News

The newly reformed HUD Section 811 Supportive Housing for Persons with Disabilities program continues to receive strong support from the federal government. Recent developments include House and Senate FY 2012 budget proposals released in mid-September that could fund 2,000-3,000 new Section 811 units. HUD has also indicated that it will publish a FY 2012 Section 811 Notice of Funding Availability (NOFA) within 4-8 weeks - in advance of final FY 2012 appropriations legislation and possibly before the publication of a new Section 811 Proposed Rule.

Update on Section 811 Appropriations for FY 2012

As of early October, both the House and Senate had taken initial action on FY 2012 appropriations which would provide significant funding for the newly reformed Section 811 program. However, neither chamber has finalized FY 2012 HUD appropriations legislation. The House T-HUD Appropriations Subcommittee "marked up" a bill that would provide $196 million in Section 811 funding for FY 2012. These funds could create as many as 3,000 new Section 811 units through the new Project Rental Assistance authority (PRA) authorized in the Frank Melville Supportive Housing Investment Act. Senate Appropriations legislation provides $150 million in new funds for the program. The Senate bill would require all new Section 811 units to be created through the new PRA approach, and does not provide any funding for new Section 811 Capital Advances. Under the Senate bill, as many as 2,000 new Section 811 PRA units could be created. Both House and Senate proposals would also fund all Section 811 Project Rental Assistance Contract (PRAC) renewals, which HUD has estimated will cost $85 million. 811 advocates are please that - during this very difficult budget and fiscal environment - both House and Senate appropriators are indicating their support for the cost-effective reforms to Section 811 enacted through the Melville Supportive Housing Investment Act.

On September 20th, the Senate T-HUD Appropriations Subcommittee reported out its FY 2012 budget for Section 811, which provides $150 million for the program. The Senate bill would require all new Section 811 units to be created through the new PRA approach, and does not provide any funding for new Section 811 Capital Advances. Under the Senate bill, as many as 2,000 new Section 811 PRA units could be created. Both House and Senate proposals would also fund all Section 811 Project Rental Assistance Contract (PRAC) renewals, which HUD has estimated will cost $85 million.

During recent years, the Section 811 Capital Advance/PRAC program had funded fewer than 800 new units per year. TAC and the CCD Housing Task Force successfully worked with Congress on to streamline and reform the Section 811 program to reflect best practice permanent supportive housing approaches and models.

Early Release of HUD's FY 2012 Section 811 NOFA

HUD has announced its plan for an early release of the FY 2012 Section 811 NOFA - possibly as soon as late October or early November. The NOFA would not include a specific deadline for Section 811 applications and would be subject to final FY 2012 appropriations. This early NOFA - which may also include a Section 202 NOFA for Supportive Housing for the Elderly - is intended to draw attention to the new reforms within the Section 811 program enacted by Congress in late 2010. These reforms include the new Section 811 PRA authority, which will provide Section 811 project rental assistance funding directly to State Housing Agencies.

For more information, contact Gina Schaak at gschaak@tacinc.org.