811 PRA FAQ
Q

Grantees requested clarification regarding the 25% cap for providing supportive housing for persons with disabilities.

Example: When calculating the 25% cap for the Section 811 PRA program, do Grantees include any other federal or state program at a project to determine the threshold? Does the 25% cap include occupancy preference for persons with disabilities?

Date Published: October 2015

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A

The general formula to calculate the 25% cap at a project is as follows:

  • Total # of tenants admitted under the project’s occupancy preference for persons with disabilities, if any, plus Total # of 811 PRA units slotted for the project may not exceed 25% of the Total Units in the Building.

Please review Scenarios 1 through 4 below for further clarification.

  1. Scenario 1: Project has 100 units. Project has no other occupancy preference for persons with disabilities and has no use restrictions limiting the project to persons with disabilities. As a result, project owner may devote 25 units (25% of 100) to purely 811 PRA units.
  2. Scenario 2: Project has 100 units with no use restriction limiting the project to persons with disabilities. Owner happens to have an occupancy preference for persons with disabilities (with no cap). Project has no use restrictions limiting the project to persons with disabilities. As a result, the project owner can still, under certain circumstances**, maintain its occupancy preference and still operate 811 PRA units in its building simultaneously, but it will be subject to a 25% cap to be compliant with the terms of the 811 PRA program.

** The term “under certain circumstances” is used because if the owner received from the grantee 25 units of 811 PRA, it functionally can no longer maintain its preference for persons with disabilities for its non-811 PRA units since the 25% cap is reached. However, if the owner received 10 units of 811 PRA, and the 25% cap is 25, then the owner would still be allowed to maintain its preference to fill at a maximum 15 non-811 PRA units.

  1. Scenario 3: Project has 100 units with no use restriction limiting the project to persons with disabilities. Owner has an occupancy preference for persons with disabilities, for up to 50% of the units in its building. Owner wants to participate in the 811 PRA program. The owner must modify its preference policy to 25% because those admitted under the owner’s occupancy preference for persons with disabilities plus those admitted under the 811 PRA program may not exceed 25% of the total units in the building.
  2. Scenario 4: Project has 100 units with no use restriction limiting the project to persons with disabilities. Owner has an occupancy preference for persons with disabilities for up to 10% of the units in its building. Owner wants to participate in the 811 PRA program. The owner’s threshold is within 811 PRA limits. However, with a 10% preference for persons with disabilities in place, the owner would only be allowed a maximum of 15 additional 811 PRA units in the building (10 occupancy preference units plus 15 811 PRA units would equal 25 units, which is 25% of a 100 unit project).

Tags: 811 PRA Program Requirements - General

FAQ ID:

2610