HUD has issued guidance to encourage more affordable and integrated housing options for people with disabilities following the Olmstead decision. The guidance allows preferences for non-elderly disabled individuals transitioning from institutions into HUD programs like Housing Choice Vouchers and Project-Based Rental Assistance. Section 811 Project Rental Assistance creates new supportive housing by providing rental subsidies to projects financed through Low Income Housing Tax Credits and HOME funds.
NACDD: Living in the Community, Future Focused on HCBS. Brendan McTaggart
1. Overview of HUD Programs and HUD’s
Olmstead Guidance
Brendan McTaggart
Office of Multifamily Housing Programs, HUD
July 7, 2014
2. CHALLENGE OF COMMUNITY LIVING
Following the Olmstead decision, increased efforts to assist individuals who are
institutionalized to move to integrated, community-based settings.
• States are “rebalancing” health care delivery systems from providing long-term
services and supports to individuals with disabilities primarily in institutions toward
a greater reliance on home- and community-based services.
• For many states, efforts to move individuals out of institutions and provide
community-based services are confounded by a lack of integrated affordable
housing options for individuals with disabilities.
There is a great need for affordable, integrated housing opportunities where
individuals with disabilities are able to live and interact with individuals without
disabilities, while receiving the health care and long-term services and supports they
need. HUD wants to be part of the solution.
HUD’s Olmstead Guidance is intended to encourage a broader range of housing options
in mainstream rental assistance programs, particularly by streamlining process for
instituting Olmstead-related preferences.
3. OVERVIEW OF HUD PROGRAMS
Major Rental Assistance Programs
• Housing Choice Vouchers (2.2 million households)
• Public Housing (1.1 million households)
• Project Based Section 8 (1.2 million households)
Block Grant Programs
• Community Development Block Grants/HOME Program
Programs Targeted to People with Disabilities/Chronic Conditions
• Section 811 Supportive Housing for Persons with Disabilities
• Section 202 Supportive Housing for the Elderly (older projects serve
mix of elderly and people with disabilities)
• Non-Elderly Disabled Housing Vouchers
• Designated Public Housing and Project-Based Voucher Units
• Homelessness Programs
• Housing Opportunities for Persons with AIDS (HOPWA)
4. LACK OF INTEGRATED, AFFORDABLE HOUSING OPTIONS
Short Supply of Affordable Housing
• Market rate housing too expensive for people at SSI-level income
• Long waiting lists for HUD rental assistance programs
Lack of Integrated Options
• Most HUD programs targeted at people with disabilities are structured and statutorily
mandated to serve exclusively people with disabilities
• Section 811 Supportive Housing for Persons with Disabilities (independent living/group homes)
• Section 202 Supportive Housing for the Elderly (older projects serve both elderly and people
with disabilities)
• Designated Public Housing and Project-Based Vouchers (can be up to 100% disability housing)
• HOPWA
Exceptions
• Non-Elderly Disabled Vouchers
• Section 811 PRA program
• Waiting list preferences for major rental assistance programs
HUD’s recent Olmstead Guidance is intended to encourage a broader range of housing options in
mainstream rental assistance programs, particularly by streamlining process for instituting
Olmstead-related preferences.
5. HUD’S OLMSTEAD GUIDANCE
Issued June 4, 2013
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-086 (search
for “HUD Olmstead Guidance”)
Purpose:
• provide information about Olmstead
• clarify how recipients of federal financial assistance from HUD can assist state and
local Olmstead efforts, e.g., through instituting Olmstead preferences
• encourage housing providers to support Olmstead implementation by increasing
integrated affordable housing opportunities
6. OLMSTEAD PREFERENCES
Olmstead Preferences
Public housing agencies and other recipients of HUD assistance may offer certain preferences
that support Olmstead compliance efforts by enabling individuals with disabilities to transition
from institutions more quickly or allow individuals at serious risk of institutionalization to remain
in integrated, affordable housing in the community.
Permissible preferences include:
• General Olmstead preferences
• Remedial Olmstead preferences
• Section 811 PRA preferences
General Olmstead Preferences
General preferences for individuals with disabilities who are transitioning from or at serious
risk of entering an institutional setting.
• Cannot target a specific disability or diagnosis, per Fair Housing Act
7. REMEDIAL OLMSTEAD PREFERENCES
Remedial Olmstead Preferences
Preferences that target individuals with specific disabilities or diagnoses may be authorized in
connection with Olmstead remedial actions.
• Preferences for specific disabilities or diagnoses are ordinarily not allowable under the
Fair Housing Act
• Exception available for preferences related to remedial Olmstead actions, which include
remedial actions undertaken pursuant to Department of Justice enforcement, Olmstead-
related settlements or litigation, and state and local governments’ voluntary,
documented affirmative Olmstead planning and implementation efforts.
• Requires permission from HUD’s Office of General Counsel - HUD is working to
streamline the approval process and will work with PHAs and other recipients to
complete the approval process expeditiously.
8. 811 PRA OLMSTEAD PREFERENCES
811 PRA Preferences
A public housing agency can authorize a preference for a specific diagnosis or disability related to
a state’s Section 811 Project Rental Assistance (PRA) grant.
Preferences may be for:
• individuals with specific disabilities/diagnoses; or
• individuals referred from agencies or institutions that exclusively provide services for
individuals with specific disabilities/diagnoses.
Because the 811 PRA program is intended to support states in complying with Olmstead, such
preferences are preapproved by HUD’s Office of General Counsel when HUD awards 811 PRA funds.
9. SECTION 811 PROJECT RENTAL ASSISTANCE
• Supportive housing program that creates new
project-based rental assistance for extremely
low-income persons with disabilities. Rental
assistance only – no construction funds.
• Authorized by Frank Melville Supportive Housing
Investment Act of 2010 to reform the Section 811
Program: emphasizes integrated models;
leverages other sources of affordable housing
capital; reflects changes in disability policy and
Olmstead.
• Requires structured state-level partnership
between state housing agencies, the state health
and human services agencies, and the state
Medicaid agency - linking affordable housing with
community-based long-term services and
supports.
Section 811
PRA
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10. SECTION 811 PRA – WHY IS IT IMPORTANT?
• Meet the needs of vulnerable
populations by better connecting
housing, health care, and social services
• Help states comply with Olmstead
• Helps prevent and end homelessness
among people with disabilities
• Provides community living opportunities
for people with disabilities
• Expands integrated permanent
supportive housing options
Purpose
11. OVERVIEW
Eligible Properties
New or existing multifamily properties with financing
commitments from LIHTC, HOME, or other state/local/
federal programs.
11
Community Integration
Requirement
No more than 25% of total units in Eligible Properties
can be set aside exclusively for people with
disabilities.
Eligible Tenants
Extremely low-income (30% AMI) persons with
disabilities between 18 -62 who are eligible for
community-based, long-term services (e.g., Medicaid
waiver services).
Eligible Activities
811 PRA can only fund project-based rental assistance
and allowable administrative costs (up to 5%). No
development/construction costs.
12. OVERVIEW
Capital Provided
• State Housing Agency (e.g., LIHTC)
• State or Local Government (e.g., HOME)
• Other Private or Public Funds
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Operating Subsidy HUD Section 811 Project Rental Assistance
Services
State Medicaid Agency and State Human Services
Agency (Money Follows Person, Medicaid Home and
Community Based Waiver Services, other state/local
service funds)
13. SECTION 811 PRA HUD/HHS PARTNERSHIP
• Development of the NOFA
• Application and Review Process
• Training and Technical Assistance
• Program Implementation
• Program Evaluation
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14. FUNDING FOR SECTION 811 PRA
Total Funding
Number of Awards
Units Produced
FY 2012: $98 million (funds initial 5 years)
FY 2013/14: $120 million (apps due 5/5/14)
FY 2012: 13 awards
FY 2013/2014: 12 to 18 awards
Award Amounts Between $2 million and $12 million per state
FY 2012: Approximately 3,530 units
FY 2013/14: Approximately 4,285 units
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15. FY 2012 SECTION 811 PRA DEMO AWARDEES
California Housing Finance Agency
Delaware State Housing Authority*
Georgia Housing & Finance Authority*
Illinois Housing Development Authority*
Louisiana Housing Corporation
Massachusetts Dept. of Housing &
Community Development
Maryland Dept. of Housing &
Community Development*
Minnesota Housing Finance Agency
Montana Dept. of Commerce
North Carolina Housing Finance Agency
Pennsylvania Housing Finance Agency
Texas Dept. of Housing & Community
Affairs
Washington State Dept. of Commerce*
* States specifically targeting persons with developmental disabilities for 811-supported housing units
16. NON-ELDERLY DISABLED (NED) HOUSING VOUCHERS
NED Vouchers
• 55,000 NED vouchers awarded since 1997
• 400 PHAs
• 85% have been reestablished as of 2012
NED Category 2 vouchers (NED-2)
• Awarded in 2011
• Specifically for people transitioning from institutions
• 948 vouchers
• 28 PHAs
• 69% leased as of 2012
17. RESOURCES
HUD’s Olmstead Guidance
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-086
(search for “HUD Olmstead Guidance”)
Section 811 Project Rental Assistance Program
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/grants/section811ptl
(search for “811 Portal”)
Non-Elderly Disabled Housing Vouchers
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/ned
(search for “NED vouchers”)
Public Housing Agency Contact List
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/pha/contacts
(search “public agency contact list”)
Multifamily Housing Database (Project Based Section 8, Section 202, Section 811)
http://www.hud.gov/apps/section8/index.cfm
(search “HUD low-rent apartment search”)
Editor's Notes
HUD collaborated with Dept of Justice and HHS to develop Olmstead Guidance for HUD partners
HUD partnering with HHS/CMS on development and implementation the Section 811 Project Rental Assistance Program, as well as ongoing training and technical assistance – program requires housing/service partnership at federal/state/local level
Regular HUD participation in SAMHSA Olmstead policy academies and learning communities
HUD expects to fund a mix of states the received funds in FY 2012 and those that did not.
Olmstead targeting: California, Texas
Transitioning: Massachusetts, North Carolina, Pennsylvania