’s Medicaid agency and the state’s two other housing finance agencies (the California Department of Housing and Community Development and the California Tax Credit Allocation Committee) to develop the state’s Section 811 PRA Demo Program.  These funds will be used to provide long-term project-based rental assistance for 335 units reserved for extremely low-income people with disabilities.  The target population for this program is Medicaid beneficiaries with disabilities transitioning from institutional settings and persons at serious risk of institutionalization in all 58 counties in the state.  Project sponsors will apply for subsidy funding, and the state will review and select projects for funding.  In addition, this grant will assist in achieving the administration’s 10 year goal of ending homelessness. In California, Los Angeles and Fresno have been identified as having significant chronically homeless populations.

Delaware State Housing Authority
Dover, Delaware
$5,100,753
Total Units 170

The Delaware State Housing Authority (DSHA) and Delaware Department of Health and Social Services (DHSS) are partnering for the Section 811 PRA Demo program in Delaware to create 170 units for people with disabilities in integrated settings with supportive services.  This new program will build on the existing DSHA/DHSS partnership developed in recent years as part of the state-funded State Rental Assistance Program (SRAP).  SRAP has provided rental assistance to people exiting institutions, at risk of entering institutions, youth exiting foster care, and families for whom affordable housing is the major barrier to reunification.  Delaware’s Section 811 PRA Demo Program will leverage the successes of the SRAP and contribute significantly to the State’s ongoing efforts to develop a continuum of community-based housing choices as part of a system of long-term care that prioritizes living and providing services in the community.  This effort is particularly focused on disabled persons with serious and persistent mental illness, which reflects a statewide need identified in Delaware’s 2011 Settlement Agreement with the U.S. Department of Justice.  However, the program will more broadly serve nonelderly people with disabilities and extremely low income people either currently in long-term care settings or at high risk of institutionalization in long-term care facilities.  In addition to persons with mental health disabilities, this may also include vulnerable people with physical disabilities and intellectual/developmental disabilities.

Georgia Housing and Finance Authority
Atlanta, Georgia
$4,160,771
Total Units – 150

The Georgia Housing and Finance Authority, whose programs are administered by the Georgia Department of Community Affairs, joined with the Georgia Department of Community Health, the state’s Medicaid Agency, in the development of Georgia’s Section 811 PRA Demo Program to further the state’s commitment to provide integrated housing opportunities with support services to extremely low income persons with disabilities.  GHFA is the state entity allocating federal and state Low Income Housing Tax Credits and is the recipient of funds from the Department of Housing and Urban Development under the federal HOME Investment Partnerships Program and Continuum of Care programs.  With the funding for these 150 units, the state will be able to provide additional housing opportunities for extremely low income persons with disabilities for whom a particularly need was identified as part of Georgia’s Settlement Agreement with the Department of Justice.  Persons targeted for housing under this assistance will have a severe and persistent mental illness or be eligible under the Medicaid Money Follows the Person Program and must have one or more of the following disabilities: Intellectual/Developmental Disabilities (IDD), traumatic brain injury (TBI), functionally impaired adults with physical disabilities (PD); or be a youth aged 18-21 leaving Psychiatric Residential Treatment Facilities  with a primary diagnosis of mental illness.  Existing Low Income Housing Tax Credit-funded multifamily housing properties will be targeted for this assistance.  In addition, this grant will assist in achieving the administration’s 10 year goal of ending homelessness. Atlanta has been identified as having one of the country’s highest chronically homeless populations.

Illinois Housing Development Authority
$11,982,009
Total Units – 826

The Illinois Housing Development Authority (IHDA), which currently administers the state’s Low Income Housing Tax Credit Program, along with other statewide agencies, will administerIllinois’ Section 811 PRA Demo program.  The program will be coordinated by an Interagency Panel chaired by the Statewide Housing Coordinator (Office of the Governor) with membership from the following agencies: the IHDA; the Department of Healthcare and Family Services; the Department of Human Services; and the Department on Aging.  Illinois will utilize the Section 811 PRA Demo subsidy to dramatically advance its commitment to community reintegration of persons by funding 826 units.  This PRA Demo funding will be used to provide project-based rental assistance to the disabled population prioritized by the state as a result of three Olmstead-related consent decrees in 2010-2011.  As a result of these consent decrees, the State agreed to significantly increase the number of community-based housing options for persons with severe mental illness, physical disabilities and developmental disabilities complemented by supportive services in cases where the consumer elects to leave institutional care and is determined capable of transitioning to independent living with person-centered supports and services.  In addition, this grant will assist in achieving the administration’s 10 year goal of ending homelessness. Chicago has been identified as having one of the country’s highest chronically homeless populations.

Louisiana Housing Corporation
Baton Rouge, Louisiana
$8,254,097
Total Units – 200

The Louisiana Housing Corporation (LHC) was created to consolidate the funding sources and programs for affordable and accessible housing in the state.  The LHC and the Louisiana Department of Health and Hospitals, which is the state’s health and human service agency and Medicaid agency began partnering in 2007 as part of the Gulf Opportunity (GO) Zone Permanent Supportive Housing (PSH) Program.  As the PSH program has matured, the two agencies formed an Executive Management Council to govern the program, including making decisions regarding target population, program eligibility, program expansion, contracts and budgets.  The EMC will extend its governance responsibility to the state’s Section 811 PRA Demo Program which will provide 200 units of integrated housing for persons with disabilities.  The state’s target population is persons who are inappropriately institutionalized or are at risk of institutionalization and homeless persons or persons at risk of homelessness.  The PRA Demo units will be identified and funded as part of the state’s Low Income Housing Tax Credit Program selection process.  LHC is committing $1.25 million over the five year grant period in HOME Tenant-Based Rental Assistance to provide security and utility deposit assistance to all households that require the additional assistance in obtaining housing.  In addition, this grant will directly assist in achieving the administration’s 10 year goal of ending homelessness. New Orleans has been identified as having one of the country’s highest chronically homeless populations.

Massachusetts Department of Housing and Community Development
Boston, Massachusetts
$5,276,452
Total Units – 100

Massachusetts’ Department of Housing and Community Development and its Executive Office of Health and Human Services (which oversees the state’s Medicaid Agency and the Office of Disability Policies and Programs) have worked together collaboratively on a number of highly effective service-enriched housing programs and will now be working together on the Section 811 PRA Demo program.  The target populations under the Section 811 PRA Demo are persons in institutions enrolling in the state’s Medicaid-funded Money Follows the Person demonstration program (MFP), persons in institutions who are not eligible for MFP but are eligible for one of the state’s home and community-based services (HCBS) waivers; and persons in institutions who are not eligible for either MFP or a waiver, but who are eligible for Medicaid State Plan services; and persons living in the community who are receiving services through a waiver.  The proposed program is deliberately designed to be cross disability and will provide 100 units, serving a range of people with different disabilities and service needs.  Projects will be located throughout the state, though 50 percent of the units are projected to be in the greater Boston area.

Maryland Department of Housing and Community Development
Crownsville, Maryland
$10,917,383
Total Units – 150

The Maryland Department of Housing and Community Development (DHCD) in partnership with the Department of Health and Mental Hygiene and the Department of Disabilities will administer Maryland’s Section 811 PRA Demo program, which will serve 150 individuals.  Section 811 PRA Demo funds will be leveraged with federal and state resources such as Low-Income Housing Tax Credits, private activity bonds used for multifamily development, FHA Risk Share Lending, and HOME Investments Partnership Program, Maryland’s Rental Housing Production Program, Maryland Housing Rehabilitation Program-Multi-Family, the Partnership Rental Housing Program and other resources.  The targeted populations of persons under Maryland’s PRA Demo are particularly vulnerable non-elderly adults with disabilities prioritized as one or more of the following: institutionalized Medicaid recipients; households at risk of institutionalization due to a current housing situation; Developmental Disabilities Administration Community Pathways Waiver participants moving from Group Homes/Alternative Living Units to independent living; Mental Hygiene Administration Residential Rehabilitation Program participants moving to independent living; and/or homeless persons who are Medicaid recipients.

Minnesota Housing Finance Agency
$3,000,000
Total Units – 95

Minnesota Housing Finance Agency (MHFA) and the Minnesota Department of Human Services are partnering in the administration of Minnesota’s Section 811 PRA Demo program.  This partnership will create 95 units of integrated housing for some of the most vulnerable persons with disabilities currently living in the state.  The program will target households that have extensive histories of housing instability as evidenced by a serious mental illness and long-term homelessness or those exiting institutional settings after a long-term stay of 90 days or more.  MHFA will invite proposals from owners of existing mainstream affordable housing in Minnesota to implement the state’s PRA Demo program.  It will award 95 PRA Demo units across ten multifamily developments.

Montana Department of Commerce
$2,000,000
Total Units 82

Montana’s Section 811 PRA Demo program is a partnership between the Housing Assistance Bureau of the Housing Division, Montana Department of Commerce, and two bureaus of the Montana Health and Human Services Department: the Community Services Bureau that serves persons who have long-term disabilities and the elderly; and the Mental Health Services Bureau that serves persons with mental illness.  This program will unite affordable and accessible apartment rentals with the full range of Medicaid waiver services to support independent living for extremely low-income individuals with disabilities who would otherwise be at very high risk of institutionalization or homelessness.  The target populations for Montana’s PRA Demo program are individuals between the ages of 18 and 62 who qualify for Medicaid waiver programs because of physical disabilities or mental illness.  Four counties have been identified to pilot the program, which will fund 82 existing units for this program.  Potential units have already been identified by owner/property managers for the program.

North Carolina Housing Finance Agency
$12,000,000
Total Units – 562

North Carolina’s Section 811 PRA Demo program will be modeled after its successful existing Targeting and Key Programs, both of which provide housing assistance for persons with disabilities.  The North Carolina Housing Finance Agency (NCHFA) and North Carolina Department of Health and Human Services (NCDHHS), the state’s Medicaid agency, have partnered since the Targeting Program’s inception in 2002.  Under the Targeting Program, ten percent of the units in Low Income Housing Tax Credit (LIHTC) properties are required by the state to be set aside to serve people with disabilities.  Disabled individuals are referred to these units via a state managed referral network.  The Key Program provides a rent subsidy that bridges the gap between what the tenant can pay and the rent necessary to operate that unit.  The state’s PRA Demo program will build on the successes of the Targeting and Key Programs with NCHFA financing the development of these properties while individuals receive services and are referred to participating affordable housing developments by NCDHHS’s managed referral network.  North Carolina’s PRA Demo program will fund 562 units of integrated housing for persons with disabilities.  Additionally, the roles of lead agencies, service providers, owners and property managers, and tenants will be the same as under the Targeting and Key Programs.  Priority for PRA Demo supported units will be provided to persons identified as transitioning out of a licensed facility (i.e. adult care homes, skilled nursing, group homes, etc.), homeless persons, and persons at-risk of placement in a licensed facility or at-risk of homelessness.

Pennsylvania Housing Finance Agency
Harrisburg, Pennsylvania
$5,707,800
Total Units – 200

Pennsylvania’s Section 811 PRA Program builds upon existing partnership initiatives between the Pennsylvania Housing Finance Agency (PHFA) and Pennsylvania’s Department of Public Welfare, the state’s Medicaid agency.  For several years, these two state agencies have collaborated closely to increase the number of permanent supportive housing units in the state by identifying and assisting persons with disabilities and providing housing referral services and options to enable them to live independently in affordable housing developments.  PHFA currently develops integrated permanent supportive housing units for extremely low-income persons with disabilities through a priority built into its allocation process for the Low Income Housing Tax Credit program.  PHFA will implement this same criteria to create 200 units in the state’s Section 811 PRA Demo program.  This program will prioritize three target groups for housing in Section 811 PRA-assisted units: persons with disabilities who are institutionalized; those at risk of institutionalization, and those currently living in congregate settings who desire to move into the community.   In addition, this grant will assist in achieving the administration’s 10-year goal of ending homelessness. Philadelphia has been identified as having one of the country’s highest chronically homeless populations.

Texas Department of Housing and Community Affairs
Austin, Texas
$12,000,000
Total Units – 385

Section 811 PRA Demo funding will enable the Texas Department of Housing and Community Affairs (TDHCA) to create 385 units of integrated housing for persons with disabilities in the state of Texas.  TDHCA has partnered with the Health and Human Services Commission (HHSC), which oversees the State’s Department of Aging and Disability Services (DADS), its Department of State Health Services, its Department of Assistive and Rehabilitative Services, and its Department of Family and Protective Services.  DADS is taking the lead for all of the Health and Human Service agencies for this program.  TDHCA and DADS have a long history of collaboration that sets the stage for a successful implementation of this program.  There are three target populations under the Section 811 PRA Demo.  The first target population includes individuals with disabilities living in institutions, the second target population consists of people with serious mental illness, and the third target population consists of youth with disabilities who are transitioning out of the custody of the state’s abuse and neglect system.  Due to the large size of the state and the primary locations of concentrations of these populations, TDHCA will focus the Section 811 PRA Demo on seven priority areas:  Austin-Round Rock-San Marcos; Brownsville-Harlingen; Dallas-Fort Worth-Arlington; El Paso; Houston-Sugar Land-Baytown; McAllen-Edinburg-Mission; and San Antonio-New Braunfels.  Texas’s PRA Demo pool of multifamily units will come from the state’s Investment Partnerships Program, Multifamily Bond Financing Program, and Neighborhood Stabilization Programs.  TDHCA plans to target existing and pipeline units from these programs that have already shown their ability to provide housing for persons with disabilities.  In addition, this grant will assist in achieving the administration’s 10 year goal of ending homelessness. Houston has been identified as having one the country’s highest chronically homeless populations.

Washington State Department of Commerce
Olympia, Washington
$5,580,280
Total Units – 275

The Washington Department of Commerce (Commerce) joins with the Department of Social and Health Services (DSHS), the State’s Medicaid agency, the Washington State Health Care Authority (HCA), and the Washington State Housing Finance Commission (WSHFC) in the development of the Washington Section 811 Project Rental Assistance Demonstration Program.  Using this funding, Washington will create 275 units of integrated permanent supportive housing for persons with disabilities.  Commerce currently manages five major housing programs providing permanent supportive housing for disabled persons.  In addition to its commitment and responsibility to provide services to persons with disabilities, DSHS has five years of experience operating programs, such as its Roads to Community Living (Money Follows the Person demonstration project), which mirrors the 811 Demonstration program approach.  The Washington State HCA and WSHFC will play supportive roles to the two principal agencies.  The target populations under the Section 811 PRA Demo are particularly vulnerable extremely low-income persons with disabilities that receive or are eligible to receive long term services and supports through DSHS, as well as eligible individuals currently enrolled in the Roads to Community Living Project, which includes persons with significant developmental, functional, or cognitive disabilities.  In addition, this grant will assist in achieving the administration’s 10-year goal of ending homelessness. Seattle has been identified as having one of the country’s highest chronically homeless populations.

Contact:
Brian Sullivan
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HHS Press Office
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