The Section 811 Project Rental Assistance (PRA) Program, authorized by the Frank Melville Supportive Housing Investment Act of 2010 and first implemented as a demonstration program in FY 2012, seeks to expand the supply of supportive housing that promotes community integration for low-income people with disabilities by leveraging mainstream affordable housing, Medicaid, and other community-based supportive service resources.
The Section 811 PRA Program awards funds to state housing agencies who: a) partner with state Medicaid and/or health and human services agencies that have developed methods for the identification, outreach, and referral of extremely low-income people with disabilities who need PRA-funded units; and b) allocate rental assistance to housing units set aside in affordable housing projects whose capital costs are funded through Federal Low-Income Housing Tax Credits, Federal HOME funds, or other state, Federal and local funding sources for eligible individuals.
Eligible applicants include State Housing Finance Agencies (HFAs) or other appropriate housing entities as defined in the Notice of Funding Availability (NOFA). To be eligible, housing agencies must have a written partnership agreement with the appropriate state Medicaid and/or health and human services agencies to ensure timely housing referrals and PRA tenants’ access to long-term services and supports in the community.
The PRA Program allows HFAs flexibility in structuring and administering PRA funds within the confines of the program requirements in the NOFA and statute. PRA funds can only be used to fund project-based rental operating assistance and allowable administrative costs relating to the administration of the Section 811 PRA Program, but cannot be used to fund any development costs.
To ensure community integration of PRA units, no more than 25% of the total units in Eligible Multifamily Properties can: 1) be provided Section 811 PRA funds; 2) be used for supportive housing for persons with disabilities; or 3) have any occupancy preference for persons with disabilities.
For PRA funded units, tenants must be extremely low-income (at or below 30% of Area Median Income) and at least one adult member of the household must have a disability. The person with the disability must be eligible for community-based, long-term services as provided under the state’s plan for medical assistance under Title XIX of the Social Security Act (Medicaid), state funded services or other appropriate services defined in the written partnership agreement.
HUD issued the first Section 811 PRA Notice of Funding Availability (NOFA) in May 2012; a second NOFA was issued in March 2014. Forty-three states and the District of Columbia (D.C.) applied in one or both of these competitions, demonstrating high demand for the PRA integrated supportive housing approach. To date, HUD has awarded $236 million to 28 states and D.C. for an estimated 7,500 PRA units. Interested applicants must submit an application in response to future NOFAs when posted on Grants.gov.
Find your State Medicaid Agency (National Association of Medicaid Directors)