Transcript Reforming the HUD Section 811 Program

Reforming the HUD
Section 811 Program
Andrew Sperling – NAMI
[email protected]
Ann O’Hara
[email protected]
February 15, 2011
PART 1
SECTION 811
LEGISLATION
AND APPROPRIATIONS
Frank Melville Supportive Housing
Investment Act
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Reforms HUD’s Section 811 Supportive Housing for
Persons with Disabilities program
Bipartisan legislation signed into law on January 4, 2011
Modernizes and reforms the Section 811 program by:
◦ Emphasizing integrated housing models
◦ Creating incentives to link Section 811 rent/operating
subsidy funding to other sources of affordable
housing capital (tax credits, HOME funds, etc)
◦ Implementing new 811 option targeted to state
housing agencies and state Medicaid agencies
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Section 811 Background
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20+ year old program which created “single
purpose” housing, primarily group homes and
independent living facilities
Outdated statute
Extensive HUD bureaucracy
Low OMB score
Stagnant appropriations
Low demand (less than 200 applications
nationally)
Fewer than 1,000 new 811 units created
annually since 2005
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How Section 811 Worked
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Section 811 provided:
◦ Section 811 Capital Advance
◦ Section 811 Project Rental Assistance
Contract (PRAC)
Section 811 applicants/sponsors were
non-profit corporations
 Application required “sign-off” from
appropriate state official (state
developmental disability agency, state
mental health agency etc.)
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Reformed Section 811 Program
Reforms existing 811 Capital/PRAC program
2. Shifts appropriations for “broken” 811 voucher
program (14,000 vouchers) to the Section 8
appropriation
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Vouchers remain targeted to people with disabilities
Creates new Section 811 Project-Based Rental
Assistance option to leverage integrated affordable
housing units financed with mainstream housing funding
(tax credits, HOME funds, etc.)
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Cross-disability approach focused on priority Medicaid
populations
Could fund 3,000 - 4,000 new units annually
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Section 811 Appropriations
FY 2010
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FY 2010 Appropriation = $300 million (a $50 million
increase from FY 2009)
Should mean more funding for new Section 811 units
FY 2010 Notice Of Funding Availability (NOFA) not
released yet!
◦ Perhaps HUD has “tweaked” the program?
◦ New opportunities could be available with FY 2010
funding
◦ Watch for more info at www.tacinc.org
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FY 2011 and FY 2012
Appropriations
Information to be provided at the
seminar
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PART TWO
HOW WILL SECTION
811 WORK NOW?
How Will Reformed Capital
Advance/PRAC Program Work?
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HUD will Publish a Proposed Rule for Public Comment – likely in
late Spring/Summer of 2011
Income limits the same = 50% of Area Median Income (AMI) and
below
Tenant rents = 30% of monthly income
Both Capital Advance and PRAC funds will be provided
Applicants will continue to be non-profit sponsors
“Single purpose” group homes and independent living apartment
projects still permitted
Creates new category of integrated “multi-family” 811 project
Multi-family 811 projects may not have more than 25% of the units
targeted to people with disabilities (e.g. 40 unit property could
include 10 Section 811 units)
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How Will Reformed Capital
Advance/PRAC Program Work?
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Multi-family projects are usually funded with federal tax credits,
HUD HOME funds, etc
Integrated multi-family 811 projects could be prioritized by HUD
over other 811 models to:
◦ Leverage these sources of affordable housing capital
◦ Reduce Section 811 capital funding per unit
◦ Produce more units from limited Section 811 appropriations
Applicants for “multi-family” model could be non-profit affordable
housing corporations willing to partner with local service providers
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Multi-Family 811 Opportunities
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Partnerships with non-profit affordable housing developers (i.e.
Community Development Corporations etc.) could be important
State/local housing officials will know strong non-profit affordable
housing groups
These groups may be willing to include Section 811 units in their
developments
These groups may also need “gap” capital financing which 811 can
provide
Service providers will need to establish partnerships with these
non-profits for referrals
State sign-off on Section 811 projects will still be needed
Involvement of State Medicaid agencies could be helpful
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New Section 811 Project-Based Rental
Assistance Option
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Goal = Integrated scattered site Section 811 units
How? Small set-asides of supportive housing units (e.g.
5-25 units in a 100 unit project)
Goal = Create 3,000-4,000 Section 811 units from the
same appropriations level
How? No Section 811 capital will be provided
Project-Based Rental Assistance will be provided:
◦ 30 year use restriction
◦ 15 year PBRA contract with HUD
◦ 5 years of funding initially
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Extremely Low Income Targeting: People at or below
30% of Area Median Income (AMI)
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How Will New Section 811 Option
Work?
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State Housing Finance Agencies (HFAs) are the primary applicant
Application will request funding for a specific number of 811 PBRA
units
HFAs are not required to identify the specific projects which will
include 811 PRRA units
Projects must be “eligible” based on HUD criteria which are likely
to include:
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Low Income Housing Tax Credit projects
HOME funded projects
State Housing Trust Fund projects
State bond-financed projects
HFAs must have policies in place to satisfy HUD criteria
◦ Qualified Allocation Plan for LIHTC
◦ Consolidated Plan for HOME funds
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2,500-3,000+ new 811 units every year with $100 million
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How Will New Section 811
Option Work?
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State HFA must enter into an agreement with the State
Medicaid/Health and Human Services agency which:
◦ Identifies the target populations to be served by the
project
◦ Sets forth methods for outreach and referral
◦ Makes available appropriate supportive services for
tenants of the project
Within 3 years of enactment, HUD must report to
Congress on the effectiveness of this new approach
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Next Steps
Inform state officials regarding new Section 811
opportunities
 Urge them to convene a workgroup to develop the
HFA/Medicaid partnership agreement
 Participate in this workgroup and brainstorm re/ new
structure for referrals to Section 811 units in affordable
housing developments
 Urge state officials to begin engaging affordable housing
developers regarding this new 811 model
 Participate in state/local housing planning meetings
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◦ Qualified Allocation Plans
◦ Consolidated Plans
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Timing?
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FY 2010 NOFA: Anytime now
FY 2011 NOFA: Anyone’s guess?
HUD Proposed Rule on new Section 811
options published: June or July of 2011?
Comment period: 60-90 days
Final Rule published: December 2011?
FY 2012 Section 811 NOFA: Spring of 2012?
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