Overview of HUD Programs and HUD’s Olmstead Guidance

Brendan McTaggartOffice of Multifamily Housing Programs, HUD

July 7, 2014

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.

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)

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.

HUD’S OLMSTEAD GUIDANCE

Issued June 4, 2013http://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

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 PreferencesGeneral 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

REMEDIAL OLMSTEAD PREFERENCES

Remedial Olmstead PreferencesPreferences 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.

811 PRA OLMSTEAD PREFERENCES

811 PRA PreferencesA 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.

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

9

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

OVERVIEW

Eligible PropertiesNew 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.

OVERVIEW

Capital Provided

• State Housing Agency (e.g., LIHTC)• State or Local Government (e.g., HOME)• Other Private or Public Funds

12

Operating Subsidy HUD Section 811 Project Rental Assistance

ServicesState Medicaid Agency and State Human Services Agency (Money Follows Person, Medicaid Home and Community Based Waiver Services, other state/local service funds)

SECTION 811 PRA HUD/HHS PARTNERSHIP

• Development of the NOFA

• Application and Review Process

• Training and Technical Assistance

• Program Implementation

• Program Evaluation

13

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

14

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

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

RESOURCES

HUD’s Olmstead Guidancehttp://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 Programhttp://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/grants/section811ptl(search for “811 Portal”)

Non-Elderly Disabled Housing Vouchershttp://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/ned(search for “NED vouchers”)

Public Housing Agency Contact Listhttp://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”)