HUD SECTION 811 PR A

Project Rental Assistance Program

Six Case Studies on 

the Implementation 

Experience of the 

2012 Grantees

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HUD SECTION 811 PR A

Project Rental Assistance Program

Six Case Studies on

the Implementation

Experience of the

2012 Grantees

Prepared for 

U.S. Department of Housing and Urban Development

Prepared by 

Rebecca Northrop

Christopher Jones

Dalton Laluces

La Tonya Green

Kenya Crumel

BCT Partners

Melissa Vandawalker

Meghan Henry

Claudia Solari

Gretchen Locke

Jill Khadduri

Abt Associates

January 2018
Acknowledgments

Acknowledgments

This case study report is one of two major deliverables of the first phase of the evaluation of 

the Section 811 Project Rental Assistance program. We acknowledge the talented efforts of 

many individuals who and organizations that have assisted in carrying out this work. These 

organizations include the U.S. Department of Housing and Development, Technical Assistance 

Collaborative, and Centers for Medicare and Medicaid Services. 

We also acknowledge the assistance of the 811 Project Rental Assistance program grantees.

• California Grantee Partnership—California Housing Finance Agency, California Department 

of Health Care Services, California Department of Housing and Community Development, 

California Tax Credit Allocation Committee, and California Department of Developmental 

Services. 

• Louisiana Grantee Partnership—Louisiana Housing Corporation, Louisiana Housing 

Authority, and Louisiana Department of Health.

• Maryland Grantee Partnership—Maryland Department of Housing and Community 

Development, Maryland Department of Health and Mental Hygiene, and Maryland 

Department of Disabilities.

• Minnesota Grantee Partnership—Minnesota Housing Finance Agency and Minnesota 

Department of Human Services. 

• Pennsylvania Grantee—Pennsylvania Housing Finance Agency and Pennsylvania 

Department of Human Services. 

• Washington Grantee Partnership—Washington Department of Commerce and Washington 

State Department of Social and Health Services.

Disclaimer

The contents of this report represent the views of the authors and do not necessarily reflect the views or policies of the U.S. 

Department of Housing and Urban Development or the U.S. government.
 Contents

Case Studies – HUD Section 811 PRA Program

iii

Contents

Executive Summary .............................................................................................................................ix

Background of the Section 811 Project Rental Assistance Program ................................................ 1

The Section 811 and PRA Programs................................................................................................................................ 1

Evaluation of the Section 811 PRA Program .................................................................................................................. 2

A Descriptive Overview of the Six Case Study States ................................................................................................. 3

811 Program Designs ......................................................................................................................................................... 3

Housing Context ................................................................................................................................................................. 3

Services Context................................................................................................................................................................. 7

How Does the Section 811 PRA Model Fit? ................................................................................................................... 8

California Section 811 Project Rental Assistance Program...............................................................11

Introduction........................................................................................................................................................................11

Grantee Partnership, Organizational Structure, and Management .........................................................................11

Background Leading to the 2012 811 PRA Application.................................................................................................................12

Program Financial Structure ..........................................................................................................................................................13

State Context: Housing Programs................................................................................................................................. 13

Housing............................................................................................................................................................................................13

Existing Programs ..........................................................................................................................................................................14

How the 811 PRA Program Fits With Other State Programs.........................................................................................................15

How Major Housing Assistance Programs Are Used To Assist the Target Population ...............................................................15

Local Issues—Housing Affordability and the Rental Market ........................................................................................................15

Service Provision and Healthcare.................................................................................................................................. 16

Current Status of Service and Healthcare Programs That Support Community Living ..............................................................16

Recent Changes in Programs That Support Integrated Community Living ................................................................................17

How the 811 PRA Program Fits With the Service and Healthcare Programs That Support Community Living.........................18

California’s Olmstead Plan..............................................................................................................................................................18

Population Served ............................................................................................................................................................ 18

Comparison of Target Populations: Planned Versus Actual .........................................................................................................18

Skilled Nursing Facilities .................................................................................................................................................................18

Regional Centers.............................................................................................................................................................................18

Developmental Centers...................................................................................................................................................................19

Outreach, Referral, and Application.............................................................................................................................. 19

Outreach, Referral, and Application Process.................................................................................................................................19

Target Population Screening and Eligibility....................................................................................................................................19

Implications of Target Population and Outreach and Referral Methods ..................................................................................... 20

Housing Strategies........................................................................................................................................................... 20

Property and Unit Characteristics ................................................................................................................................................ 20

Property Selection Methods and Financing.................................................................................................................................. 21

Implementation Schedule .............................................................................................................................................................. 21

Rent and Subsidy Levels................................................................................................................................................................ 21

Unit and Tenant Turnover............................................................................................................................................................... 22

Service Provision and Coordination.............................................................................................................................. 22

Ongoing Services........................................................................................................................................................................... 22

Coordination of Services and Housing ......................................................................................................................................... 22

Gaps in Services ............................................................................................................................................................................ 22

2013 811 PRA Application................................................................................................................................................ 23

Leveraging ......................................................................................................................................................................... 23

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 23
 Contents

Case Studies – HUD Section 811 PRA Program

iv

Successes and Challenges............................................................................................................................................. 23

Factors Contributing to Program Success.................................................................................................................................... 23

811 PRA Program Challenges.........................................................................................................................................................24

Louisiana Section 811 Project Rental Assistance Program.............................................................. 27

Introduction....................................................................................................................................................................... 27

Grantee Partnership, Organizational Structure, and Management......................................................................... 27

Background .................................................................................................................................................................................... 27

Partnerships and Organizational Structure................................................................................................................................... 27

Program Financial Structure .......................................................................................................................................................... 28

State Context: Housing Programs................................................................................................................................. 29

Housing Policy................................................................................................................................................................................ 29

Existing Programs .......................................................................................................................................................................... 29

Rental Housing Market................................................................................................................................................................... 30

Service Provision and Healthcare.................................................................................................................................. 30

Policy............................................................................................................................................................................................... 30

Recent Changes Supporting Community Living .......................................................................................................................... 30

Expansion of Medicaid 1915(c) HCBS Waivers .............................................................................................................................31

Olmstead Plans, Settlements, Consent Decrees ..........................................................................................................................31

Population Served ............................................................................................................................................................ 31

Outreach, Referral, and Application.............................................................................................................................. 32

Outreach, Referral, and Application Methods .............................................................................................................................. 32

Target Population Eligibility............................................................................................................................................................ 32

Implications of Outreach, Referral, and Application Methods on Individuals Referred and Placed .......................................... 32

Housing Strategies........................................................................................................................................................... 32

Property and Unit Characteristics ................................................................................................................................................. 32

Property Selection Methods and Financing.................................................................................................................................. 32

Property Selection Process ........................................................................................................................................................... 33

Implementation Schedule .............................................................................................................................................................. 33

Rent and Subsidy Levels................................................................................................................................................................ 33

Unit Offers and Tenant Turnover.................................................................................................................................................... 33

Service Provision and Coordination.............................................................................................................................. 34

Service Models............................................................................................................................................................................... 34

Coordination of Services and Housing ......................................................................................................................................... 34

Service Provision (Types, Transition Versus Ongoing, by Target Population, Gaps).................................................................. 35

2013 811 PRA Application................................................................................................................................................ 36

Leveraging ......................................................................................................................................................................... 36

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 36

Successes and Challenges............................................................................................................................................. 36

Successes ...................................................................................................................................................................................... 36

Challenges ...................................................................................................................................................................................... 37

Maryland Section 811 Project Rental Assistance Program .............................................................. 39

Introduction....................................................................................................................................................................... 39

Grantee Partnership, Organizational Structure, and Management......................................................................... 39

Overview ......................................................................................................................................................................................... 39

Maryland Department of Housing and Community Development............................................................................................... 39

Maryland Department of Health and Mental Hygiene.................................................................................................................. 39

Maryland Department of Disabilities ............................................................................................................................................. 40

Partnership ..................................................................................................................................................................................... 40

Design and Structure of Maryland’s 811 PRA Program ............................................................................................................... 40

811 PRA Roles and Responsibilities...............................................................................................................................................41

Program Staffing ............................................................................................................................................................................ 42
 Contents

Case Studies – HUD Section 811 PRA Program

v

State Context: Housing Programs................................................................................................................................. 42

Financing......................................................................................................................................................................................... 42

Supportive Housing Programs ...................................................................................................................................................... 43

Additional Federal Housing Programs .......................................................................................................................................... 44

Service Provision and Healthcare.................................................................................................................................................. 44

Funding ........................................................................................................................................................................................... 46

Olmstead Settlement ..................................................................................................................................................................... 46

Population Served ............................................................................................................................................................ 46

Outreach, Referral, and Application.............................................................................................................................. 47

Outreach ..........................................................................................................................................................................................47

Referral and Application..................................................................................................................................................................47

Implications..................................................................................................................................................................................... 48

Housing Strategies........................................................................................................................................................... 48

Property and Unit Characteristics ................................................................................................................................................. 48

Rent and Subsidy Levels................................................................................................................................................................ 49

Unit and Tenant Turnover............................................................................................................................................................... 50

Service Provision and Coordination.............................................................................................................................. 50

Service Provision............................................................................................................................................................................ 50

Coordination ................................................................................................................................................................................... 50

2013 811 PRA Application................................................................................................................................................ 50

Leveraging ......................................................................................................................................................................... 51

Housing Choice Vouchers...............................................................................................................................................................51

Other Sources Leveraged...............................................................................................................................................................51

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 51

Program Administration ..................................................................................................................................................................51

Financial Management................................................................................................................................................................... 52

Information Systems ...................................................................................................................................................................... 52

Successes and Challenges............................................................................................................................................. 52

Challenges ...................................................................................................................................................................................... 52

Successes ...................................................................................................................................................................................... 53

Minnesota Section 811 Project Rental Assistance Program ........................................................... 55

Introduction....................................................................................................................................................................... 55

Grantee Partnership, Organizational Structure, and Management......................................................................... 55

Overview ......................................................................................................................................................................................... 55

Minnesota Housing Finance Agency............................................................................................................................................. 55

Minnesota Department of Human Services.................................................................................................................................. 55

Minnesota Housing and Department of Human Services Partnership ....................................................................................... 56

Design and Structure of Minnesota’s 811 PRA Program.............................................................................................................. 56

811 PRA Roles and Responsibilities.............................................................................................................................................. 57

Program Funding............................................................................................................................................................................ 58

State Context: Housing Programs................................................................................................................................. 59

Housing Programs.......................................................................................................................................................................... 59

Rental Housing Market................................................................................................................................................................... 60

Service Provision and Healthcare.................................................................................................................................. 61

Changes in Medicaid Resources................................................................................................................................................... 62

Olmstead Settlement ..................................................................................................................................................................... 62

Population Served ............................................................................................................................................................ 62

Outreach, Referral, and Application.............................................................................................................................. 63

Outreach ......................................................................................................................................................................................... 63

MFP Outreach................................................................................................................................................................................. 63

PATH Long-Term Homelessness Outreach................................................................................................................................... 64

Referral and Application................................................................................................................................................................. 64
 Contents

Case Studies – HUD Section 811 PRA Program

vi

Implications..................................................................................................................................................................................... 64

Housing Strategies........................................................................................................................................................... 65

Property and Unit Characteristics ................................................................................................................................................. 65

Determining the Initial Rent Level .................................................................................................................................................. 66

Unit and Tenant Turnover............................................................................................................................................................... 67

Service Provision and Coordination.............................................................................................................................. 67

Service Provision............................................................................................................................................................................ 67

Coordination of Services................................................................................................................................................................ 67

2013 811 PRA Application................................................................................................................................................ 68

Leveraging ......................................................................................................................................................................... 68

Housing Choice Vouchers.............................................................................................................................................................. 68

Other Sources Leveraged.............................................................................................................................................................. 68

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 69

Program Administration ................................................................................................................................................................. 69

Financial Management................................................................................................................................................................... 69

Information Systems ...................................................................................................................................................................... 69

Successes and Challenges............................................................................................................................................. 70

Successes ...................................................................................................................................................................................... 70

Challenges .......................................................................................................................................................................................71

Pennsylvania Section 811 Project Rental Assistance Program ....................................................... 73

Introduction....................................................................................................................................................................... 73

Grantee Partnership, Organizational Structure, and Management......................................................................... 73

Partnerships and Organizational Structure................................................................................................................................... 73

Partnership Between PHFA and DHS ............................................................................................................................................74

State Context: Housing Programs................................................................................................................................. 75

Housing........................................................................................................................................................................................... 75

Service Provision and Healthcare.................................................................................................................................. 77

Policy and Funding: Prioritization of Medicaid Resources Toward Home- and Community-based Services .......................... 77

Existing Efforts ............................................................................................................................................................................... 78

Olmstead Plan and Settlements .................................................................................................................................................... 78

Population Served ............................................................................................................................................................ 79

Outreach, Referral, and Application.............................................................................................................................. 80

Housing Strategies........................................................................................................................................................... 81

Property and Unit Characteristics ................................................................................................................................................ 82

Property Selection Methods and Financing.................................................................................................................................. 82

Implementation Schedule ............................................................................................................................................................. 82

Rent and Subsidy Levels................................................................................................................................................................ 82

Unit and Tenant Turnover............................................................................................................................................................... 83

Service Provision and Coordination.............................................................................................................................. 83

Service Models............................................................................................................................................................................... 83

Coordination of Services and Housing ......................................................................................................................................... 83

Service Provision (Types, Transition Versus Ongoing, by Target Population, Gaps).................................................................. 83

2013 811 PRA Application................................................................................................................................................ 84

Leveraging ......................................................................................................................................................................... 84

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 84

PHFA Program Monitoring............................................................................................................................................................. 84

DHS Program Monitoring............................................................................................................................................................... 85

Successes ......................................................................................................................................................................... 85

Strong Partnerships ....................................................................................................................................................................... 85

Leveraging Existing Programs....................................................................................................................................................... 85

Challenges ......................................................................................................................................................................... 85

Securing One-Bedroom Units ...................................................................................................................................................... 85
 Contents

Case Studies – HUD Section 811 PRA Program

vii

Staff Turnover ................................................................................................................................................................................. 85

Breadth of Geographic Differences............................................................................................................................................... 85

Shift in Housing Strategy ............................................................................................................................................................... 85

Washington Section 811 Project Rental Assistance Program ......................................................... 87

Introduction....................................................................................................................................................................... 87

Grantee Partnerships Organizational Structure, and Management........................................................................ 87

Application Background ................................................................................................................................................................ 87

Partnerships and Organizational Structure................................................................................................................................... 87

Program Financial Structure ......................................................................................................................................................... 88

State Context: Housing Programs................................................................................................................................. 89

Housing Programs and Funding.................................................................................................................................................... 89

Existing Housing Programs That Serve People With Disabilities................................................................................................. 89

Additional Federal Housing Programs ......................................................................................................................................... 91

How the 811 PRA Program Fits With Other State Housing Programs......................................................................................... 91

Rental Housing Market................................................................................................................................................................... 91

Service Provision and Healthcare.................................................................................................................................. 92

Current Status of Service and Healthcare Programs That Support Community Living ............................................................. 92

Washington’s Olmstead Plan......................................................................................................................................................... 92

Local Issues: Homelessness ......................................................................................................................................................... 93

Population Served ............................................................................................................................................................ 93

Outreach, Referral, and Application.............................................................................................................................. 93

Participant Outreach and Referral Process .................................................................................................................................. 93

Participant Screening and Eligibility.............................................................................................................................................. 93

Referring 811 PRA Applicants to Available Units.......................................................................................................................... 94

Implications of Target Population and Outreach and Referral Methods ..................................................................................... 94

Housing Strategies........................................................................................................................................................... 94

Property and Unit Characteristics ................................................................................................................................................ 94

811 PRA Units at Channel Cove..................................................................................................................................................... 94

Property Selection Methods ......................................................................................................................................................... 95

Implementation Schedule .............................................................................................................................................................. 96

Rent and Subsidy Levels................................................................................................................................................................ 96

Unit and Tenant Turnover............................................................................................................................................................... 96

Service Provision and Coordination.............................................................................................................................. 96

Transitional Services ...................................................................................................................................................................... 97

Gaps in Services ............................................................................................................................................................................ 97

2013 811 PRA Application................................................................................................................................................ 97

Leveraging ......................................................................................................................................................................... 97

Program Administration, Assessment, Information Systems, and Data Infrastructure....................................... 97

Successes and Challenges............................................................................................................................................. 98

Program Successes and Replicable Innovations ......................................................................................................................... 98

Program Challenges....................................................................................................................................................................... 98

References......................................................................................................................................... 99

Additional Reading........................................................................................................................... 101
 List of Tables

Case Studies – HUD Section 811 PRA Program

viii

List of Tables

Table 1.1: Program Design in the Case Study States ............................................................................................................... 4

Table 1.2: Housing Context in the Case Study States ............................................................................................................... 5

Table 1.3: Services Context in the Case Study States............................................................................................................... 7

Table 2.1: Agency Roles in the 811 PRA Program.....................................................................................................................12

Table 2.2: California—Planned and Actual Time Spent on 811 PRA Program by Key Staff....................................................13

Table 2.3: California—Overview of Major Federal Housing Programs .....................................................................................16

Table 2.4: Characteristics of Properties With 811 PRA Units................................................................................................... 20

Table 3.1: Louisiana Federal Housing Programs...................................................................................................................... 30

Table 3.2: Properties Under RAC or Application in Process.................................................................................................... 34

Table 3.3: Louisiana 1915(c) HCBS Waivers............................................................................................................................. 35

Table 4.1: Maryland 811 PRA Program Division of Responsibilities.........................................................................................41

Table 4.2: Other Federal Housing Programs in Maryland........................................................................................................ 44

Table 4.3: 1915(c) Waivers (Home- and Community-Based Services) ................................................................................... 45

Table 4.4: Average Rents in Baltimore (2012 Versus 2015)...................................................................................................... 49

Table 4.5: Average Rents in Washington, D.C. (2012 Versus 2015) ......................................................................................... 49

Table 4.6: Leveraged Housing Choice Vouchers.......................................................................................................................51

Table 5.1: Minnesota—811 PRA Program Division of Responsibilities ................................................................................... 57

Table 5.2: Minnesota—Other Federal Programs...................................................................................................................... 60

Table 5.3: Minnesota—Services Available to 811 Project Rental Assistance Participants .................................................... 62

Table 6.1: Pennsylvania—811 PRA Program Roles and Responsibilities ................................................................................74

Table 6.2: Pennsylvania—Responsibilities of Local Lead Agencies and Stakeholders...........................................................81

Table 7.1: Washington State—Agency Roles in the 811 PRA Program................................................................................... 88

Table 7.2: Washington State—Overview of Major Federal Housing Programs ...................................................................... 91

Table 7.3: Washington State—Rental Housing Markets.......................................................................................................... 92

Table 7.4: Washington State—Characteristics of Properties With 811 PRA Rental Assistance Contracts........................... 95

List of Figures

Figure 5.1: Minnesota—Average Market Rents in Twin Cities (2010–2015).............................................................................. 61

Figure 5.2:Minnesota—Rental Vacancy Rates in Twin Cities (2010–2015).............................................................................. 61

Figure 5.3: Minnesota—811 Project Rental Assistance Outreach ............................................................................................ 63
Executive Summary

Case Studies – HUD Section 811 PRA Program

ix

Executive Summary

This report presents case studies of six states’ early 

experiences implementing the Section 811 Project Rental 

Assistance (811 PRA) program, a new approach to 

providing affordable rental housing for extremely lowincome people with disabilities. Beginning in 1991, the 

U.S. Department of Housing and Urban Development’s 

(HUD’s) Section 811 Supportive Housing for Persons with 

Disabilities program began providing capital grants to 

develop and operate affordable housing with available 

supportive services—known as “supportive housing”—

designed to meet the needs of nonelderly people with 

disabilities. The program was referred to as the Section 

811 Project Rental Assistance Contract (PRAC) program, 

for the project-based rental assistance contracts that 

provided the subsidy to make the housing affordable. 

Traditionally, Section 811 developments housed only 

people with disabilities, mainly in group homes or small 

apartment buildings in community-based settings. 

In recent years, interest has increased in developing 

broader housing options for people with disabilities. This 

broader set of housing options includes opportunities 

for affordable units in housing that is not exclusively for 

people with disabilities. The Section 811 PRA program 

was created in 2010 and provides funding directly to 

state housing finance agencies working in partnership 

with state human services and Medicaid agencies to 

test a different approach to the capital grants provided 

under the Section 811 PRAC program. Instead of building 

new housing specifically for people with disabilities, the 

811 PRA program provides subsidies for scattered-site 

units in affordable housing developments (existing or 

newly built) that are financed by other public or private 

funding sources and occupied by a mix of people with 

and without disabilities. Section 811 PRA-assisted units 

are targeted to nonelderly people with disabilities who 

are eligible for Medicaid’s home- and community-based 

services or similar state-funded programs. 

In February 2013, 12 state housing agencies and their 

Medicaid agency partners received an inaugural round 

of 811 PRA grants totaling $88.3 million to provide rental 

subsidies for approximately 3,350 housing units for 

nonelderly people with disabilities. HUD’s Office of Policy 

Development and Research subsequently commissioned 

the first phase of a multiphase evaluation focused on 

the initial round of 811 PRA grants. The evaluation’s 

overarching research questions are— 

• How are successful state and local partnerships 

structured to carry out the 811 PRA program?

• How are outreach and marketing efforts designed 

to support fair housing objectives and compliance, 

provide tenant choice, and ensure efficient 

occupancy policies for housing owners and 

managers?

• How is the 811 PRA integrated with and adapted to 

state housing and service delivery systems operating 

in varied political, fiscal, and housing market 

contexts?

• What are the preliminary outcomes of the initial 

funding round?

The Phase I evaluation produced two major reports. 

This case study report presents detailed descriptions 

of the early implementation experiences of six states 

funded in the initial funding round, with a focus on (1) 

the housing and services context in each state, (2) the 

partnerships developed to implement the 811 PRA 

program, and (3) the way in which the new program fits 

within these contexts. In addition, a process evaluation 

report provides an aggregate summary of 811 PRA 

implementation in all the states funded in the initial round 

of grants. 

This case study report begins with a descriptive overview 

of the findings from the six states, followed by the six 

case studies. 
Case Studies – HUD Section 811 PRA Program
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

1

Background of the 

Section 811 Project 

Rental Assistance 

Program 

This report presents case studies of six states’ 

experiences implementing the Section 811 Project Rental 

Assistance (811 PRA) program, a new approach to 

providing affordable rental housing for extremely lowincome, nonelderly people with disabilities. This report 

is one of two produced by the Phase I evaluation, which 

is focused on the first round of 811 PRA grants, awarded 

to 12 states in February 2013. This chapter provides a 

brief history of the Section 811 and 811 PRA programs, 

describes the objectives and data sources for the case 

studies presented here, and provides a descriptive 

overview of the key features of the 811 PRA programs in 

the states selected for the case study research. The six 

case studies follow in chapters 2 through 7. 

The Section 811 and PRA Programs

Since 1991, HUD has administered the Section 811 

Supportive Housing for Persons with Disabilities 

program. The goal of the Section 811 program is to 

expand the supply of supportive housing for very 

low-income people with disabilities. The program 

traditionally awarded interest-free capital advances and 

contracts for project-based rental assistance to nonprofit 

organizations to develop supportive housing (such as 

group homes and small rental housing developments) 

occupied by very low-income households of nonelderly 

adults with disabilities.1

The Section 811 supportive housing model provides 

residents affordable housing and access to appropriate, 

voluntary supportive services. Organizations that receive 

capital advances must develop a Supportive Services 

Plan that addresses how tenant’s health, mental health, 

and other needs will be met. Grantees must either 

provide services directly or partner and coordinate with 

service providers in the community to provide services 

and must ensure that services are available for the 

duration of the 40-year capital advance period. 

The Frank Melville Supportive Housing Investment Act 

of 2010 introduced a number of significant reforms to 

the Section 811 program, including creating the PRA 

program. The new program provides project-based 

rental assistance for integrated supportive housing in 

affordable housing developments with no more than 25 

percent of units set aside for people with disabilities. 

The Act retained language permitting capital advances 

for the development of group homes and other projects 

specifically for people with disabilities, but no funds 

were appropriated for these projects in fiscal years 

2012 through 2014.

The 811 PRA program provides rental assistance 

funding to state housing finance agencies that will 

work in partnership with state human services and 

Medicaid agencies to create community-based 

supportive housing. This approach responds to several 

policy priorities related to housing and support for 

people with disabilities. First, it responds to renewed 

emphasis on achieving the goals of the Supreme Court’s 

1999 decision in Olmstead v. L.C. to allow people 

with disabilities to live in the least restrictive settings 

possible that meet their needs and preferences. In 

their decision, the Supreme Court ruled that, under 

Title II of the Americans with Disabilities Act, people 

with disabilities must be afforded opportunities to live 

in a setting appropriate to their abilities, with freedom 

to choose their daily life activities and to interact with 

people without disabilities. As states and communities 

have worked to implement the decision (sometimes in 

response to litigation), the limited supply of affordable 

and appropriate housing and supports in communitybased settings has been a significant challenge.

Second, the Olmstead decision encouraged state efforts 

to “rebalance” their Medicaid systems for providing 

long-term services and supports away from institutional 

settings such as nursing homes and toward housing 

that is integrated within communities. Medicaid offers 

community-based services to its beneficiaries through its 

Home- and Community-Based Services (HCBS) program 

and other initiatives. These services help ensure that 

people with disabilities have the services and supports 

they need to live successfully in the community. In 

particular, the Money Follows the Person (MFP) program, 

administered by the Center for Medicare and Medicaid 

Services, is a major initiative that provides funding to 

many states to support transitions from institutions 

to community-based settings. The lack of affordable 

housing has often constrained the program’s ability to 

move people to community settings.

1 Nonelderly adults are defined as adults under age 62. Disabilities may include a physical or developmental disability or chronic mental illness.
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

2

Finally, the Affordable Care Act created or strengthened 

a number of programs to expand community-based care, 

but, again, the lack of available affordable housing has 

been a barrier to these efforts. 

In order to apply for Section 811 PRA funds, state 

housing agencies must partner with the state agency 

responsible for the administration of the state’s Medicaid 

program as well as the state health and human services 

agency (if different). A memorandum of agreement 

between the agencies, required as part of the grant 

application, outlines the state Medicaid agency’s 

commitment to identifying and conducting outreach to 

the target population(s) to be served by the state’s 811 

PRA program and ensuring that residents are connected 

to appropriate supportive services. 

Congress appropriated funds for the 811 PRA program 

in fiscal years 2012, 2013, and 2014, with language that 

identifies the 2012 funding round as a demonstration 

round. HUD issued an initial Notice of Funding Availability 

(NOFA) for a demonstration round of 811 PRA grants 

in 2012. In February 2013, 13 states were selected to 

receive 811 PRA grants totaling $98 million to provide 

subsidies for an estimated 3,350 units. By early 2015, 

12 grantees had executed cooperative agreements with 

HUD to implement the program under its first funding 

round to provide subsidies for an estimated 2,625 units. 

HUD awarded a second round of funding in March 2015 

under a combined NOFA for fiscal years 2013 and 2014. 

Round 2 PRA funding was awarded to 25 state housing 

agencies for approximately $150 million. 

Evaluation of the Section 811 PRA 

Program

This report is one of two major reports produced for an 

evaluation of the initial round of 811 PRA grants. HUD’s 

Office of Policy Development and Research issued a 

contract to a research team from BCT Partners and Abt 

Associates to carry out the evaluation. The evaluation’s 

overarching research questions are— 

• How are successful state and local partnerships 

structured to carry out the 811 PRA program?

• How are outreach and marketing efforts designed 

to support fair housing objectives and compliance, 

provide tenant choice, and ensure efficient 

occupancy policies for housing owners and 

managers?

• How is the 811 PRA program integrated with and 

adapted to state housing and service delivery 

systems operating in varied political, fiscal, and 

housing market contexts?

• What are the preliminary outcomes of the initial 

funding round?

This case study report presents detailed descriptions 

of the early implementation experiences of 6 of the 

12 states funded in the inaugural funding round, with 

a focus on the housing and services context in each 

state, the partnerships developed to implement the 

811 PRA program, and how the new program fits 

within these contexts. In addition, a process evaluation 

report provides an aggregate summary of 811 PRA 

implementation in all 12 states. 

The case study research explored the implementation 

of the Section 811 PRA program in six states that had 

made the most progress toward leasing units by summer 

2015 when the evaluation’s design phase concluded. The 

research team also considered geographic distribution 

and program design features such as expected 

partnership structures, target populations, and service 

funding mechanisms. The case study research focuses on 

the state context within which the 811 PRA is implemented 

and addresses the following research questions. 

• What is the programmatic and fiscal context in which 

the Section 811 PRA program is implemented? 

• How does the Section 811 PRA program fit in the 

states’ existing long-term care systems and initiatives 

to support community-based housing? 

• How does the 811 PRA program fit into a state’s 

Olmstead plan or settlement agreement (if applicable) 

or plan to end homelessness?

• How does the Section 811 PRA program model 

complement other state strategies and models to 

house and provide services to very low-income, 

nonelderly adults with disabilities, and how do these 

models vary by different populations? What have 

been the challenges and successes of leasing up 

Section 811 PRA units, moving residents into units, 

and providing services and supports?

• What measures and research approaches could 

be used to assess the effectiveness of Section 811 

PRA program compared with alternative supportive 

housing options for the target populations?

In consultation with HUD and its 811 PRA technical 

assistance providers, the research team selected the 

following six states for the case study research:

• California

• Louisiana

• Maryland

• Minnesota
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

3

• Pennsylvania

• Washington

The research team reviewed grant applications, the 

cooperative agreements executed between HUD and 

the state partners in each state, grantee and partner 

websites, and grantees’ quarterly performance 

reports as submitted to HUD. The team also obtained 

administrative data from HUD’s data systems—the 

Integrated Real Estate Management System (iREMS) 

for data on the characteristics of 811 PRA-assisted 

properties and units; and the Tenant Rental Assistance 

Certification System (TRACS) for the characteristics of 

811 PRA-assisted households. 

In October and November 2015, two-person research 

teams from BCT Partners and Abt Associates conducted 

field visits to each of the six states to interview grantee 

representatives and their partners. The teams spent an 

average of 4 days in each state. The teams conducted 

in-person interviews (with telephone followup as needed) 

using standardized semi-structured interview guides, 

tailored to the state’s 811 PRA program design and 

partners. The interview guides (as reviewed and approved 

by the Office of Management and Budget) are attached in 

appendices F, G, and H. Interview respondents included 

representatives of the state housing and Medicaid 

agencies, referral agencies, service providers, and 

property managers. In states with occupied PRA units, 

the teams had informal conversations with PRA-assisted 

residents, when convenient. 

A Descriptive Overview of the Six 

Case Study States 

The following sections provide a brief, descriptive 

overview of the 811 PRA program in the six states 

included in the case study research. Full case studies for 

these six states are included in appendices. The text and 

tables here first provide an overview of the states’ 811 

PRA program designs. We then present a brief summary 

of the findings for the topic areas that were specific to the 

case study research, such as the housing and services 

context within each state; and how the 811 PRA fit within 

that state context. The Process Evaluation Report will 

provide a descriptive overview of all 12 states funded in 

the fiscal year 2012 grant awards.

811 Program Designs

HUD required at a minimum that applicants for 811 

PRA funding develop a memorandum of understanding 

between the state housing and Medicaid agency 

partners. In some states, the partnerships involved 

several agencies, as shown in table 1.1, because the 

housing and services functions necessary to carry out 

the 811 PRA program reside in multiple agencies. 

Table 1.1 highlights the number of units and geographic 

scope of the 811 PRA program in each state at the time 

of grant award (February 2013). The case studies discuss 

in more detail how program partners worked together to 

define the scope of the 811 PRA program, and their early 

experiences with the effort required to put the program 

in place. 

Table 1.1 previews the extent to which the 811 PRA 

built on or supplemented existing initiatives to provide 

housing and services for nonelderly people with 

disabilities. As described in the case studies, in some 

states the 811 PRA blended well with existing programs 

while in others it differed from those programs and 

served to supplement them. The table provides an 

overview of the states’ approaches to 811 PRA program 

targeting and to outreach and referral processes. Each 

case study provides additional details on how partners 

reached these program design decisions and what their 

experience had been with the processes as designed. 

Finally, table 1.1 notes the number of units under Rental 

Assistance Contract (RAC) and the number of 811 PRA 

participants housed as of December 2015, based on 

grantees’ quarterly reports. The case studies describe 

the reasons behind the states’ modest production 

numbers and review the states’ strategies to address the 

challenges they encountered.

Housing Context

The Section 811 PRA program seeks to expand access 

to affordable housing for people with disabilities by 

providing subsidies for units in affordable housing 

developments built with other funding sources. 

Properties can be newly built or existing multifamily 

developments in which the development costs are 

subsidized by federal sources such as Low-Income 

Housing Tax Credits (LIHTCs), HOME Investment 

Partnerships Program funds, the Community 

Development Block Grant (CDBG) program, or other 

federal, state, or private sources. HUD also encouraged 

states to leverage additional affordable units for 811 

PRA participants through dedicated set-asides of public 

housing or housing choice vouchers.

Grantees determined their request for 811 PRA funds 

by calculating an expected average per-unit PRA rental 

assistance payment based on either the targeted income 

of the households living in PRA units (for example, 30 

percent of Area Median Income [AMI]) or local Fair 
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

4

Table 1.1: Program Design in the Case S tudy S tates 

Program Design California Louisiana Maryland Minnesota Pennsylvania Washington

Partners

California Housing 

Finance Agency, 

California Tax Credit 

Allocation Committee, Department of 

Housing and Community Development; 

Dept. of Health Care 

Services, Dept. 

of Developmental 

Services

Louisiana Housing 

Corporation and 

Dept. of Health and 

Hospitals. 

Maryland Department of Housing 

and Community 

Development, Dept. 

of Health and Mental 

Hygiene, Dept. of 

Developmental Disabilities. Centers for 

Independent Living 

may provide case 

management.

Minnesota Housing 

Finance Agency; 

Department of 

Human Services 

Pennsylvania Housing 

Finance Agency, 

Department of 

Human Services. 

Decentralized, 

county-based system 

served by local lead 

agencies.

Washington Dept. 

of Commerce, Dept. 

of Social and Health 

Services. Housing 

Finance Agency and 

State Health Care 

Authority (Medicaid) 

play small roles.

Number of 811 PRA 

units and geographic 

scope

335 units statewide

200 units in central 

and northern Louisiana 

150 units in Baltimore and Washington, D.C. metro areas95 units statewide 

with initial focus on 

Twin Cities

200 units 34 regions 

(58 of 67 counties); 

started with pilot in 

one county

275 units statewide

Previous experience 

with housing and 

services for people 

with disabilities

Agencies had not 

worked together 

previously. Each 

had experience with 

housing with services 

but not for institutionalized population. 

Built on PSH program 

developed in 2007 

response to 2005 

hurricanes. State 

hopes to use 811 

PRA to expand 

beyond coastal 

areas. 

Built on two previous 

programs—Bridge 

Subsidy Program—

temporary tenantbased rental subsidies for people with 

disabilities until they 

can obtain a Housing 

Choice Voucher; also 

Weinberg Apartments 

program targeting tax 

credits for apartments 

affordable to people 

with disabilities with 

incomes at 15 to 30 

percent of AMI. 

Built on Bridges 

Rental Assistance 

Program as well 

as Olmstead plan, 

MFP, and Plan to 

End Homelessness. 

Several existing 

programs targeting 

homeless with 

severe mental illness 

(operating support 

for PSH, income 

supplements, crisis 

financial assistance 

for people who are 

homeless or at-risk.)

Modeled PRA on 

existing Rental Subsidy Fund program. 

Pennsylvania Housing 

Finance Agency 

uses developer 

fees to create units 

affordable at or 

below 20 percent of 

AMI for people with 

disabilities. 

Department of Social 

and Health Services 

had worked with 

housing authorities on vouchers 

for people with 

disabilities. Already 

had outreach/referral 

mechanisms for institution-to-community 

transitions. 

811 PRA targeting

Institutionalized or at 

risk; focus on people 

with developmental 

disabilities because 

of developmental 

center closures.

Inappropriately institutionalized or at risk; 

homeless or at risk 

Institutionalized or 

at risk; Medicaid 

recipients who are 

homeless. 

Long-term homeless 

with severe mental 

illness; MFP participants exiting an 

institution. 

Institutionalized or at 

risk; in congregate 

setting and prefer 

community setting. 

Local lead agencies 

may have additional 

targeting. 

Waiver clients with 

developmental 

disabilities, mental 

illness or functional 

disabilities; and MFP 

participants. Online 

assessment tools for 

determining eligibility 

and service needs.

811 PRA referral 

process

Regional Tenant 

Referral Organizations (one for MFP; 

one for developmentally disabled population) administer 

waitlists. Owners 

partner with tenant 

referral organizations 

for referrals. 

Central outreach 

through PSH program 

office. Waitlists by 

parish; referrals 

to units tracked by 

parish. 

Case managers 

screen applicants, 

enter info into a central PRA system that 

also tracks available 

units. Department of 

Disabilities manages 

waitlist, which 

includes applicants 

for Weinberg and 

Bridge Subsidy 

Programs. 

PATH and MFP 

staff do outreach. 

Housing coordinator 

at Department of 

Human Services 

manages waitlist, 

matches referrals 

to available units, 

and ensures service 

coordination. 

Local lead agencies 

serve as single point 

of contact for service 

providers, landlords, 

applicant intake. 

Online assessment 

tools for eligibility 

and service needs. 

Regional housing 

specialist keeps 

regional waiting lists, 

makes referrals of 

eligible applicants to 

available units. 

811 PRA implementation status as of 

December 2015

78 units under RAC; 

28 housed.

34 units under RAC; 

7 housed

13 units under RAC; 

4 housed

67 units under RAC, 

1 housed

2 units under RAC, 1 

housed

32 units under RAC; 

11 housed 

AMI = Area Median Income. MFP =Money Follows the Person. PATH = Projects for Assistance in Transition from Homelessness. PRA = Project Rental 

Assistance. PSH = Permanent Supportive Housing. RAC = Rental Assistance Contract. 
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

5

Market Rents (FMRs) for cities where PRA units are 

expected to be located. HUD encouraged applicants for 

811 PRA funding to propose cost-effective use of grant 

funds by proposing rents lower than FMRs. Grantees 

were awarded points for proposing initial rents that are 

affordable to households with incomes between 20 and 

50 percent of AMI, with higher points corresponding to 

lower percentages of AMI.

Among the six case study states, four (California, 

Minnesota, Pennsylvania, and Washington) initially 

targeted units at 50 percent of AMI. The remaining two 

states (Louisiana and Maryland) targeted units at FMR. 

The estimated monthly rental assistance amount (as 

established in the cooperative agreement with HUD) 

ranged from $589 per unit in Washington to $1,235 per 

unit in Maryland. 

Property owners must commit to a 30-year use restriction 

to provide a specified number of supportive housing 

units for nonelderly people with disabilities, and to 

a contract with HUD for at least 20 years. The initial 

RAC provides funding for 5 years. The use restriction 

and renewal funding are contingent on continued 

Section 811 appropriations. To ensure that community 

integration goals are achieved under the 811 PRA 

program, the Section 811 statute specifies that no more 

than 25 percent of the units in the affordable housing 

development can be set aside for supportive housing or 

have an occupancy preference for people with disabilities.

The 811 PRA program is expected to supplement other 

housing programs for people with disabilities. The case 

studies provide the number of units funded through the 

common federally funded affordable housing programs 

(public housing, housing choice vouchers, and other 

HUD-assisted multifamily programs) in each state. Table 

1.2 notes some of the other funding mechanisms the 

six case study states are using to provide supportive 

housing for people with disabilities, including leveraged 

public housing units and housing choice vouchers. 

Table 1.2 also identifies two key topic areas in which the 

case study states encountered challenges. First, several 

Table 1.2: Housing Context in the Case Study States

Housing Context California Louisiana Maryland Minnesota Pennsylvania Washington

QAP priorities for 

811 PRA

No, but eligible 

properties with Tax 

Credits can apply for 

811 PRA

QAP points to projects 

with 5–10 percent 

of units set aside for 

PSH-eligible people. 

Starting in 2017, QAP 

points for 25 percent 

of units set aside for 

PRA program.

No, but QAP does 

favor projects affordable at or below 60 

percent of AMI. 

No, but QAP incentives for supportive 

housing in general. 

No, but QAP incentives for supportive 

housing in general. 

No. Tax credit owners 

can apply for 811 

PRA. QAP incentives 

are for special needs 

populations in general, up to 75 percent 

set-asides. 

Other supportive 

housing for people 

with disabilities

Bond-funded 

program with 

priority points for 

811 PRA and two 

other supportive 

housing financing 

programs. One 

capital and operating 

funding program for 

homeless/at risk 

with severe mental 

illness. California 

Tax California Credit 

Allocation Committee 

has priority for 

projects serving 

homeless and a 

4-percent set-aside 

for projects with 50 

percent set-aside for 

special needs. 

811 PRA leveraged 

125 vouchers from 

three housing authorities. PSH and 811 

PRA largely targeted 

to properties with tax 

credits and HOME 

Investment Partnerships Program. 

811 PRA leveraged 

97 housing choice 

vouchers. Department of Housing and 

Community Development operates a 

homeownership program, bridge subsidy, 

and rental housing 

programs for people 

with disabilities. 

811 PRA leveraged 

60 vouchers through 

two housing authorities. Bridges Rental 

Assistance Program 

(see previous 

section). Housing 

Trust Fund, Housing 

Infrastructure Bonds, 

and Ending Longterm Homelessness 

initiatives all focus 

on supportive 

housing for long-term 

homeless. 

811 PRA leveraged 

151 vouchers or 

public housing units 

from six housing 

authorities. State 

Rental Subsidy Fund 

serves broader target 

population, but similar 

approach to 811 PRA. 

Supportive housing 

funded through 

various homeless 

assistance programs. 

Nursing Home Transition serves some 

nonelderly, but primarily elderly people. 

Medicaid managed 

care contractors 

using reinvestment 

dollars to develop 

supportive housing. 

Department of Commerce manages five 

programs that provide 

housing for people 

with disabilities 

(capital financing 

and rental subsidies.) 

State Housing Trust 

Fund supports 

affordable housing for 

people with special 

needs of all ages. 

Housing Finance 

Agency finances multifamily housing with 

incentives to develop 

supportive housing 

for people with 

disabilities. Supportive 

housing through various federal homeless 

assistance programs.

(cont)
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

6

Table 1.2: Housing Context in the Case Study States (cont)

Housing Context California Louisiana Maryland Minnesota Pennsylvania Washington

Owner interest in 

811 PRA

Several state 

programs are incompatible with PRA 

because of PRA’s 

25-percent cap 

on units for people 

with disabilities in 

a single project. 

Owner outreach has 

been challenging but 

viewed as necessary 

and successful. State 

tried to streamline 

application process 

for owners.

State had to provide 

extra education and 

outreach to encourage owners in new 

(noncoastal) regions 

to apply for 811 PRA. 

PRA rent projections 

were based on 

“blended rent maximum” that assumes 

an even distribution 

of units in Baltimore 

and Washington. 

Have been pretty 

accurate so far. To 

reassure owners, 

MFP contributed $1m 

in rebalancing funds 

to be held in trust by 

Department of Housing and Community 

Development to fund 

housing subsidy for 

up to 6 months if PRA 

funding is no longer 

funded by HUD. 

Housing Finance 

Agency doing extra 

outreach to owners, 

many of whom 

are wary. 30-year 

use restriction and 

20-year RAC with 

only a 5-year PRA 

funding commitment 

seems risky to many 

owners. 

Owner interest less 

than expected. 

Shortage of properties with available 

one-bedroom units; 

some properties 

already have more 

than 25 percent tenants with disabilities. 

Owners deterred 

because Pennsylvania targeted 

affordability at 50 

percent of AMI and 

an average monthly 

rent level of $678. 

Owner interest 

reported to be key 

challenge in first year 

of 811 PRA. Owners 

unfamiliar with the 

program; wary of 

30-year use restriction with only 5 years 

of rental subsidy. 

Some properties 

incompatible because 

of 25-percent cap; 

state’s targeted rent 

levels for PRA units 

are low relative to 

high-cost markets. 

Department of Commerce has streamlined application 

and done additional 

outreach to owners.

Housing market 

issues

Very expensive 

markets; lack of 

state resources for 

affordable housing, 

especially after 2008 

crash/recession. 

Rent levels targeted 

for PRA units are low 

compared with other 

subsidy programs.

Relatively high rental 

vacancy rate in state, 

but rents are still 

escalating, even outside New Orleans.

Washington and Baltimore rental markets 

too hot to attract 

owners at Maryland’s 

targeted rent levels 

for PRA units.

Difficult to develop 

and attract properties 

at state’s targeted 

rent levels for PRA 

units. In population 

hubs with access to 

transportation and 

services, excluding 

those already at 

or above 25-percent PRA limit for 

households with 

disabilities. These 

properties are a 

small percent of the 

state’s portfolio.

Washington’s targeted 

rent levels for 811 

PRA units are perceived to be low given 

high-cost markets 

in Washington. Low 

vacancy rates mean 

few units available for 

811 PRA occupancy 

in the near term.

AMI = Area Median Income. MFP =Money Follows the Person. PRA = Project Rental Assistance. PSH = Permanent Supportive Housing. QAP = Qualified 

Allocation Plan. RAC = Rental Assistance Contract. 

states found it challenging to engage property owners’ 

and developers’ interest in the new 811 PRA program. 

The financing mechanism and administrative processes 

for the new program were unfamiliar to developers. Some 

were wary of the 30-year use restriction and 20-year 

contract term with only 5 years of rental subsidy. Further, 

the requirement that contract rents be capped at the 

area’s FMR, or at lower rent levels in some grants, was a 

particular concern for developers and owners in costlier 

urban areas. 

Second, a variety of housing supply and market 

conditions also influenced owner and developer interest 

in the PRA program. Interview respondents noted a 

lack of one-bedroom apartments in some markets 

made it difficult to find appropriate units, given most 

PRA participants are expected to be small households. 

The 25-percent cap on units occupied by persons with 

disabilities was also an issue in some states where 

otherwise-eligible properties already had a larger 

proportion of units occupied by people with disabilities. 

Finding units at the states’ target rents for PRA units 

(as proposed in their funding applications and finalized 

in their cooperative agreements with HUD) proved 

challenging in some markets with tight rental markets, 

subsidy programs with higher target rents, or both.
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

7

Services Context

The 811 PRA program targets extremely low-income 

households with disabilities that are currently 

living in institutions, are homeless, or are at risk of 

institutionalization or homelessness. Participants in the 

811 PRA program must also be eligible for community–

based long-term care services provided under the state’s 

Medicaid program. Medicaid cannot pay for housing, 

but it can pay for medical, mental health, and other 

services and supports that people with disabilities need 

to maintain their health and, for 811 PRA participants, 

live stably in a community-based setting. Long-term 

care services may be provided under Medicaid waivers, 

Medicaid state plan options, or other comparable 

programs that fund long-term services. 

Table 1.3 summarizes the funding sources the six case 

study states had available for services for 811 PRA 

participants. All six states had waivers (usually more than 

one) under Medicaid’s 1915(c) HCBS program. Some 

states also had resources through 1915(i) or 1115 

waivers, or through state-funded programs (KFF, 2011).2,3

Table 1.3 also notes whether and how states’ efforts 

around Olmstead settlements and plans to address 

homelessness informed 811 PRA implementation. 

Notably, Maryland and Washington have each used MFP 

rebalancing efforts in ways that support the 811 PRA. To 

reassure owners interested in the 811 PRA, Maryland’s 

MFP program contributed $1 million in rebalancing funds 

to be held in trust by the state housing agency. The funds 

will be used to fund housing subsidy payments for 811 

PRA participants for up to 6 months if HUD PRA funding 

is interrupted or discontinued. In Washington, MFP 

rebalancing funds were allocated to create a temporary 

rental subsidy program for people transitioning from 

institutions to the community. People reaching the end of 

2 States can offer a variety of services under a State Plan HCBS benefit. Section 1915(i) of the Social Security Act provides federal guidelines under 

which states can develop HCBS benefits to meet the specific needs of target population(s). Section 1115 of the Social Security Act gives the Secretary of Health and Human Services authority to waive provisions of major health and welfare programs authorized under the act, including certain 

Medicaid requirements, and to enable states to use federal Medicaid funds in ways that are not otherwise allowed by federal rules. 

3

 For descriptions of these programs and other Medicaid waivers, see https://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/

Waivers/Waivers.html or http://www.nhpf.org/uploads/Handouts/HCBStable_FS_09-27-13.pdf.

Table 1.3: Services Context in the Case Study States

Services Context California Louisiana Maryland Minnesota Pennsylvania Washington

Medicaid waiver 

programs expected 

to serve 811 PRA 

participants

Nine 1915c waiver 

programs; two 

specifically for people 

with developmental 

disabilities. 

1915c for Housing 

Stabilization and 

Housing Transition or 

Crisis Intervention; 

four 1915c waivers 

for adults (two for 

people with developmental disabilities, 

two for physical 

disabilities).

Waivers—Community 

Pathways (developmental disabilities); 

Brain Injury; Medical 

Day Care; Home and 

Community Based 

Options. 

1915c waivers for 

developmental disabilities, brain injury 

1915(i) for mental 

health population; 

proposed tenancy 

supports. 

1915c waivers for 

intellectual disabilities 

supports and services; Adult Autism 

Waiver; and HCBS for 

physical disabilities.

Two 1915(c) waivers 

for people with 

functional disabilities; 

five HCBS waivers 

for developmental 

disabilities. 

Other Medicaid or 

state programs for 

811 PRA participants

MFP. Health Homes 

starting in 2017. 1115 

renewal proposed 

to have tenancy 

supports services.

1915i SPA for 

behavioral health 

includes services or 

skill building to get or 

keep housing. 

MFP. Under state 

plan, Community First 

Choice to consolidate 

three previous waivers for adults with 

disabilities; Balancing 

Incentive Program to 

supplement MFP and 

augment HCBS.

MFP. Three statefunded services 

programs for mental 

health (two) and 

homeless (one) 

populations. 

1915i (managed 

care), MFP, Nursing 

Home Transition, 

state block grants to 

counties

MFP plus statefunded supplement to 

MFP program. Medicaid rebalancing funds 

allocated to create 

temporary rental 

subsidy program for 

people transitioning 

from institution to 

community. Under 

state plan—Community First Choice, 

private duty nursing.

(cont)
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

8

Table 1.3: Services Context in the Case Study States (cont)

Services Context California Louisiana Maryland Minnesota Pennsylvania Washington

State Olmstead or 

homeless plans

No Olmstead consent 

decrees, but lawsuits 

against City of Los 

Angeles. Olmstead 

plan (2003). 

State has a Ten-Year 

Plan to End Homelessness and a class 

action lawsuit under 

Olmstead (Barthelemy).

No Olmstead 

settlements or plans, 

but a statewide 

commission works 

on community 

integration. Baltimore 

settlement requires 

city to provide 

vouchers to people 

with disabilities.

Have Olmstead 

plan and Plan to 

End Homelessness. 

Olmstead case settlement plan (2015) 

increases number 

served in community settings by 92 

percent.

Olmstead plan (2011) 

focused on mental 

health population—

diversion/transition 

from state hospitals. 

Three settlement 

agreements (two 

psychiatric hospital 

populations; one 

developmental disabilities population) 

Rebalancing efforts 

predate Olmstead 

(early 1990s). Olmstead plan (2005). 

Greater focus on 

homelessness than 

on people with 

disabilities more 

broadly. 10-Year Plan 

To End Homelessness (2006–2015) 

set aggressive targets. Some progress, 

but not as much as 

hoped. 

HCBS = home- and community-based services. MFP = Money Follows the Person. PRA = Project Rental Assistance.

the 24-month limit on the temporary subsidy are among 

those who may be served in the 811 PRA program. The 

case studies describe the details of these rebalancing 

initiatives and other innovative approaches. 

How Does the Section 811 PRA Model 

Fit? 

The Section 811 PRA program is a new approach to 

providing affordable supportive housing for nonelderly 

people with disabilities; the initial funding round was 

considered a demonstration that would inform efforts to 

refine the model in future funding rounds. A key question 

for the case study research was how 811 PRA model 

would “fit” in the context of other federal- and statesupported affordable housing efforts for this population. 

The six case study states provide a range of 

experiences with integrating 811 PRA in their housing 

and services contexts.

• California’s 811 PRA addresses important housing 

needs but supplements the other efforts rather than 

integrating with them. The 811 PRA’s 25-percent 

limit on the proportion of units occupied by people 

with disabilities makes it incompatible with several 

other state programs serving similar populations.4

Further, in general, California’s current policy 

priorities focus on homeless and mental health 

populations. These populations were not targeted in 

the state’s initial 811 PRA grant, but are the focus of 

their second-round grant.

• Louisiana’s 811 PRA program builds on the state’s 

existing Permanent Supportive Housing (PSH) 

program, an initiative to provide affordable supportive 

housing to people with special needs in the wake 

of the 2005 hurricanes in New Orleans and the 

surrounding coastal region. Although the state has a 

number of housing and services resources to support 

the 811 PRA program, the state’s goal of expanding 

the geographic reach of the PSH program to other 

parts of the state has been challenging due to low 

program rents and owners who are unfamiliar with the 

program and the population.

• Maryland’s 811 PRA builds on well-established 

partnerships and programs, and the state’s waiver 

programs are well-aligned with the 811 PRA target 

populations. The state has established a centralized 

and integrated online system (using the SocialServ 

platform) for applications and referrals and for 

monitoring unit availability. The system combines 

applicants for the 811 PRA program with those for 

two other state programs serving similar populations. 

Although efficient, the combined system may make 

it difficult to distinguish 811 PRA outcomes from the 

other programs tracked in the same system. 

4 The section titled How the 811 PRA Program Fits With Other State Programs of this report details how the 25-percent cap on targeted units within 

the 811 PRA program makes the program incompatible with other existing housing efforts serving similar populations.
Chapter 1. Background of the Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

9

• Minnesota is building on an extensive history of 

collaboration between the state’s housing and 

Medicaid agencies. Minnesota’s proposed 811 PRA 

rents are lower than rents in other state affordable 

housing programs, but the grantee circumvented 

that challenge by identifying units within the existing 

portfolio with rents limited to 50 percent AMI, which is 

below average rents in the metro area. However, the 

811 PRA program’s 25-percent limit on the proportion 

of units allocated to people with disabilities is viewed 

as a barrier because many properties would exceed 

this limit if they participated in the program.

• Pennsylvania proposed a 200-unit 811 PRA program 

that would operate nearly statewide, using a 

decentralized, county-based approach. It would build 

on an existing state program that provided incentives 

to developers to build housing for extremely lowincome people with disabilities. At the time of the 

field visit in fall 2015, a pilot effort in one county was 

just getting under way. It was too early to tell how 

the 811 PRA would fit in the housing and services 

context in Pennsylvania.

• Washington’s 811 PRA program supplements and fills 

gaps in existing state programs. It specifically targets 

nonelderly people with disabilities in institutions 

or at risk of institutionalization, a population not 

otherwise targeted by state programs. It provides 

assistance in integrated settings, unlike other state 

housing programs where up to 75 percent of units 

may be occupied by people with special needs. 

Finally, the 811 PRA provides long-term subsidies, 

positioning it as a next step for people with disabilities 

who participate in Washington’s two short-term (2 

years) rental subsidy programs that serve people 

with disabilities. However, owner interest has been 

limited so far, primarily due to concerns about low 

rents in high-cost areas with strong rental markets. 

Although the grantee selected the maximum rent level 

it could set for the funding application, it happens to 

have the lowest level of rent for all six case studies. 

Washington eventually requested and received from 

HUD a waiver allowing units to rent at FMR or 50 

percent AMI, whichever is higher.
Case Studies – HUD Section 811 PRA Program

10
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

11

California Section 

811 Project Rental 

Assistance Program

Introduction

HUD awarded the California Housing Finance Agency 

(CalHFA) with $12,208,558 in Section 811 Project 

Rental Assistance program funding in the 2012 funding 

round. CalHFA partners with four other state agencies 

to administer the program. The 811 PRA funding will 

support rental subsidies for up to 241 units of affordable 

housing for extremely low-income persons with 

disabilities. Individuals eligible for 811 PRA subsidies 

are persons who are eligible for Medicaid, between the 

ages of 18 and 61 at the time of initial occupancy, and 

either reside in long-term institutional care settings and 

wish to return to community living or are at risk of being 

institutionalized. Owners of state-funded affordable 

housing developments partner with local service 

providers to apply for 811 PRA funding and ensure 

residents are connected to the health and supportive 

services they need. 

Evaluators conducted a site visit in November 2015 

to learn how the five agencies were implementing the 

811 PRA program. At the time of the visit, CalHFA had 

awarded rental assistance of $2,707,916 to the property 

owners of four different developments for a total of 78 

811 PRA units. Of the 12 811 PRA grantees who received 

2012 funding awards, California was the first state to 

have occupied 811 PRA units; at the time of the site visit, 

19 residents were living in 811 PRA units.

Grantee Partnership, Organizational 

Structure, and Management 

CalHFA partnered with the California Department of 

Health Care Services (DHCS) (a department within 

the California Health and Human Services [CHHS] 

Agency), the California Department of Housing and 

Community Development (HCD), and the California 

Tax Credit Allocation Committee (TCAC) to apply for 

811 PRA program funding. Together, with the California 

Department of Developmental Services (DDS), which 

became a partner after grant award, these five agencies 

jointly administer the program and meet biweekly to 

coordinate and resolve program issues. 

Established in 1975, CalHFA initially provided 

administration for project-based Section 8 housing in 

California. The agency’s role later expanded to become 

the state’s affordable mortgage lender by making lowinterest loans through the sale of tax-exempt bonds. 

CalHFA also provides downpayment assistance for lowto moderate-income homebuyers; provides financing 

in the form of low-interest loans for the preservation, 

acquisition, and rehabilitation of affordable housing; 

and administers the 811 PRA program. CalHFA is a 

self-supporting state agency, supported by revenues 

generated through mortgage loans, not taxpayer dollars. 

CalHFA’s ongoing program responsibilities are 

developing, executing, and administering the RACs with 

owners, including procuring the 811 PRA funds from 

HUD; ensuring payments are made to owners; and 

reviewing tenant data submitted to HUD. Agency staff 

review owner applications for rental assistance funding 

under the 811 PRA program. CalHFA asset management 

staff are also responsible for monitoring ongoing 

compliance of owners through annual occupancy reviews 

and unit inspections. As the grantee, CalHFA monitors 

the performance of its partners and submits quarterly 

reports to HUD. 

The HCD provides funding for the development and 

rehabilitation of affordable housing through multiple state 

and Federal funding programs. HCD administers the 

state’s CDBG, HOME, and Emergency Solutions Grants 

programs. HCD staff played a large role in developing the 

initial 811 PRA program and the 2012 and 2013 funding 

applications. HCD staff also developed the NOFA for 

property owners and the funding application review 

process. Along with DHCS staff, HCD has performed 

much of the marketing and outreach to property owners 

to solicit 811 PRA program interest. 

The TCAC administers federal and state LIHTC 

programs. Although the 811 PRA program is not a priority 

under the state’s Qualified Allocation Plan (QAP) for tax 

credits, eligible properties awarded tax credits can apply 

for rental assistance under the 811 PRA program. All 811 

PRA units under contract to date are in LIHTC-funded 

properties. TCAC staff contributed to 811 PRA program 

development and its application and currently helps 

review owner applications. Committee staff also monitor 

TCAC-funded properties for tax credit compliance.

The DHCS and the DDS are departments under the 

13-department CHHS Agency. CHHS provides a broad 

range of health, mental health, and social services to 

state residents. DHCS operates Medi-Cal, California’s 

Medicaid program, and oversees the California 

Community Transitions (CCT) Project, the state’s MFP 

Rebalancing Demonstration for persons with disabilities 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

12

exiting from institutions. DDS provides administrative 

oversight to 21 statewide, nonprofit organizations 

called regional centers. These regional centers operate 

California’s Medicaid waivers and state plan services for 

individuals with developmental disabilities. Additionally, 

regional centers operate the CCT project for individuals 

with developmental disabilities.

DDS and DHCS staff oversee the organizations that 

identify 811 PRA participants and coordinate their 

services. Along with HCD staff, housing program staff 

from DDS and DHCS market the program to developers 

and owners. DHCS provides tenant data for the HUD 

quarterly report. DHCS staff also helped to develop the 

811 PRA application. (DDS did not become a partner in 

the program until after the 811 PRA funds were awarded.) 

Table 2.1 outlines the organizational roles played by each 

organization in the 811 PRA program administration.

Background Leading to the 2012 811 PRA 

Application

Due to the economic recession in the 2000s, California 

experienced a budget crisis between 2008 and 

2012, leading to billions in budget cuts in most state 

government sectors. HUD’s NOFA for the 811 PRA 

program offered an opportunity for California to apply 

for rental subsidies for the target population during a 

period when affordable housing subsidies of any kind 

were very limited. 

The State Department of Rehabilitation asked HCD to 

consider applying for 811 PRA funds. In considering 

the HUD NOFA, HCD approached CalHFA because 

it had experience with rental subsidies gained by 

administering the Section 8 program. CalHFA partnered 

with DHCS as the state’s Medicaid agency. HCD, 

CalHFA, DHCS, and TCAC staff met frequently to 

develop the initial program and funding application. The 

application was submitted in August 2012, followed by 

the award announcement in February 2013. 

Table 2.1: Agency Roles in the 811 PR A Program

CalHFA HCD TCAC DHCS DDS

• Perform 811 PRA program 

planning.

• Perform 811 PRA program 

planning.

• Perform 811 PRA program 

planning.

• Perform 811 PRA program 

planning.

• Market 811 PRA program 

to owners.

• Review owner applications.

• Provide owner Notice 

of Funding Availability 

development.

• Provide owner Notice 

of Funding Availability 

development.

• Market 811 PRA program 

to owners. • Review owner applications.

• Administer Rental 

Assistance Contract and 

subsidy payments.

• Market 811 PRA program 

to owners. • Review owner applications. • Review owner applications.

• Conduct outreach and 

training to prospective 

California Community 

Transitions providers 

interested in becoming 

a HUD 811 PRA tenant 

referral organization.

• Process monthly tenant files 

and voucher. • Review owner applications. • Inspect and monitor TCACfunded 811 PRA properties

• Oversee referrals in nursing 

facilities.

• Oversee referrals in 

institutional settings and 

individuals who are “at risk” 

of institutionalization.

• Inspect and monitor 811 

PRA program properties.

• Monitor HCD-funded 811 

PRA properties..

• Oversee coordination of 

services.

• Oversee coordination of 

services.

• Produce quarterly reporting 

for HUD.

• Produce HUD quarterly 

reporting. • Track referrals.

• Verify both Regional 

Center consumers and 

Money Follows the Person 

participants for age and 

Medicaid eligibility.

CalHFA = California Housing Finance Agency. DDS = California Department of Developmental Services. DHCS = California Department of Health Care Services. 

HCD = California Department of Housing and Community Development. PRA = Project Rental Assistance. TCAC = California Tax Credit Allocation Committee.
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

13

HUD signed the Cooperative Agreement with CalHFA 

on October 30, 2014. DDS did not become a program 

partner until after the 811 PRA funds were awarded.

The partners expected that 811 PRA units would be 

located statewide in both properties already built 

with state affordable housing funds—and therefore 

with existing affordability requirements—and in newly 

constructed or rehabilitated properties. CalHFA applied 

for the maximum 811 PRA funding amount due to the 

need for supportive, integrated housing, and the lack of 

affordable housing funding at that time.

Program Financial Structure 

The 811 PRA program is supported by $931,814 811 

PRA administrative grant fees and in-kind contributions 

of staff time. Because CalHFA is the grantee and will 

manage the ongoing rental subsidy for a 20-year period, 

the partners agreed that the agency should receive the 

full administrative fee. Staff from the partner agencies 

provide their time working on the 811 PRA program as 

in-kind contributions. 

All 811 PRA functions at CalHFA, HCD, TCAC, and DDS 

are performed by existing staff. DHCS hired a new fulltime Housing Specialist through the MFP program who 

took on 811 PRA functions after 2012 811 PRA funding 

was announced. The staff burden estimate from the 2012 

grant application was 3.25 full-time equivalents (FTEs) 

across four agencies (not including DDS), although all 

key staff report that they vastly underestimated the staff 

time needed to implement and administer the program. 

In addition, DDS planned to hire one new housing 

position in 2016 that will help support the 811 PRA 

program going forward. 

Table 2.2 is a comparison of anticipated staff time for 

four key 811 PRA staff against an approximation of 

staff time spent on the 811 PRA program during its first 

year of the grant. As shown, the four agencies staff 

members spent significantly more time on 811 PRA 

program administration than planned, an increase of 

more than one FTE. 

State Context: Housing Programs

Housing

California has an overwhelming need for affordable 

and suitable housing for people with disabilities. The 

2013 American Community Survey estimated 3.7 

million people with disabilities live in California and 

2.4 percent of state residents receive Social Security 

Disability Insurance payments (Census Bureau, 

2013). In 2014, the average Social Security Disability 

Insurance payment in California was $877, requiring 

those whose sole income is Social Security Disability 

Insurance to spend more than their entire income 

to rent even a studio apartment (Social Security 

Administration, 2014a). 

Table 2.2: California—Planned and Actual Time Spent on 811 PRA Program by Key Staff

Agency and Key Staff Members Planned FTEs Actual FTEs (estimated)

CalHFA—asset management officer and specialist 0.10 0.60–0.80

DHCS—Housing specialist 0.50a 0.85

HCD—specialist, Division of Financial Assistance 

Planning and Evaluation Unit 0.20 0.50–0.75

TCAC—specialist, Development Section 0.20 0.20

DDS—section chief Community Development and 

Housing, specialist 0.00b 0.30

Combined total 1.00 2.45–2.90

CalHFA = California Housing Finance Agency. DDS = California Department of Developmental Services. DHCS = California Department of Health Care 

Services. FTE = full-time equivalent. HCD = California Department of Housing and Community Development. PRA = Project Rental Assistance. TCAC = 

California Tax Credit Allocation Committee.

a

 The FTE expectation for the DHCS housing specialist was 1.00 FTE in the 2012 grant application. The expectation for 0.5 FTE on the 811 PRA program was 

determined after the grant was funded and the position was filled. The housing specialist position was hired to work on all housing-related activities for the 

MFP program.

b DDS was not a partner to the application.
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

14

California has long committed to create housing 

opportunities tied to services, but state agencies have 

not historically created many resources specifically 

for persons with disabilities coming from institutions. 

Some staff expressed the opinion that this population 

with disabilities is competing with other populations 

in need to receive state funds. For example, 

homelessness is a significant concern statewide. 

The 2015 Point-in-Time estimate for homelessness 

in California was about 115,000 with only an 

approximate one-third of those sheltered (HUD, 2015). 

According to program staff, people with disabilities 

that are institutionalized are not as visible compared 

with people seen living on the street and represent a 

“silent housing crisis.” 

By providing rental subsidies, the 811 PRA program fills 

a need for affordable housing specifically for nonelderly 

persons with disabilities. HCD and TCAC are purposively 

policy neutral toward people with disabilities in their 

funding awards because they strive to serve all lowincome populations in California. 

Existing Programs 

Although most of California’s housing programs may 

not establish specific priorities, or set-asides for the 811 

PRA target populations, the three state housing agencies 

all administer various housing programs for low- and 

moderate-income Californians, many of which serve and 

house persons with disabilities. 

CalHFA programs. CalHFA provides financing for 

affordable multifamily rental housing and makes lowinterest loans for very low- and low-income households. 

Although no specific set-asides are in these programs for 

persons with disabilities, it is likely that many people with 

disabilities reside in housing funded in part by CalHFA 

and benefit from its programs. (CalHFA does not track 

this information.)

CalHFA does finance one program specifically for people 

with mental illness. Administered in conjunction with 

the California Department of Mental Health, the Mental 

Health Services Act Housing Program provides both 

capital financing and operational subsidies for PSH for 

individuals with severe mental illness who are homeless 

or at risk of becoming homeless. Enacted in 2004, the 

Mental Health Services Act is funded through a 1-percent 

tax on income more than $1 million. In fiscal year 

2014–2015, CalHFA lent $33 million under this program 

and created 227 units of supportive housing. 

HCD programs. HCD administers several state-funded 

housing programs that serve people with disabilities. 

• The state bond-funded Multifamily Housing Program 

(MHP) General Component provides financing for 

the construction, rehabilitation, or preservation of 

rental housing for low-income households. In 2015, 

HCD made available $47.5 million in MHP funds and 

included priority points for properties that include at 

least five 811 PRA units in their funding application. 

As a result, six applications for the MHP General 

Component requested funding for 811 PRA units. HCD 

awarded MHP funds to three properties for a total of 

15 811 PRA units. 

• The MHP Supportive Housing Component provides 

financing for supportive housing developments. Units 

funded by MHP Supportive Housing are required 

to be occupied by people with disabilities in one or 

more of five specific disability categories. As of 2015, 

87 properties were under this program with 2,355 

supportive housing units. 

• The Affordable Housing and Sustainable 

Communities Funds is a new state program that 

funds land-use, housing, and transportation projects 

that reduce greenhouse gas emissions. Currently, 

Affordable Housing and Sustainable Communities 

is the largest HCD capital development program. 

The first awards were granted in 2015. No priority 

points for special needs projects exist, although it is 

reasonable to assume that some projects will serve 

special needs populations. In 2016, approximately 

$400 million will be available through this program.

• The Veterans Housing and Homeless Prevention 

Program provides both capital and Operating Subsidy 

Program funding for affordable housing that serves 

veterans, many of whom have disabilities. The 

program was funded at $75 million in 2015, with $400 

million set aside for future years. 

HCD also administers Federal funding to cities, counties, 

and nonprofit organizations from the CDBG, Emergency 

Solutions Grants, and HOME programs. Many people 

with disabilities are ultimately served by these programs. 

In 2016, HCD was expected to receive an allocation of 

funds from the National Housing Trust Fund program, 

a HUD-administered, formula grant capital funding 

program that requires 75 percent of the units created to 

house extremely low-income households at or below 30 

percent of AMI. 

TCAC programs. TCAC awards 9 percent competitive 

and 4 percent noncompetitive federal LIHTC, as well 

as supplemental state tax credits. Applications for 

the 9-percent tax credits are highly competitive, and 

in recent years TCAC has awarded only LIHTCs to 

less than one-half of applications received. In 2014, 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

15

TCAC awarded $92 million in 9-percent tax credits 

and $97 million in supplemental state credits for 

the development, rehabilitation, or acquisition of 

affordable housing.

TCAC’s QAP does not provide a preference, set-aside, 

or priority points specifically for 811 PRA projects. The 

QAP does include a 10-percent set-aside for projects 

serving homeless persons and a 4-percent set-aside 

for projects serving at least 50 percent special needs 

populations, including many people with disabilities. 

Between 2012 and 2014, approximately 12 to 14 

percent of all tax credit awards were special needs 

awards, resulting in at least 1,000 units constructed 

or rehabilitated specifically for people with disabilities 

of all ages. (TCAC does not track whether people with 

disabilities are elderly or nonelderly.)

How the 811 PRA Program Fits With Other 

State Programs

Several state housing programs are incompatible with 

the 811 PRA program, the most significant barrier 

the 25-percent cap on targeted units within the 811 

PRA program. To ensure that 811 PRA tenants are 

integrated into communities, statutory language 

governing the 811 PRA program stipulates that no more 

than 25 percent of units in any development may be 

required to serve or have occupancy preferences for 

persons with disabilities. Although federal and state 

tax credits issued by TCAC are the most prevalent 

financing source used to develop 811 PRA units, only 

those projects that do not apply for tax credits under 

the special needs or homeless set-asides can qualify 

for the 811 PRA program because the set-asides 

require that a minimum of 50 percent of the units 

serve the target population5, which clearly exceeds the 

25-percent 811 PRA maximum. 

Mental Health Services Act funds already are dedicated 

to serving people with mental illness and therefore 

cannot be used on the same unit as 811 PRA funds. For 

HCD’s Veterans Housing and Homelessness Prevention 

Program, properties are required to have more than 25 

percent of their units set aside specifically for veterans. 

CalHFA received guidance from HUD that the 811 PRA 

program cannot require that 811 PRA units in a particular 

project serve only veterans. This guidance makes the 

use of 811 PRA rental assistance also incompatible with 

capital funding for projects serving only veterans. 

Like the Veterans Housing and Homelessness 

Prevention Program, the MHP Supportive Housing 

Component Program provides incentives for setting 

aside more of its units to serve persons with disabilities, 

including people who are chronically homeless and 

other homeless populations with disabilities and special 

needs populations. Consequently, the percentage of 

units restricted to persons with disabilities in these 

programs is typically more than 25 percent, making it 

impossible for developers to be competitive for these 

capital sources if they were to choose to use 811 PRA 

funding in these properties. 

How the state defines its homeless population creates 

additional incompatibilities between the 811 PRA 

program and state programs that serve homeless 

people. TCAC and HCD use HUD’s definition of homeless 

individuals, which means that individuals who are 

institutionalized for more than 90 days are no longer 

considered homeless. Their use of this definition makes 

it difficult to serve Money Follows the Person participants 

who must reside in institutional settings for at least 90 

days to be eligible for the MFP program. 

How Major Housing Assistance Programs 

Are Used To Assist the Target Population

In addition to the three state housing agencies, other 

entities such as local governments, housing authorities, 

and private owners also develop and administer 

affordable housing programs in California for people with 

disabilities. Table 2.3 overviews the number of persons 

served by six major Federally funded housing programs 

administered in California. As shown, one-fourth of 

people living in public housing in the state are nonelderly 

people with a disability, as are 37 percent of Housing 

Choice Voucher (HCV) program participants.

In addition to the programs in table 2.3, 30 local public 

housing authorities throughout California administer 

2,795 federally funded vouchers specifically for the NonElderly Disabled (NED) Vouchers. An additional 232,826 

units funded with federal LIHTCs are estimated to serve 

people with disabilities (HUD, n.d.).

Local Issues—Housing Affordability and the 

Rental Market

California includes some of the most high-cost areas in 

the country for renting, homeownership, and development, 

which is a key deterrent to creating affordable housing 

5 It appears that by requiring at least 50 percent of the units be targeted to the special needs or homeless population, California TCAC’s special 

needs or homeless set-asides are supporting the production of congregate supportive housing (also referred to as single-site supportive housing), 

a model that has been targeted to persons with substance abuse who may have experienced homelessness or have been diagnosed with a mental 

illness. Congregate models have been successful at stabilizing housing and improving recovery because the services are available onsite and there 

is a supportive peer environment that is more intensive than in a scattered-site model, which is the approach of the 811 PRA program.
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

16

Table 2.3: California—Overview of Major Federal Housing Programs

Program Units Available

Number of Household 

Members

Percent Extremely 

Low-Income

Percent With 

Disabilities Among 

Head, Spouse Aged <62

Percent of All Persons 

With Disabilities

Public Housing 29,895 78,574 71 23 15

Housing Choice 

Vouchers 330,837 710,630 75 37 27

Moderate Rehabilitation 1,955 3,836 92 54 52

Project-Based Section 8 101,741 166,733 83 22 11

202/PRAC 13,359 15,852 83 38 4

811/PRAC 2,511 2,893 86 99 87

PRAC = Project Rental Assistance Contract.

Source: HUD (2016)

opportunities for people with disabilities. Lack of 

affordable housing is one of the primary reasons 

that people with disabilities may be at risk for 

institutionalization in the state. 

Low-income residents have an especially difficult time 

finding affordable housing in the state. According 

to a recent study of housing needs by the California 

Legislative Analyst’s Office, the median monthly rent 

in California in 2013 was $1,240, more than 50 percent 

higher than the national average (LAO, 2015). According 

to 2007–2011 American Community Survey data, 24 

percent of renter households in the state are extremely 

low-income (earning 30 percent or less of AMI). More 

than 80 percent of these households paid more than 30 

percent of their income on rent and experienced housing 

problems such as overcrowding or substandard housing.

Owners comprise more than one-half of all occupied 

units, 53.7 percent, compared with 46.3 percent 

of renters. Between 2010 and 2014, the proportion 

of California owners decreased by 2 percent. The 

California’s rental market has become tighter as 

homeownership costs have increased and as the state 

has experienced significant population growth in the 

past 15 years. As a result, the state’s rental vacancy 

rate decreased from 6.3 to 3.9 percent between 2010 

and 2014. During this same period, the state’s average 

income remained stagnant, both single family and 

multifamily construction starts decreased, and mortgage 

requirements tightened, creating additional demand for 

rental housing in the state.

The high cost of housing makes affordable housing 

development in the state particularly challenging and 

contributes to the growing need for affordable housing. 

811 PRA housing staff report that four to six sources 

of private and public funding are typically needed to 

make an affordable housing project feasible in high-cost 

areas. The approximate construction cost of a new twobedroom unit is between $325,000 and $375,000. 

Service Provision and Healthcare

Current Status of Service and Healthcare 

Programs That Support Community Living

The departments under CHHS administer Medi-Cal waiver 

programs that provide home- and community-based 

services. These programs include HCBS waivers that support 

participants in their home or community-based setting as an 

alternative to care in a nursing facility or institution. 

DHCS administers nine HCBS waivers, including the 

following waivers for people with disabilities.

• Home- and Community-Based Services Waiver for 

the Developmentally Disabled. This waiver authorizes 

HCBS for people with developmentally disabilities. 

More consumers of the Developmentally Disabled (DD) 

Waiver are in California than any other HCBS waiver. 

• The Developmentally Disabled-Continuous Nursing 

Care Program provides 24-hour continuous nursing 

care for developmentally disabled and medically 

fragile persons in residential settings.

• In-Home Operations has statewide responsibility 

for reviewing and authorizing home and community 

services through the Medi-Cal Nursing Facility/Acute 

Hospital Waiver.

• In-Home Supportive Services Plus Waiver. The 

Department of Social Services converted In-Home 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

17

Supportive Services to a 1915(j) state plan option 

Medicaid program in 2009. Between 2004 and 2014, 

the program grew more than 100 percent and currently 

serves more than 440,000 individuals in their homes. 

• The Assisted Living Waiver is administered in 13 

counties. It helps facilitate transition of persons 

with disabilities from a nursing facility to a 

community setting or serves individuals at risk of 

institutionalization. 

• Enacted in 2013, the Health Homes Program targets 

Medi-Cal’s highest risk members who present the 

best opportunity for improved health outcomes 

through Health Homes Program services. Health 

Homes Program will go into effect in early 2017.

• The 1115 Waiver Renewal (Medi-Cal 2020) authorized in 

December 2015 will provide Whole Person Care tenancy 

support services to members. Whole Person Care is 

the coordination of health, behavioral health, and social 

services to improve the overall quality of patient life.

Recent Changes in Programs That Support 

Integrated Community Living 

Changes in Medicaid resources away from 

institutional settings and toward community 

living. During the past 10 years, departments within 

CHHS focused on housing as an essential resource 

needed to stabilize healthcare services for individuals. 

As discussed in the following section, the state first 

developed an Olmstead plan in 2003 to help persons 

with disabilities move from institutions to live in the 

most integrated settings available. In the past decade, 

CHHS has expanded Medicaid HCBS waivers available 

in California. Medi-Cal 2020, which is California’s 1115 

Waiver Renewal that will guide DHCS during the next 5 

years, was approved by the Centers for Medicare and 

Medicaid Services in December 2015. The recent 1115 

waiver renewal will support increased access to housing 

with supportive services. 

In 2007, DHCS developed the Long-Term Care Division 

that oversees waivers and long-term service models. 

In 2007, MFP also awarded DHCS funds to create the 

CCT Project. To date, approximately 2,700 people 

have transitioned out of inpatient care into integrative 

community settings as a result of the CCT Project. 

Housing has become even more of a focus in the 

past several years. The hiring of the first staff member 

dedicated to housing in DHCS did not occur until DHCS 

hired a housing specialist under the MFP program in 2014. 

In contrast to DHCS, DDS has long focused on locating 

and creating housing resources to help individuals 

with developmental disabilities move out of California’s 

Developmental Centers and other inpatient settings to 

homes within the community. DDS has also focused on 

creating housing resources for individuals who are at risk 

of moving into institutional settings. 

The 2015 Governor’s Budget proposed closing the 

three remaining Developmental Centers. Policy 

initiatives on de-institutionalization of individuals with 

developmental disabilities have also led to the current 

statutory prohibition on the placement of individuals with 

developmental disabilities into California’s Developmental 

Centers, except for acute crisis care. This prohibition, 

combined with the closure of Developmental Centers, 

has resulted in an increased need for affordable and 

accessible housing, including in California’s highest 

cost areas. DDS’ goal is to provide a variety of housing 

options from which individuals with developmental 

disabilities may choose to reside, including housing 

offered by the 811 PRA program. In 2016, DDS is adding 

one position within the department; the person in this 

role will assist with identifying housing resources for 

individuals who are eligible for affordable housing under 

the 811 PRA program.

Changes to Medicaid eligibility criteria. California 

first expanded Medicaid under its 1115 waiver and again 

expanded eligibility as a result of the Affordable Care Act. 

More than 12.8 people are currently enrolled in Medicaid 

in California.

Funding. Total Medicaid spending has increased 

substantially in California in recent years, as a result of 

expanded Medicaid eligibility and as CHHS has pursued 

Medicaid resources available to expand HCBS. Between 

2008 and 2014 total Medicaid spending increased from 

about $36 billion to nearly $64 billion, a 63.4-percent 

increase (Eiken et al., 2015; KFF, 2017). 

Funding for long-term services and supports (LTSS) 

went from approximately $12.7 billion in 2008 to nearly 

$15 billion in 2013 (Eiken et al., 2015). Home- and 

community-based services as a portion of LTSS also 

increased during this period, indicating the continuing 

trend of decreased funding for institutionalized care and 

increased funding for community-based services and 

supports. HCBS funding increased from nearly 7 percent 

of LTSS in 2008 to nearly 63 percent in 2013 (Eiken et 

al., 2015). In 2013, California ranked seventh highest for 

HCBS fund allocation as a percentage of LTSS funds, 

significantly more than the national average of 51.3 

percent (Eiken et al., 2015). Between 2008 and 2013, 

overall HCBS funding increased by 29.4 percent although 

funding for Institutional LTSS increased only 0.7 percent, 

again illustrating the state’s priority in shifting funding 

toward community-based services and away from 

institutionalized care (Eiken et al., 2015). 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

18

How the 811 PRA Program Fits With the 

Service and Healthcare Programs That 

Support Community Living

As discussed in the Housing Context section in chapter 3, 

the 811 PRA program provides rental subsidies specifically 

for nonelderly people with disabilities who need affordable 

housing. Aside from NED Vouchers, no other programs 

in California specifically target assistance to nonelderly 

people with disabilities. Other programs that target 

people with disabilities specifically focus on those with 

mental illness or who are homeless, which are not target 

populations of California’s 2012 811 PRA program. 

California’s Olmstead Plan

CHHS first developed its Olmstead plan in 2003, with 

updates in 2005, 2010, and 2012. The plan covers 

a broad range of strategies to prevent unnecessary 

institutionalization of people with disabilities. In 2005, 

Governor Schwarzenegger convened the Olmstead 

Advisory Committee to help inform policies and 811 

practices that affect Californians’ abilities to receive 

services in the least restrictive environment possible. In 

2012, CHHS expanded the advisory committee’s role to 

include a focus on housing and veterans. California has 

not had any consent decrees compelling it to create a 

statewide plan, although Olmstead lawsuits against the 

City of Los Angeles have been filed. As a result, the state 

allocated housing vouchers in coordination with healthcare 

providers for seniors and those who are homeless.

The Olmstead plan outlines 12 goals, including one 

specific to housing and helping individuals to transition 

out of institutional care to more integrative settings 

according to their needs and preferences. The most 

recent update in 2012 predated the award of 811 PRA 

funding so the 811 PRA program is not named as a 

resource; however, 811 PRA partners consider the 811 

PRA program an important resource to meet Olmstead 

housing goals. 811 PRA team members participate in the 

Olmstead Advisory Committee meetings three times a 

year, where they discuss the CCT Project and progress 

toward meeting Olmstead goals. 

Population Served

Comparison of Target Populations: Planned 

Versus Actual

To be eligible for the 811 PRA program, an applicant 

must be between the ages of 18 and 61 at move in, 

extremely low income, and be enrolled in or eligible for 

services under Medi-Cal waivers administered by DHCS 

or DDS.

CalHFA and DHCS further categorized the target 

population using these two priorities.

1. “Individuals residing in an inpatient facility for at least 

90 consecutive days, for which Medi-Cal has paid for 

at least one of those days, and who are enrolled in the 

CCT Project.”

2. “Individuals receiving Medi-Cal long-term HCBS 

waiver or state plan services who are at risk for 

placement in an inpatient facility.” 

Individuals under Priority 1 include residents living in 

skilled nursing facilities, developmental centers, and 

intermediate care facilities. Most individuals under 

Priority 1 are individuals living in skilled nursing facilities. 

Priority 1 individuals can also include individuals 

with developmental disabilities whose services are 

coordinated through the Regional Centers. All individuals 

must be enrolled in the state’s MFP program to qualify 

under Priority 1 regardless of the waiver under which they 

receive services. Institutionalized applicants will be given 

priority over noninstitutionalized applicants if both are 

ready to move in at the same time.

Individuals under Priority 2 who are at risk of 

institutionalization could come from several care settings. 

Individuals eligible under Priority 2 are primarily DD 

Waiver consumers who are living in community settings 

and who are served by a Regional Center. Other waiver 

consumers living in the community are also eligible, but 

because the DD Waiver is the state’s largest and serves 

more than 100,000 consumers, most Priority 2 applicants 

are expected to come from this population.

Skilled Nursing Facilities

Skilled nursing facilities house between 90,000 and 

100,000 In-Home or nursing facility waiver consumers, 

although only 15,000 to 25,000 are between ages 18 

and 61. DHCS staff estimate that 10 percent of these 

individuals would be interested in and able to leave 

the skilled nursing facility and live independently. As 

a result, DHCS expects that approximately 1,500 to 

2,500 nonelderly people with disabilities living in nursing 

facilities would be good candidates for 811 PRA units. 

Individuals transitioning out of nursing facilities can 

choose from several different housing models available 

through the CCT Project, including living at home alone, 

living with family or roommates, single-room-occupancy 

units, or regional care settings. 

Regional Centers

Regional centers are nonprofit organizations that 

contract with DDS to provide services to approximately 

300,000 individuals with developmental disabilities. In 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

19

California, 21 regional centers exist. Individuals who 

receive services coordinated through the regional 

centers may reside in many different settings, including 

in their own homes, in group homes, in skilled nursing 

facilities, or in various types of inpatient settings, 

including skilled nursing facilities and developmental 

centers as discussed in the following sections.

Developmental Centers

Approximately 1,000 individuals reside in developmental 

centers, a reduction from 3,900 in the 1970s. DDS 

expects that in the next 5 years, approximately 700 

individuals with developmental disabilities will be 

transitioning into integrated community living from 

developmental centers as they close. DDS staff estimate 

that approximately 10 percent of these individuals will 

be eligible for and interested in moving into integrated 

housing under the 811 PRA program. 

Outreach, Referral, and Application

Through the end of 2015, 51 individuals had been 

referred to complete an application for the 811 PRA 

program and 28 residents were living in 811 PRA-funded 

units. CCT organizations referred 39 individuals living 

in nursing facilities and Regional Centers referred 12 

individuals. Most of the referrals were for those meeting 

Priority 1 (residing in inpatient facilities for at least 9 

months); only 7 of the 51 (14 percent) referred to the 

program were at risk for institutionalization. 

Outreach, Referral, and Application Process

Since their 2012 funding application submission, 

CalHFA and DCHS have made one significant change 

in how applicant referrals are coordinated in the 

811 PRA program. The agencies added DDS as a 

partner. Although DCHS had always intended to 

serve persons with developmental disabilities at risk 

of institutionalization, the partnership with DDS in 

identifying these consumers came after CalHFA was 

notified that the grant was funded. When the 2012 

application was submitted to HUD, it was assumed that 

DHCS as the state Medicaid agency would coordinate 

these noninstitutional placements with DDS. In contrast, 

placements into the 811 PRA program for DD Waiver 

consumers from institutions were always expected to be 

coordinated through the CCT Project.

CCT organizations and Regional Centers act as tenant 

referral organizations (TROs) for their respective 

customers for the 811 PRA program. Regional Centers 

may also choose to partner with a CCT acting as a TRO 

rather than with a developer directly. TROs promote the 

811 PRA program among their clients, assess applicants 

for eligibility, and maintain a waiting list of applicants 

eligible for the 811 PRA program. When an appropriate 

unit becomes available, TRO case managers refer 

applicants to apply at specific properties and help them 

complete the application process, provide transition 

services as tenants move in to the 811 PRA units, and 

manage the service delivery provision. Owners applying 

for 811 PRA rental assistance are required to partner with 

one or more TROs before they apply for 811 PRA funds 

to manage the influx of qualified applicants for the 811 

PRA units at their properties.

For the 2012 811 PRA application, California uses a 

decentralized outreach and referral model. DHCS and 

DDS do not maintain a centralized statewide waiting 

list for 811 PRA applicants. TROs are each responsible 

for referring only applicants from their own populations 

to the properties where they have agreements with 

owners. The Notice of Funding Availability requires 

that the owner and TRO submit a tenant selection plan 

that governs the process of selecting eligible tenants, 

but no standardized requirement exists to maintain 

a waiting list in a certain way. In their Memorandums 

of Understanding that are approved by CalHFA, 

property owners and TROs must agree to give priority 

to institutionalized persons for available units. Within 

the institutionalized and noninstitutionalized target 

populations, property owners decide on the method for 

choosing from 811 PRA waiting list (for example, first 

come, first served or a lottery) if fewer units are available 

than people ready to occupy them. 

Target Population Screening and Eligibility

TROs identify eligible 811 PRA applicants within their 

respective populations and determine whether they are 

eligible for the 811 PRA program. Once the applicant 

is identified, the TRO submits a completed referral to 

DHCS, which confirms eligibility based on age and 

enrollment in Medi-Cal. Once a unit becomes available, 

the TRO staff person refers the individual to the property 

owner to complete an application for the property and 

provides assistance as needed. Individual property 

owners establish their own rental criteria, including 

rental history, credit, and criminal background. Owners 

must outline their selection criteria in their tenant 

selection plans that are submitted to and approved by 

CalHFA. The property manager determines whether the 

individuals meet the property’s criteria and works with 

the TROs to determine move-in dates or placement on a 

property waiting list. 
20

Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

Implications of Target Population and 

Outreach and Referral Methods

Having two different target populations from two different 

types of organizations has implications on the 811 PRA 

program’s outreach and referral methods and tenancy 

of 811 PRA units. Most 811 PRA tenants and most 

applicants referred have come from nursing facilities. Of 

the 28 tenants living in 811 PRA units at the end of the 

2015, only 3 were DD Waiver consumers. The differences 

in management, procedures, program oversight, funding 

levels, and access to certain services between the two 

organizational types may also lead to some disparities 

within the 811 PRA program. 

The first 811 PRA units were filled in a less formal manner 

as applicants were individually matched with 811 PRA 

units as they became available. As CCT participants were 

initially identified as the priority target population in the 

grant application, CCT organizations quickly identified 

potential 811 PRA applicants within their caseloads 

when the first 811 PRA units became available. Regional 

Center staff did not receive timely information about the 

811 PRA program and were not ready to make program 

referrals when the first 811 PRA units became available 

in late 2014. As of late 2015, many Regional Center staff 

were trained on the program and are prepared to make 

additional referrals going forward. 

The decentralized approach to target population 

outreach and the lack of a centralized waiting list may 

have implications on the number and types of individuals 

eventually placed in 811 PRA units. The informal method 

of matching consumers to units, which has been used 

to date, is not easily replicable when the program gets 

larger. However, it is not clear how DCHS and DDS plan 

to coordinate future referrals so that both populations are 

given equal weight in selecting participants within each of 

the two priorities. It is also not clear how the divisions will 

track referrals to ensure that unit offers are made according 

to the appropriate order of priority of the target population. 

DHCS and DDS staff reported that they both have future 

plans to establish a position that will assist with tenant 

referrals and to help facilitate coordination of 811 PRA 

applications and available units. As of early 2016, CalHFA 

and DHCS staff were considering purchasing software to 

track participant applications and priorities.

Housing Strategies

Property and Unit Characteristics 

Through the end of December 2015, CalHFA had 

executed four Rental Assistance Contracts for a total of 

78 811 PRA units. Table 2.4 shows the number and the 

characteristics of properties with units under executed 

RACs. Most units under contract are either studios (47) 

or one-bedroom units (29), because those two sizes 

represent the most need. The remaining two units under 

RAC are two-bedroom units. Out of the 78 units, 3 are 

currently designated as mobility accessible and none are 

designated as being accessible for persons with vision or 

hearing impairments. (The accessibility of the remaining 

units will not be known until unit turnover and owners 

know which units the 811 PRA subsidy will be applied.) 

At the end of 2015, 28 of the 78 811 PRA units under 

contract were occupied. The remaining units under 

RAC are in properties that are fully occupied with other 

tenants; this fact has an implication for how quickly 

California meets its occupancy goals. 811 PRA units will 

be filled once existing tenants move out. 

Table 2.4: Characteristics of Properties With 811 PRA Units

Property Name and 

Owner City and County

Tenant Referral 

Organization RAC Amount ($)

811 PRA Units/Total 

Units Initial Occupancy Date

Garden Village, Domus 

Development

Sacramento, Sacramento

Home and Health Care 

Management, Alta 

Regional Center

450,129 11/195 3/2015

Essex Apts., Insight 

Development Lancaster, Los Angeles Libertana 1,116,017 37/150 9/2015

Casa Verde, Mercy 

Housing San Leandro, Alameda East Bay Innovations 356,443 10/68 1/2016

Bermuda Gardens, 

Mercy Housing San Leandro, Alameda East Bay Innovations 785,327 20/80 1/2016

RAC = Rental Assistance Contract. PRA = Project Rental Assistance.

Source: California Housing Finance Agency (2016)
21

Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

CalHFA signed its first RAC in March 2015 for 11 811 PRA 

units; the first unit was occupied in March 2015. The owners 

of the property, Garden Village, received Low-Income 

Housing Tax Credits to rehabilitate a severely distressed 

property that had fallen into disrepair and foreclosure. By 

the time the new owners, Domus Development, obtained 

the property from the bank, drugs and criminal activity 

had plagued the property, and about one-half of its units 

sat vacant. Domus completely rehabilitated the property, 

reducing its unit count from 201 to 195 and added indoor 

and outdoor community spaces, two pools, a computer lab, 

onsite management, and security. 

Property Selection Methods and Financing

Outreach to owners. To gain interest in the 811 PRA 

program, key staff from HCD and DHCS extensively 

marketed the 811 PRA program to owners of statefunded multifamily properties. HCD and DHCS staff 

held webinars, conducted in-person local meetings 

throughout the state, and responded to questions from 

developers. Contact information for HCD and DHCS staff 

is also provided in all marketing and application materials 

and on the 811 PRA program website. 

Program staff have conducted limited targeted outreach 

to owners of existing projects in their housing agency 

portfolios because agency data systems do not enable 

staff to easily determine which properties may be eligible 

for 811 PRA subsidies. Program staff report that their 

outreach methods have been time-consuming, but 

necessary and ultimately successful. The effort needed to 

obtain adequate applications was not unexpected given 

California’s complex and expensive housing development 

market, the statutory 25-percent limit discussed 

previously, and the cap on the 811 PRA contract rent to 

be affordable to households earning up to 50 percent of 

Area Median Income.

Owner application process. The 811 PRA application 

period began August 1, 2014, and is open until all 811 

PRA funds are awarded. HCD staff streamlined the 

application process to make it as easy as possible for 

owners interested in the program to apply for funding. 

HCD staff created an application form, sample tools, 

including memorandums of agreement between owners 

and TROs, tenant selection plans, board resolutions, and 

affirmative marketing plans. Owners are encouraged to 

use the standard documents but may propose changes if 

in compliance with program requirements. 

HCD and DHCS staff also provide technical assistance 

to owners throughout the application process. When 

owners first express interest, an HCD staff member holds 

an initial call to discuss program requirements and the 

proposed project. HCD staff provide technical assistance 

on housing components and fair housing marketing 

strategies, and DHCS staff help with tenant selection 

plans, services, and outreach to participants. DHCS 

and DDS staff also facilitate meetings and partnerships 

between owners and TROs. 

All five agencies review and approve 811 PRA funding 

applications according to their respective expertise. The 

agencies maintain a checklist kept on a shared website 

that shows whether each component has been reviewed 

and found acceptable. Applications are discussed at the 

biweekly program meetings and the group collectively 

decides whether to move forward with awarding a RAC. 

Financing. Projects eligible for 811 PRA funding in 

California must be funded by HCD, CalHFA, or TCAC. 

All 811 PRA projects awarded have been financed with 

LIHTCs, and some properties have as many as six 

sources of funding sources, including financing through 

HCD, CalHFA, and TCAC programs previously described. 

Eligible properties include both already-built properties 

funded through one of the three state housing agencies 

and new construction and rehabilitation properties, 

provided that they meet the 811 PRA occupancy 

schedule.

Implementation Schedule

CalHFA proposed an 18-month leasing schedule in its 

2012 funding application and expected to occupy up to 

19 811 PRA units per month, or 228 units in the first year 

of the grant. CalHFA’s expectation for occupancy in its 

first grant year represented about two-thirds of the 811 

PRA units it expected to fund under the 2012 811 PRA 

program. Per its grant Cooperative Agreement, 811 PRA 

units must be under contract by 2022 and all PRA funds 

should be spent by 2025.

In addition to the 78 units under RAC through 

November 2015, an additional 28 units are pending 

RAC execution. The pending units consist of 13 811 

PRA units in a 54-unit Solano County development and 

15 811 PRA units in three projects funded through the 

MHP. As of February 2016, the total number of 811 PRA 

units under RAC and pending RAC execution was 106, 

representing more than one-half of the 2012 projected 

number of units under the grant. HCD and DHCS 

staff planned to conduct another round of outreach 

marketing to owners in 2016 and expect to continue 

to make progress toward recruiting enough properties 

needed to meet their program goals. 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

22

Rent and Subsidy Levels

In response to the significant need for rental subsidies 

for the target population, the agencies applied for the 

maximum funding amount available to their state and 

determined the number of 811 PRA units that it could 

support. Staff estimated the number of 811 PRA units 

using HUD’s calculated initial tenant rent payment and 

a Fair Market Rent at the higher end in the state (Santa 

Cruz County). CalHFA based rents on 40 percent of 

AMI, although HUD scored its application using 50 

percent of AMI. CalHFA initially included costs for onsite 

service coordinators within its application budget (similar 

to requirements for other state supportive housing 

programs), but HUD did not approve these costs. The 

average committed 811 PRA rental subsidy amount 

under the first 78 units under RAC is $578 per unit 

per month thus far, compared with the average $705 

budgeted rental subsidy in the Cooperative Agreement 

(based on a contract rent of $993 per month and a tenant 

contribution of $288 per month). 

Unit and Tenant Turnover

As of November 2015, of the 19 units occupied, 2 have 

turned over. As of December 2015, of the 28 units 

occupied, 3 participants have exited the program. One 

resident returned to an inpatient facility due to health 

concerns, 1 left the program, and 1 resident died. In 

addition, 1 811 PRA participant requested a move due 

to needing a larger bedroom size for a family member or 

live-in aide. 

Service Provision and Coordination

The exact services each person receives varies depending 

on his or her individual needs and the Medi-Cal services 

he or she is eligible to receive. HCBS waiver services 

include case management, community transition services, 

private duty nursing, family home health aides, utility 

reimbursement, habilitation services, and respite care, 

among many others. In addition to HCBS waivers, persons 

with disabilities in California can also be served through 

a state plan service, through a Medi-Cal Managed Care 

Plan, or through county-funded services. Counties in 

California provide some level of services to people with 

disabilities, including comprehensive specialty mental 

health services, substance use disorder services, and 

long-term care services.

Ongoing Services

CCT participants are eligible for ongoing services 

through enrollment into a Medi-Cal waiver. Some large 

service provider organizations are also CCTs and can 

provide a continuity of services. 

Regional Center consumers receive lifetime services 

under the DD Waiver after they leave the institution as 

long as they are eligible and have an individual services 

plan (called an Individual Program Plan or IPP) in place. 

A service coordinator conducts routine visits with the 

consumer every 90 days and ensures that the IPP is being 

appropriately implemented. As may be agreed to in the 

IPP, a Supportive Living or Independent Living service 

provider funded by the Regional Center may have more 

frequent consumer contact to assist with daily needs, 

including cooking, shopping, transportation to healthcare 

appointments and daily activities, and equipment needs. 

Coordination of Services and Housing

CCT coordinators and Regional Center service providers 

help participants move into 811 PRA units and ensure 

ongoing connection to services. Although services 

are provided according to individual consumer plans, 

services are coordinated differently for CCT participants 

living in inpatient facilities than participants who are at 

risk for placement into institutional care. 

CCT organizations have funding available for transition 

services through the MFP program, and all CCT 

participants receive 12 months of transitional services 

after they leave inpatient care. MFP funding covers 

the costs of furniture and household goods, security 

deposits, and first and last months’ rent. Participants 

also have access to a 24-hour call system. Individuals 

with developmental disabilities who are transitioning 

from an institutional setting receive transition services 

funded through the Regional Center’s CCT Project. Once 

CCT participants reside in the community, their ongoing 

supportive services may be funded through the HCBS 

waiver under which they receive services.

Individuals who are “at risk” and do not meet the 

90-day institutional stay criteria do not qualify for 

services funded through MFP. Transitional services can 

be provided under the DD Waiver or other long-term 

care services as long as those transitional services are 

included in an individual’s IPP.

Gaps in Services

Gaps in services may occur because different services 

are available in different locations throughout the state 

and through different Medi-Cal waivers. Service provider 

staff also note the need for some providers, such as 

home health aides, in some locations due to pay that 

is not competitive. The range of services available 

also depends on the knowledge and training of staff at 

individual CCTs and Regional Centers. CCT capacity and 

services offered vary widely, and some organizations 

may transition very few individuals out of inpatient care. 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

23

2013 811 PRA Application

CalHFA applied for and received $11,985,436 in 

2013–2014 811 PRA funding, slightly less than its 

2012 award of $12,208,558. The 2013–2014 funds are 

slated to subsidize more units than the 2012 funds 

or 283 units compared with 241 in 2012. Significant 

differences exist between the 2013–2014 funding 

application and the 2012 program. CalHFA targeted 

assistance to one geographic area, Los Angeles City 

and County, and specifically to homeless persons with 

disabilities. The agencies targeted this area because 

of two factors: (1) the availability of a pool of flexible 

county subsidy funds that are compatible with 811 PRA 

program requirements (that can be used to bring the 

total contract rent on the unit to FMR), and (2) the large 

number of homeless persons within the area needing 

housing and services. The 811 PRA program will also 

help meet the requirements of lawsuits mandating 

services for persons who are homeless. The Housing 

Authorities of the City of Los Angeles and the County of 

Los Angeles agreed to set aside a combined 150 HCVs 

for homeless, nonelderly people with disabilities as 

leverage for the 811 PRA funding. 

Leveraging

CalHFA did not leverage any HCV units or other subsidized 

units as part of its 2012 grant application. The agency 

and its partners felt it was too onerous to try to obtain 

leveraged vouchers from specific PHAs, as their program 

was statewide. However, as noted previously, the grantee 

and the partner agencies provide in-kind contributions of 

staff time to support the 811 PRA program. 

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

CalHFA monitors the 811 PRA grant through regular 

meetings with all four partnering agencies and through 

a shared website to track team members’ activities. 

CalHFA also maintains a public website with detailed 

up-to-date information on the 811 PRA program and 

funding opportunities. CalHFA uses Housing and 

Development Software system to send, receive, and 

process tenant and voucher records for the residents in 

the 811 PRA program. CalHFA was the first grantee to 

use this system and helped Housing and Development 

Software modify the system for 811 PRA.

Because California was the first state to execute a RAC 

with an owner and to house individuals in 811 PRAassisted units, 811 PRA program staff experienced 

some challenges navigating HUD’s reporting systems. 

CalHFA’s Asset Management staff encountered difficulties 

submitting tenant records into HUD’s Tenant Rental 

Assistance Certification System, and releasing subsidy 

payments to owners. Because owners may not move 

tenants into 811 PRA units until TRACS and Integrated 

Real Estate Management System data are submitted, any 

delays in entering data can delay the occupancy of 811 

PRA units. CalHFA also experienced a delay of several 

months in getting the first subsidy payment released by 

HUD. As of November 2015, all data issues with TRACS 

and iREMS have been resolved with HUD and all rental 

subsidies have been retroactively paid to the owners.

CalHFA monitors DHCS and DDS activities through regular 

meetings and quarterly reports. DHCS and DDS maintain 

separate systems for tracking referrals, applicants, and 

tenants from their respective populations. At the time of 

the site visit, DHCS and DDS were developing databases 

to better track participant information. 

Currently, California has a decentralized, unautomated 

system for tracking and prioritizing 811 PRA-eligible 

applicants and referrals to units. DHCS and CalHFA are 

exploring purchasing software to assist with referral 

tracking and prioritization.

Successes and Challenges

The first 811 PRA tenants moved from institutions to 

new integrated housing units in March 2015. Program 

staff from all five agencies discussed initial successes 

and challenges they have experienced in 811 PRA 

program implementation. 

Factors Contributing to Program Success

Early program planning. California was the first state 

to have tenants in units funded by the 2012 811 PRA 

program. CalHFA staff attribute their ability to fill the first 

811 PRA units to their early program start and continual 

planning process. Agency staff met biweekly to flesh out 

program details after the grant application was submitted. 

From previous experience with HUD programs, staff 

knew that execution of the grant agreement could take 

some time and they wanted to be ready to hit the ground 

running once they had received contractual approvals. In 

anticipation of potential delays, CalHFA released the NOFA 

for 811 PRA funding in August 2014, 2 months before 

HUD signed the Cooperative Agreement on October 2014, 

so they would be ready to issue awards once they were 

under HUD agreement. The NOFA strategy was a prudent 

and successful method of attracting developers and 

owners. CalHFA did not want to allocate counties a certain 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

24

amount of assistance based on needs and risk not finding 

properties that met the 25-percent statutory limitation on 

units restricted to persons with disabilities. 

Effective partnerships. Program staff credit much 

of their 811 PRA program progress to the effective 

partnerships of the five agencies. Although the five 

agencies did not have a long history of partnering together 

prior to the 811 PRA program, they quickly established a 

close working relationship. The partnership is effective due 

to the ongoing communication between the parties and 

clear delineation of program tasks. Since the start of the 

planning process, staff from the four agencies (later five 

as DDS became a partner) have met biweekly to resolve 

issues and make program decisions. Although CalHFA 

stated in the grant application it would cross-train staff 

from each other’s agencies, clear delineation of program 

tasks seem to exist by agency depending on the expertise 

of each agency and particular staff. This approach 

has helped the agencies be more efficient in program 

administration and resulted in less duplication of effort. 

Committed staff. The 811 PRA program has made 

progress through the personal efforts and perseverance 

of individual staff members. HCD staff established points 

for the 811 PRA program in the most recent MHP General 

Component program NOFA. DHCS and DDS staff worked 

diligently to quickly fill the initial 811 PRA units to meet tax 

credit occupancy deadlines. CalHFA staff worked with 

HUD and the software vendor to resolve TRACS related 

modification to accept 811 tenant files and vouchers. 

Several staff spent considerable time on marketing to gain 

owner interest in the program. 

Streamlined owner application and review process. 

California’s project owner application process is one 

that other grantees can replicate. 811 PRA housing staff 

simplified and streamlined the process to make it as easy 

as possible for owners to apply for funding. Interested 

owners may apply any time, as the application process 

is continuously open. HCD staff first have a call with any 

interested owner to discuss program requirements and the 

proposed project. California has a sample memorandum 

of understanding with a TRO and a tenant selection plan 

online as well as the application that owners may review 

and complete. Although owners may alter certain tenant 

selection plan sections, it must be in compliance with 

program requirements. Therefore owners are encouraged 

to utilize the standard tenant selection plan. HCD and 

others on the team provide technical assistance to the 

owner in completing the application if needed.

The use of a shared private website to track each agency’s 

progress in the owner application review process is an 

efficient method to qualify owners and properties. 

Improved quality of life for 811 PRA residents. Three 

811 PRA tenants residing at one property, and their 

service providers, were interviewed during the site visit. 

All expressed their gratitude for the 811 PRA program as it 

has provided the comprehensive quality care and housing 

they need. All three residents stated that they were very 

satisfied with their units and caregivers, and felt that they 

had access to a social community on site. The caregivers 

(representatives from both a Regional Center and CCT) 

stated that the residents were thriving under this program. 

811 PRA Program Challenges

811 PRA program staff reported some challenges 

in the initial program administration, both due to the 

complexity and high development costs in California 

and to the constraints of the 811 PRA program. The 

evaluation team further identified some areas of the 

program that have an effect on the efficiency and 

effectiveness of the 811 PRA program.

The availability of capital sources, such as LIHTCs or MHP 

funds, really drives when owners apply for the 811 PRA 

program. California has spent considerable time figuring 

out how to use capital sources with the program because 

many sources are incompatible. All 811 PRA projects have 

been financed with LIHTCs to date. A lot of soft money is 

needed to make the projects financially feasible, especially 

in urban settings and high cost areas in California. Some 

projects have as many as six funding sources.

Low contract rents at 50 percent of FMR are also a 

challenge in attracting developers and owners. Developers 

prefer to participate in programs that provide higher rental 

subsidy and secure a higher percentage of units.

Capital financing is needed to provide financial 

incentive and ease financial feasibility. To ensure 

financial feasibility due to high development costs in 

California, CalHFA and its partners have tried to team 

up with compatible funding sources to expand the 811 

program. However, this task has not been easy due 

to programmatic restrictions in many of the funding 

sources. California requested HUD to allow for targeting 

its program partly to veterans to piggyback onto veterans 

funding. California Housing Finance Agency was told 

that this targeting to veterans would be a fair housing 

problem and was therefore not permitted.

Different target populations. The two distinct target 

populations, CCT participants and Regional Center 

participants at risk for institutionalization, are overseen 

by different agencies and have different funding sources 

attached. The differences in the management and 

funding sources could lead to some 811 PRA participants 

getting some services that are not available to other 
Chapter 2. California Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

25

811 PRA participants. The CCT or Money Follows the 

Person is for individuals who are in institutional settings 

with Medicaid covering the cost of their stay. CCT can 

pay for transition coordination, first month’s rent and 

deposit, home furnishings setup, assistive technology, 

and home modification. All the CCT participants are 

enrolled in the Nursing Facility/Acute Hospital Waiver, 

which pays for case management, nursing, and personal 

care. On the other hand, individuals from the Regional 

Center institutional settings or at risk of being homeless 

are usually on the Developmentally Disability Waiver. This 

waiver covers assistive technology, home modifications, 

and ongoing health services, but does not pay for rent, 

deposits, or furnishings which participants usually get 

help with from family members. Most Regional Centers 

also have limited funds to help with home setup. The 

exact services each person receives varies depending 

on their individual needs and the Medi-Cal and Regional 

Center services he or she is eligible to receive. 

CCT coordinators and Regional Center service providers 

help participants move into 811 PRA units and ensure 

ongoing connection to services. Although services are 

provided per individual consumer plans, services are 

coordinated differently for CCT participants living in 

inpatient facilities than participants who are at risk for 

placement into institutional care.

Getting a complex program launched and running 

smoothly. 811 PRA program staff reported that a 

significant challenge was the amount of planning and 

staff time needed to develop program policies and 

procedures and getting the program implemented at the 

five state agencies. Nearly all staff interviewed reported 

that they spent considerably more time on the program 

than initially planned. Key CalHFA, DCHS, California 

Department of Developmental Services, and California 

Department of Housing and Community Development 

staff all routinely spent more than one-half of their time 

implementing the program in the first year, in contrast to 

initial staff estimates of 0.10 to 0.20 each. Administrative 

fees are not sufficient to reimburse the value of actual 

staff time spent on the project. 

Percent cap on targeted housing units. The 

requirement that limits properties participating in the 811 

PRA program to have no more than the 25-percent cap 

of units set aside for the target population has been an 

impediment to recruiting owners in California. Several 

state housing financing programs are incompatible with 

the 811 PRA, including those that award points for units 

specifically set aside for special needs housing in the 

state’s QAP. Many owners whose mission is to serve 

low-income people or persons with disabilities were not 

eligible to apply because their properties already support 

these populations. Thus, HCD and DCHS have needed 

to spend considerable staff time conducting outreach to 

potential project sponsors to gain additional interest. 

Lower targeted contract rents in 811 PRA program. 

Another deterrent to owner interest in the 811 PRA 

program is that the rents that CalHFA targets under 

811 PRA are significantly less than the rents allowed 

for under other housing programs funded in the state. 

The PRA program enables grantees to determine the 

rent level allowable for PRA units, as long as it does not 

exceed the area’s FMR as determined by HUD. Grantees 

were awarded points in their grant applications for 

proposing lower rent levels. In its 2012 grant application, 

CalHFA established target PRA rents to be affordable 

to persons earning 50 percent of AMI. Other housing 

programs funded through the state enable developers 

to set rents at FMR, which are substantially higher. 

For instance, the rent proposed by CalHFA based on 

blended rents in Santa Cruz County was $755. The rent 

determined in the cooperative agreement with HUD 

was $955, and the FMR at the time of the proposal was 

$1,329. If multiple sources are available for affordable 

housing in the state, developers will naturally seek the 

sources that will be the most financially feasible. 

The rent level proposed by California was a result of 

HUD and the state’s desire to try to fund as many units 

as possible with the most cost-effective approach. The 

challenges experienced during program implementation, 

specifically the lower than expected owner interest, 

shows that the grantee might have been overly optimistic. 

Challenges in service provision. The 811 PRA program 

reflects a policy shift away from institutional settings and 

toward community-based services and supports. This 

change has led to some challenges in service delivery for 

the target population. 

The limitation on the number of 811 PRA units within one 

development can be a challenge for service provision. 

DCHS staff report that many services, such as nursing 

services, can be provided more efficiently at properties 

where several individuals need services, and economies 

of scale can be achieved. Reimbursement of Medicaid 

waivers are also calculated differently if services are 

shared among multiple individuals at one property. 

California Community Transitions and Regional Center 

staff noted difficulty attracting service providers due to 

low Medicaid reimbursement. CCT organizations have 

had a particularly difficult time hiring Home Health Aides. 

The lack of services in an area can dictate if 811 PRA 

units will be approved because availability of services 

is required for a property to be approved for 811 PRA 

funding. The CCT Project does not operate in all 58 

counties in California.
Case Studies – HUD Section 811 PRA Program

26
Case Studies – HUD Section 811 PRA Program

27

Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Louisiana Section 

811 Project Rental 

Assistance Program

Introduction

In 2012, the Louisiana Housing Corporation (LHC) and 

the Louisiana Department of Health (LDH) partnered to 

apply for Section 811 Project Rental Assistance program 

funds. HUD awarded Louisiana $8,489,928 to provide 

rental subsidies for 199 units of supportive housing 

for nonelderly adults with disabilities with extremely 

low incomes. Beyond the 811 PRA program’s statutory 

eligibility requirements, Louisiana’s target populations 

were prioritized in this order: 

1. Persons who are inappropriately institutionalized.

2. Homeless persons. 

3. Persons who are at risk of homelessness (including 

those living in transitional housing for persons who are 

homeless) and persons at risk of institutionalization.

To learn about 811 PRA program implementation, two 

evaluators conducted a site visit in October 2015. 

At the time of the visit, six residents resided in three 

developments in northern Louisiana. At the close of 2015, 

Louisiana had 34 units under a RAC; 9 units were vacant, 

18 were unavailable (waiting on turnover), and 7 were 

occupied with 811 PRA residents.

Grantee Partnership, Organizational 

Structure, and Management

Background

Since 2005, Louisiana has been deeply affected by 

several severe storms. Hurricanes Katrina and Rita 

devastated the Gulf Coast region, displacing more than a 

million people. Hurricane Katrina damaged approximately 

one million housing units, including 500,000 units in 

Louisiana (Sorrells, 2015). A month after Hurricanes 

Katrina and Rita, more than 600,000 people in the Gulf 

Coast region were without stable housing (Plyer, 2015). 

The aftermath of these storms left many people homeless 

or at risk of homelessness. 

To meet the displaced and homeless population’s 

housing needs, Louisiana developed the Permanent 

Supportive Housing program. The program provides a 

stable housing environment in an integrated, communitybased setting for individuals and families with disabilities 

who have supportive service needs. Since 2007, the 

PSH program has assisted individuals with severe and 

complex disabilities, providing affordable rental housing 

(through rental subsidies) with voluntary, flexible, and 

individualized services.

Originally, the PSH program targeted Louisiana’s 

neediest area, the Gulf region (called the Gulf 

Opportunity, or GO Zone). The GO Zone PSH program 

is part of Louisiana’s larger Road Home Program, a 

far-reaching initiative that rebuilds housing in Louisiana, 

making it safer and more resistant to flooding and 

hurricane damage.

Although not directly hit by the hurricanes, the storms 

affected other state areas. Such extreme weather 

has exacerbated the preexisting housing affordability 

crisis across the state, disproportionately affecting 

persons with disabilities. In the other state areas, the 

indigent population with high service support needs has 

increased. Due to these factors, Louisiana wanted to 

expand its PSH program outside the GO Zone. When the 

opportunity arose to apply for 811 PRA program funds, 

LHC and LDH saw an opportunity to expand and target 

the PSH program into these areas. Thus, Louisiana’s 811 

PRA program targets eligible households in the northern 

and central areas of the state. The 811 PRA program has 

become an important resource for expanding the PSH 

program statewide.

The 811 PRA program is a component of the PSH 

program due to the similarity of mission, the populations 

served, and the type of services provided. Although 

the 811 PRA program is a PSH program component, 

this report, to enhance clarity will refer to the 811 PRA 

program specifically unless information applies to the 

overall PSH program. 

Partnerships and Organizational Structure

LHC is the 811 PRA program grantee. The Louisiana 

Housing Authority (LHA), a department under LHC, 

administers the 811 PRA program. Since 2007, LHA 

and LDH have worked closely together to develop 

and manage the PSH program. Their long history of 

collaboration in developing and implementing supportive 

rental housing for persons with disabilities provided the 

experience and background needed to apply for and 

administer the 811 PRA program. Administered by LHA 

and LDH, the PSH program is composed of several state 

and HUD-funded programs. Two examples are the 2,000-

unit Project-Based Voucher program and the 1,000-
Case Studies – HUD Section 811 PRA Program

28

unit shelter-plus-care component of the PSH program. 

Given the partners experience administering these rental 

assistance and service programs, LHA and LDH wanted 

to expand the PSH program structure and processes to 

the 811 PRA program. 

LHA and LDH are responsible for the daily management 

of the 811 PRA program; the Executive Management 

Council oversees the program. Joint responsibilities 

include dispute resolution, data collection, program 

evaluation, Executive Management Council participation, 

and ongoing communication. Individual agency 

responsibilities are described in the following sections. 

The delineation of responsibilities between LHA and LDH 

has not changed since the 811 PRA funds were awarded.

Louisiana Housing Corporation and Louisiana 

Housing Authority. Created in 2011, the LHC 

consolidates the state’s funding sources and affordable 

housing programs. It also provides a coordinated 

approach to the state’s housing policy to ensure an 

adequate supply of affordable and accessible housing 

for all state residents. LHC allocates federal LIHTC and 

oversees the HOME Investment Partnerships Program, 

Louisiana Housing Trust Fund, and other housing 

development programs. LHC is also a Project-Based 

Contract Administrator, overseeing 172 contracts with 

14,447 units. 

LHA administers the PSH program, which includes 

managing the 811 PRA program. Managing the 811 

PRA program includes identifying eligible properties, 

reviewing property owners’ applications for 811 PRA 

funding, underwriting and awarding 811 PRA funds, 

developing and executing RACs between LHA and 

property owners, and ensuring 811 PRA program 

compliance. LHA has oversight over all properties 

selected for the 811 PRA program.

Department of Health and Hospitals. LDH is 

responsible for assessing or establishing the population 

targeting policy; providing local infrastructure for 

outreach, referral, and supportive service delivery; and 

sustainability planning for services linked to 811 PRAPSH units. LDH is also responsible for:

• Outreach to potential 811 PRA program participants.

• Referral of individuals to the 811 PRA program.

• Connection of program participants to services. 

• Participation in property selection.

• Oversight and monitoring of LDH agencies and 

service provider agencies. 

Executive Management Council. The LDH deputy 

secretary chairs the Executive Management Council. 

Council members include the assistant secretaries for 

several LDH program offices. These program offices 

include the Office for Citizens with Developmental 

Disabilities, Office of Behavioral Health, Office of Aging 

and Adult Services, Office of Public Health, Bureau of 

Health Services Financing (Medicaid), Bureau’s MFP 

director, and LHA executive director. LDH provides 

staff to the Executive Management Council who assist 

with performing organizational duties. The Executive 

Management Council governs the 811 PRA program, 

including making decisions about the target population, 

program eligibility, program expansion, contracts, and 

budgets. It also reviews progress reports and program 

performance. Committee members meet monthly and 

more frequently as needed. 

Program Financial Structure

Of the $8,489,928 in 811 PRA funds awarded to 

Louisiana, $7,861,045 is designated for rental assistance. 

The remaining $628,883, or 8 percent of the rental 

assistance amount, is intended to cover administrative 

costs. All 811 PRA administrative funds have been 

allocated to LHA, because it must administer the RACs 

during the life of the grant requirements. 

In Louisiana’s 811 PRA program application, LHA 

expected to have one full-time staff person, the LHA 

executive director, managing the program through the 

startup phase. In addition to the executive director, a 

housing finance specialist or program specialist has 

assisted with program administration. The LHA chief 

financial officer and other LHC staff are responsible for 

administering TRACS and the Line of Credit Control 

System (LOCCS). In addition, LHC contracts with a 

housing specialist who identifies units for the 811 PRA and 

PSH programs. The actual amount of LHC staff time to 

implement the program far exceeds what was expected. 

The fact that the 811 PRA program involves expanding 

the PSH GO Zone program into a broader service areas 

drives up staff time. LHC staff time is paid through 811 

PRA administrative fees.

LDH originally expected the LDH PSH program director 

and the MFP project director to dedicate 15 percent of 

their time to the 811 PRA program, and the assistant 

secretary for the Office of Behavioral Health to dedicate 

5 percent. In addition to the three LDH staff assigned 

to assist with 811 PRA program management and 

implementation, LDH has a project coordinator who 

manages daily administrative and programmatic tasks. 

Chapter 3. Louisiana Section 811 Project Rental Assistance Program
Case Studies – HUD Section 811 PRA Program

29

State Context: Housing Programs

Housing Policy

Many factors influence the State of Louisiana’s housing 

policies, including the effects of several damaging 

storms, including Hurricanes Katrina and Rita. These 

storms reduced available housing and resulted in 

increases in displaced persons and homelessness. 

Thus, Louisiana strived to meet the needs of its affected 

residents by providing community-based housing with 

long-term supports, especially to the most vulnerable 

population, extremely low-income homeless individuals 

with disabilities. As part of these efforts, Louisiana’s 

PSH program provides an affordable rental housing 

resource that assists homeless persons with disabilities 

and those at-risk of homelessness. In 2014, Louisiana 

created its comprehensive plan to end homelessness. 

The plan, Ma Maison, which means “my home,” outlines 

statewide policy priorities for ending homelessness. The 

priorities are— 

1. To end chronic homelessness by 2016.

2. To prevent and end homelessness among veterans 

by 2015.

3. To prevent and end homelessness for families, youth, 

and children by 2020. 

4. To set a path to ending all types of homelessness 

(Sweazy, 2014). 

In addition, New Orleans participates in the Dedicating 

Opportunities to End Homelessness Initiative, along with 

10 other U.S. communities with critical homeless rates. 

The Louisiana Housing Corporation 811 PRA program 

operates in concert with the Dedicating Opportunities to 

End Homelessness Initiative, a part of the state’s longterm approach to eradicate and prevent homelessness.

The state’s approach to eradicating and preventing 

homelessness includes providing a continuum of housing 

programs and services. The Louisiana Balance of State 

Continuum of Care (BoS CoC) program is the state’s 

housing and services organization covering rural areas 

of the state not covered by a parish or city. BoS CoC 

provides funding for efforts to quickly rehouse homeless 

individuals and families and for efforts by nonprofit 

providers to decrease homelessness. BoS CoC services 

include outreach, intake, assessment, emergency shelter 

services, and PSH for people with disabilities. 

In addition to its goal of eradicating homelessness, 

Louisiana provides alternative, community-based housing 

options for inappropriately institutionalized persons 

with disabilities. The Supreme Court’s 1999 decision in 

Olmstead v. L.C. to enable people with disabilities to live in 

the least restrictive settings possible that meet their needs 

and preference was the legal basis for the Barthelemy v. 

Louisiana Department of Health Hospitals class action 

lawsuit (referred to as “Barthelemy”) filed in 2000 by 

Louisiana’s Protection and Advocacy System. The suit 

against LDH was filed on behalf of individuals living in 

nursing homes or at imminent risk of being placed in one. 

The lawsuit aims to increase the options for communitybased services and ensure that all individuals are informed 

of their housing and service options.

Existing Programs

After Hurricanes Katrina and Rita, HUD provided 

Louisiana approximately $25.9 million in disaster 

recovery funds for operating assistance, bridge rental 

assistance, and technical assistance, along with $72 

million in supportive services grants. HUD Disaster Funds 

are expected to end in early 2018, and most funding for 

services is now reimbursed by Medicaid. Since 2007, the 

PSH program has housed more than 2,300 of the most 

vulnerable individuals with disabilities (TAC, 2012). 

LHC’s Qualified Allocation Plan provides points to LIHTC 

applications when those responsible for operating the 

tax-accredited projects agree to participate in the PSH 

program by allocating 5 to 10 percent of the project’s 

units to PSH-eligible applicants. In the 2017 QAP, LHC 

plans to indicate that extra points will be awarded to 

those projects allocating up to 25 percent of the total 

units to the 811 PRA program. In addition to LIHTC, LHCLHA administers several other local, state, and federal 

housing programs with the following outcomes:

• Between 2007 and 2012, it allocated $75 million in 

HOME funds to develop 125 affordable housing units.

• The one-time, $34 million allocation in Neighborhood 

Stabilization funds developed 328 units of affordable 

housing.

• The Louisiana Housing Trust Fund 2007 allocation of 

$25 million developed 148 homeownerships and 174 

rental units. 

Table 3.1 provides an overview of the other federal 

housing programs administered in Louisiana. An 

examination of the information in table 3.1 indicates that 

these programs serve a significant number of nonelderly 

disabled households.

Between 1997 and 2009, Louisiana Housing Authorities 

received 650 Non-Elderly Disabled Category 1 HCVs 

(HUD, n.d.). NED Vouchers are available to those in 

eligible nonelderly households with disabilities that want 

to live in a community setting, regardless of whether they 

move from institutional settings. Supportive services are 

also provided to NED tenants.

Chapter 3. Louisiana Section 811 Project Rental Assistance Program
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

30

Table 3.1: Louisiana Federal Housing Programs

Federal Program Units Available

Number of Household 

Members

Percent Extremely 

Low Income

Percent With 

Disabilities Among 

Head, Spouse Aged <62 

Percent All Persons 

With Disabilities

Public Housing 19,872 41,921 66 27 19

Housing Choice Vouchers 55,664 12,1562 68 30 20

Moderate Rehabilitation 112 464 86 23 15

Project-Based Section 8 15,507 26,343 75 28 15

811/PRAC 959 973 80 97 94

PRAC = Project Rental Assistance Contract.

Source: HUD (2016)

Rental Housing Market

Renter households comprise 36 percent of all Louisiana 

households, and 23.5 percent of all renter households 

are extremely low income (National Low Income Housing 

Coalition, 2016a). The rental markets in New Orleans and 

along the Gulf are under intense pressure due to a loss of 

rental housing from the severe storms and high demand, 

which in turn puts pressure on other rental markets in the 

state. New Orleans is the sixth worst city in the United States 

for renters; with a 9-percent hike in rents and a 1.5-percent 

decline in income since 2009 (Woodward, 2015). The rental 

housing market in northern Louisiana, part of the 811 PRA 

target area, is soft but has tightened since the beginning of 

2012. Its estimated overall vacancy rate is 7.7 percent, which 

is lower than the overall state vacancy rate. 

Rental housing affordability is a serious concern in 

Louisiana. A household paying more than 30 percent 

of its household income for rent is considered cost 

burdened. In Louisiana, 53 percent of renter households 

are cost burdened (Sorrells, 2015). The affordability 

crisis is more severe for extremely low-income 

households, such as those served by the 811 PRA 

program. In January 2016, the National Low-Income 

Housing Coalition reported that nearly three out of 

four extremely low-income households were “severely 

cost burdened,” paying more than 50 percent of their 

income on rent (NLIHC, 2016b). The Coalition further 

reported a shortage of 107,438 units for extremely lowincome households in Louisiana and that, for every 100 

extremely low-income renter households, only 35 units 

are both affordable and available (NLIHC, 2016a). These 

data make clear the need for 811 PRA rental subsidies 

for extremely low-income households that have persons 

with disabilities.

Service Provision and Healthcare

Policy

Historically, Louisiana’s long-term care has been largely 

institutional. In the early 1990s, Louisiana had one of the 

highest numbers of nursing homes and nursing home 

residents per capita in the United States (Louisiana 

Department of Health and Hospitals, 2013). In 2000, the 

state began the process of “rebalancing” by increasing 

spending on home- and community-based supports 

and services (Louisiana Department of Health and 

Hospitals, 2013). Louisiana’s service and healthcare 

policy is outlined in the state’s 2007 Plan for Choice in 

Long-Term Care (Plan for Choice) (Louisiana Department 

of Health and Hospitals, 2007). This plan details how the 

state intends to reform how long-term care services are 

delivered.

Recent Changes Supporting Community Living

Recent changes in programs have supported Louisiana’s 

policy shift toward integrated community living through 

the provision of Medicaid-funded home- and communitybased services. Medicaid data examination illustrates 

these spending and funding changes. Between 2008 

and 2014, total Medicaid spending increased from 

about $6.1 billion to nearly $7.4 billion statewide, a 

20.5-percent increase (Eiken et al., 2015; KFF, 2017). 

Funding for overall LTSS increased from approximately 

$2 billion in 2008 to $2.4 billion in 2013 (Eiken et al., 

2015). Home- and community-based services, as a 

portion of LTSS, increased from 34 percent of LTSS in 

2008 to 39.5 percent in 2013. The percentage allocated 

to HCBS, however, is significantly below the 51.3-percent 

national average (Eiken et al., 2015). Institutional funding 

decreased as a proportion of LTSS from nearly 66 percent 

in 2008 to 60.5 percent in 2013. 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

31

Expansion of Medicaid 1915(c) HCBS Waivers

This policy shift away from institutionalization and 

toward integrated community living is evidenced by 

LDH’s expanded services. With approval from the 

Centers for Medicare and Medicaid Services (CMS), 

LDH’s expanded its services in its Medicaid 1915(i) 

Plan for mental health, and its offerings through the 

1915(b) Waiver. Most importantly for 811 PRA, LDH was 

granted approval for the expansion of five 1915(c) Homeand Community-Based Waiver amendments. These 

approvals resulted in increased services available to 811 

PRA program participants. 

The following list provides short descriptions of the 

1915(c) waivers that LDH uses to provide support 

services to 811 PRA program participants. For a more 

detailed description of these services, please see the 

section titled Service Provision (Types, Transition Versus 

Ongoing, by Target Population, Gaps.

• Residential Options Waiver. This waiver provides 

a comprehensive set of ongoing and transitional 

services for individuals with intellectual disabilities, 

autism, and developmental disabilities. The Residential 

Options Waiver covers services that include day 

habilitation, respite care, assistive technology or 

specialized medical equipment and supplies, dental 

care, supports for community living, environmental 

accessibility adaptations as well as transportation and 

transition supports.

• Community Choices Waiver. Community Choices 

provides a comprehensive set of services for 

individuals with physical disabilities ages 21–64. 

This waiver provides services that include caregiver 

temporary support, assistive technology or 

specialized medical equipment and supplies, home 

delivered meals, housing stabilization, monitored 

inhome caregiving, environmental accessibility 

adaptations as well as nonmedical transportation and 

housing transition supports.

• Supports Waiver. This waiver provides day 

habilitation, prevocational services, respite, 

support coordination, supported employment, 

housing stabilization service, and housing 

stabilization transition for individuals with 

intellectual disabilities, autism, and developmental 

disabilities ages 18 and older.

• New Opportunities Waiver. New Opportunities 

provides services to individuals with autism, 

intellectual disabilities ages 3 and older. Services 

include center-based respite, employment related 

training, supported living, skilled nursing, adult 

companion care, community integration and 

development, housing stabilization transition, and 

individual and family support.

Olmstead Plans, Settlements, Consent 

Decrees

As discussed previously in the Housing section, the 

landmark Olmstead decision was the legal basis for the 

Barthelemy lawsuit. Barthelemy was settled in 2009, 

several years before the 811 PRA program. By the terms 

of the agreement, Louisiana increased its expenditures 

on HCBS by $118M from 2009 through 2013. 

Although not part of the settlement agreement, the 

811 PRA program does play a role in helping Louisiana 

accomplish its rebalancing efforts by providing rental 

subsidies to 811 PRA program-eligible individuals to 

support their community living. Moreover, 811 PRA is 

completely in line with the state’s vision for long-term 

care reform as outlined in the state’s Plan for Choice. As 

noted in the proceeding section, the Louisiana 811 PRA 

program has three priority populations, two of which 

relate to institution related populations—those who are 

inappropriately institutionalized and those who are at-risk 

of institutionalization.

Population Served

To be eligible for the 811 PRA program, individuals are 

required to meet the following 811 PRA program and 

local state requirements: (1) have a household member 

with a disability and be receiving Medicaid services or 

other funded services; (2) need housing supports offered 

by the 811 PRA program; (3) be extremely low income 

(which means total annual household income cannot 

exceed 30 percent of the AMI); and (4) be between the 

ages of 18 and 61 at time of admission. 

Louisiana has further prioritized the populations it will 

serve through the 811 PRA program. Persons who are (1) 

inappropriately institutionalized; (2) homeless persons; 

or (3) at risk of institutionalization or homelessness 

(including those persons living in transitional housing or 

those who are homeless).

The 811 PRA quarterly report of 2015, the first year 

of program implementation, indicates that of the 207 

households referred to the 811 PRA program, 50 percent 

met the criteria of being at risk of homelessness and 

16.4 percent met the definition of being homeless. 

Only 5.8 percent of 811 PRA program applicants 

were institutionalized and 9.7 percent were at risk of 

institutionalization. Because the 811 PRA program 

application is available to the public via LDH’s website 

and many applications are submitted prior to screening 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

32

for eligibility, 37 percent of the households had no 

designated target population. Finally, the data showed 

that 28 percent of applicants were categorized with 

a physical disability, 47 percent with a mental health 

disability, and 25 percent with an intellectual or 

developmental disability. 

Outreach, Referral, and Application

Outreach, Referral, and Application Methods

The outreach, referral, and application process is 

centralized and managed by LDH’s PSH program unit. 

Serving the 811 PRA program, this PSH unit has an 

Outreach Implementation Team. Composed of staff 

from the Office of Behavioral Health, Office of Aging and 

Adult Services, Office for Citizens with Developmental 

Disabilities, Office of Public Health, Medicaid, and 

the Money Follows the Person program coordinator, 

Outreach Implementation Team oversees both state and 

local outreach efforts. This team ensures that program 

directors are aware of the program eligibility criteria and 

available housing units. 

Regional efforts include—

• Identifying appropriate regional agency 

representatives of the various target populations. 

• Establishing regional stakeholder teams 

representative of the various populations.

• Providing initial and ongoing briefing for regional 

stakeholder teams. 

State and regional teams also utilize CoC participants, 

advocates, and other stakeholder groups who work 

with individuals who have difficulty acquiring services. 

The PSH Unit monitors outreach efforts and eligible 

applicants on the waiting list.

However, because the 811 PRA program application is 

publicly available on the LDH website, some applications 

come into the 811 PRA program prior to screening for 

eligibility. As soon as an application is received, Medicaid 

eligibility is determined. Once eligibility for one or 

more of the services has been determined, LDH refers 

individuals who meet the PSH requirements for the 811 

PRA program based on the referral protocol established 

by LHA. 

Within the eligible target populations, referrals are 

prioritized per the target population priorities previously 

listed in the section titled Comparison of Target 

Populations: Planned Versus Actual. LDH maintains the 

database in the Yardi Voyager, or Yardi, system to track 

each applicant throughout the housing eligibility and 

selection process. Once determined eligible for the 811 

PRA program, the participant is placed on the waiting 

list for a residential unit. The waiting list is organized by 

parish and referrals to units are tracked by parish.

Target Population Eligibility

As noted previously, by the end of 2015, the 811 PRA 

quarterly report showed that 207 households had been 

referred to the 811 PRA program. Of these households, 

more than 50 percent (104 households) met the state’s 

priority for being at risk of homelessness and 107 

households had a member with a mental health disability. 

However, of the 207 referrals, 121 were found ineligible 

for the 811 PRA program with the large majority ineligible 

because they were not eligible for services. 

Implications of Outreach, Referral, and 

Application Methods on Individuals Referred 

and Placed

Because the outreach, program application and eligibility 

determination, unit referrals, and waiting list management 

are centralized, 811 PRA program staff can coordinate 

811 PRA program efforts efficiently. In contrast, LHA and 

LDH administered the PSH program using a decentralized 

system previously that had many inherent flaws. 

Varying agency staffing levels, capacities, and program 

commitments made the former PSH program intake and 

eligibility process difficult both to manage and to achieve 

overall consistency. Having a centralized process for the 

811 PRA program, from outreach through unit referral, 

has resulted in an overall systemic improvement, per LHA 

staff. Therefore, once the 811 PRA program is up and 

fully operational, the unit occupancy process should be 

smoother and more efficient than in the past.

Housing Strategies

Property and Unit Characteristics

As of October 2015, Louisiana had two RACs and eight 

811 PRA program units; six units were unavailable. As 

of the end of 2015, 34 units were under RAC, 2 of which 

were accessible to persons with mobility impairments, 

and 32 units were not accessible. Of the 34 units, 18 

were one-bedroom units, the unit size that most 811 PRA 

program applicants need. In addition, 14 two-bedroom 

and 2 three-bedroom units existed under RAC. 

Property Selection Methods and Financing

PSH and 811 PRA units are identified and funded as part of 

the state’s LIHTC selection process. LHC utilizes the state’s 

QAP to award additional points to developers that integrate 

PSH units into their developments. As of the end of 2015, 

of the 34 units under RAC in the 811 PRA program, all the 

units were financed with LIHTCs, HOME funds, or both.
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

33

At the time of applying to the 811 PRA program, LHA 

expected that 811 PRA units would come from those 

“existing (already built)” and “new (under construction 

or to be built)” units awarded LIHTCs during the 2011 

and 2013 funding rounds. Further, it was thought that 

developers who had a positive experience developing 

properties under the PSH program in the GO Zone would 

want to participate in the new areas. LHA expected 

developers who had not exhausted their 25 percent setaside to participate in the 811 PRA program. 

LHA anticipated that it could meet its 811 PRA unit goals 

quickly by placing identified properties under RAC from 

its 2011–2013 LIHTC and HOME inventories. However, the 

long delay in HUD’s program implementation significantly 

affected Louisiana’s 811 PRA production because several 

of the projects were already fully rented by the time the 

grantee received its Cooperative Agreement. Furthermore, 

LHA realized that it had underestimated the time it would 

take to educate and form relationships with the developer 

community in new regions. Obtaining developments 

for the 811 PRA program proved to be far more timeconsuming than LHA had anticipated. Also, at first, LHA 

found that fewer properties than anticipated were available 

that met program requirements. 

LHA now thinks that it has a good pipeline of units and 

can meet its program commitment by 2017. It is making 

some changes to its QAP too, which will increase 811 

PRA units. By increasing the points awarded for 811 PRA 

participation from 5 to 10 percent, and eventually from 10 

to 25 percent (the allowable maximum) in its 2017 or 2018 

QAP, LHA expects to increase the pool of potential 811 

PRA and PSH units more quickly.

Property Selection Process

The QAP requires developers pursuing PSH points to 

request a letter of support for their project from the 

Executive Management Council. When a request is 

received, the council and its staff meet to assess the 

bedroom size(s, amenities, accessibility, and geographic 

location of the proposed units. LDH then designates 

staff to conduct a site visit to the proposed property 

to assess the surrounding environment and proximity 

to public transportation. The Executive Management 

Council utilizes the information to determine whether to 

support the project for the 811 PRA program. LHC does 

not support the selection of projects that LDH determines 

cannot be reasonably occupied by the 811 PRA program 

target population. The Executive Management Council 

makes the final decision about which properties are 

selected for the 811 PRA program after LHC decides 

which projects will receive LIHTCs.

Once a project is selected, a RAC is negotiated and 

executed between the LHA and the property owner 

of the units. When the property is ready for program 

participation, a RAC will be executed. The RAC initial term 

is 20 years plus renewals. The RAC contains a 30-year use 

agreement that requires units continue to serve extremely 

low-income individuals with disabilities. 811 PRA 

properties receive local FMR for the 811 PRA units and are 

ensured housing vacancy payments for up to 60 days at 

80 percent of the total monthly rent. Property owners or 

managers are informed that 811 PRA program participants 

are eligible to receive (1) financial assistance to pay the 

utility and security deposits and (2) supportive services 

and guidance from case managers. One of the housing or 

service providers certified under the PSH program assigns 

these case managers.

Implementation Schedule

In October 2015, the properties in table 3.2 were either 

under a RAC or had an application in process. 

Per its Cooperative Agreement, Louisiana had initially 

expected that it would have 24 units under RACs in 2014 

with an additional 75 in 2015. With 34 units under RACs at 

the end of 2015, Louisiana had not achieved its goals but 

has many properties in the pipeline. As of the beginning 

of 2016, Louisiana expected to have more than 130 units 

under RACs by the end of the year.

Rent and Subsidy Levels

Louisiana projected that the first 100 units available 

would be covered by five different FMRs. The state also 

expected to set initial rents to owners based on the 2012 

FMRs, increased annually by 2.4 percent in accordance 

with Louisiana’s Operating Cost Adjustment Factor. In the 

application for the 811 PRA program, Louisiana projected 

that the average contract rent for year one would be $795, 

with an average monthly rental assistance payment of 

$673. The final budget signed for the 2012 Louisiana 811 

PRA program differs slightly from the application amounts. 

The budget establishes an average contract rent of $813 

per unit per month, with $597 coming from 811 PRA 

program rental assistance and $216 from the tenant.

Unit Offers and Tenant Turnover

Once deemed eligible for Medicaid and the 811 PRA 

program, an individual is placed on a waiting list. At the 

end of 2015, Louisiana had 72 households on the 811 

PRA waiting list. When a unit becomes available, three 

individuals on the waiting list are offered the opportunity to 

view the unit. During 2015, 39 811 PRA-eligible participants 

were referred to units and seven units were occupied. 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

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Table 3.2: Properties Under RAC or Application in Process

Property Parish and City Number of 811 PRA Units Initial and Expected Occupancy Date

Austin Village Morehouse 2 2016, 2017

Cypress Landing Caddo, Shreveport 31 2015

Embassy House Apartments Caddo, Shreveport 3 2016, 2017

Fairmont Towers Caddo, Shreveports 60 2016, 2017

Renaissance at Allendale Caddo, Shreveport 2 2015

Sycamore Oachita, Monroe 3 2016, 2017

Villages at Eagle Point Bossier, Bossier City 1 2016, 2017

PRA = Project Rental Assistance. RAC = Rental Assistance Contract.

Source: Louisiana Housing Authority, Internal Report.

Application for a unit occurs at the property. Eligibility 

for a unit is determined by housing development’s owner 

or property manager. Property managers establish their 

own tenant selection plan, which includes admission 

criteria. These criteria, however, must conform to 811 

PRA program eligibility criteria and with Louisiana’s 

Housing First housing policy. The Housing First 

approach provides, without prerequisites, immediate 

access to PSH to individuals and families experiencing 

homelessness. Formerly institutionalized or homeless 

persons move directly into permanent housing units with 

no requirement that they first agree to support services 

or achieve a certain level of self-sufficiency. Intensive 

voluntary support services are offered to the program 

participant, aimed at helping the person maintain health 

and tenancy. A property owner or manager cannot reject 

a potential resident based on the resident not having 

supportive services.

As of October 2015, no 811 PRA units had turned over.

Service Provision and Coordination

Service Models

LDH ensures services are available to assist the target 

populations with community living and for helping 

program participants comply with the rental lease for 

the 811 PRA program unit. To be eligible for an 811 PRA 

program unit, applicants must have access, at the time of 

admission, to one or more of the following. 

1. Services for individuals with a disabling chronic health 

condition, physical, cognitive, or sensory disability 

who meet requirements for services provided or 

funded by the Office of Aging and Adult Services.

2. Services for individuals with a developmental 

disability who meet requirements for services 

provided by the Office for Citizens with 

Developmental Disabilities.

3. Services provided by the Office of Behavioral Health 

for individuals with a serious mental illness including 

those with co-occurring disorders.

4. Services for individuals with a chronic health 

condition, physical, sensory, or cognitive disability 

whose conditions meet the requirements of “in need 

of PSH” but do not meet the threshold requirements 

for long-term care services provided by the Office 

of Aging and Adult Services and whose disabling 

condition emerged after the age of 22. 

These populations are the highest priority for LDH and 

its agencies. Although eligibility for one or more of the 

services is required, program participants have the right 

to refuse services; service participation of individuals 

residing in 811 PRA program units is voluntary.

Coordination of Services and Housing

LDH coordinates services and housing. The 811 PRA 

project coordinator acts as the 811 PRA-PSH tenant 

service manager and is the primary point of contact 

between LDH and property owners and managers. The 

coordinator communicates with property managers and 

tracks program participants from referral to a housing unit 

through move-in and residency. Further, the coordinator 

works to foster good relationships between property 

managers, program participants, and service providers. In 

the event of a dispute between a program participant and 

a property manager, the coordinator manages the initial 

steps in the resolution process. Lastly, the coordinator 

conducts site visits, provides feedback, and makes 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

35

recommendations to the 811 PRA management team on 

ways to improve program administration and coordination. 

To ensure that 811 PRA program applicants can 

successfully move into 811 PRA program units, LHA 

has committed $1.25 million in HOME Tenant-Based 

Rental Assistance during the initial 5-year 811 PRA 

grant period. The funds will provide security and 

utility deposit assistance to program participants who 

require additional assistance to secure an 811 PRA 

program unit. 

Service Provision (Types, Transition Versus 

Ongoing, by Target Population, Gaps)

LDH administers Medicaid for the State of Louisiana. 

Louisiana 811 PRA program participants have access to 

both the traditional Medicaid HCBS [1915(c) waivers] and 

Louisiana’s Medicaid State Plan services. LDH operates 

the HCBS waivers listed in table 3.3, which has a detailed 

listing of the services available under each waiver. CMS 

approved LDH’s five 1915(c) Home- and CommunityBased Waiver amendments. These approvals resulted in 

increased services to program participants.

Support services are provided by agencies certified by 

LDH and fall into four categories: (1) HCBS targeted for 

individuals with chronic or physical health disabilities 

who meet the threshold for long-term care; (2) HCBS 

targeted primarily for individuals with developmental 

disabilities; (3) community-based behavioral health 

services; and (4) services coordination for individuals 

with long-term chronic health conditions or physical 

disabilities who need continuous and long-term support 

but do not yet meet the threshold for long-term care 

services.

In addition to HCBS, LDH also provides the Louisiana 

Medicaid State Plan services, such as Community 

Psychiatric Support and Treatment (CPST) and 

psychosocial rehabilitation. CPST are goal-oriented 

supports and solution-focused interventions. These 

services are intended to achieve goals or objectives 

identified in the person’s individualized treatment plan. 

CPST provides community and home-based case 

management services and access to behavioral health and 

medical supports, and illness management skills training. 

Table 3.3: Louisiana 1915(c) HCBS Waivers

1915(c) Waivers Summary

Residential Options Waiver 

Provides day habilitation, prevocational, home respite care, shared living services, support coordination, supported employment, assistive technology or specialized medical equipment and supplies, 

dental, community living supports, companion care, environmental accessibility adaptations, host 

home, nursing, one-time transitional services, PERS, professional services, transportation and 

community access for individuals with developmental disabilities. 

Community Choices Waiver

Provides adult day health care, caregiver temporary support, support coordination, assistive 

devices and medical supplies (assistive technology), environmental accessibility adaptation, home 

delivered meals, housing stabilization, housing transition or crisis intervention, monitored inhome 

caregiving, nonmedical transportation, nursing, personal assistance services, skilled maintenance 

therapy, transition intensive support coordination, and transition services individuals with physical 

disabilities ages 21–64.

Supports Waiver 

Provides day habilitation, habilitation, prevocational services, respite, support coordination, 

supported employment, housing stabilization service, housing stabilization transition, PERS for 

individuals with developmental disabilities ages 18 and older.

New Opportunities Waiver

Provides center-based respite, day habilitation, employment related training, supported employment, supported living, skilled nursing, specialized medical equipment and supplies, adult companion care, community integration and development, environmental accessibility adaptations, housing 

stabilization, housing stabilization transition, individual and family support, one-time transitional, 

PERS, professional services, remote assistance, substitute family care for individuals with developmental disabilities ages 3 and older.

Coordinated System of Care

Provides crisis stabilization, independent living and skills building, parent support and training, 

short-term respite, youth support and training for individuals with serious emotional disturbances 

ages 0–17 and individuals with mental illness ages 18–21.

HCBS = home- and community-based services. PERS = Personal Emergency Response Systems.
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

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Psychosocial rehabilitation services assist individuals 

with mental illness by providing them with support 

services that mitigate functional deficits and 

interpersonal or environmental barriers associated with 

mental illness. Activities are designed to meet the goals 

outlined in each person’s individualized treatment plan. 

The psychosocial rehabilitation intent is to restore the 

fullest possible integration of individuals as active and 

productive members of his or her family, community, or 

culture with the least amount of ongoing professional 

intervention.

Pretenancy services (known as transitional services 

in other states) are available to all 811 PRA and PSH 

program participants, regardless of the type of waiver 

under which they receive services. Participation in 

services voluntary and services are available from prior 

to move-in through occupancy, if needed and desired. 

The types of service provisions vary based on each 

individual’s need and Medicaid eligibility. LDH certified 

agencies receive financial support from other sources 

and offer additional transitional services on top of the 

pretenancy services provided by Medicaid waivers. 

However, the availability and depth of coverage of these 

additional resources vary greatly from one provider to 

another.

2013 811 PRA Application

Louisiana decided not to pursue additional 811 PRA 

program assistance in the 2013–2014 funding round. The 

state wanted to fully implement its 2012 program first. 

LHA confirmed that it approved that decision, because 

program implementation has been challenging.

Leveraging

To provide rental assistance to extremely low-income 

individuals with disabilities, LHA secured 125 housing 

choice vouchers from three local housing authorities—

Calcasieu, East Baton Rouge, and Shreveport. No 

vouchers have been leveraged yet. LHC is working 

on Memorandums of Understanding (s) with the three 

housing authorities.

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

LHA conducts daily program administration. Biweekly, 

LHA and LDH meet to discuss 811 PRA program 

implementation. In addition, LHA and LDH hold biweekly 

calls with interested stakeholders. 

By exchanging emails daily with LDH PSH staff and 

participating in monthly meetings with the Executive 

Management Council, LHA assesses program progress 

that is reported to HUD. Using TRACS and the LOCCS, 

LHA accepts, processes, and makes payment to 

property owners or managers in the 811 PRA program. 

As mentioned in the Outreach, Referral, and Application 

Methods section, 811 PRA program staff use Yardi to 

track each 811 PRA program applicant through the 

housing referral, selection, and placement process. 

Some LDH staff members stated that Yardi is difficult 

to navigate and some methods are cumbersome. Staff 

reported maintaining their own spreadsheets to track 

program participants. Yardi is also the financial system 

used to generate payments to owners in the PSH 

program. Owners are required to utilize Electronic Funds 

Transfer to receive payment.

Successes and Challenges

Building from the design, organizational structure, 

and management of the GO Zone PSH program, 

LHA and LDH have extensive experience starting up 

and implementing a supportive housing program. 

Nonetheless, 811 PRA program staff and their partners 

expect the startup phase of the program to require a 

significant time and effort to put all program components 

in place. The following sections provide the successes of 

and challenges to program implementation as reported 

by 811 PRA program staff and their partners.

Successes

Program experience and commitment. Despite 

challenges in 811 PRA program implementation, 

Louisiana’s experience in PSH program administration 

gave the state a head start because some program 

components were already developed under the PSH 

program. By the end of 2015, 811 PRA program staff 

thought that they had “finally turned a corner” in program 

implementation and could make much more progress in 

2016. In addition, the 811 PRA program staff are highly 

committed to achieving program success. From the 

most senior staff person to the service providers, all 

stakeholders connected with the 811 PRA program have 

voiced their commitment to “doing whatever it takes.”

811 PRA program staff’s relationship with property 

owners and managers. Both LHA and LDH staff feel 

that their relationship with property owners or managers 

participating in the program is strong. Because staff have 

established and maintained a strong relationship with 

property owners or managers in the program, 811 PRA 

program staff and property managers worked patiently 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

37

through all program implementation aspects, including 

the long delay in the start of the program and in payment 

of security deposits and rent.

Units under RAC and occupied units. Despite some 

initial difficulty obtaining participating properties in the 

target areas of the state, Louisiana has executed three 

Rental Assistance Contracts with a total of 34 units. 

In addition, 7 of those units were occupied at the end 

of 2015. With all 2015 grantee production considered, 

Louisiana was one of only four grantees able to 

house more than one occupant during the first year of 

program implementation. 

Providing gap funding to expedite unit occupancy. 

To ensure that 811 PRA program applicants can 

successfully move into 811 PRA program units, LHC 

committed $1.25 million in HOME Tenant-Based Rental 

Assistance during the initial 5-year 811 PRA grant 

period. This funding will help remove an impediment to 

community-based housing by covering the cost of 811 

PRA tenant security and utility deposits not covered by 

811 PRA or other funds. 

Challenges

Delay in program startup. 811 PRA implementation 

by the grantee was impeded by the delay in HUD’s 

implementation of the 2012 program, including the delay 

in the execution of the Cooperative Agreement. Louisiana 

had identified units for availability in 2013 through 

2014 that it planned to include in its 811 PRA program. 

However, by the time the Cooperative Agreement was 

finally issued, these projects were no longer available. 

Further, these delays affected the grantee’s ability to 

develop a waiting list. The grantee was concerned that 

given the target populations’ vulnerability, applicants 

would have to wait too long for housing assistance.

The amount of time program implementation is 

requiring. Although the 811 PRA program is a part of the 

existing PSH structure, the 811 PRA management team 

had to reengineer processes and structures to meet 811 

PRA requirements and to expand its work into areas 

outside of the GO Zone. 811 PRA program staff greatly 

underestimated the time it would take to implement a 

program with the complexity of the 811 PRA program. 

All stakeholders, from service agency staff to 

developers, have required 811 PRA program training 

because it is a new program, with new guidelines, 

processes, and requirements. Per LHC staff, the 

most challenging procedures and requirements for 

stakeholders to acclimate were related to Medicaid 

waiver billing for service agencies, and payment 

requests in Tenant Rental Assistance Certification 

System by property owners. Thus, the actual amount 

of staff time required to implement the program has 

greatly exceeded what LHA and LDH anticipated in their 

application to the 811 PRA program.

Attracting property owners and developers. 

LHA experienced some difficulty attracting property 

developers and owners to the 811 PRA program. LHA 

reported that it takes multiple interactions to convince 

property owners or managers to become interested 

in applying to the program. LHA staff members have 

strong connections to the development community in 

the northern and central parts of the state because of 

their involvement with other housing programs. Despite 

these well-developed relationships, LHA staff reported 

that the learning curve for the 811 PRA program has been 

surprisingly steep for developers or owners. The time it 

has been taking for (1) program staff to educate property 

owners or managers about the program and (2) property 

owners or managers to apply and be accepted into the 

program has affected the number of units available for 

the program. 

The development community in the northern and central 

parts of the state reported wanting to wait to see how 

the program is being implemented before participating. 

In addition, because of the demand for rental housing, 

property owners and managers can receive higher 

market rate rent for their units than they would receive 

under the 811 PRA program. Despite some initial 

hesitancy, developer participation has increased in 

subsequent QAP funding rounds.

Unit size restrictions and not having enough of the 

housing units that best meet the needs of program 

participants. Most 811 PRA program participants on 

the waiting list for housing need a one-bedroom unit. 

811 PRA program staff reported that finding property 

owners or managers with existing one-bedroom units 

has been difficult. Program management would find it 

very helpful if the program received a waiver to enable 

single-person households to lease two-bedroom units at 

the one-bedroom payment standard. 811 PRA program 

staff also stated that property owners or managers with 

one-bedroom units have been interested in program 

participation. However, they were ineligible, because no 

support services were nearby, as would be the case in 

rural parts of the state. However, it is important to note 

that LHC is changing its QAP to give preference to onebedroom units for the 811 PRA program. This change will 

result in an increase in the unit size needed for the 811 

PRA program as units become available in the future.

Coordinating LIHTC timing to achieve 811 PRA 

occupancy. A concern expressed by LHA was that 
Chapter 3. Louisiana Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

38

significant time is needed to prepare and house 

applicants from the target populations, such as moving 

institutionalized persons to a community rental unit. The 

time required to move an applicant to a communitybased unit does not always coincide with the deadlines 

imposed by Low-Income Housing Tax Credit regulations, 

such as occupancy deadlines. Even the provision of 

vacancy payments does not necessarily solve this 

problem, because investors will accept only actual 

occupancy of the units as meeting the regulatory 

occupancy requirement. A payment in lieu of occupancy 

does not meet initial LIHTC occupancy requirements. 

Such situations can result in a unit being filled by a non811 PRA program tenant, which means that the unit is 

unavailable for an 811 PRA program tenant until vacated 

at turnover.

811 PRA program sustainability. LDH voiced concern 

about the long-term sustainability of the 811 PRA 

program. Before execution of the LDH-OCD Cooperative 

Endeavor Agreement, LDH brought up the sustainability 

issue. The administrative costs of the 811 PRA program 

far exceed the amount provided under the administrative 

portion of the 811 PRA grant. The Louisiana 811 PRA 

program depends heavily on MFP funds for operational 

support. On June 26, 2015, CMS issued guidance on 

coverage of housing-related activities and services 

for individuals with disabilities. It is crucial that LDH 

understands how it can use the provisions of the CMS 

guidance to fill funding gaps on the service side between 

now and until MFP ends and funds are exhausted. 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

39

Maryland Section 

811 Project Rental 

Assistance Program

Introduction

In 2012, HUD awarded the Maryland Department of 

Housing and Community Development (DHCD), in 

partnership with the Maryland Department of Health and 

Mental Hygiene (DHMH) and Maryland Department of 

Disabilities (MDOD), $11,229,308 in Section 811 Project 

Rental Assistance program funds to support 150 units 

with rental assistance. DHCD proposed to make available 

150 units of PSH from existing housing stock, as well as 

units from newly constructed or renovated properties. 

These units will be in the Baltimore and Washington 

metropolitan areas. 

Evaluators conducted a site visit in November 2015 

to learn about Maryland’s 811 PRA implementation 

experiences. At the end of 2015, 13 units were available 

under RAC and 4 units were occupied. 

Grantee Partnership, Organizational 

Structure, and Management

Overview

DHCD is the primary applicant and grantee for 811 

PRA and has partnered with DHMH and MDOD for full 

program implementation and delivery. The division of 

responsibilities is based on areas of functional and 

specialized capabilities. This section begins more 

broadly with an overview of each agency, its role within 

the state, and the relevant programs they administer. 

The section then reviews the specifics of the partnership 

and each agency’s roles and responsibilities for the 811 

PRA program. 

Maryland Department of Housing and 

Community Development

DHCD is the state agency charged with promoting 

homeownership, increasing and preserving affordable 

rental housing, as well as preventing and eliminating 

homelessness in Maryland. DHCD is the state’s housing 

finance agency. DHCD administers affordable housing 

programs throughout Maryland. These programs include 

federal LIHTC, Federal Housing Administration Risk 

Sharing Program, HOME, Community Development 

Block Grant, and HCVs, as well as state-funded housing 

development and rental assistance programs such as 

the Rental Housing Program, and Partnership Rental 

Housing Program (Partnership). DHCD also serves as a 

Performance Based Contract Administration (PBCA) for 

HUD, and is a public housing agency (PHA) operating 

the HCV, formerly Section 8) program primarily in 

Maryland’s rural jurisdictions. 

DHCD operates a wide range of programs to assist 

persons with disabilities. Four of them are (1) 

Homeownership for Individuals with Disabilities Program; 

(2) Individuals with Disabilities and Special Needs (IDSN) 

program; (3) Bridge Subsidy Program; and (4) Harry and 

Jeanette Weinberg Foundation’s Maryland Affordable 

Rental Housing Opportunities for Persons with 

Disabilities Initiative (Weinberg Apartments Initiative). 

Together, these varied programs increase PSH 

opportunities in the community. DHCD incentivizes 

development of affordable rental housing for persons 

with disabilities through the state’s QAP. DHCD also 

finances group homes and the Special Housing 

Opportunities Program, which enables persons with 

disabilities who elect to live in a group living situation. 

Taken together, these DHCD programs have produced 

thousands of units of affordable housing for persons 

with disabilities.

Maryland Department of Health and Mental 

Hygiene

DHMH is the state Medicaid agency. DHMH operates 

the Medicaid program and oversees the Developmental 

Disabilities Administration, Behavioral Health 

Administration,6

 and the MFP Demonstration program. 

DHMH operates nine home- and community-based 

Medicaid waivers, including six that serve adults with 

disabilities as an alternative to institutionalization.

• Community Pathways Waiver.

• Home- and Community-Based Options Waiver.

• Brain Injury Waiver.

• Medical Day Care Waiver.

• Community First Choice. 

• Community Personal Assistance Services. 

These waivers are described in more detail in the section 

6 In July 2014, Mental Hygiene Administration merged with the Maryland Alcohol and Drug Abuse Administration to form the Behavioral Health 

Administration.
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

40

titled Service Provision and Healthcare. Community 

Pathways Waiver, Home- and Community-Based Options 

Waiver, and Brain Injury Waiver are Medicaid-funded 

services. Community First Choice and Community 

Personal Assistance Services are services provided by 

the Maryland State Medicaid Plan. DHMH also provides 

community-based supports to individuals with behavioral 

health disabilities. In 2011, DHMH provided psychiatric 

rehabilitation services to 2,851 individuals and other 

supportive services to 8,686 people.

Maryland’s MFP program has transitioned 1,260 people 

out of institutions to home- and community-based 

settings. MFP has experienced a very low reinstitutional 

rate of less than 6 percent since it began. 

Maryland Department of Disabilities

MDOD’s mandate coordinates the delivery of state 

services to people with disabilities to improve outcomes. 

Established in 2004, MDOD is the first state cabinet 

level department of its kind in the United States. This 

department works to remove barriers for people with 

disabilities and create new opportunities in education, 

employment, transportation, community living and 

housing. MDOD and DHMH have a long history of 

partnership. In addition to the peer outreach and support 

services component of the MFP program, MDOD 

operates several federal grants for DHMH, such as the 

Medicaid Infrastructure Grant.

MDOD initiated the Statewide Taskforce for Affordable 

Housing to take advantage of additional private, publicsector, and federal funding opportunities in 2010. In 2011, 

this effort resulted in DHMH’s successful application for 

the Building Sustainable Partnerships for Housing Real 

Choice Systems Change Grant funded by CMS. MDOD 

co-chaired the Advisory Group for Real Choice Systems 

Change Grant with DHMH. The project was instrumental 

in providing program infrastructure to implement a 

permanent supported housing program such as 811 PRA. 

MDOD also directly manages the Maryland Attendant 

Care Program, the Maryland Technology Assistance 

Program, and the Constituent Service Program, which 

helps people with disabilities navigate the state service 

system and increase their ability to self-advocate.

Partnership

The DHCD, MDOD and DHMH collaboration started in 

2001 as staff from all three agencies worked together 

on the Community Access Steering Committee7 and 

continued on as they participated in the Governor’s 

Commission on Housing Policy. MDOD’s Secretary served 

as Chair of the Commission’s Affordable and Accessible 

Housing for Individuals with Disabilities Subcommittee. 

DHCD, DHMH, and MDOD worked on a few initiatives 

together, including the Real Choice Systems Change 

Grant effort described previously, the Bridge Subsidy 

Program and the Weinberg Apartments Initiative. 

Design and Structure of Maryland’s 811 PRA 

Program

Eligible 811 PRA applicants will lease units within 

properties supported with federal resources, including 

LIHTC, private activity bonds used for multifamily 

development (MF-Bond), Federal Housing Administration 

Risk Sharing Program, and HOME, as well as state 

resources such as Maryland’s own Rental Housing 

Program (RHP), Partnership Rental Housing Program 

(Partnership), and other resources. 

Rental assistance is provided to individuals with 

disabilities who are making or are ready to make the 

transition to integrated housing arrangements. 811 

PRA provides this population access to housing units 

that may have been previously out of reach. Individuals 

in the 811 PRA program are automatically placed on 

the HCV waiting lists of DHCD and other PHAs who 

have partnered with DHCD, DHMH, and MDOD for the 

program. If an 811 PRA participant is offered an HCV, he 

or she may not have to move from the unit. 

Extremely low-income nonelderly adults with disabilities 

between 18 and 61 years old who are enrolled in 

Medicaid are generally eligible for 811 PRA. However, 

the Maryland 811 PRA program established priority 

target populations. This prioritization is discussed in 

greater detail in the section titled Population Served of 

this report.

The organizational structure is modeled after the 

Bridge Subsidy Program. This structure is a centralized 

model wherein responsibilities for enrollment, waitlist 

management, and referrals to units for the 811 PRA 

program are performed by one entity. In Maryland, these 

responsibilities are held by MDOD. DHCD sources the 

units, and DHMH and others provide support services. 

Supportive services for persons in the 811 PRA program 

are mainly provided by DHMH. DHMH provides several 

voluntary support services available to 811 PRA 

participants through 1915(c) Medicaid waivers. These 

7 A 2001 Executive order established the Community Access Steering Committee to explore Olmstead-related policy actions. This committee is 

discussed in more detail in the section titled Service Provision and Healthcare.
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

41

services are described in detail in the section titled 

Service Provision and Healthcare. However, MDOD also 

made the Attendant Care Program available to 811 PRA 

participants. 

811 PRA Roles and Responsibilities

Each agency’s responsibilities for the program effectively 

fold into its existing operations. Table 4.1 provides a 

summary of each organization’s responsibilities. 

Maryland Department of Housing and Community 

Development responsibilities. DHCD’s responsibilities 

are centered around housing. DHCD is charged with 

sourcing and managing housing units for the 811 PRA 

program. However, it is important to note that although it 

is ultimately DHCD’s responsibility to select units for 811 

PRA funding, it works diligently with DHMH and MDOD 

in sourcing and selecting units for the program. The 

three agencies engage in weekly dialogue to ensure units 

sourced are meeting the service needs and geographic 

preference of the 811 PRA program applicants. DHCD 

modified its QAP application process to incentivize the 

participation of developers seeking financing for projects 

in the 811 PRA program. These efforts are discussed in 

more detail in the section titled Financing.

DHCD also creates, executes, and monitors all RACs, 

including use agreements and other contractual 

documents. DHCD is charged with making rental 

assistance payments to property owners and conducting 

site visits to 811 PRA units to ensure compliance with 

program requirements. DHCD is also responsible for 

overall program administration including reporting to HUD.

Maryland Department of Health and Mental Hygiene 

responsibilities. Through its contracted support service 

providers, DHMH will enroll eligible applicants on the 

811 PRA waiting list into voluntary supportive services. 

DHMH also provides long-term supports and services 

to program participants, including case management 

services that are designed to assist recipients in 

maintaining good tenancy in the units. DHMH provides 

several a number voluntary support waiver and state plan 

services available to tenants in 811 PRA Demo units who 

are eligible for Medicaid-funded services. These services 

are described in detail in the Service Provision and 

Healthcare section. 

DHMH, in collaboration with MDOD, established 

memorandums of understanding with the six centers 

for independent living in Maryland. This partnership 

is designed to ensure that individuals in the target 

populations who do not have case management as part 

of their service package, or who lose Medicaid eligibility 

during tenancy, have access to community services and 

supports to ensure successful tenancy. These supports 

and services include independent living training and 

counseling; information and referral (designed to identify 

resources, services, and service providers in public, 

private and community organizations that can assist 

living independently); individual and systems advocacy; 

and peer counseling. 

Table 4.1: Maryland 811 PR A Program Division of Responsibilities

DHCD DHMH MDOD

• Identify and finance eligible units for 811 PRA 

program. • Make available Medicaid services. • Manage waiting list

• Execute Rental Agreement Contracts with property 

owners. • Monitor performance of support service providers. • Conduct outreach to 811 PRA eligible individuals.

• Outreach to developers, landlords, and property 

owners.

• Outreach, training, and technical assistance to 

support service providers. • Manage referrals to 811 PRA units.

• Monitor 811 PRA unit occupancy and compliance 

with eligibility requirements.

• Assist in training housing and support services 

providers.

• Assist DHCD in outreach to developers or landlords 

or property owners.

• Make rental payments to property owners. • Collect and report data on service delivery, costs, 

and outcomes. 

• Provide education, training, and technical support 

to housing and support service providers.

• Collect and report required occupancy and 

financial information. • Assist in program evaluation and data collection. • Assist in program evaluation and data collection.

• Ongoing support and communication with DHMH, 

MDOD, housing providers, and support services 

providers.

• Assist in providing education, training and 

technical support to housing and support service 

providers.

• Ongoing support and communication with DHMH, 

MDOD, housing providers, and support services 

providers.

DHCD = Maryland Department of Housing and Community Development. DHMH = Maryland Department of Health and Mental Hygiene. MDOD = Maryland 

Department of Disabilities. PRA = Project Rental Assistance.
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

42

DHMH and MDOD will provide housing training and 

technical assistance to The Center for Independent 

Living staff and Medicaid-funded case managers across 

all support services agencies to support the tenancy 811 

PRA program participants.

Department of Disabilities responsibilities. MDOD’s 

role is integral to the 811 PRA program. MDOD staff 

manage the daily operations of the 811 PRA program. 

For example, MDOD staff handle application requests, 

manage the waiting list and oversee the referral 

process to 811 PRA units. Also, MDOD staff ensure that 

available units are tracked in the system and that eligible 

applicants are notified about available units. MDOD also 

provides training to support services providers. 

Program Staffing

In all, the program operates with a total of 6.75 full-time 

equivalents across all positions. DHCD contributes 2.15 

FTE, and DHMH contributes 1.45 FTE (this staff excludes 

Projects for Assistance in Transition from Homelessness, 

or PATH, and MFP staff). MDOD contributes the most staff 

time to the 811 PRA program with 3.2 FTE staff assigned.

DHCD’s responsibilities for the 811 PRA program are very 

well interwoven into its staff’s current responsibilities. 

As such, at DHCD only the project manager spends 

the most time on the 811 PRA program. All other team 

members spend a small amount of time on the 811 PRA. 

The core team at DHCD working on 811 PRA include—

• Program director (0.1 FTE on 811 PRA).

• Project manager (0.75 FTE on 811 PRA). 

• Grants manager (0.2 FTE on 811 PRA).

• Contract administrator (0.2 FTE on 811 PRA).

• PHA administrator (0.1 FTE on 811 PRA). 

The program director oversees DHCD staff work 

dedicated to 811 PRA and the Project Manager is the most 

heavily involved. The Project Manager is the primary point 

of contact at DHCD for 811 PRA and works with property 

owners to ensure RAC execution. The Grants Manager 

assists with grant reporting and communications. The 

Contract Administrator ensures that rent payments are 

delivered on time and paid accurately. 

DHMH staff working on 811 PRA are fully dedicated to MFP. 

Therefore, even though they contribute only a portion of their 

time to the 811 PRA, their daily work is completely aligned 

with 811 PRA. DHMH staff working on 811 PRA include—

• MFP program director (0.5 FTE on 811 PRA).

• MFP housing director (0.5 FTE on 811 PRA).

• MFP housing specialist (0.25 FTE on 811 PRA).

• Quality and compliance specialist 1 (0.1 FTE on 811 

PRA).

• Quality and compliance specialist 2 (0.1 FTE on 811 

PRA).

The MFP program director helps MDOD problem solve 

and troubleshoot issues with the pipeline of moving 

individuals out of institutions and into integrated housing. 

The housing director provides technical assistance and 

training to housing providers as well as support to service 

providers. The housing specialist provides technical 

assistance to supports planners regarding enrollment and 

service provision standards. 

DHMH has two quality and compliance specialists for 

MFP who contribute part of their time to 811 PRA. The 

quality compliance specialists monitor all the transitions 

from nursing facilities, including 811 PRA participants. 

The housing specialist, together with the quality and 

compliance specialists, work collaboratively to ensure 

that individuals successfully move into 811 PRA units.

MDOD has the most staff committed full time to 811 PRA. 

Of the four staff assigned to 811 PRA, two spend most of 

their time on the program. Two of the positions are funded 

by MFP funds through DHMH via a memorandum of 

understanding. MDOD staff working on 811 PRA are—

• Chief of staff (0.1 FTE on 811 PRA).

• Program director (0.4 FTE on 811 PRA).

• Housing program liaison (0.85 FTE on 811 PRA).

• Waiting list manager (0.9 FTE on 811 PRA).

DHCD, DHMH, and MDOD will use their existing 

infrastructure and processes to manage the 811 PRA 

program. Maryland estimates the 811 PRA program will 

cost the agencies an estimated $2 million to operate. 

Meanwhile, only $831,800 of the 811 PRA program funds 

can be used for administrative costs. Agencies must 

leverage funds from other sources to cover the gap. As 

noted previously, DHMH and MDOD staff working on 

the 811 PRA program are funded primarily through MFP 

funds with some support coming from Medicaid funds. 

DHCD is mainly using internal resources to support its 

commitment to the 811 PRA program. 

State Context: Housing Programs

Financing

Under Maryland’s QAP, property developers who 

receive funding for family projects from DCHD are 

required to target and market 5 percent of their units for 

persons with disabilities with incomes at 60 percent or 

below of Area Median Income. These requirements are 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

43

in place for at least 60 days after the property is ready 

for occupancy. 

DHCD modified its QAP to encourage property developers 

to participate in the 811 PRA program. Property developers 

have an opportunity to earn bonus points in their 

application if they agreed to restrict up to 25 percent of 

the units in the property for persons with disabilities who 

have incomes at or below 50 percent of AMI. Furthermore, 

property developers must hold this restriction for at least 

90 days after the property reaches 80 percent occupancy.

To create a pipeline of eligible properties for the 811 PRA 

program, DHCD used its LIHTC allocation, as well as 

other federal and state financing programs, to catalyze the 

creation of 811 PRA units in the state. The following is a list 

of DHCD’s affordable rental housing financing programs.

• DHCD receives about $13 million in 9-percent LIHTC 

annually. LIHTCs are awarded on a competitive 

basis, typically with State Rental Housing funds. In 

addition, projects financed with tax-exempt bonds 

may also be eligible for LIHTCs (4 percent) outside of 

the competitive process. LIHTC projects are rent and 

income restricted for 30–40 years. DCHD monitors 

these properties regularly. 

• The Multifamily Bond Program provides below-market 

construction and permanent financing for affordable 

rental housing. It finances new construction, 

acquisition, and rehabilitation of existing housing. 

• The HOME Investment Partnerships Program is a 

federal program that provides funds to state and local 

governments to promote affordable housing activities. 

DHCD sets aside a portion of its annual allocation 

to be awarded competitively with LIHTC and Rental 

Housing Funds. 

• State Rental Housing Funds is a financing program 

designed to spur the creation of new affordable 

rental housing units. These funds can also be used 

to substantially rehabilitate existing affordable rental 

housing stock. The program is compatible with taxexempt bond financing, LIHTCs, and other private 

or public funds. Rental housing funds are awarded 

competitively, typically in conjunction with LIHTCs. All 

projects must be in Priority Funding Areas. For-profit, 

nonprofit, and public entities submit applications, 

which are evaluated against criteria set forth in 

Maryland’s Qualified Allocation Plan including—

○ Restricting units to tenants with incomes below 60 

percent of AMI.

○ Restricting units to low-income tenants for more 

than 40 years.

○ Providing tenant service packages.

○ Leveraging nonstate funds.

○ Being near good job, transportation, educational, 

and recreational opportunities.

○ Sponsorship with demonstrated development and 

management ability.

• The Partnership Rental Housing Program finances 

affordable housing projects, by local governments 

or PHAs, for households below 50 percent of the 

statewide median income. The Partnership Rental 

Housing Program may also be used by nonpublic 

entities to create permanent supportive housing for 

persons with disabilities or special needs (IDSN units) 

at 30 percent of AMI. Typically, IDSN units do not 

exceed 10 percent of the units in a project. 

• The Rental Housing Works initiative and the Maryland 

Housing Rehabilitation Program provides financing 

to create or preserve rental housing with federal, 

state, or local affordability requirements. The 

Rental Housing Works initiative and the Maryland 

Housing Rehabilitation Program are primarily used in 

conjunction with the Multifamily Bond Program. 

Supportive Housing Programs

DHCD, DHMH, and MDOD have worked on several PSH 

programs under the umbrella of Maryland Partnership for 

Affordable Housing. The group has operated the Bridge 

Subsidy Program and the Weinberg Apartments Initiative 

for several years. Both programs serve target populations 

like that of 811 PRA. Moreover, both programs are 

designed and implemented very similarly to 811 PRA.

Bridge Subsidy Program was one of the Governor’s 

Commission on Housing Policy’s recommendations. 

The Bridge Subsidy Program is a tenant-based rental 

assistance program designed to provide housing for 

extremely low-income persons with mental or physical 

disabilities. To be eligible, individuals must be at least 18 

years old, have an annual income of $15,000 (or less), 

and receive Supplemental Security Income or Social 

Security Disability Insurance. 

Individuals in the Bridge Subsidy Program are given 

preference in a participating PHA’s HCV waiting list. 

Bridge Subsidy Program participants receive rental 

assistance payments until they receive HCVs. Maryland 

has successfully implemented two versions of a Bridge 

Subsidy Program, 2006 and 2010, respectively. Through 

2013, Bridge Subsidy Program had 130 recipients. 

Maryland secured an additional $2.6 million in funding 

through MFP Rebalancing Initiatives to implement a third 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

44

version of this program in 2014. The 2014 Bridge Subsidy 

Program provides 3 years of rental assistance payments 

to individuals transitioning from institutions to the 

community. Maryland anticipates serving an additional 

94 households in the third cohort.

The agencies also collaboratively administer the Weinberg 

Apartments Initiative, which began in 2011 and is funded 

by a Harry and Jeannette Weinberg Foundation grant. 

The Weinberg Apartments Initiative creates projectbased housing for individuals with disabilities and their 

households. Weinberg Apartments Initiative units have 

40-year use agreements. Through 2013, 20 units have been 

created through this initiative with $2 million in funding.

DHCD also administers Non-Elderly Disabled Category 1 

and 2 vouchers. NED Category 1 vouchers are designed 

to provide nonelderly individuals with disabilities with 

an opportunity to obtain affordable community-based 

rental housing; NED 2 vouchers are targeted to persons 

with disabilities currently residing in nursing homes or 

other healthcare institutions who want to transition to 

community living. Through 2009, Maryland received 1,310 

NED 1 vouchers and 112 NED Category 2 vouchers. 

Both DHMH and MDOD work closely with supports 

planners or case managers to identify eligible participants 

for the Bridge Subsidy Program and Weinberg Apartments 

Initiative. They also provide voluntary services and supports. 

DHMH makes the referrals for NED Category 2 HCVs.

Additional Federal Housing Programs

In addition to state agencies, local governments, housing 

authorities, and private owners develop and administer 

affordable housing in Maryland for people with disabilities. 

Table 4.2 provides an overview of the number of persons 

served by six major federally funded housing programs. 

HCVs is Maryland’s largest federal housing program. It 

accounts for 51,796 units, which is 45 percent of the total 

units (114,730) made available by federal programs in 

the state. A significant number of households receiving 

HCVs are headed by a nonelderly person with a disability. 

Moreover, table 4.2 shows that 33 percent of Section 8 

recipients and roughly 4 out of 10 households (39 percent) 

in public housing are also headed by a nonelderly person 

with a disability. In addition, Maryland has 1,422 NED 

Vouchers, 112 of which are Category 2.

Service Provision and Healthcare

DHMH administers Medicaid for Maryland. Maryland 

811 PRA program participants have access to both 

the traditional Medicaid home- and community-based 

services [1915(c) waivers] as well as Maryland’s expanded 

Medicaid State Plan. DHMH operates the HCBS waivers 

listed in table 4.3, with a detailed listing of services 

available under each waiver.

Community Pathways Waiver: serves 20,000 persons with 

intellectual and developmental disabilities. Home- and 

Community-Based Options Waiver: serves 3,943 adults 

18 and older who meet nursing facility level of care.8

 Brain 

Injury Waiver: assists 49 adults with traumatic brain injury 

acquired after age 22. Medical Day Care Waiver: serves 

4,532 individuals aged 16 and above

In addition to HCBS, DHMH also provides the Maryland 

Medicaid State Plan services, such as Community 

Personal Assistance Services, which serves 5,400 adults 

and Community First Choice (CFC). The agency expanded 

services and coverage for its Medicaid State Plan because 

of the Affordable Care Act. Through the Affordable 

8 In January 2014, the Older Adults Waiver and Living at Home Waiver merged to become the Home- and Community-Based Options Waiver.

Table 4.2: Other Federal Housing Programs in Maryland

Program Number of Units Available

Number of Household 

Members

Percent With Disabilities 

Among Head, Spouse Aged 

<62 

Percent of All Persons With 

Disabilities

Public Housing 14,600 27,381 39 26

Housing Choice Vouchers 53,519 115,355 37 24

Moderate Rehabilitation 419 1,005 31 22

Project-Based Section 8 24,021 38,316 33 18

811/PRAC 1,185 1,156 99 13

PRAC = Project Rental Assistance Contract.

Source: HUD (2016)
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

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Table 4.3: 1915(c) Waivers (Home- and Community-Based Services)

Service Type Service HCBO CP TBI

Home- and community-based services Assisted living X

Assistive devices, equipment, technology X

Attendant care, personal care, personal supports, CSLA X

Behavior consultation and supports X X

Case management, service coordination, resource coordination X X

Clubhouse model of day supports New

Day habilitation X X

Dietitian, nutritionist services X X

Environmental accessibility modifications X

Environmental assessments X

Family and individual support services X X

Family and consumer training X X

Fiscal intermediary X

Home-delivered meals

Medical day care X X

Nurse monitoring for personal care services X

Personal emergency response system X

Residential habilitation X X

Respite care X

Senior center plus X

Supported employment X X

Supports brokerage X

Transition services X

Transportation X

CP = Community Pathways waiver. CSLA = community-supported living arrangements. HCBO = Home- and Community-Based Options Waiver. TBI = 

Traumatic Brain Injury.

Care Act, DHMH implemented the CFC program. CFC 

consolidated previously overlapping services within the 

Medical Assistance Personal Care, Living at Home, and 

Older Adults Waiver programs into a unified and expanded 

program. This expansion increased access to vital services 

that prevent institutionalization and hospitalization. Homeand Community-Based Options Waiver participants are 

also eligible to receive CFC services. The CFC program 

provides the following services.

• Community First Choice

○ Supports planning

○ Personal assistance services

○ Personal Emergency Response Systems

○ Consumer training

○ Nurse monitoring

○ Transition service

○ Items that substitute for human assistance

▪ Home delivered meals

▪ Assistive technology

▪ Environmental assessments

▪ Environmental modification

▪ Other
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

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• Community Personal Assistance Services program

○ Personal assistance services 

○ Support planning 

○ Nurse monitoring 

• Disposable medical supplies and durable medical 

equipment

• Home health

• Psychiatric Rehabilitation Program

DHMH also provides community-based supports to 

individuals with behavioral health disabilities, which is 

limited to Medicaid eligible adults. DHMH has provided 

psychiatric rehabilitation services to 2,819 individuals and 

other supportive services to 8,704 individuals in 2013. 

Additionally, DHMH’s Waitlist Equity Fund is utilized to 

fund services for—

• Individuals transitioning from Intermediate Care 

Facilities for Individuals with Intellectual Disabilities. 

These facilities are also called state residential centers.

• People not yet receiving services.

Lastly, DHMH implemented Money Follows the Person 

in 2007. MFP has successfully transitioned 1,933 people 

with disabilities from institutions into the community. 

Through MFP, Maryland has encouraged the use of 

HCBS supports by streamlining the transition process. 

Funding

Changes in Medicaid resources away from 

institutional settings and toward community living. 

Between 2008 and 2014, total Medicaid spending in 

Maryland increased from about $5.7 billion to nearly 

$9.4 billion, a 63.4-percent increase. Funding for longterm services and supports went from $2 billion in 

2008 to nearly $2.8 billion in 2013 (Eiken et al., 2015; 

KFF, 2017). Home- and community-based services, as 

a portion of LTSS, also increased during this period, 

indicating the continuing trend of decreased funding 

for institutionalized care and increased funding for 

community-based services and supports. HCBS funding 

increased from 35.4 percent of LTSS in 2008 to 53.6 

percent in 2013, which is more than the national average 

of 51.3 percent (Eiken et al., 2015). Maryland ranks 21st 

in the nation for its percentage of Medicaid funds spent 

on HCBS (Eiken et al., 2015).

Other sources of support. In 2012, Maryland received 

funding through the Balancing Incentive Program. The 

Balancing Incentive Program, which is administered 

by Centers for Medicare and Medicaid Services, 

incentivized the state to expand HCBS and improve the 

healthcare service infrastructure. BIP supplements the 

resources provided by MFP and helped Maryland invest 

$106 million in HCBS.

Olmstead Settlement

Maryland does not have an Olmstead Settlement 

Agreement and does not have an Olmstead plan. 

However, the Community Access Steering Committee 

was created in 2001 by Executive Order and placed 

under DHMH. The committee consisted of the secretary 

of DHMH, the director of the Governor’s Office for 

Individuals with Disabilities, the secretary of Budget and 

Management, a representative from the governor’s office, 

and six other members appointed by the governor. The 

Steering Committee made several recommendations to 

develop additional supportive housing opportunities in 

the state, as well as develop systems that help people 

transition from institutions into the community.

Because of the Steering Committee’s work, Maryland 

passed legislation that increased the number of people 

to be served through Community Pathways Waiver and 

required the Department of Health and Mental Hygiene 

to submit an amendment to expand the Home- and 

Community-Based Options Waiver.

It is also worth noting that the City of Baltimore is under 

a consent decree because of a settlement agreement in 

the 2004 housing discrimination lawsuit (Ricky D. Bailey, 

et al., v. Housing Authority of Baltimore City, or Bailey. 

Bailey required the City of Baltimore to provide HCVs and 

other accommodations to persons with disabilities. 

Population Served

To be eligible for the 811 PRA program, applicants must 

meet mandatory program requirements. Also, Maryland 

has established placement priorities to ensure that 

the state’s priority policy issues, such as aligning with 

Olmstead requirements and ending homelessness, are 

addressed. These priority target populations are in this 

priority order. 

1. Institutionalized Medicaid recipients.

2. Households at risk of institutionalization due to current 

housing situation.

3. Community Pathways Waiver participants moving 

from group homes or ALUs to independent renting and 

Residential Rehabilitation Program participants moving 

to independent renting.

4. Homeless persons who are Medicaid recipients, 

prioritized in the HEARTH Act definition order 

(HEARTH Act of 2009).
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

47

Within these target priorities, the 811 PRA program 

serves persons with mental, physical, or developmental 

disabilities. The target populations for the 811 PRA 

program units will access a range of inhome and 

community services through Maryland’s HCBS waiver 

programs, such as Home- and Community-Based 

Options Waiver, Brain Injury Waiver, and Community 

Pathways Waiver, as well as Maryland’s Medicaid State 

Plan programs including CFC and Community Personal 

Assistance Services.

Outreach, Referral, and Application

Outreach

811 PRA program outreach to potentially eligible 

persons will be conducted through regular supports 

planner or case manager client contact, MFP outreach 

efforts in institutions, as well as program informational 

materials distributed to CILs, advocacy organizations, 

consumer groups, service providers, and other 

healthcare organizations. Program information and 

outreach activities include information about eligibility 

criteria and instructions for enrollment procedures. 

Outreach activities include efforts to contact difficultto-reach populations, including non-English speaking 

populations, and persons with visual impairments and 

disabilities that affect their ability to communicate. 

Program information and outreach activities are 

tracked and analyzed to determine the effectiveness 

of the outreach efforts in reaching certain populations, 

geographic regions, and service systems. 

Program applications are submitted by an applicant’s 

supports planner or case manager. The Center for 

Independent Living staff will provide case managementlike services to people who do not have access to case 

management services. The Center for Independent Living 

staff submit applications on their behalf. 

On identifying an interested person, supports planners 

or case managers will screen for eligibility based on 

program criteria. Supports planners or case managers 

log into the Maryland Housing Search, or SocialServe 

system to enter demographic and program information 

about the applicants, including their priority category, 

current living situation, unit size and desired county 

of residence. MDOD staff will review each application 

and approve, deny, or request additional information 

from case managers, depending on the circumstances. 

Successful applications are logged and date stamped by 

the system. MDOD staff also maintain the waiting list and 

update applicant status as appropriate.

Supports planner and case managers and The Center for 

Independent Living staff received continuous training in 

811 PRA program requirements, affirmatively furthering 

fair housing marketing requirements, enrollment 

procedures, unit application processes, transition 

planning, and person-centered planning for communitybased housing by DHMH and MDOD.

Referral and Application

Successful applications are entered into the waiting list, 

which is maintained by MDOD. Selection of participants 

for referral to available units will be based on date 

of application, priority population status, selected 

geographic area, and readiness to transition to an 811 

PRA unit. 

Property managers notify MDOD staff of unit availability 

via telephone or email. Within one week of notice that an 

existing unit is available or 6 months in advance of new 

or substantial rehabilitation unit availability, MDOD staff 

sends notification letters to the applicants, their assigned 

case manager, and other identified contacts. MDOD staff 

also follows up by telephone, email, or both. Applicants 

have a specified time from the date of mailed notification 

letter to respond if they are interested in the unit. 

Supports planners or case managers assist applicants 

with obtaining required documents and completing other 

necessary forms. These documents are provided to 

property managers or owners. Property managers review 

the applications and select a tenant based on their 

selection criteria and the applicants order in the priority. 

An offer of tenancy is provided to the applicant who 

is ranked highest based on priority category, property 

screening, application date, and readiness for transition. 

Tenant training is provided and required for all 811 PRA 

residents. The training curriculum includes a briefing on 

the 811 PRA program and covers topics regarding lease 

terms, financial responsibility, tenant responsibilities, 

and fair housing or reasonable accommodations. This 

training should be completed within 2 months of move-in. 

Should the selected applicant refuse or fail to complete 

the transition process, the unit will be offered to the 

next eligible applicant. Applications not selected will be 

returned to the waiting list and resume their place in line. 

Property managers receive the contact information of case 

managers to help with participant tenancy. MDOD staff 

and the MFP Housing Director also provide their contact 

information to all property owners and managers, and will 

continue to serve as points of contact related to participant 

tenancy. A Tenant Issue Process exists to ensure timely 

and responsive handling of issues affecting tenancy. 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

48

The daily management and coordination of services 

to tenants are provided by supports planners or case 

managers and other selected service providers, based 

on the individual needs of participants identified in their 

person-centered plan.

Per the fourth-quarter 811 PRA report, 834 people were 

referred to the Maryland 811 PRA program throughout 

2015. Of those referrals, 59 were institutionalized, 14 

were at risk of institutionalization, 227 were homeless, 

40 were at risk of homelessness, 118 were leaving group 

homes, adult care homes or other residential settings, 

376 were classified as “other.” Out of 834 referrals, 15 

were found ineligible for 811 PRA. As of December 31, 

2015, the 811 PRA waiting list has 819 applicants.

Compared with other 811 PRA grantees, Maryland has 

a very large 811 PRA waiting list. At the end of the first 

quarter of 2015, Maryland already had 693 persons 

on the 811 PRA waiting list, of which 548 came from 

previous waiting lists and 145 came from new 811 PRA 

applicants. Because eligibility criteria are comparable, 

Maryland was able to place eligible Weinberg applicants 

on the 811 PRA waiting list. As noted previously, the 

Weinberg Initiative predates the 811 PRA program by 

a few years and the waiting list for this program was 

already robust, which accounts for the size of the 811 

PRA waiting list. In addition, Maryland chose to have one 

portal for all three programs to make it easier for case 

managers to access the programs for their clients. 

As of December 31, 2015, 28 811 PRA applicants were 

referred to 811 PRA units. Of the 28 applicants referred to 

811 PRA units, 4 moved into 811 PRA to units. 

Implications

Centralized design lends itself to program size. The 

centralized nature of the program seems to complement 

the design of the program. Overly centralized programs 

often run into issues in larger scale operations. 

Centralized programs when faced with a lot of activity 

either experience bottlenecks or suffer lower quality 

when staff get overwhelmed. However, Maryland seems 

to have automated many of the tasks that could have 

resulted in bottlenecks. This automation has enabled the 

state to operate the program at scale.

Implications of unit location and amenities 

preference. As noted previously in this section, a key 

feature of the referral process is the match between 

the location or amenities of a unit and the preference 

of the 811 PRA participant. One aspect of this process 

that requires special attention is the way in which 

the supports planners or case managers enter this 

information on the program application. 

It would be easy for savvy 811 PRA applicants or 

their supports planner or case manager to indicate a 

preference for areas of the state in which they do not 

intend to live to increase their chances of being selected 

for a unit. Maryland 811 PRA staff should monitor this 

situation closely.

Housing Strategies

Property and Unit Characteristics

Existing versus new construction. DHCD intended 

to utilize existing properties and new construction or 

substantial rehabilitation properties to source units for 

the 811 PRA program. Initially, DHCD estimated that 

about one-half of the 811 PRA units would be sourced 

from existing properties financed by the agency and 

through new construction and substantial rehabilitation 

projects in the pipeline during the next 4 years.

Property selection methods and financing. DHCD will 

select projects for the 811 PRA program using DHCD’s 

existing portfolio of properties, as well as projects in the 

pipeline which are awarded DHCD financing. Only those 

projects with DHCD oversight or funding are selected for 

811 PRA. 

For existing developments, DHCD created a Notice of 

Funding Availability for its existing portfolio of properties 

that would be eligible for 811 PRA. In sourcing 811 

PRA properties, DHCD works closely with DHMH and 

MDOD to ensure that units selected for the program 

are in areas where the target population wants to live. 

DHCD also ensures that 811 PRA units are near public 

transportation, and public and private amenities, such as 

shopping, medical, and recreation. 

For newly constructed projects, DHCD updated its QAP 

to give developers of affordable housing bonus points 

for accepting 811 PRA units (see the Financing section 

for a description of how Maryland modified its QAP to 

incentivize property developer participation in the 811 PRA 

program). The incentive initially applied only to projects 

in the Baltimore and Washington, D.C. metropolitan 

statistical areas (MSAs). The incentive area was expanded 

after Maryland received its FY2013 811 PRA grant. 

Current status. As of December 31, 2015, DHCD 

executed 1 RAC, which accounts for 13 two-bedroom 

units. Maryland’s 811 PRA program goal for 2015 was 45 

units under RAC, out of its total goal of 150 units during 

the 5-year grant period. Maryland is 32 units below its 

goal for 2015 and 137 units short of its 150 target. To 

date, Maryland has successfully moved four households 

into 811 PRA units. 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

49

Initially, DHCD anticipated sourcing one-half, or 75 out of 

150 units, of its 811 PRA units through existing properties. 

However, DHCD was not able to source 811 PRA units 

from existing properties. The one NOFA issued received 

very little response. DHCD attributes this difficulty to 

two factors. First, at the time of the application for the 

811 PRA grant, DCHD was not aware that Environmental 

Regulations and Responsibilities (ERRs) would be applied 

to existing properties selected for 811 PRA. Second, 

DHCD’s existing portfolio has a high occupancy rate (90 

to 95 percent). Very few properties have vacancies, and 

many properties have waiting lists. 

DHCD has found success in securing commitments 

through new construction. DHCD’s goal is to source 105 

one-bedroom and 45 two-bedroom units. Aside from the 13 

two-bedroom units under RAC, DHCD has commitments 

for 43 one-bedroom units and 20 two-bedroom units in the 

construction pipeline. If these commitments materialize, 

it will push DHCD past the halfway point at 51 percent of 

its total goal (when units already under RAC are included). 

Moreover, these commitments, plus those already under 

RAC, represent 41 percent of DHCD’s one-bedroom goal 

and 73 percent of its two-bedroom goal. 

Rental housing market. A quick review of the Baltimore 

and Washington D.C. rental housing market seems 

to corroborate DHCD’s suggestion. For the calendar 

year ending 2012, the average rent for a one-bedroom 

apartment in the City of Baltimore was $893 per month. 

In 2015, however, the average rent for a one-bedroom 

apartment in Baltimore was $1,077. In 3 years, the 

average rent for a one-bedroom unit in Baltimore 

increased by 21 percent. The same could be said of twobedroom apartments. In 2012, the average rent for a twobedroom apartment in Baltimore was $1,076. By 2015, 

the monthly rent of two-bedroom apartments increased 

by 22 percent to $1,316 (see table 4.4).

Although rental prices in Washington D.C. are much higher 

than in Baltimore, the increases in rental costs are less 

pronounced, albeit still significant. In 2015, the average 

one-bedroom unit in Washington D.C. was $1,763, 7 

percent higher than it was in 2012 ($1,651) (see table 4.5). 

Two-bedroom units were similarly more expensive in 2015 

($2,250) than it was in 2012 ($2,091). Although the Maryland 

811 PRA program will not source units in Washington, 

D.C., the rental prices can be used as a barometer for the 

Maryland communities surrounding the city.

Rent and Subsidy Levels

DHCD’s goal is to evenly distribute units between the 

Washington, D.C. and Baltimore MSAs. The Washington, 

D.C. MSA refers to units in the Maryland counties of 

Calvert, Charles, Frederick, Montgomery, and Prince 

George’s. The Baltimore MSA refers to units in the 

Maryland counties Baltimore City, Baltimore County, Anne 

Arundel, Carroll, Harford, Howard, and Queen Anne’s. 

Table 4.4: Average Rents in Baltimore (2012 Versus 2015)

Year One Bedroom Two Bedrooms All Beds

2012 $893 $1,076 $1,163

2015 $1,077 $1,316 $1,264

Difference $184 $240 $101

Percent increase or (decrease) 21 22 9

Source: Rainmaker Insights (n.d.)

Table 4.5: Average Rents in Washington, D.C. (2012 Versus 2015)

Year One Bedroom Two Bedrooms All Beds

2012 $1,651 $2,091 $1,833

2015 $1,763 $2,250 $1,947

Difference $112 $159 $114

Percent increase or (decrease) 7 8 6

Source: Rainmaker Insights (n.d.)
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

50

DHCD assumed that 70 percent of the units will be 

one-bedroom units and 30 percent will be two-bedroom 

units. The 811 PRA rent structure developed is based 

on this unit mix and on a blended rate of rents, called 

the “blended rent maximum,” in Washington, D.C., 

and Baltimore. The “blended rent maximum” was 

calculated by considering an even distribution of units 

in the Washington, D.C. and Baltimore MSAs. For the 

Washington, D.C. MSA, one-bedroom rents are $1,328 

and two-bedroom units are $1,506. The Baltimore MSA 

one-bedroom rents are $1,025 and two-bedroom unit 

rents are $1,231. The “blended rent maximum” calculates 

to an average 811 PRA monthly rent of $1,235 per unit 

based on DHCD’s assumptions. The anticipated monthly 

average 811 PRA subsidy is $1,055 per unit and the 

average tenant payment is $180 per unit. 

DHCD’s initial estimate seems to be fairly accurate thus 

far. For example, for the two-bedroom units in the 811 

PRA program at a property in Baltimore MSA, the rent is 

$1048 per month. The tenants also receive $137 in utility 

allowance, which varies between participating properties. 

Unit and Tenant Turnover

Maryland has not experienced any unit turnover yet. Four 

individuals were housed in 811 PRA units in the fourth 

quarter of 2015.

Service Provision and Coordination

Service Provision

Maryland 811 PRA program participants access 

ongoing healthcare services and transition services 

through both traditional Medicaid HCBS as well as 

Maryland’s expanded Medicaid State Plan. These 

services are discussed in detail in the Service Provision 

and Healthcare section. Supports planners or case 

managers assist participants with development of 

their individualized and person-center service plans. 

Afterward, the supports planners or case managers help 

811 PRA participants receive these services.

Integral to Maryland’s transition efforts is its MFP policy 

codified in State law: 

The Department may not deny an individual access to 

a home- and community-based services waiver due to 

a lack of funding for waiver services if: 1. The individual 

is living in a nursing facility at the time of the application 

for waiver services, 2. At least 30 consecutive days 

of the individual’s nursing facility stay are eligible to 

be paid for by the program, 3. The individual meets 

all the eligibility criteria for participation in the homeand community-based services waiver, and 4. The 

home- and community-based services provided to the 

individual would qualify for federal matching funds.9

Maryland’s MFP policy ensures that the highest priority 

population can enroll in waivers regardless of the 

programs’ budget caps. This approach ensures that 811 

PRA participants will have access to support services.

Coordination

DHCD, DHMH, and MDOD developed procedures to 

ensure that the program operates within the principles 

of the PSH model. Under this model, services are strictly 

voluntary but are available when needed. Once a tenant 

moves into a unit, the primary relationship will be between 

the tenant and the property manager. To support tenancy, 

however, contact information will be shared between 

tenants, case managers, property managers, and 811 

PRA program management staff. Moreover, to support 

this relationship, the program will provide every tenant 

with education regarding the rights and responsibilities of 

tenancy, reasonable accommodations, use and care of the 

unit, and financial responsibilities. 

Under the Tenant Issue Process, property managers 

are trained to contact the tenant directly to resolve any 

issue. If resolution cannot be reached with the tenant, 

the property manager is instructed to contact the 

tenant’s case manager to discuss the issue and possible 

strategies for resolution. The property manager can 

contact the MFP Housing Director as a last resort. 

Like the process established between tenants and 

property managers, participants and service providers 

have a direct and primary relationship. Supports 

planners or case managers help in developing the plan 

and selecting service providers. Once a participant 

is engaged with a provider for a service, the service 

provider is instructed to work with the client directly. If 

an issue comes to the attention of property managers 

concerning service providers that may affect continued 

tenancy, property managers are instructed to contact the 

tenant, and involve the case manager or housing director 

as an escalation procedure. 

2013 811 PRA Application

Maryland received two rounds of 811 PRA 

funding—$11,229,308 in 2012 (first round) and $9,808,054 

in 2013–2014 (second round). For its 2012 program, DHCD 

proposed to source 150 811 PRA units through the annual 

LIHTC funding round for new construction or rehabilitation 

9 Maryland Code, Health—General §15-137.
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

51

projects as well properties in its existing affordable 

housing portfolio. DHCD proposed to source an additional 

150 units for its 2013 program using the same methods. 

The design for both rounds of funding are the same. Both 

will focus on the same target populations and leverage 

the same support services and staffing arrangements. 

However, the 2012 program is only sourcing 811 PRA units 

in the Baltimore and Washington, D.C. metropolitan areas 

although the 2013 program is sourcing units statewide.

Leveraging

Housing Choice Vouchers

DHCD leveraged set-asides of 97 housing choice 

vouchers from Maryland’s PHAs. The commitments do 

not include HCVs already reserved for nonelderly people 

with disabilities as part of a PHA’s NED baseline. Through 

2015, no HCVs have been leased yet under the 811 PRA 

HCV commitment. Table 4.6 outlines the PHAs and their 

commitments.

Other Sources Leveraged

DHMH contributed $1 million in MFP rebalancing funds 

to support the 811 PRA program. DHCD holds the MFP 

funds in a trust. This fund will cover the housing subsidy 

for 811 PRA participants for up to 6 months if 811 PRA 

is not renewed and HUD funding is no longer available. 

The 6-month period will provide time for residents to 

move to new homes or secure vouchers. If 811 PRA 

receives ongoing funding past the first 5-year period, 

the MFP funds will be directed toward an expansion of 

the Weinberg Apartments Initiative, which also increases 

affordable and accessible integrated housing for the 

same population.

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

Program Administration

DHCD, in consultation with DHMH and MDOD, selects 

projects for 811 PRA. DHCD performs all reviews and 

underwriting tasks. DHCD also creates, executes, 

and monitors all Rental Assistance Contracts and use 

agreements managing the rental assistance payments. 

DHCD ensures compliance with 811 PRA requirements 

and mandatory reporting to HUD. DHCD conducts 

regular physical inspections of the 811 PRA units using 

UPCS and by following a frequency and sample size used 

for the LIHTC program.

DHMH provides voluntary long-term support services 

through the four HCBS waivers and Maryland Medicaid 

State Plan services to 811 PRA participants. 

DHMH ensures that case managers and other providers 

maintain contact with tenants in 811 PRA units per the 

individual’s plan of service. DHMH and MDOD train and 

support case managers across all support services 

agencies to better ensure housing stabilization for 811 

PRA tenants.

MDOD staff will manage the daily operations of the 811 

PRA eligibility and unit identification lists. MDOD will be 

responsible for ensuring that available units are tracked in 

the system and that eligible applicants are notified about 

available units.

Table 4.6: Leveraged Housing Choice Vouchers

Public Housing Agency Vouchers

Maryland Department of Housing and Community Development 15

Housing Authority of Prince George’s County 10

Rockville Housing Enterprises 10

Housing Authority of College Park 2

Housing Authority of the City of Hagerstown 15

Baltimore County Department of Social Services 25

Saint Mary’s County Public Housing Authority 5

Housing Commission of Anne Arundel County 10

Housing Authority of the City of Frederick 5

Total 97

Source: 2012 Maryland 811 Project Rental Assistance application
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

52

Financial Management

DHCD has extensive experience with financial management 

of HUD programs, including PBCA, HCVs, HOME, 

CDBG, Emergency Solutions Grants program, CSBG, 

Weatherization, and others. For 811 PRA, DHCD expects to 

follow rules and regulations of these programs, including—

• Maintaining separate accounting records for the activities 

of the 811 PRA. Payments to owners will also be 

maintained separately from the administrative expenses.

• The 811 PRA account will be reconciled monthly by DHCD 

DFA staff and reviewed by the Grant Accounting Manager.

• Complete and accurate records will be maintained 

for 811 PRA units in a Grant Accounting sub-ledger 

database, which would be reconciled monthly by the 

DHCD DFA Grant Accountant and reviewed by the 

Grant Accounting Manager.

DHCD leverages its PBCA payment infrastructure to 

process 811 PRA vouchers. The process for payment 

begins when the property owner or the property owner’s 

agent submits the voucher and tenant data to DHCD 

through the Tenant Rental Assistance Certification System. 

DHCD reviews this information, bundles all the property 

owner’s submission under its parent account10 and 

sends the data to HUD via TRACS. If HUD accepts the 

submission, the total amount for payment is reserved in the 

Line of Credit Control System. LOCCS then transfers the 

payment to DHCD, which then processes the funds and 

distributes payment to each property electronically.

Information Systems

DHCD, DHMH, and MDOD measures and tracks the 

performance of the 811 PRA by using a variety of HUD, 

DHCD, DHMH, and MDOD systems. The following is 

a description of the systems used to collect data and 

measure 811 PRA outcomes.

• TRACS. A web-based database collects data files 

that support the certification, recertification, and 

subsidy billing for HUD multifamily projects. TRACS 

provides authorized users with summary and status 

data on submitted vouchers. DHCD will use the 

TRACS system to accept process, approve, and 

submit voucher payment requests for all 811 PRA 

Demo projects. TRACS will also be monitored to 

ensure data compliance thresholds are met and all 

errors requiring correction are addressed by owners 

or agents. Existing DHCD automated and accounting 

systems interface with the TRACS system and LOCCS 

to provide timely payments to owners.

• LOCCS. HUD’s primary grant disbursement system, 

handling disbursements for most of its programs. 

Once voucher data are submitted to TRACS and 

approved for payment, a LOCCS payment is triggered. 

On receipt of a LOCCS notification email, a pending 

state warrant is prepared from the payment detail that 

is uploaded from the LOCCS email notification and 

sent to Maryland’s Disbursement System. Once the 

funds noted in the LOCCS email have been received 

in DHCD’s bank account, the state’s disbursement 

system sends an electronic funds transfer to the 

owner’s account on the same day. The tracking 

system keeps a complete record of the LOCCS 

deposits and voucher payments made on behalf of 

each contract.

• Enterprise Income Verification (EIV). EIV is a webbased database containing employment and income 

information on participants in HUD’s rental assistance 

programs. This information is made available to ensure 

“the right benefits go to the right persons.” The income 

information displayed in this system is supported 

through a matching agreement between HUD, National 

Directory of New Hires or Department of Health & 

Human Services, and the Social Security Administration. 

DHCD will use EIV to monitor the number and type 

of discrepancies associated with an 811 PRA Demo 

project and will assist projects in investigating and 

resolving any errors with either tenant identifiers or 

income data entered into the TRACS system.

• Maryland Housing Search (SocialServe).

SocialServe is a web-based application specifically 

designed for a PSH system enables case managers 

to assist in enrolling and determining the eligibility of 

applicants for the Weinberg Apartments Initiative and 

the 811 PRA programs. The same application is used 

by MDOD to centrally manage the waiting list and 

select applicants for referral to owners.

Successes and Challenges

Challenges

811 PRA implementation delay. 811 PRA program 

staff reported some challenges in the initial program 

administration due to HUD implementation delays. It took 

more than 18 months from the initial award for HUD to 

issue program materials and the Cooperative Agreement. 

The Maryland 811 PRA program could not begin formal 

program implementation without having a signed 

Cooperative Agreement. 

10 Each participating property submits its vouchers and tenant data via a child account to the state agency administrating the 811 PRA program. 

The state agency bundles all the submissions under its parent account and submits the data to HUD in TRACS. 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

53

Burdensome environmental review requirements. 811 

PRA program staff reported some challenges in the initial 

program administration due to the constraints of the 

811 PRA program requirements or structures. 811 PRA 

program staff were not initially aware that environmental 

review requirements would be applicable to existing 

properties. These requirements eliminated several 

potential properties from which 811 PRA units could have 

been sourced. Maryland had planned for one-half of its 

150 811 PRA units to come from existing properties. 

Struggle to source existing units. The 811 PRA program 

staff reported challenges in finding and bringing existing 

units into the program. The sole NOFA issued for the 

existing housing portfolio received minimal responses as 

very few properties have vacancies and many properties 

also have long waiting lists. Property owners are not 

inclined to participate in a relatively new program like 811 

PRA as they would much rather lease the vacant units to 

applicants on their existing waiting lists. 

The challenge of not being able to source one-half of the 

150 811 PRA units from existing properties as planned 

slowed the program staff’s ability to house applicants on 

the waiting list. Program staff expressed desire to find 

more proactive ways to source existing units. 

Successes

Maryland’s web-based referral system. The webbased system designed for a PSH system has enabled 

the 811 PRA program to absorb the number of referrals 

to the system by enabling case managers to assist in 

enrolling and determining the eligibility of applicants 

for the Weinberg Apartments Initiative and the 811 PRA 

programs. The system is also used by MDOD to manage 

the waiting list and select applicants for referral to owners. 

Money Follows the Person-funded Bridge Subsidy 

Program. DHMH contributed $1 million in MFP 

rebalancing funds to support the 811 PRA program. 

The MFP funds will finance rental assistance for 811 

PRA participants for up to 6 months if the 811 PRA is 

not renewed and HUD funding is no longer available. 

This MFP funding availability has allayed some property 

owner concerns about fund availability for future years. 

Additionally, Maryland’s MFP policy ensures that the 

highest priority population will be able to enroll in 

waivers regardless of the programs’ budget caps, thus 

guaranteeing that 811 PRA participants will have access to 

support services.

Staffing continuity. Although key positions within the 

Maryland 811 PRA program have experienced some staff 

turnover, it has not significantly affected the program’s 

operations. Staff working on 811 PRA from one agency 

took a position at another agency that also works on 811 

PRA; the shifts have not affected program continuity. The 

team has maintained institutional knowledge.

Maryland Department of Disabilities. MDOD is a 

cabinet department focused exclusively on serving 

persons with disabilities. It acts as an advocate for the 

population within the service delivery system. MDOD can 

coordinate available resources within larger agencies, 

such as DHCD and Maryland Department of Health and 

Mental Hygiene and help focus their service delivery.

Partnership strength. DHCD, MDOD, and DHMH staff 

began working together in 2001 on the Community 

Access Steering Committee and later participated in 

the Governor’s Commission on Housing Policy. MDOD’s 

Secretary chaired the Commission’s Affordable and 

Accessible Housing for Individuals with Disabilities 

Subcommittee. MDOD initiated the Statewide Taskforce 

for Affordable Housing to take advantage of additional 

private, public sector, and federal funding opportunities 

in 2010. In 2011, this effort resulted in DHMH’s 

successful application for the Building Sustainable 

Partnerships for Housing Real Choice Systems Change 

Grant funded by CMS. MDOD co-chaired the Advisory 

Group for Real Choice Systems Change Grant with 

DHMH. The three agencies also worked on other 

initiatives, including the Bridge Subsidy Program and the 

Weinberg Apartments Initiative. 

DHCD’s Director of Multifamily Housing attributed the 

success of 811 PRA program and the partnership to the 

following. 

1. All three agencies have shown continuous commitment 

to the partnership since collaboration began in 2001.

2. Staff from all three agencies were immersed in 

cross training and mutual learning to understand 

each other’s language and expertise, leading to the 

building of mutual respect for each agency’s roles and 

responsibilities in various initiatives.

3. The principle of trust and transparency is emphasized 

and valued by the three agencies, which guides their 

collaboration continuously.

4. The 811 PRA program staff from all three agencies 

communicate with each other as often as every 

other day to exchange ideas, share experiences and 

knowledge, and address challenges collectively. This 

level of frequent engagement directly contributes to the 

program success and the partnership accomplishment. 
Chapter 4. Maryland Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

54

Besides interacting with each other, the three agencies 

collectively are in constant communication with the 

developer community in Maryland. Building relationships 

and trust with various developers and property owners not 

only facilitates goal alignment, but also ensures cooperation 

from property owners and management companies at the 

program operation and management level.
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

55

Minnesota Section 

811 Project Rental 

Assistance Program 

Introduction

In 2012, HUD awarded the Minnesota Housing Finance 

Agency (Minnesota Housing), in partnership with the 

Minnesota Department of Human Services (DHS), 

$3,085,500 in Section 811 Project Rental Assistance 

program funds to support 85 units with rental assistance. 

Minnesota Housing proposed to make available 85 units 

of permanent, supportive housing from existing housing 

stock for extremely low-income, nonelderly adults with 

disabilities. Although Minnesota’s 811 PRA program 

is statewide, the initial program interest came from 

development owners in the Twin Cities region, which is 

composed of two counties—Hennepin and Ramsey. The 

city of Minneapolis is in Hennepin County, and the city of 

St. Paul is in Ramsey County.

Evaluators conducted a site visit in October 2015. At the 

close of 2015, Minnesota Housing had placed 67 units 

under RACs, exceeding its 2015 annual goal of 35. One 

unit was occupied. 

Grantee Partnership, Organizational 

Structure, and Management

Overview

Minnesota Housing is the primary applicant and grantee 

for the 811 PRA program and has partnered with DHS for 

full program implementation and delivery. This section 

begins with an overview of each agency, its role within 

the state more broadly, and the relevant programs 

each agency administers. The section continues with a 

discussion about the partnerships and a description of 

each agency’s roles and responsibilities for the 811 PRA 

program. This division of responsibilities is based on 

areas of functional and specialized capabilities. 

Minnesota Housing Finance Agency

Minnesota Housing promotes homeownership and 

increases and preserves affordable rental housing, 

as well as prevents and eliminates homelessness. 

Minnesota Housing’s 2010-11 Affordable Housing Plan 

included investments of nearly $1.4 billion to support 

a continuum of affordable housing activities, including 

internally generated resources, to serve high-priority 

populations, including persons with disabilities.

Minnesota Housing administers and allocates LowIncome Housing Tax Credits. It annually revises the 

QAP and develops selection criteria and eligibility 

requirements for tax-credit allocations that reflect the 

state’s priorities. Minnesota Housing partners with 

local foundations and other state agencies, including 

DHS, to award capital funding to projects through 

the annual consolidated request for proposals. This 

agency administers state-appropriated funding and 

federal resources, including the HOME and the Housing 

Opportunities for Persons With AIDS Program; it is 

preparing to administer the National Housing Trust Fund. 

Minnesota Housing has a long history of administering 

HUD programs that operate very similarly to the 811 

PRA program. Minnesota Housing has experience 

managing rental assistance programs, such as the 

project-based Section 8 developments that include 

Performance Based Contract Administration and 

Traditional Contract Administration (TCA) programs, 

as well as Section 236 contracts. Minnesota Housing’s 

Multifamily Division—which includes approximately 120 

permanent staff organized into four functional areas: 

(1) Supportive Housing; (2) Production or Underwriting; 

(3) Asset Management, Compliance, and Contract 

Administration; and (4) Operations and Reporting— 

administer these programs. 

The state has increased Minnesota Housing’s funding 

level significantly during the past several years through 

Housing Infrastructure Bonds. Minnesota Housing’s 

Housing Infrastructure Bonds funding increased from 

$30 million in 2012 to $80 million in 2014. According to 

Minnesota Housing, it dedicates most of these funds 

(approximately 66 percent) to supportive housing for the 

long-term homeless population. This funding is separate 

from the funds Minnesota Housing allocates from other 

state-appropriated programs such as the Minnesota 

Housing Trust Fund (HTF). Minnesota Housing also 

allocates most of its $19 million HTF to serve the longterm homeless population.

Minnesota Department of Human Services

DHS is the state’s lead Medicaid agency and administers 

a variety of healthcare and supportive services. These 

services generally fall into one of four categories. 

• Medicaid Home- and Community-Based Services, 

including 1915(c) waivers for persons with disabilities 

and home care services.
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

56

• Adult Mental Health Services, including Adult 

Rehabilitative Mental Health Services, Assertive 

Community Treatment, and Adult Mental Health 

Targeted Case Management.

• MFP Rebalancing Demonstration program.

• State-funded programs, such as Minnesota’s statefunded Long-Term Homelessness Supportive Services, 

Group Residential Housing, Housing With Supports for 

Adults With Serious Mental Illness (HSASMI).

DHS administers its programs through local lead agencies 

that implement many aspects of Medicaid, including 

eligibility determination, assessment of individual need 

for services, coordination of services, oversight of service 

providers, and direct service provision. DHS oversees 

and monitors the performance of local lead agencies and 

overall compliance with federal regulations, state statutes, 

rules, and policies. DHS provides informational updates 

and policy guidance, as well as training opportunities, 

for local lead agencies and other service providers. DHS 

also uses Substance Abuse and Mental Health Services 

Administration (SAMHSA) evidence-based practices 

fidelity standards to evaluate PSH. 

Minnesota Housing and Department of 

Human Services Partnership

Minnesota Housing and DHS have worked together 

since the Bridges Rental Assistance Program began in 

the late 1990s. Bridges Rental Assistance Program is a 

state-funded program that provides interim supportive 

housing subsidies for people with severe mental illness 

who are waiting for appropriate longer-term subsidies. 

The agencies reinforced their collaborative efforts in 

2004 when Minnesota Housing made ending long-term 

homelessness a strategic priority. The partnership has 

continued to strengthen over time.

Historically, the agencies have collaborated by way of 

interagency agreements, interagency councils, and 

serving as advisors on each other’s programs. Prior 

to the 811 PRA program, the two agencies executed 

interagency agreements for the Bridges Rental 

Assistance Program, Operating Subsidy Program, and 

HSASMI in conjunction with Homeless Management 

Information System and the Wilder Research Survey. 

The agencies have collaborated on the Minnesota 

Interagency Council on Homelessness (Interagency 

Council) since 1993 (Minnesota Housing and DHS 

co-chair the interagency council). Minnesota Housing 

and DHS have also raised money together to support 

the Wilder Research survey that focuses on people 

who are experiencing homelessness (Wilder has been 

administering this survey since 1989). According to 

Minnesota Housing staff, “the long history of partnership 

has made this work easier for us. A core group of our staff 

and a core group of their staff work together weekly, if not 

daily.” The ongoing partnership resulted in benefits for 

the 811 PRA program. The agencies were able to build off 

existing objectives and deliverables from other interagency 

agreements when developing the 811 PRA agreement.

In their 2013 collaboration with many of the state’s 

leading advocacy groups and service providers through 

the Interagency Council, Minnesota Housing and DHS 

adopted a new state plan to end homelessness in 

Minnesota, entitled Heading Home: Minnesota’s Plan to 

Prevent and End Homelessness. Along with the Olmstead 

plan and programs such as Moving Home Minnesota, 

which is Minnesota’s MFP program, this new plan serves 

as the platform to build Minnesota’s 811 PRA program.

Design and Structure of Minnesota’s 811 

PRA Program

For its 2012 811 PRA application, Minnesota Housing 

determined that the most advantageous opportunity to 

implement the 811 PRA program in the 24 month limited 

time frame was to use only existing developments as the 

source of 811 PRA units. Developments with rent-restricted 

units (such as those in the LIHTC portfolio), as well as 

developments with existing unsubsidized units in Minnesota 

Housing’s Section 8 portfolio, provided great initial sources 

of 811 PRA units. Already monitored, these properties 

have staff with federal program administration experience 

and may have staff with previous experience coordinating 

supportive housing. By using existing rental properties, 

Minnesota Housing anticipates that extremely low-income 

renters will be able to access current, nonsubsidized rental 

units, which have been typically unaffordable.

Minnesota Housing determined the number of 811 PRA 

units to apply for by checking the existing portfolio for 

the number and location of studio and one-bedroom 

units with rent limits at 50 percent AMI or less. 

Minnesota Housing also reviewed its staff capacity and 

how many RACs it could reasonably bring online with its 

current staffing levels. 

Minnesota Housing decreased the units it could support 

with its first round of 811 PRA funding from 95 to 85 

after receiving HUD guidance on how the budget 

should be calculated. The agency initially planned for 

a project timeline that ramped up over time, which 

would eventually lead to 95 units leased by the end of 

the 5-year program. HUD clarified that all units must 

be funded for a full 60 months of rental assistance. 

Consequently, although the program is labeled as a 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

57

5-year grant program, in reality it will take about 8 years 

before each 811 PRA unit receives rental assistance 

funding for 60 months. Consequently, Minnesota 

Housing had to adjust its unit calculation to 85 slots. 

811 PRA Roles and Responsibilities

Minnesota’s 811 PRA program folds into each of the two 

agencies’ existing operations (in contrast to being run as 

a “standalone” program). Table 5.1 provides a summary 

of each organization’s responsibilities.

Minnesota Housing Finance Agency responsibilities. 

Minnesota Housing is charged with sourcing and 

managing housing units for the 811 PRA program. 

Agency staff conduct outreach to property owners 

educating them about the 811 PRA program. Minnesota 

Housing has identified specific properties within its 

portfolio that may contain housing units eligible 811 

PRA program participation. Minnesota Housing also 

modified its request for proposals application process 

to incentivize participation of developers seeking 

financing for new construction projects in the 811 

PRA program. Specifically, for the 2016 request for 

proposals, Minnesota Housing increased the points 

available (from 5 to 10) to owner or developers building 

supportive housing for special populations. Minnesota 

Housing staff work with selected property owners in 

executing RACs. Once properties are accepted into 

the 811 PRA portfolio, Minnesota Housing staff are 

charged with compliance monitoring and ensuring timely 

rental assistance payments. The specific strategies 

for property selection are covered in more detail in the 

Housing Strategies section. 

Minnesota Housing treats the 811 PRA program as 

another “arrow in its quiver” of housing programs. The 811 

PRA program benefits from this arrangement leveraging 

Minnesota Housing’s existing programmatic infrastructure.

Operationally, within Minnesota Housing, the 811 PRA 

program is implemented in the following manner. 

• A Supportive Housing program manager oversees the 

811 PRA program. 

• The 811 PRA program review team reviews and 

selects applications and oversees projects under 

development. 

• 811 PRA housing management officers review the 

tenant selection plans, although housing assistance 

payment officers execute RACs. 

• HMOs within the asset management and compliance 

team perform inspections and site visits and ensure 

compliance with RACs and federal and state program 

requirements. 

• TRACS data analysts ensure compliance with federal 

and state program requirements, as well as make 

accurate and timely payments to property owners. 

Minnesota Department of Human Services 

responsibilities. DHS uses the same operating 

principles as Minnesota Housing. The 811 PRA program 

responsibilities of DHS are woven into its existing program 

Table 5.1: Minnesota—811 PR A Program Division of Responsibilities

Minnesota Housing Department of Human Services

Identify or finance eligible units for 811 PRA program.

Recruit and collaborate with local lead agencies responsible for implementing 

the Projects for Assistance in Transition from Homelessness, or PATH, program. 

Recruit and collaborate with Money Follows the Person providers. 

Execute RACs with property owners. Manage waiting list. Oversee referral process in collaboration with local lead 

agencies and MFP providers.

Provide outreach to developers, landlords, and property owners. Provide outreach, training, and technical assistance to local lead agencies and 

MFP providers.

Monitor 811 PRA unit occupancy and compliance with eligibility requirements. Monitor local lead agencies and MFP provider processes for referring individuals 

for housing placement.

Make rental payments to property owners. Monitor local lead agencies and MFP providers to ensure tenants have necessary 

access to housing and support services.

Collect and report required occupancy and financial information. Collect and report data on service delivery, costs, and outcomes.

Provide ongoing communication with Department of Human Services, local lead 

agencies, and housing providers.

Provide ongoing communication with Minnesota Housing, local lead agencies, 

MFP providers, and housing providers.

MFP = Money Follows the Person. PRA = Project Rental Assistance. RAC = Rental Assistance Contract.
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

58

infrastructure. Minnesota Housing’s focus is on housing; 

the responsibilities of DHS center on providing services 

and supports. As the Medicaid lead agency, DHS offers a 

wide variety of healthcare programs. 

811 PRA program participants access these services 

and supports either through Projects for Assistance in 

Transition from Homelessness, or PATH, or MFP. 

• PATH is a federal and state-funded program dedicated to 

providing outreach to people with a serious mental illness 

experiencing homelessness and connecting them with 

housing and services. Program funds are awarded to 

county governments that then either provide the services 

directly or subcontract the work to vendors (typically 

private social services agencies). Currently, 11 PATH 

projects in the state serve an estimated 1,400 people. 

• MFP is dedicated to increasing use of HCBS and 

reducing use of institutionally based services. MFP 

referrals are administered through county governments, 

managed care organizations, tribes, and service 

contractors. MFP operates in a small unit within the 

continuing care administration. Currently, 167 people are 

enrolled in MFP, of which 103 moved into communitybased settings, with another 25 in the pipeline. 

DHS assumes important responsibilities for the 811 

PRA program. DHS staff provide the quality assurance 

function and are charged with making sure that 811 PRA 

participants receive the services they need. DHS staff 

also manage services that 811 PRA participants access 

through the Medicaid state plan, which includes homeand community-based waivers. 

DHS provides information to lead agencies and other 

stakeholders about opportunities through the 811 PRA 

program. The agency also provides training and 811 

PRA program technical assistance to PATH agencies, 

especially referrals, access to services, and utilization of 

811 PRA program rental assistance.

Furthermore, DHS staffs the Housing Coordinator, a 

critical role in the Minnesota 811 PRA program. The 

Housing Coordinator must be a DHS staff member so 

that he or she has access to participants’ confidential, 

health-related service information. The Housing 

Coordinator’s responsibilities include—

• Coordinating with the Minnesota Housing program 

manager to track 811 PRA unit availability and 

occupancy status.

• Matching referrals to units from 811 PRA-eligible MFP 

and PATH participants.

• Managing the 811 PRA waiting list.

• Ensuring service coordination.

• Coordinating DHS data collection and analysis.

• Participating in knowledge sharing, outreach, training, 

and technical assistance for the 811 PRA program.

Working on the 811 PRA program, key DHS staff fill the 

following positions.

• Housing coordinator.

• MFP director.

• An Adult Mental Health Division administrator oversees 

housing policies for people with serious mental illness 

and provides the state contact for PATH.

Program Funding

In all, the program operate with a total of 3.15 full-time 

equivalents across all positions. Minnesota Housing 

contributes 2.15 FTE, and DHS contributes 1.0 FTE. 

These numbers exclude PATH and MFP staff. 

The core Minnesota Housing team working on the 811 

PRA program includes—

• Program manager (0.4 FTE on the 811 PRA program).

• Operations project manager (who supports the 

program manager) (0.4 FTE on the 811 PRA program). 

• Asset management and compliance supervisor, 

PBCA (0.25 FTE on the 811 PRA program).

• TRACS and housing assistance payment (0.1 FTE on 

the 811 PRA program).

In addition, asset management staff who report to the 

asset management and compliance supervisor, include—

• 0.25 FTE from the housing management officers 

who do annual inspections and program monitoring. 

HMOs travel to property sites, conduct physical 

inspections and audit tenant files. These staff 

members are the same staff who monitor their 

project-based Section 8 properties; they modified the 

monitoring process to meet 811 PRA requirements. 

• 0.15 FTE for staff to process monthly vouchers 

coming in from Project-Based Rental Assistance 

sites, rolling up the payments from the properties and 

submitting the data to HUD.

• 0.15 FTE for the Contracts Team executing RACs and 

amending rents. 

Initially, Minnesota Housing’s 811 PRA staffing plan was 

expected to need about 0.75 FTE for the initial program 

setup, which would then gradually decrease to a 0.5 FTE 

level as it exits the startup phase. Minnesota Housing 

has, however, spent considerably more staff time on 

program administration than it had envisioned in the 

application. Currently, Minnesota Housing dedicates 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

59

about 2.15 FTE across all roles. Minnesota Housing 

leadership understood that some initial investment of 

staff time was required, but never expected it would be 

at a FTE level for this long of a period. 

The 811 PRA program has also used a small amount of time 

from the legal and accounting departments. In addition, 

Minnesota Housing anticipates allocating more staff time 

for collecting and reporting data and performance metrics 

once the program begins to lease its units.

In its application, Minnesota Housing estimated that 

it would cost about $350,000 to fund the positions it 

committed to during the 5-year period. However, that dollar 

figure was based on a much lower level of effort. Minnesota 

Housing estimated the program would require the most 

effort during the first 4 months and allocated 1.5 FTE 

during this period. Minnesota Housing believed the level of 

effort would taper to 0.75 FTE for months 5 through 9 and 

eventually level off to 0.5 FTE from month 10 through the 

end of the 5-year period. Although the 811 PRA program 

will provide a $235,500, or 8 percent of the 811 PRA rental 

subsidy amount, toward administrative expenses during 

the 5-year term, Minnesota Housing staff now believe that 

program costs will be much higher than initially estimated. 

Minnesota Housing is using its own resources to fund its 

staff commitments to the 811 PRA program that have not 

been adequately covered by the 811 PRA grant.

DHS supports the program by providing resources for 

the Housing Coordinator position. This position, covered 

DHS funds received from MFP, is a 1.0 FTE set-aside for 

the 811 PRA program. DHS estimates it will spend more 

than $385,000 for the first 5 years of the program for this 

position alone. 

State Context: Housing Programs

Housing Programs

Minnesota Housing administers several multifamily 

financing programs. Besides providing capital financing 

for rental housing, all these programs also include 

supportive housing units. Detailed here are three of the 

agency’s housing programs that fund supportive housing. 

• LIHTC. This program is Minnesota Housing’s 

largest fund with nearly $600 million in outlays on 

122 projects from 2006 to 2011. This investment 

translates to 8,752 units, 8,394 units assisted, and 

369 supportive housing units. This program provides 

federal income tax credit to owners and investors 

in the construction or acquisition with substantial 

rehabilitation of housing properties. Properties 

receiving LIHTC must meet income and rent 

restrictions for at least 30 years. Minnesota Housing 

leverages funds available through this program to 

promote the development of supportive housing using 

point incentives in the Qualified Allocation Plan. 

• Minnesota HTF and Ending Long-term 

Homelessness Initiative Fund (ELHIF). In the 

initial startup of Minnesota’s Business Plan to End 

Long-Term Homelessness, HTF and ELHIF were 

two primary capital-funding vehicles for supportive 

housing, particularly for developments that 

composed of 100 percent supportive housing units. 

During the 5-year period ending in 2011, these funds 

provided more than $29 million in capital loans and 

another $4.2 million in operating subsidies, resulting 

in funding for 44 projects and 20 new contracts, 

which led to the creation of more than 1,000 

supportive housing units.

• Low and Moderate Income Rental (LMIR) 

Program. The LMIR program provides mortgages 

for the construction, acquisition, rehabilitation, or 

refinancing of affordable housing units. It is Minnesota 

Housing’s third-largest program with $176 million in 

outlays during the 5-year period. These loans funded 

84 projects with 5,448 units, 4,937 of which were 

assisted and 229 of which are supportive housing.

Minnesota Housing believes that the 811 PRA program 

will assist in increasing supportive housing production, 

especially at LIHTC properties. Applications received 

extra points for agreeing to incorporate permanent 

supportive housing in their proposed developments in 

Minnesota Housing’s consolidated request for proposals 

process. (These extra points were significant because 

applying for state financing is very competitive.) 

Aside from providing the needed financial incentive 

(through rental assistance), Minnesota Housing believes 

that property owners may be more likely to participate 

knowing that the 811 PRA program has the necessary 

services infrastructure in place to support their participants.

Resources to prevent and end long-term 

homelessness. In addition to the capital programs 

previously listed, Minnesota Housing has rental 

assistance programs and operating assistance funds. A 

discussion of some of these programs follows.

• Long-Term Homeless Rental Assistance and 

Operating Support is funded through HTF and ELHIF. 

The two resources provide operating subsidies and 

rental assistance for permanent, supportive housing 

for persons experiencing long-term homelessness. 

Rental assistance is provided to 1,200 households 

annually and operating assistance is provided to 

1,450 households annually.
Case Studies – HUD Section 811 PRA Program

60

• Bridges Rental Assistance Program grants provide 

rental assistance payments to households with at 

least one adult with serious mental illness. Bridges 

Rental Assistance Program provides 850 supportive 

housing opportunities annually.

Supportive housing programs. In addition to these 

varied programs, Minnesota Housing and DHS have 

collaborated in delivering housing programs that assist 

persons with disabilities—particularly those with a 

mental health disability, experiencing homelessness, or 

both. These programs include— 

• HSASMI grants and Operating Subsidy Program funds 

provide operating support to multifamily housing units 

that have integrated supportive service options to 

assist individuals with a serious mental illness.

• Bridges Regional Treatment Center Pilot Program is 

similar to the Bridges Rental Assistance Program but 

is focused on individuals currently staying at a 175-

bed psychiatric hospital that serves those who have a 

mental illness.

• The Minnesota Supplemental Aid (MSA) Shelter 

Needy program provides an income supplement for 

persons with a disability to help make housing in the 

community more affordable.

• Group Residential Housing provides income 

supplements in certain qualified licensed or 

registered settings.

• The Crisis Housing Fund provides financial assistance 

to help recipients with serious and persistent mental 

illness retain their housing in instances where they 

need to receive temporary residential treatment.

Plans to end homelessness. Adopted in 2004, the 

Business Plan to End Long-Term Homelessness ended in 

2013, by which time more than 4,000 opportunities for longterm households for homeless people had been created. 

Most of the opportunities have been funded from state-run 

housing financing programs, such as LIHTC, HTF, Housing 

Infrastructure Bonds, and ELHIF. Since 2013, a new state 

plan has been adopted: Heading Home: Minnesota’s Plan 

to Prevent and End Homelessness. In this plan, Minnesota 

has committed to developing 5,000 new affordable 

and supportive housing units for extremely low-income 

households. The 811 PRA program will help Minnesota 

in its efforts to end homelessness by providing rental 

subsidies for the long-term homeless target population.

Additional federal housing programs. In addition to 

state agencies, other entities such as local governments, 

housing authorities, and private owners develop and 

administer affordable housing in Minnesota for people with 

disabilities. Table 5.2 provides an overview of the number 

of persons served by five major federally funded housing 

programs. As shown, a nonelderly person with a disability 

heads about one-half of Public Housing residents and 44 

percent of Section 8 recipients. In addition, Minnesota has 

640 Non-Elderly Disabled Vouchers.

Rental Housing Market

Although the 811 PRA program is statewide, Minnesota’s 

initial focus is on obtaining participating properties in 

the Twin Cities area. Rents in the Minneapolis-St. Paul 

area have risen significantly during the past decade. This 

trend poses a challenge to the development of affordable 

and supportive housing. 

Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Table 5.2: Minnesota—Other Federal Programs

Program Number of Units Available

Number of Household 

Members

Percent With Disabilities 

Among Head, Spouse 

Aged <62 

Percent of All Persons With 

Disabilities

Public Housing 20,746 36,208 48 31

Housing Choice Vouchers 36,270 86,877 39 20

Project-Based Section 8 30,866 46,866 44 21

202/PRAC 2,419 2,448 95 7

811/PRAC 762 802 99 193

PRAC = Project Rental Assistance Contract.

Source: HUD (2016)
Case Studies – HUD Section 811 PRA Program

61

Rental prices in the Minneapolis-St. Paul area climbed 

steadily from 2010 through 2015. According to Minnesota 

Housing Partnership, the average market rate rent (a 

composite of average rents that incorporates all unit 

types) increased from $908 per month in 2010 to $1,055 

per month in 2015 (for more detailed information, see 

figure 5.1). This change represents an increase of 16 

percent, or $147 per month during the past 5 years 

(Minnesota Housing Partnership, 2016). 

Figure 5.1: Minnesota—Average Market 

Rents in Twin Cities (2010–2015)

Minnesota Housing Partnership noted that the increase 

in demand and the shortage in supply are the main 

drivers of the increase in rental costs. Vacancy rates in 

the Twin Cities are at their lowest levels in decades. As 

figure 5.2 demonstrates, vacancy rates in the area have 

steadily declined during the past 10 years, from roughly 6 

percent in 2005 to 2.3 percent in 2015. 

The increase in rental prices throughout the Twin Cities 

metro area is a real problem for the supportive housing 

development, in general, and for the 811 PRA program, 

in particular. As noted previously, the average rent for a 

one-bedroom unit in the Twin Cities is $859. This price is 

much higher than the $743 contract rent per month at 50 

percent of Area Median Income, as estimated by Minnesota 

Housing, or the $796 that is allowable for this unit type 

under HUD’s FY 2015 Fair Market Rent requirement for the 

Minneapolis-St. Paul-Bloomington MSA. To circumvent this 

issue, Minneapolis Housing identified units in its existing 

portfolio with rents limited to 50 percent AMI so that owners 

did not have to lower rents to participate in 811 PRA.

Figure 5.2 : Minnesota — Rental Vacancy Rates in 

Twin Cities ( 2010 –2015 ) 

Service Provision and Healthcare

Minnesota has programs individually dedicated to each 

target population. 811 PRA participants entering the 

program through Money Follows the Person receive 

targeted support from the state’s MFP program. 

These services include person-centered planning, 

transition, and coordination services, access to assistive 

technology, and personal emergency monitoring, as well 

as assistance with moving costs, such as transportation, 

furnishings, and groceries.

PATH participants are recruited for the 811 PRA program 

by outreach workers employed by local lead agencies. 

811 PRA participants entering the program through PATH 

have access to PATH-supported programs and services. 

These services include case management, screening 

and diagnostic treatment, community mental health, 

alcohol or drug treatment, support and supervision in 

residential settings, as well as referrals and assistance 

with accessing financial and health benefits.

In addition to targeted services supporting each 

target population, as previously outlined, 811 PRA 

participants will have access to other DHS programs. 

DHS administers a variety of federally funded healthcare 

services, including Minnesota’s Medicaid program, as 

well as other state- and grant-funded services. These 

services are highlighted in table 5.3. Please see the 

section on Service Provision and Coordination for a more 

detailed description of these services. 

$908 $927 $957 $981 $1,021 $1,055

2010 2011 2012 2013 2014 2015

Twin Cities Average Rent

2010-2015, Annual Average

Source: Minnesota Housing Partnership (2016)

Vacancy Rates in the Twin Cities, Metro

2005-2015, Quarterly

2.9%

2.3%

1.7%

2010 2011 2012 2013 2014 2015

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Vacancy Rate Vacancy Rate, $1000 or Less

Quarterly Unemployment Rate

Source: Minnesota Housing Partnership (2016)

Chapter 5. Minnesota Section 811 Project Rental Assistance 

Program
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

62

Table 5.3: Minnesota—Services Available to 811 Project Rental Assistance Participants

Medicaid Services State- and Grant-Funded Services

• 1915(c) waivers for persons with disabilities, or developmentally disabled, 

traumatic brain injury, Community Access for Disability Inclusion, Community 

Alternative Care.

• Adult Mental Health Community Support Program

• Medicaid Home Care Services. • Minnesota’s state-funded Long Term Homelessness Supportive Services.

• Medicaid Adult Rehabilitative Mental Health Services. • Housing With Supports for Adults With Serious Mental Illness.

• Department of Human Services is proposing a new Medicaid service to add. 

Tenancy Support Services using a Critical Time Intervention model.

• 1915(i) to support individuals with mental illness.

Changes in Medicaid Resources

Between 2008 and 2014, total Medicaid spending 

increased from about $7 billion to about $10 billion 

statewide, a 43.6-percent increase (Eiken et al., 2015; KFF, 

2017). Funding for long-term services and supports rose 

from approximately $3.4 billion in 2008 to $3.9 billion in 

2013 (Eiken et al., 2015). Home- and community-based 

services, as a portion of LTSS, also increased during 

this period, continuing a trend of decreased funding 

for institutionalized care and increased funding for 

community-based services and supports. HCBS funding 

increased from 68 percent of LTSS in 2008 to 73.6 percent 

in 2013, significantly more than the national average of 

51.3 percent (Eiken et al., 2015). Minnesota has been 

at the forefront of supporting HCBS funding and ranks 

second in the nation for allocating the highest amount of 

its LTSS funds to HCBS (Eiken et al., 2015).

Olmstead Settlement

Minnesota has an Olmstead plan to settle a class action 

lawsuit in U.S. District Court (Jensen v. Minnesota 

Department of Human Services). In 2011, that case was 

resolved through a settlement agreement, but it took 

nearly 4 years for the state to develop a comprehensive 

plan that was accepted by the U.S. District Court on 

September 29, 2015. Governor Mark Dayton appointed 

an Olmstead Subcabinet, now chaired by Minnesota 

Housing, to develop the plan and carry it out.

The plan has five main topic areas. 

1. Person-centered planning. This topic area is 

focused on listening to individual preferences and 

valuing their choices.

2. Services. This topic area is focused on transition 

services, housing, employment, learning, and waiting 

lists. 

3. Housing and services. This topic area contains 

goals aimed at moving people with disabilities out of 

institutional settings. 

4. Supports (transportation, health care, positive support, 

crises services, assistive technology, and abuse and 

neglect prevention). This area focuses on building 

program capacity and on increasing the resources that 

will support people with disabilities as they live, work, 

and learn in the settings that they choose.

5. Community engagement. This topic focuses on 

engaging people with disabilities.

The state has set very ambitious goals in its Olmstead 

plan. The overarching goal of housing services is 

to assist people with disabilities to live in the most 

integrated setting of their choice and receive personcentered planning. DHS’s transition service providers 

seek to significantly increase the number of people 

with disabilities who live in their communities of choice 

and receive financial assistance. The specific goal is 

to increase assistance to people from 6,017 in 2015 to 

11,564 by 2019, an increase of 5,547 or 92 percent. The 

811 PRA program will help Minnesota meet some of its 

Olmstead goals, particularly as it relates to housing and 

transition services.

Population Served

Initial eligibility under the Minnesota 811 PRA program 

meets the criteria set forth by HUD under the Notice 

of Funding Availability, which includes single adults or 

families. 811 PRA eligible households are those who— 

1. Are extremely low income (30 percent AMI or less).

2. Are eligible for community-based, long-term services 

funded through Medicaid or state funding sources.

3. Have a disability and are at least 18, but less than 

62 years of age at the time of admission, or who are 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

63

members of a family who has at least one member 

who has a disability and is at least 18, but less than 

62 years of age at the time of admission.

In its 811 PRA application, Minnesota designated two 

target populations to be served under the 811 PRA 

program. The identification of the two following target 

populations was designed to leverage current efforts in 

two statewide initiatives: MFP and Minnesota’s Plan to 

Prevent and End Homelessness.

1. Individuals experiencing long-term homelessness 

who have a serious mental illness.

2. Individuals with physical or mental disability who are 

exiting institutional settings after a long-term stay (90 

days or more) and are assisted by MFP.

No changes to the target population served have occurred 

since the submission of the 2012 811 PRA application. 

Units are offered on an alternating basis between the two 

target populations previously cited, based on the date and 

time applications are received. Participants are asked to 

indicate their location preferences. 

When units become available, 811 PRA participants 

are referred to the property owner based on (1) the 

participant’s place on the waiting list, (2) the participant’s 

indicated preference to live in the community where the 

unit is located, and (3) whether the available unit fits the 

requirements of the 811 PRA participants, in terms of 

characteristics, such as bedroom types and accessibility. 

Outreach, Referral, and Application

Outreach

The Minnesota 811 PRA program will use a combination of 

existing resources for outreach services (see figure 5.3). 

PATH outreach workers will do extensive outreach on the 

streets and in institutions. Their goal will be to connect 

with people who are both experiencing homelessness and 

having a serious mental illness or other disability. For MFP, 

case managers at institutions will identify potential 811 

PRA participants and refer them to transition coordinators. 

MFP Outreach

As part of the required annual assessment, case 

managers at DHS facilities must ask whether an individual 

in their care is interested in moving from the facility to a 

community setting. For individuals who wish to move to 

a community setting, the case manager will develop an 

application for MFP or for a relocation service coordinator. 

If the client chooses MFP, MFP staff will verify eligibility 

and once the individual signs a consent form, will enroll 

the individual in the MFP program. Once individuals are 

accepted into MFP, they are provided the opportunity 

to select a lead agency that then assigns a transition 

coordinator. Transition coordinators will assess each 

individual’s housing needs and connect with the housing 

coordinator to check for housing opportunities in the 811 

PRA program. The housing coordinator places applicants 

on the waiting list. 

Figure 5.3: Minnesota— 811 Project Rental Assistance Outreach

Operations

Program

Target Population

Sources

Housing Coordinator

Exiting an institution

Nursing Homes, ICF-DD, Community 

Behavioral Health Hospitals, etc.

Outreach in Shelters, 

Hospitals, Jails

Outreach 

on Streets

PATH

LTH

MFP
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

64

The Housing Coordinator also conducts research and 

outreach in the community to find out about institutions 

and nursing homes that may be closing or residents 

looking for housing in community-based settings.

Minnesota statute requires a 60-day public notice 

requirement to announce the closing of an institution. 

Embedded within this process is the requirement that 

families be informed of the impending closure before 

the public announcement. The Housing Coordinator is 

also given notice of this termination and reaches out 

to the families after they have been formally notified by 

the institution. 

DHS will also conduct outreach to eligible individuals 

through periodic mailings and other outreach activities. 

MFP is developing a plan to have consumers, who have 

successfully transitioned from institutional placements to 

community residences, do outreach on its behalf. MFP 

believes that this peer-to-peer marketing strategy will be 

successful in generating interest. 

PATH Long-Term Homelessness Outreach

PATH outreach workers will connect with individuals 

on the street and in more stable settings (like shelters, 

treatment centers, or correctional facilities) to identify, 

engage with, and enroll PATH-eligible clients. PATH 

outreach workers have dedicated office hours in shelters 

within their service area. They also will conduct outreach 

to other areas with a high concentration of long-term 

homeless population, such as hospitals, libraries, and 

even county jails.

The housing needs and preferences of PATH clients are 

assessed by the PATH outreach workers. These workers 

will identify individuals who are 811 PRA-eligible and help 

them apply to the program. PATH staff will communicate 

via email or phone with the Housing Coordinator to 

submit the individual’s application to the 811 PRA 

program. The Housing Coordinator reviews and verifies 

this application. If accepted, the Housing Coordinator 

places the applicant on the waiting list. 

PATH staff will assist with the tenant transition to housing. 

County-operated PATH outreach workers will then 

connect the individual with ongoing supports and services 

before ending the transitional efforts. These services are 

contracted out to third-party social service agencies. 

The 811 PRA program has been very well received by 

the PATH program staff in Hennepin County. A PATH 

outreach team supervisor commented, “[811 PRA] offers 

a huge opportunity. We haven’t had a housing tool in our 

bucket before to offer people. We can attract people into 

our program by providing long-term supports and case 

managers.” For PATH outreach workers employed by 

social service agencies, connecting individuals to LTSS 

often involves making inhouse referrals, as the agency 

already provides many of these services. The supervisor 

previously quoted further indicated having a permanent 

housing resource is critical to the ongoing provision of 

services for the target population. If consumers do not 

have permanent housing, they may become transient and 

then lost to the case workers. Hence, having permanent 

housing options raises the likelihood target populations 

will get the services they need. 

Referral and Application

A key Minnesota 811 PRA program feature is the 

centralized coordination of all outreach, referrals, and 

management of the 811 PRA waiting list. The Housing 

Coordinator performs these centralized functions. 

According to the 2015 fourth-quarter 811 PRA report, 70 

applicants were placed on the waiting list. 

MFP transition coordinators and PATH outreach workers 

determine eligibility and submit 811 PRA applications 

directly to the Housing Coordinator, who reviews the 

applications and places applicants on the waiting list. 

The waiting list is a Microsoft Excel workbook with some 

functionality built in for reporting.

According to the fourth-quarter 811 PRA report, 88 

referrals were to the Minnesota 811 PRA program during 

2015. Of those, 12 were institutionalized, 3 were at risk 

of institutionalization, and 73 were homeless. Most of 

those referred to the 811 PRA program, 76 people, had a 

mental health disability, and 11 had a physical disability. 

At the end of 2015, out of 88 referrals, 70 applicants were 

on the 811 PRA waiting list, 12 were found ineligible for 

the 811 PRA program, 4 were referred to units, and 1 

applicant was housed in a 811 PRA unit. 

Implications

Centralized design lends itself to program size. The 

centralized nature of the program seems to complement 

program design. Overly centralized programs often 

run into issues in larger-scale operations. Centralized 

programs when faced with a lot of activity either 

experience bottlenecks or suffer from quality when 

staff get overwhelmed. However, given the size of 

Minnesota’s 811 PRA program, this centralized design 

seems to fit very well.

Implications of unit location and amenities 

preference. As noted previously in this section, a key 

feature of the referral process is the match between the 

location and amenities of a unit and the preferences of 

the 811 PRA applicant. One aspect of this process that 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

65

requires special attention is the way in which the PATH 

outreach workers and MFP transition coordinators enter 

this information on the program application. 

It would be easy for a savvy 811 PRA participant or 

referring provider to indicate a preference for all areas 

of the state to increase the chances of being selected 

for a unit. The Hennepin PATH providers were selecting 

the entire state initially, without consulting the applicant, 

thinking they would acquire a unit more quickly for their 

participants. Since then, the Housing Coordinator has 

worked to educate the referring providers to allow for 

applicants to select locations where they want to live for 

the long term and not merely any location. Minnesota 811 

PRA staff will have to monitor this situation closely.

Housing Strategies

Property and Unit Characteristics

Rents and tenant contributions. Rents for the 

Minnesota 811 PRA program are based on 50 percent 

AMI. The average contract rent shown in the 811 PRA 

budget is $743 per unit per month, which includes an 

average tenant contribution (rent and utilities) of $240 

per month. Subtracting the expected average tenant 

contribution from the contract rent, Minnesota Housing 

expects that the average 811 PRA monthly subsidy would 

be $503 per month. 

Minnesota Housing staff have expressed concern 

about how the budgeting for RAC amounts and tenant 

contributions would play out during the life of the grant 

term, but know that a clearer picture will emerge once 

the program is fully operational. At this point, staff believe 

that many of the 811 PRA participants will have no 

income when they enter the program. If this assumption 

is correct, this lack of tenant’s contribution will place 

a significant strain on 811 PRA program finances. 

Minnesota Housing staff acknowledge that incomes 

will fluctuate over time; thus the real average tenant 

contribution will not be known for some time. 

Urban versus rural. In administering a statewide 811 

PRA program, Minnesota Housing determined the Twin 

Cities metro area and northeast, west central, central, 

and southeast Minnesota as priority regions. Minnesota 

Housing, with assistance from DHS, prioritized 811 

PRA developments that are in regional hub cities, 

which thereby are close to necessary services and 

other amenities. “Our strategy was that half of the units 

would be in the metro area,” stated a senior Minnesota 

Housing staff member. “We focused on the ‘bright 

lights,’ places where participants will have access to 

services. In rural areas, less access to services may 

exist. If people have been placed away from their 

institution, they may choose to locate back where they 

came from,” the official concluded. 

DHS determined where its institutionalized participants 

came from using nursing home and institution data. 

“That’s what we used to focus on: the high-need 

counties and communities that had regional HUBs that 

had good access to services,” noted a DHS staff.

As a result of its analysis, Minnesota Housing has 

established some 811 PRA program participation criteria 

for interested properties. Interested property owners 

must have the appropriate background and experience 

in managing multifamily properties and Section 8 and 

Housing Choice Voucher programs. Certain locational 

criteria also apply. Minnesota Housing requires that 

participating properties be in areas that have access 

to transportation and service providers, and be in “job 

growth communities.” In addition, access to the target 

populations is important. Properties must either be 

in close proximity to target institutions and facilities 

that MFP participants may exit from or be close to an 

identified population of long-term homeless households in 

PATH service areas. 

Property selection methods and financing. Minnesota 

Housing procured 811 PRA units from existing 

developments in its portfolio, owned by developers 

with Section 8 experience that already had one- and 

two-bedroom units rent-restricted to 50 percent AMI. 

Minnesota Housing selected units in these developments 

for the 811 PRA program that were not already 

subsidized by other programs.

The logic behind this strategy is simple. Properties that are 

currently in the agency’s LIHTC and Section 8 portfolio are 

already monitored by Minnesota Housing staff. Moreover, 

these properties are staffed by professionals with federal 

housing and supportive housing program experience.

Minnesota Housing conducted extensive outreach to 

owners to gauge their interest in the 811 PRA program 

Minnesota Housing started with properties that were 

previously financed under its multifamily programs (such 

as LIHTC, HTF, and Affordable Rental Investment Fund) 

from the agency. From this list, they targeted only 

properties that had units with rent levels set at 50 

percent AMI or units with no rent restrictions but were 

affordable to households at or below 50 percent AMI. 

Minnesota Housing targeted this segment of units to 

expand the number of housing units that would be 

affordable to extremely low-income households. 

However, only a portion of Minnesota Housing’s LIHTC 

properties had units that fit these criteria. Most of 

Minnesota Housing’s LIHTC properties have units with 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

66

rent levels that are set at 60 percent AMI.11 By targeting 

only properties with rent levels set at 50 percent AMI or 

were naturally affordable to households at 50 percent 

AMI, Minnesota Housing was limited in the number of 

properties from which it could choose. 

Minnesota Housing narrowed the list further by taking 

out developments that were already restricted to longterm homeless or persons with disabilities. Placing 811 

PRA units in the developments already serving persons 

with disabilities would likely cause the property to exceed 

the 25-percent limit of supportive units for low-income 

nonelderly people with disabilities.

However, this approach did have its downsides. 

Minnesota Housing had difficulty recruiting owners with 

existing rental properties that fit the previous criteria. 

Intense marketing and educational efforts by Minnesota 

Housing staff have helped to mitigate some of the initial 

reticence of some property owners about the 811 PRA 

program. One of the factors creating difficulties was the 

lack of financial incentive for owners. Little to no financial 

reward exists for owners to accept the 811 PRA program 

at their existing properties. The program comes with 

extra restrictions that add to already complex funding and 

compliance measures for their properties. Partners and 

investors have concerns about how two restrictions (on 

long-term rent levels and on 30-year use) will affect the 

property’s long-term financial viability and marketability. 

Additionally, owners who are inexperienced in serving the 

target populations may have felt that it was too risky to 

pursue without any compensating financial reward.

Once owners indicate an interest in participating in 811 

PRA, they are asked to complete an application, which 

gives Minnesota Housing basic information about the 

property, rents, the ramp-up schedule, location, access 

to services, and amenities. Minnesota Housing uses a 

25-question form to review the application. 

The 811 Application Review Committee reviews every 

application, then assigns an individual or a cohort 

to review specific sections of the application. These 

sections include program administration, income and 

rent, experience, service and location, accessibility 

features, and environmental requirements.

Once the selection is approved by the 811 review 

committee, its recommendation is forwarded to the 

Clearinghouse Committee, a decisionmaking group 

made up of a core staff drawn from all Minnesota 

Housing divisions. 

At each of these Clearinghouse Committee meetings, the 

811 PRA program Manager gives a presentation on the 

owner and property. At the start of the 811 PRA program, 

these presentations took approximately 20 to 30 minutes 

each, allowing for time to discuss many aspects of the 

811 PRA program. Now the presentations take less 

time as only the specific development is discussed in 

detail, not aspects of the entire 811 PRA program. After 

the presentations, the Clearinghouse Committee then 

approves or disapproves the selections. 

Once an application receives Clearinghouse approval, 

the application is presented to the Minnesota Housing 

Board, the final approving authority, during the regularly 

scheduled monthly meeting. 

Once approved, owners are given 30 days to provide the 

required documentation and paperwork (the checklist 

items). Minnesota Housing then has up to 15 days to 

review this information. The checklist items form the 

basis of the closing documents. 

Current status. In 2015, Minnesota Housing executed 

five Rental Assistance Contracts, with a total of 67 units. 

Minnesota’s 811 PRA program goal for 2015 was 35 units 

under RAC, so it exceeded its goal by 32 units and is only 

18 units short of meeting its goal for the entire 85-unit 

program. However, Minnesota has occupied only one 

unit to date; 66 of its 67 811 PRA units are not available 

because they are currently occupied. Minnesota Housing 

collects turnover rate estimates from each property owner 

based on historical data, then estimates when 811 units 

will be filled. The agency then updates quarterly its lease 

up tracking based on actual lease ups so that they can 

project turnover as accurately as possible. 

Determining the Initial Rent Level

Minnesota Housing used the FMR for a one-bedroom 

unit in the Minneapolis-St. Paul metro area to develop 

its 811 PRA rent projection. However, the average 

tenant contribution was determined by HUD’s published 

guidelines for tenant contribution, which were higher than 

the grantee’s calculations.

The 811 PRA Budget for Minnesota’s Programs indicates 

that the 811 PRA rental assistance budget is set at 

50 percent of AMI. The section on Rents and Tenant 

Contributions provides information on average contract 

rent, subsidy and tenant payments. 

11 Minnesota Housing did not target units with rents set at 30 percent AMI, because these units were already affordable to extremely low-income 

households. 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

67

Unit and Tenant Turnover

Minnesota has not experienced any unit turnover yet. As 

mentioned previously, one applicant was recently housed 

in an 811 PRA unit.

Service Provision and Coordination

Service Provision

The types of services available to 811 PRA participants 

vary based on the program they enter. For instance, 

although both PATH and MFP provide transition services 

in the form of downpayment assistance and moving 

costs, MFP participants also receive funds to purchase 

furniture, groceries, and other household supplies.

In addition, although both PATH and MFP participants 

receive ongoing services, such as case management, 

MFP participants will receive targeted home- and 

community-based services for 60 days after they move 

from the institution to ensure their successful transition. 

DHS administers a variety of federally funded healthcare 

services and other state and grant funded services 

that will be made available to all 811 PRA participants, 

regardless of target population. 

811 PRA program participants will have access to the 

following Medicaid services.

• 1915(c) waivers for persons with disabilities provide 

a range of services, such as adult day care, assisted 

living, personal care assistant, transitional services, 

and transportation. Examples of waivers include 

Developmentally Disabled, Traumatic Brain Injury, 

and Community Access for Disability Inclusion, and 

Community Alternative Care. 

• Medicaid Home Care Services provide equipment 

and supplies and other home-based services, 

including home health aides (HHA), personal care 

assistance (PCA), and private duty nursing.

• Medicaid Adult Rehabilitative Mental Health Services 

provide a comprehensive set of mental health 

services, including Assertive Community Treatment 

and Targeted Case Management.

Program participants will also have access to the 

following state- and grant-funded services.

• Adult Mental Health Community Support Program 

provides a wide range of services focused on 

connecting people with resources, such as housing, 

health insurance, and employment support.

• Minnesota’s state-funded Long-Term Homelessness 

Supportive Services provide services that can be 

tailored to individual needs. The program is designed 

to maximize independent living. Services include 

intensive case management, advocacy support, 

support through treatment and recovery (including 

aftercare), and helping people get access to benefits.

Lastly, recognizing the need for additional services to 

support this population and program participants, in 

particular, DHS proposes to expand Medicaid funding to 

increase services in the following programs.

• Housing Stability Services provide additional outreach 

capacity, as well as tenancy support services, 

community living assistance, and service coordination.

• PATH Critical Time Intervention uses a time-limited 

case management model designed to prevent 

homelessness for people with mental illness following 

their discharge from institutions. It focuses its 

intervention during that critical transition period to help 

individuals get settled in a more stable living situation.

• 1915(i) to support individuals with mental illness 

provides indepth assessment as well as clinical 

direction of services, development of recoveryoriented service plans, and other supports that foster 

independent community living.

Coordination of Services

Participants can enter the 811 PRA program from either 

MFP or PATH programs. The sequence of steps and 

coordination of service providers varies between the 

two programs.

MFP. Once participants are accepted into MFP, the case 

manager at the facility works with them to select a local 

lead agency for transition services.12 Local lead agencies 

then assign an MFP transition coordinator to help the MFP 

participants access transition services, including applying 

for the 811 PRA program (through the Housing 

Coordinator). If an 811 PRA unit becomes available, the 

MFP transition coordinator works with the Housing 

Coordinator in assisting the MFP participant with the 

application to the unit. If the participant is accepted to the 

unit, the MFP transition coordinator assists the participant 

with the logistics of the move, including arranging for 

transportation, making downpayment assistance, and 

helping purchase groceries, furniture, and supplies. 

Once participants are moved into the 811 PRA unit, 

an MFP case manager is assigned to the participants 

to ensure they receive appropriate ongoing services 

12 Local lead agencies working on MFP are typically private social services organizations, while PATH services are usually carried out by county 

governments or contracted service organizations.
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

68

and supports. The MFP case manager is employed by 

local lead agencies; sometimes both the MFP transition 

coordinator and the MFP case manager are employed by 

the same local lead agencies. The MFP case manager 

is available to provide intensive case management for 

at least 60 days after the move-in date. This service is a 

voluntary option for participants. If a participant selects 

this service, the MFP Case Manager conducts a personcentered assessment of the participant and assists him 

or her in accessing HCBS. Ongoing case management, 

after the initial 60-day period, is also available for up to 

365 days, if needed. HCBS continues for as long as the 

participant requests it.

PATH. Compared with MFP participants, the process is 

somewhat simpler for PATH participants. PATH outreach 

workers identify long-term homeless individuals who are 

eligible for the 811 PRA program. Those interested in the 

program are referred to the Housing Coordinator. The 

PATH outreach worker assists the PATH participant with 

the application. If an 811 PRA unit becomes available, 

the PATH outreach worker collaborates with the Housing 

Coordinator in assisting the PATH participant with the 

application to the unit. If the participant is accepted 

to the unit, the PATH outreach worker then assists the 

participant with the logistics of the move, including 

arranging for transportation, making downpayment 

assistance, and helping purchase groceries and supplies.

Once a participant is moved into the 811 PRA unit, PATH 

outreach worker transitions out and a case manager 

is assigned to the participant to conduct a needs 

assessment, develop a plan of service, and ensure he or 

she receives ongoing services and supports. 

As a general observation, although participants entering 

the 811 PRA program from either program receive 

HCBS, typically 811 PRA participants that come in 

through MFP will have access to a wider range of 

services and supports. 

2013 811 PRA Application

HUD also awarded Minnesota Housing $3 million in a 

second round of 811 PRA funding in 2013 to develop 

an additional 75 units from new construction or for 

use at existing developments. Picking the size of the 

second round funding request was easier for Minnesota 

Housing due to the experience it gained during the 2012 

application process. By the time of the application for the 

second round, the agency better understood its property 

owners’ interest in the program, and it used historical 

application data to identify potentially eligible properties 

and units that would fit the program criteria. 

The 2013 round of funding will—

• Provide services to the same target populations as 

in the 2012 funding round (long-term homeless with 

severe mental illness and MFP populations).

• Focus on the same statewide geographic areas.

• Leverage the same support services and staffing 

arrangements. 

The difference between the first and second round of 811 

PRA grants is the manner in which Minnesota Housing 

will identify and develop potential 811 PRA units. For 

its 2012 program, Minnesota Housing had proposed to 

obtain 85 811 PRA units through existing properties. 

For its 2013 program, Minnesota Housing proposes to 

develop 75 units through the annual Multifamily Request 

for Proposal for new construction projects and draw on 

applications from the existing portfolio. 

Leveraging

Housing Choice Vouchers

The St. Paul Public Housing Agency (PHA) and Metro 

Housing and Redevelopment Authority (HRA) each 

agreed to set aside 30 vouchers for 60 housing choice 

vouchers set aside for the target population as part of the 

811 PRA program. The St. Paul PHA serves only the City 

of St. Paul. The Metro HRA is a PHA that serves Anoka, 

Ramsey, Hennepin, and Carver Counties, excluding the 

cities of St. Paul, Minneapolis, Plymouth, Richfield, St. 

Louis Park, and Bloomington.

Both PHAs agreed to do a one-time set-aside of HCVs 

for the target population. An HCV will be set aside for 

the target population once it becomes available through 

turnover. However, after HCVs provided to individuals 

from the target population turnover, the HCVs will no 

longer be set-aside for the program. HCVs will not be 

allocated all at once. PHAs will build up to the 60 voucher 

commitments over time. Minnesota Housing expects 

that the HCVs set aside for the target population will be 

allocated within a year. Minnesota Housing reported that 

24 HCVs were issued to the target population in 2015.

Other Sources Leveraged

Minnesota Housing set aside $50,000 in grant funds from 

its operating budget. The funds were earmarked to fund 

environmental reviews that may be triggered as a result 

of an owner exploring options to participate in the 811 

PRA program. Minnesota Housing and Department of 

Human Services committed to leveraging $350,000 and 

$385,848 in salary costs, respectively, as noted in the 

section titled Program Funding.
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

69

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

Program Administration

Minnesota Housing and DHS co-manage the 

implementation and administration of the Minnesota 

811 PRA program. Minnesota Housing enters into RACs 

and monitors for federal regulation and compliance. 

DHS coordinates referrals and manages the waiting list. 

DHS also manages HCBS and makes sure that each 

participant’s preferences are consistently central to 

housing and services decisions. 

To monitor program performance, the 811 PRA program 

manager, employed by Minnesota Housing, works 

closely with the Housing Coordinator, employed by 

DHS. Together, the Program Manager and the Housing 

Coordinator work on—

• Development of policies and procedures for housing 

coordination and program performance. 

○ This collaboration includes developing policies and 

procedures for managing the waiting list, status of 

referrals, availability of units, housing placement, 

and service connections. 

• Quality assurance, collecting and analyzing feedback 

from participants as well as housing and service 

providers. 

• Program evaluation, implementing system 

improvement initiatives, training and technical 

assistance, and reporting. 

The Housing Coordinator is the central referral source 

for 811 PRA units and works with service coordinators to 

ensure access to housing and connections to services.

Financial Management

Minnesota Housing leverages its Performance Based 

Contract Administration and Traditional Contract 

Administration (TCA) payment infrastructure to process 

811 PRA vouchers. The process for payment begins 

when the property owners or their agents submit 

the voucher and tenant data to Minnesota Housing 

through Tenant Rental Assistance Certification System. 

Minnesota Housing reviews this information, bundles all 

the property owner submission under its parent account, 

and sends the data to HUD via TRACS.13 If HUD accepts 

the submission, the total amount for payment is reserved 

in the electronic Line of Credit Control System. LOCCS 

then transfers the payment to Minnesota Housing. 

The agency then processes the funds and distributes 

payment to each property electronically. 

Information Systems

Minnesota Housing and DHS measure and track the 

performance of the 811 PRA program by using a variety 

of HUD, Minnesota Housing, and DHS systems. The 

following describes the systems used to collect data and 

measure outcomes of the 811 PRA program.

HUD systems—

• TRACS is a web-based database collecting data 

files that support the certification, recertification, and 

subsidy billing for HUD multifamily projects. TRACS 

provides authorized users with summary and status 

data on submitted vouchers. Minnesota Housing will 

use TRACS to accept, process, approve, and submit 

voucher payment requests for all 811 PRA program 

projects. TRACS will also be monitored to ensure 

data compliance thresholds are met and all errors 

requiring correction are addressed by owners and 

their agents. Existing Minnesota Housing automated 

and accounting systems interface with TRACS and 

LOCCS to provide timely payments to owners.

• LOCCS is HUD’s primary grant disbursement system, 

handling disbursements for most of HUD programs. 

Once voucher data are submitted to TRACS 

and approved for payment, a LOCCS payment 

is triggered. On receipt of a LOCCS notification 

email, a pending State Warrant is prepared from the 

payment detail that is uploaded from the LOCCS 

email notification and sent to the State of Minnesota’s 

Disbursement System. Once the funds noted in 

the LOCCS email have been received in Minnesota 

Housing’s bank account, the State’s Disbursement 

System sends an Electronic Funds Transfer to the 

owner’s account on the same day. As described more 

completely in the section titled Minnesota Housing 

Systems, the Tracker system is an internal system that 

keeps a complete record of the LOCCS deposits and 

voucher payments made on behalf of each contract.

• Enterprise Income Verification is a web-based 

database containing employment and income 

information about participants in HUD’s rental 

assistance programs. This information is made 

available to ensure “the right benefits go to the right 

persons.” The income information displayed in this 

system is supported through a matching agreement 

13 Parent account refers to the “parent voucher” for the entire state. Each individual Section 811 PRA property within the state that has a “child 

voucher.”
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

70

between HUD, National Directory of New Hires and 

Department of Health & Human Services, and the 

Social Security Administration. Minnesota Housing 

will use EIV to monitor the number and type of 

discrepancies associated with the 811 PRA Demo 

project and will assist projects in investigating and 

resolving errors with either tenant identifiers or 

income data entered into TRACS.

Minnesota housing systems—

• Tracker is an integrated database linked to Housing 

and Development Software and Minnesota Housing’s 

accounting software. Tracker is the core tool 

Minnesota Housing will use to manage, measure, and 

drive performance of 811 PRA Demo requirements, 

including all dates, tasks, and outcomes (such as 

RACs completed, inspection scheduled, inspections 

completed, rents paid, tenant income, and so on). 

Tracker enables staff to easily pull all required HUD 

quarterly program and budget data. 

• Housing and Development Software is what 

Minnesota Housing uses—for Section 8 purposes—

to receive, review, and complete final submission of 

TRACS files and monthly voucher payment requests. 

Including certifications, recertifications, terminations, 

all tenant data files are logged into this Housing and 

Development Software database, as are Special 

Claims. TRACS data housed in this system can be 

queried and provided in several report formats.

• Surveys and other specialized data collection will be 

designed, as needed, to support the performance 

measurements required to analyze the program 

internally and to report externally to HUD, DHS, and 

other appropriate parties.

DHS systems—

• Homeless Management Information System, or HMIS, 

is used by Minnesota for all homelessness assistance 

programs, including supportive housing. With HMIS, 

PATH providers can enter data and provide reports on 

the PATH services received by the persons they assist 

in 811 PRA program units.

• MAXIS is a computer system used by state and county 

workers to determine eligibility for public assistance 

and health care. For cash assistance and food support 

programs, MAXIS also determines the appropriate 

benefit level and issues benefits. Certain data elements 

are regularly extracted from MAXIS and maintained in 

a data warehouse for internal users.

• MMIS is a claims-based system that will be used to 

look at service and health cost data to evaluate the 

program. Collected in MMIS are data elements from 

data authorizations and paid claims, including data 

that will enable assessment of service usage and 

costs for healthcare and long-term services.

Certain data elements are regularly extracted from MMIS 

and maintained in a data warehouse for internal users. 

For example, DHS uses MMIS to look up the current 

service provider for a tenant.

• Federal Minimum Data Set is maintained by the 

Minnesota Department of Health and contains 

diagnosis, health, and functioning status.

• Disability Linkage Line tracks referrals and services 

for all callers in its database.

• Waiting lists, surveys, and specialized data collection 

will be developed and used by DHS as needed. 

• For example, the Housing Coordinator at DHS will 

maintain a waiting list in Excel for all 811 PRA Demo 

participants. DHS will also track housing needs 

and barriers for MFP participants. MFP participants 

will also be asked to regularly join in a participant 

experience survey.

Successes and Challenges

Successes

Reaching unit goals under RAC. Despite initial 

difficulties and with great effort, through 2015, Minnesota 

has 67 811 PRA units under a RAC and expects to have 

all 85 units under a RAC by June 30, 2016. Although 

Minnesota still aims to reach the initial goal of 100 percent 

of the units leased by October 2016, achieving that goal 

seems unlikely as only one unit is occupied and 66 of its 

67 units are currently “not available.” Turnover rates vary at 

each property and are estimated based on historical data, 

but until vacancy occurs at turnover, 811 PRA applicants 

will not have access to most of the units under RAC. 

However, given the limitations of this pilot program and 

other market factors, this progress should be considered 

successful as Minnesota had the second highest number 

of units under RAC at year-end of all 2012 grantees. 

Utilizing existing developments and finding good 

partners. Minnesota created a successful strategy 

for identifying 811 units. First, it utilized developments 

with rent-restricted units or existing unsubsidized units 

within Minnesota Housing’s Section 8 portfolio. The 

properties were already staffed with people who have 

administered federal housing programs, including staff 

that has coordinated supportive housing. Additionally, 

Minnesota Housing pursues partnerships with nonprofit 

property owners. Of the 10 property owners they were 
Chapter 5. Minnesota Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

71

in conversation with during the site visit, 9 are nonprofits 

and only 1 is for profit. In Minnesota, nonprofit owners are 

more likely to want to participate in the 811 PRA program. 

Minnesota Housing has found that nonprofit owners are 

mission driven and are already targeting their housing to 

the 811 PRA’s population. 

Minnesota Housing has found a partner in Aeon 

Properties, a large nonprofit developer operating in the 

Twin Cities region. The agency secured three RACs 

with Aeon that will make 55 units available to 811 PRA. 

Aeon currently administers about 1,200 units targeted 

to reach and support homeless persons and persons 

with disabilities. It currently participates in DHS’s Group 

Residential Housing program and Hennepin County’s 

Housing First program. 

Developing organizational structure for program and 

improving agency efficiency. As mentioned previously, 

given the small size of Minnesota’s 811 PRA program, its 

centralized design seems to fit its operations very well.

The DHS Housing Coordinator is an integral key to 

program success. The coordinator has developed 

systems and processes to work with the referring 

providers, applicants, and housing providers. Most 

importantly, the coordinator has established relationships 

with transition coordinators, PATH providers, and 

property managers to quickly fill units as they become 

available and to work on process improvements. 

Minnesota Housing and DHS meet monthly to 

develop program implementation, check on progress, 

and address issues as needed. The DHS Housing 

Coordinator and 811 PRA program Manager consult 

regularly on an array of daily operational and 

implementation issues.

As a current PBCA, Minnesota Housing has very 

experienced staff in place, which has proven to be a 

great advantage for program administration. Minnesota 

Housing’s experience has also provided the advantage of 

having systems in place to process payment vouchers and 

receive payments from HUD. The agency has adapted an 

internal database structure used for PBCA to use for 811 

PRA program job tasks, data tracking, and reporting.

DHS accesses multiple existing agency databases to 

verify applicant income and disability and track services 

provided to tenants.

Challenges

Securing units and attracting property owners to 

program due to HUD Section 811 PRA restrictions 

and requirements. Those implementing the 811 PRA 

program in Minnesota have faced at least three major 

challenges—HUD procedural delays, the booming rental 

market in the Twin Cities, and property owner resistance.

A major challenge in implementing this program has arisen 

from HUD’s delays in (1) developing program guidelines 

and materials; (2) adjusting its data systems to work for 

the 811 PRA program, such as LOCCS and TRACS; and 

(3) giving clear guidance on the program requirements 

prior to receiving the cooperative agreement and program 

regulations (for example, program design, environmental 

requirements, the use agreement, budgeting parameters, 

completing the AFHMP, and how payments would be 

made in HUD systems). It took more than 18 months from 

the initial award for HUD to issue program materials and 

the cooperative agreement. 

The rental housing market in the Twin Cities 

(Minneapolis-St. Paul and the surrounding communities) 

is on an upswing similar to that in many other metro 

areas around the country. According to StarTribune

(Minneapolis’ biggest newspaper), the average rent for 

a one-bedroom unit in the metro area was $859 in 2014 

(higher in cities of Minneapolis and St. Paul; StarTribune, 

2014). This rent is much higher than the $740 figure that 

would be allowable given the FMR requirement. Property 

owners are easily able to get market-rate rents for their 

units, so Minnesota Housing chooses units that already 

have rent restrictions so owners are not accepting lower 

rents when they participate in 811 PRA.

When implementing the 811 PRA program, Minnesota 

Housing has met significant resistance from property 

owners. The requirement to enter into a 30-year use 

agreement and 20-year RAC, with 811 PRA funding 

guaranteed only for the first 5 years, proved to be difficult 

for owners to accept. Most owners of tax credit properties 

have partners and investors who are concerned about the 

bottom line, long-term sustainability, and the future real 

estate market. 

Under these long-term agreements, which are longer 

than the 15-year use restrictions for tax credit properties, 

owners have a limited ability to increase rents to cover 

rising expenses or go to the market rate in the future. 

These agreements also limit owners’ ability to sell the 

property with the use restriction attached. Gaining buy-in 

from owners in these situations may require multiple 

discussions with investors and lawyers. 

Also owners have been reluctant to take on renters who 

are new to them or are from unknown populations. The 

unknown factors can be many. To cite three examples, 

applicants may—

• Be referred from numerous types of institutions.

• Have lived lives of long-term homelessness.
Case Studies – HUD Section 811 PRA Program

72

• Have complex or unfamiliar disabilities and service 

needs.

With the 811 PRA program, owners will not have a 

contractual relationship with the service provider, and 

each household could potentially have more than one 

service provider. Owners need assurance that they can 

contact someone if tenants are having a problem or need 

assistance to maintain their housing. Having the DHS 

Housing Coordinator as a central contact has helped to 

alleviate this concern.

Many owners have become comfortable (over time) 

providing supportive housing units for long-term 

homeless individuals and families using the current 

funding model, which requires the owner to have a 

partnership with a designated service provider. Owners 

are reminded that it is likely that they already have quite 

a few tenants with disabilities and receiving HCBS; they 

merely are not aware of it and do not need to be.

Educating and negotiating with property owners takes 

considerable time, and Minnesota Housing is trying to 

meet the 24-month timeline to have all 811 PRA units 

leased. Reaching full, stabilized occupancy will also 

take considerable time as 99 percent of the properties 

currently under RAC are occupied and will not be 

available for 811 PRA tenants until turnover. 

Minnesota Housing has leveraged existing relationships 

with mission-driven developers who work with Minnesota 

Housing as partners to address the needs of low-income 

people in the state. These developers are willing to take 

the risk to embark on this new program, knowing they 

will have agency support to address issues as they 

arise. However, Minnesota Housing staff also note that 

they have had conversations with supportive housing 

property owners who expressed interest in adding more 

units for the target population to their properties but 

found out they were not eligible. Their participation would 

have exceeded the 25-percent limit for units targeted 

to nonelderly people with disabilities in a particular 

property.

Staff turnover. Staff turnover in the 811 PRA program 

has occurred, especially on the services side. The current 

housing coordinator is the third person to assume this 

position. The staff member joined DHS in January on 

loan from one of the county governments. Moreover, 

considerations exist for funding this position during the 

long term. The housing coordinator position is funded 

through MFP, which is in year 2 of a 5-year grant. The 

Minnesota 811 PRA program will have to find other sources 

of funding for this position or restructure its program.

Chapter 5. Minnesota Section 811 Project Rental Assistance Program
Case Studies – HUD Section 811 PRA Program

73

Pennsylvania Section 

811 Project Rental 

Assistance Program 

Introduction

HUD awarded Pennsylvania $5,870,880 to administer 

a Section 811 Project Rental Assistance program in the 

2012 funding round. The fully executed Cooperative 

Agreement was not received from HUD until October 

30, 2014. Under this program, the Pennsylvania Housing 

Finance Agency (PHFA) and its partner, the Pennsylvania 

Department of Human Services (DHS), anticipate 

housing nonelderly adults with disabilities in 200 housing 

units. The units will be located statewide throughout 34 

regions served by local lead agencies. These regions 

are mostly single counties, but in three cases the 

regions are composed of multiple counties. Beyond the 

statutory eligibility requirements of the 811 PRA program, 

Pennsylvania prioritizes—

1. Individuals living in institutions who are able to live in 

the community with permanent supportive housing. 

2. Individuals at risk of institutionalization without PSH.

3. Individuals living in congregate settings who desire to 

move to the community. 

At the time of the site visit in October 2015, only 1 of 

34 local lead agencies had begun implementation. 

Pennsylvania chose Dauphin County to act as a pilot site, 

helping to test and refine the 811 PRA program. 

As of October 2015, no individuals had been housed 

through the program. However, by the close of 2015, one 

RAC had been signed, representing two units, and one 

unit was occupied.

Grantee Partnership, Organizational 

Structure, and Management

Partnerships and Organizational Structure

PHFA is Pennsylvania’s 811 PRA program grantee. 

For the past 40 years, PHFA implemented and 

operated programs to increase affordable housing 

available to low- and moderate-income households. 

Programs include multifamily rental and single-family 

homeownership programs. PHFA also serves as 

the PBCA for the Commonwealth of Pennsylvania, 

administering Section 8 contracts representing 45,000 

units across the Commonwealth. PHFA allocates LIHTCs 

and administers Tenant-Based Rental Assistance (TBRA) 

programs statewide.

DHS, the key state-level supportive services partner 

in the 811 PRA program, administers Medicaid for the 

Commonwealth, one of the country’s largest Medicaid 

programs. DHS had built up supportive housing experience 

prior to the 811 PRA program award. Within DHS, four 

agencies play key roles in the funding or provision of 

services to the 811 PRA program target populations. 

• The Office of Mental Health and Substance 

Abuse Services (OMHSAS), an office within DHS, 

administers programs for people with serious mental 

illness, as well as the Medical Assistance Program, 

which covers both mental health and co-occurring 

disorders. OMHSAS also manages a small number 

of state-run psychiatric hospitals and monitors 

funding to counties administering services through 

block grants, coordinates other funding sources 

to provide education, and services for people 

transitioning into community-based settings. In 

many cases, OMHSAS will also coordinate services 

for people after their placement.

• The Office of Developmental Programs (ODP) 

administers programs that provide supportive 

services and care for people with cognitive and 

intellectual disabilities (including persons with 

autism), and people with physical disabilities. ODP 

manages five state-operated intermediate care 

facilities for people with intellectual disabilities. ODP 

provides funding, coordination, and transition support 

for people with intellectual disabilities in the 811 PRA 

program. It will also provide continuing services to 

individuals after they have moved into the unit.

• The Office of Long-Term Living (OLTL) helps identify 

housing solutions for people with disabilities who 

currently reside in institutions. OLTL provides community 

transition services, including financial assistance, for 

people moving to community-based settings. 

• The Office of Medical Assistance Programs (OMAP) 

purchases health care for more than 2.3 million 

people in Pennsylvania, administering the Medicaid 

program. OMAP works with providers to process 

claims, establish rates and fees, and contract with 

managed care organizations.

Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program
Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

74

Partnership Between PHFA and DHS

PHFA and DHS have developed partnerships around 

supportive housing programs for both elderly and 

nonelderly people with disabilities, most notably 

through the Rental Subsidy Fund initiated in 2005. 

Pennsylvania’s 811 PRA program is modeled after this 

program, through which PHFA uses developer fees to 

create units affordable to households with incomes at 

or below 20 percent of AMI. These units are dedicated 

to extremely low-income people with disabilities. DHS 

coordinates services for people with disabilities residing 

in the units. Because this structure already existed, 

Pennsylvania made progress implementing the 811 PRA 

program despite key staff turnover in the years following 

submission of the 811 PRA program grant application.

PHFA and DHS worked together as partners on the 

application approach and program design and structure, 

and they collaborated on decisions related to 811 PRA 

program implementation. In addition, both agencies 

conducted outreach and marketing to encourage 811 

PRA program participation. As a result, PHFA and DHS 

feel a shared responsibility over the role of “grantee,” 

meeting weekly to review issues and track 811 PRA 

program progress. 

Overview of 811 PRA program structure. 

Pennsylvania’s 811 PRA program is expected to 

operate statewide, with nearly all counties (58 out of 67) 

participating. The organizational structure and design 

features have not changed since Pennsylvania submitted 

the program application to HUD in 2012.

PHFA and DHS continue to perform their roles and 

responsibilities as were originally described in the 

program application and detailed in table 6.1. 

Pennsylvania’s 811 PRA program relies on a system of 

community-based organizations that serve as local lead 

agencies in each county or for multiple counties. DHS 

recruits and cultivates relationships with communitybased organizations in each county and approves them 

to serve as local lead agencies. Various agencies can and 

do serve as local lead agencies, including county human 

services departments, behavioral health departments, 

Community Action Agencies, local service provider 

organizations, and other nonprofit groups. This system 

has been used in Pennsylvania for the Rental Subsidy 

Fund program, another supportive housing program using 

LIHTC-financed units affordable to people with disabilities 

who are at or below 20 percent Area Median Income. DHS 

expects to hire a staff person to act as a full-time liaison 

with all 34 local lead agencies involved in the program.

Local lead agencies engage service providers, creating 

formal referral relationships with chosen property 

managers and landlords, and coordinate housing 

transition and services for participants. Designated local 

lead agencies in each of the participating counties will 

serve as the single point of contact and central intake for 

the 811 PRA program serving their area. 

Although the 811 PRA program is still in the early 

implementation stage in Pennsylvania, the partners expect 

the model will rely on local lead agencies to organize a 

group of stakeholders that serve their target populations. 

These stakeholders will serve as referral sources to link 

Table 6.1: Pennsylvania—811 PR A Program Roles and Responsibilities

Pennsylvania Housing Finance Agency Department of Human Services

• Identify or finance eligible units for 811 PRA program. • Recruit and collaborate with local lead agencies responsible for implementing 

the program.

• Execute Rental Agreement Contracts with property owners. • Oversee referral process in collaboration with local lead agencies.

• Perform outreach to developers, landlords, and property owners. • Provide outreach, training, and technical assistance to local lead agencies.

• Monitor 811 PRA program unit occupancy and compliance with eligibility 

requirements.

• Monitor local lead agencies processes on prioritizing individuals for housing 

placement.

• Make rental payments to property owners. • Monitor local lead agencies processes, ensuring tenants have necessary access 

to housing and support services.

• Collect and report required occupancy and financial information. • Collect and report data on service delivery, costs, and outcomes. 

• Provide ongoing communication with Department of Human Services, local lead 

agencies, and housing providers.

• Provide ongoing communication with Pennsylvania Housing Finance Agency, 

local lead agencies, and housing providers.

PRA = Project Rental Assistance.
Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

75

eligible persons to the 811 PRA program. Local lead 

agencies will review units chosen by PHFA and DHS and 

refer potential eligible tenants to property managers with 

vacant 811 PRA program units. 

With assistance and oversight from DHS and PHFA, 

local lead agencies will manage the outreach and 

referral process, oversee the waiting list for program 

participation, provide housing assistance, and ensure 

coordination of support services. Local lead agencies 

will sign a memorandum of understanding with each of 

the community stakeholders and properties, outlining 

each party’s commitment to the tenants of the 811 PRA 

program. This county-based program model aligns with 

the Commonwealth’s overall decentralized model of 

housing and service provision.

Pennsylvania began program implementation with 

Dauphin County, the home to Harrisburg, the state capital. 

The county is geographically diverse, with both urban 

and rural areas; it has some areas near to service hubs 

and transportation (such as downtown Harrisburg) and 

other areas not as connected to service centers or public 

transportation. Furthermore, PHFA has a well-established 

relationship with Pennrose Properties, LLC, a large 

property developer with available units in Dauphin County. 

Dauphin County was selected as the first pilot local lead 

agencies because it met the following criteria.

• Local lead agencies has signed memorandum of 

understandings or anticipated memorandum of 

understandings with property owners or property 

developers.

• Local lead agencies has met with and signed 

memorandum of understandings with service 

agencies.

• Local lead agencies has conducted outreach to 

institutional staff and outreach staff to obtain priority 

one referrals.

• Local lead agencies has provided a sufficient 

level of communication with the Regional Housing 

Coordinator (RHC). 

• Local lead agencies has developed and managed 

waiting lists.

Program financial structure. The 811 PRA program 

budget provides $434,880 in administrative funds, or 8 

percent of the total rental subsidy amount. For the first 6 

months, PHFA and DHS each receive 50 percent of the 

allowable administrative fees to cover the startup costs 

associated with the program. After the first 6 months, 

PHFA and DHS agreed that PHFA will receive 90 percent 

of the administrative grant fees, with DHS using 10 percent 

for eligible activities, such as outreach and engagement 

of local lead agencies and data collection on tenant 

outcomes. All fees must be documented, and PHFA will 

collect and retain records on administrative costs.

State Context: Housing Programs

Each State administers a number of key waivers that are 

critical to the functioning of the program. The key waivers 

by state follow. 

Housing

Pennsylvania operates its housing and social services 

programs in a decentralized way, with programmatic 

and policy decisions often made at the county level. 

PHFA and Department of Community and Economic 

Development (DCED), the two primary agencies 

that administer housing programs, provide funding 

to initiatives designed at a local or county level. 

Pennsylvania has some of the most urban counties in the 

country, but also large regions of rural counties (most 

notably the “Rural T,” positioned in the middle of the 

state), resulting in a range of housing needs and local 

priorities. In this way, implementing the 811 PRA program 

across the Commonwealth, with its requirement for local 

adherence to a single set of eligibility requirements and 

program features, would be an achievement. 

Existing housing programs for nonelderly people 

with disabilities. PHFA is a state-affiliated agency 

that administers programs and funds on behalf of the 

Commonwealth government and the federal government. 

For more than 10 years, PHFA has committed 

considerable resources toward supportive housing 

initiatives. In 2005, DHS and PHFA implemented the 

Rental Subsidy Fund to help move extremely low-income 

people with disabilities out of nursing homes and into 

housing in the community. PHFA has not created a 

specific budget for this program, but instead includes it 

as a preference in the annual LIHTC allocation. Funded 

through developer fees, this program has subsidized 

rents in approximately 570 supportive housing set-asides 

to provide affordable housing for people with disabilities. 

In 2008, PHFA expanded its commitment to communitybased housing for people with disabilities by setting aside 

5 percent of tax credits for properties with supportive 

housing units. To qualify, properties must set aside no 

more than 25 percent of units in a single property for 

supportive housing target populations (including people 

experiencing homelessness or at risk of homelessness, 

people with disabilities, people with HIV, and veterans), 

Rents could not exceed 30 percent of tenant income. 

Beginning in 2009, PHFA required that any developer 
Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

76

seeking LIHTCs for multifamily rental housing must 

set aside 10 percent of units for households with 

incomes at or below 20 percent of AMI, including DHS 

target populations, such as people living in or at risk 

of institutionalization, people with disabilities who are 

homeless or at risk of homelessness, adults with autism, 

and youth aging out of foster care. As a result of this 

provision, from 2009-2015, PHFA has added 1,425 setaside units for households at or below 20 percent of AMI.

Pennsylvania anticipated that the 811 PRA program 

would provide additional long-term rental subsidies for 

nonelderly people with disabilities. In this way, the 811 

PRA program would serve to expand the Rental Subsidy 

Fund Program, although for a more targeted population 

as the 811 PRA program requires.

Other affordable housing programs in Pennsylvania that 

may also serve persons with disabilities are— 

• HOME TBRA. PHFA administers two similar TBRA 

programs, one of which is only for households with a 

person with a disability. HOME TBRA aims to hasten 

access to community-based housing through rent 

subsidies. The amount of rental assistance is based on 

Fair Market Rent using the appropriate bedroom size for 

the household. The maximum subsidy is the difference 

between 30 percent of the household’s adjusted 

income and the FMR for the county. From program 

inception (2008) to the time of the site visit, PHFA has 

housed 150 households through this program. 

• Supportive Housing Set-Aside. This effort by 

PHFA sets aside 5 percent of LIHTC funds to develop 

community-based supportive housing and has 

produced nearly 550 units of housing since 2008. This 

program is separate and distinct from the 10-percent 

set-aside previously mentioned. 

• Homeless Assistance Program (HAP). HAP 

is administered by DHS and provides people 

experiencing homelessness or at risk of becoming 

homeless with financial assistance for rent and utility 

assistance and case management to help move them 

toward self-sufficiency. 

• Emergency Shelter Allowance (ESA). This DHS 

program works with low-income families and 

individuals—including extremely low-income people 

with disabilities—who are experiencing homelessness 

or at risk of homelessness to help them avoid 

eviction or secure housing. The county department 

administering the funds coordinates with HAP to 

combine HAP’s funds with ESA’s to prevent or end the 

household’s housing crisis. 

Federally funded public housing and Section 8 housing 

vouchers are also important sources of affordable 

housing for people with disabilities in Pennsylvania. 

Pennsylvania has 61,290 units of public housing, 

90,002 HCVs, and 59,656 units of Section 8 housing. 

Approximately 42 percent of nonelderly households, 

in which the head or spouse is under age 62, residing 

in public housing units have a disability (HUD, 2016). 

The head of household or spouse has a disability in 42 

percent of nonelderly households housed through HCVs 

and 39 percent in Section 8 housing (HUD, 2016). 

Of the HCV inventory, between 1997 and 2009, 

Pennsylvania was awarded 2,054 vouchers across the 

Commonwealth under the Non-Elderly Disabled Category 1 

Voucher program. The Dauphin County Housing Authority 

was awarded 10 vouchers under NED2 in 2010. The 

first NED program allocated vouchers to Public Housing 

Authorities (PHAs) to provide to nonelderly people with 

disabilities who wanted to access affordable housing in 

the private market; NED Category 2 program is specifically 

intended to enable nonelderly people with disabilities living 

in institutions to move into private housing. Both NED 

programs are designed to provide supportive services for 

those persons utilizing the vouchers (HUD, n.d.).

The other state agency that administers housing programs 

and funds for low-income populations is the DCED. This 

agency administers the Emergency Solutions Grants 

Program, which provides funding for services and 

facilities serving people experiencing homelessness, all 

whom have extremely low incomes and many of whom 

have a disability. In addition, DCED administers funds for 

specialized programs for homeless populations, such as 

the Supportive Services for Veteran Families program, a 

new rapid rehousing pilot program, targeted to homeless or 

at-risk veterans and their families. Although DCED does not 

participate in the 811 PRA program, PHFA indicated that 

DCED is well-informed and supportive of the initiative. 

Trends in the production of supportive housing. 

Since the early 2000s, Pennsylvania has implemented 

policies that expanded options for people with disabilities. 

PHFA provides incentives to produce community-based 

housing for people with disabilities in the Commonwealth. 

Pennsylvania has established a priority for the allocation 

of LIHTCs in its Qualified Allocation Plan to properties 

that include units for extremely low-income people 

with disabilities. A top concern in state housing policy 

is to move people from institutions to communitybased settings, and people with disabilities are a 

priority population in the DHS’s forthcoming housing 

plan. Although the policy shift is recent, PHFA began 

committing considerable resources to supportive housing 
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77

initiatives more than a decade ago. PHFA also gave robust 

preferences for new construction of supportive housing 

through the QAP, to expand the inventory of units set aside 

for people with disabilities. According to Pennsylvania’s 

2012 811 PRA program application, PHFA has financed 

more than 1,250 units of accessible and affordable 

housing (including some supportive housing) to extremely 

low-income populations during the past decade. 

At the time of the site visit in October 2015, the state 

budget was not enacted, and the state’s Housing Trust 

Fund only had revenue to support housing activities in 

communities with active Marcellus Shale wells. (Marcellus 

Shale is sedimentary rock buried thousands of feet 

that runs north, south, and through Pennsylvania.) In 

November 2015, Governor Tom Wolf signed Act 58 

into law, which dedicates a portion of the increase in 

the Realty Transfer Tax into the Pennsylvania Housing 

Affordability and Rehabilitation Enhancement (PHARE) 

Fund, the Commonwealth’s HTF. PHARE provides a 

mechanism by which allocated Commonwealth and 

federal funds can be used to create or rehabilitate 

affordable housing for Commonwealth residents, 

including very low-income seniors and people with 

disabilities. The only specific legislative requirement of 

PHARE is that 30 percent of the funds benefit households 

with incomes below 50 percent of AMI.

Rental housing market. The rental housing market across 

Pennsylvania varies. Although the rental housing market 

is tight (less than 5 percent of vacant units) in the urban 

areas, in the more rural areas of the Commonwealth, plenty 

of rental vacancies exist. Housing affordability also varies 

by county, with fewer affordable units in the tighter rental 

markets. The National Low Income Housing Coalition 

(NLIHC) estimated that a statewide shortage exists of more 

than 280,000 affordable units for extremely low-income 

populations (NLIHC, 2016a). Although rental housing is 

available in most rural areas, access to transportation 

and services are often problematic, causing people to 

travel long distances to access services. Furthermore, 

NLIHC’s research found that many units in Pennsylvania, 

“...particularly in areas with high vacancy rates, that may 

rent for affordable prices may be in such poor condition 

that they are not suitable living environments” (Mierzwa, 

Nelson, and Newburger, 2010).

Service Provision and Healthcare

Access to services is necessary for the successful 

transition to community-based living. Due to the small 

number of occupants at the time of the site visits, specific 

data on service mix and the role services play in continued 

occupancy was not available. Services should be reviewed 

to determine if a link exists between specific types of 

services and successful long-term occupancy of 811 PRA 

units. Given that one of the challenges noted by grantees 

is the uneven provision of services throughout the states, 

service mapping would be a useful tool in developing 

individual service plans for potential tenants in locations 

where services are less abundant.

DHS has worked on supportive housing initiatives with 

PHFA for the past decade. DHS has developed capacity for 

supportive housing through a series of initiatives targeted 

to institutionalized populations and people with disabilities. 

During the past 5 years, DHS built and supported the local 

lead agencies infrastructure and initiated a RHC Program, 

as explained in Existing Efforts section that follows. The 

811 PRA program was designed and implemented using 

the local lead agencies model as its foundation. 

Policy and Funding: Prioritization of Medicaid 

Resources Toward Home- and Communitybased Services

Between 2008 and 2014, total Medicaid spending 

increased from about $16 billion to $23.6 billion statewide, 

a 45.4-percent increase. Funding for long-term services 

and supports went from approximately $7 billion in 2008 to 

$8.3 billion in 2013 (Eiken et al., 2015; KFF, 2017). HCBS, 

as a portion of LTSS also increased during this period, 

indicating the continuing trend of decreased funding for 

institutionalized care and increased funding for communitybased services and supports. HCBS funding increased 

from about 30 percent of LTSS in 2008 to 41.9 percent in 

2013; however, this increase is below the national average 

of 51.3 percent (Eiken et al., 2015). Between 2008 and 

2013, overall funding for HCBS increased 64.2 percent, 

and funding for institutional Long Term Support Services 

decreased nearly 2 percent. This shift in funding again 

shows the Commonwealth’s priority toward communitybased services (Eiken et al., 2015). 

Despite the overall Medicaid spending increase, waiting 

lists exists for some of the Medicaid waivers that help serve 

nonelderly people with disabilities, although Money Follows 

the Person helped to reduce some waiting lists.14 The 

various agencies serving nonelderly people with disabilities 

noted an expansion of need, which has put a strain on the 

pool of available direct service providers. At the time of the 

site visit in October 2015, the state budget had not been 

passed. The funding for services expected to be used 

in the 811 PRA program was largely through Medicaid 

(Home- and Community-Based Waiver), MFP, and other 

rebalancing funds. 

14 From 2008 to the fall of 2015, 2,136 people have transitioned out of institutions through MFP.
Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program

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78

Existing Efforts

DHS has programs that support community-basedliving housing and moving people from institutions to 

community-based settings. The following programs will be 

involved in providing assistance in the 811 PRA program. 

• Regional Housing Coordinator Program. This 

initiative is a state program that funds 10 housing 

experts statewide to act as liaisons between the 

housing and service systems, working with housing 

providers and Nursing Home Transition (NHT) 

Program coordinators to help people with disabilities 

achieve their housing goals. Implemented in 2003, 

this program, partially funded through MFP, has 

resulted in the widespread use of the Prepared 

Renters Program (PREP), which helps prepare 

people in institutions to become successful renters. 

In some counties, RHC Program secured local PHA 

preferences for people with disabilities. 

• Nursing Home Transition Program. This program 

provides financial assistance (up to $4,000) and 

transition support services to people moving from 

nursing homes to community-based housing. The 

Commonwealth launched this program in 2008 and 

funds it annually. There are 52 Nursing Home Transition 

partners serving people ages 60 and over, and 13 

Nursing Home Transition partners serve people under 

the age of 60. Area Agencies on Aging are the 52 

organizations serving the over-60 population. 

Other programs that serve people with disabilities, and 

therefore may also serve the 811 PRA program target 

populations, include the following.

• OMHSAS and HealthChoices. Since 2008, 

OMHSAS and the county-based behavioral health 

HealthChoices Medicaid managed care contractors 

have allocated more than $130 million in Medicaid 

reinvestment (savings) funds to develop supportive 

housing and related programs. HealthChoices 

programs are given options to target funds into 

Project Based Operating Assistance (managed 

through agreements with PHFA, bridge rental 

subsidy programs, target capital funds, local housing 

clearinghouses, contingency funds, master leasing, 

and housing support services. Most programs 

allocate funds across multiple categories.

• Community Hospital Integration Projects 

Program. This program is a state initiative that 

partners with local county mental health agencies 

to help transition people in state hospitals who have 

extended lengths of stay or complex service needs to 

community-based programs and supports.

• Projects for Assistance in Transition from 

Homelessness (PATH). The PATH program provides 

funding for services to individuals who have a mental 

illness or a co-occurring substance abuse disorder 

and who are experiencing homelessness or are at-risk 

of homelessness. 

• Home Modification and Assistive Technology 

Initiative. Funded through OLTL, this initiative targets 

seniors and people with disabilities served by OLTL 

waiver programs. Its aim is to increase the number 

of people who are living safely and independently 

in their own homes by improving the quality of 

their homes. This increase is achieved by providing 

funding to make home modifications or secure 

necessary technical resources. 

• SSI/SSDI, Outreach, Access, and Recovery 

(SOAR). The SOAR program helps people who 

are experiencing homelessness or at-risk of 

homelessness and who have a mental illness or 

co-occurring disorder access Supplemental Security 

Income or Social Security Disability Insurance 

benefits, which may lead to eligibility for Medicaid and 

access to supportive housing. 

Olmstead Plan and Settlements

In 2011, Pennsylvania’s OMHSAS proactively developed 

an Olmstead plan for the State Mental Health System. 

Updated in 2015 and undergoing an internal review 

process, Pennsylvania reissued the plan in 2016. The 

state-level plan targets individuals with mental illness, 

focusing on diversion and transitioning people out of 

state psychiatric hospitals and into community settings. 

Toward the goal of deinstitutionalization, Pennsylvania 

has closed three state hospitals between 2006 and 2010. 

The updated Olmstead plan identifies the 811 PRA 

program as a new funding source for integrated housing 

in the Commonwealth. The plan’s priorities are consistent 

with Pennsylvania’s 811 PRA program priorities, making 

the 811 PRA program an excellent resource for furthering 

Pennsylvania’s efforts to provide housing and supports 

in the most integrated setting possible for people with 

disabilities identified with serious mental illness.

The plan references the six PHAs in Pennsylvania that 

committed a collective 151 HCV or public housing units 

for people with serious mental illness. The plan also 

requires that counties have local Olmstead plans specific 

to the mental health system, either on their own or in 

partnership with other counties in their region. Each local 

plan will specify the support services and infrastructure 

need to be developed to meet the needs of people being 

discharged from state hospitals. Counties that host the 
Chapter 6. Pennsylvania Section 811 Project Rental Assistance Program

Case Studies – HUD Section 811 PRA Program

79

six PHAs that committed units to the 811 PRA program 

are aware of the preference for people with serious 

mental illness and understand their role in making 

referrals and providing supportive services to individuals 

as they move into integrated housing. 

Also, three Olmstead-related lawsuits have been filed, 

one with OMHSAS and two with the ODP. As a result, 

three settlements were enacted, resulting in Pennsylvania 

undertaking major remediation actions by moving 

people from institutions to community-based settings. 

OMHSAS’s settlement is known locally as “Fred L. 

Settlement” and ODP’s two settlements are known as 

the “Jimmie Settlement” and the “Benjamin Settlement.” 

• Fred L. Settlement. The case was filed in September 

2000. The result was an agreement in 2004 to 

conduct 210 discharges during a 4-year period at 

Norristown State Psychiatric Hospital. The discharges 

were conducted in phases of 30, 30, 60, and 90 

people being discharged at a time. All 210 discharges 

were completed by 2012.

• Jimmie Settlement. This case was a class action 

lawsuit challenging the unnecessary segregation of 

individuals with a dual diagnosis of serious mental 

illness and intellectual disability in state psychiatric 

beds. This settlement resulted in the provision of 

discharge planning for class action lawsuit members 

over the course of 3 years. 

• Benjamin Settlement. This settlement resolves 

a class action lawsuit filed against DHS alleging 

that DHS unnecessarily segregated people in state 

Intermediate Care Facilities for Individuals with 

Intellectual Disabilities. The settlement requires DHS 

to provide community placements to class members 

to move to and stay in the community (should they 

choose to do so) by June 30, 2018. 

Pennsylvania has completed the Jimmie Settlement 

discharge planning. In the 18 months since the Benjamin 

Settlement was enacted, Pennsylvania has moved 46 

people from state institutions to the community or to 

group homes, with considerable help from ODP.

At the time of the site visit, the Pennsylvania 811 PRA 

program was in the beginning stages of implementation. 

As planned, the program could involve 58 of the 

Commonwealth’s 67 counties. The effort required to 

implement an involved program like the 811 PRA program 

across such a large geographic area is enormous, 

especially because each county has its own unique 

characteristics and issues. Also, working with the wide 

network of local lead agencies and their service provider, 

partners makes this program challenging to implement 

and administer. Once Pennsylvania determines how and 

if it will allocate 811 PRA program units geographically, it 

will be easier to predict how this program will unfold and 

how production goals will be met. 

Population Served

Pennsylvania’s 811 PRA program serves the population 

in accordance with HUD-established criteria, such 

as: extremely low-income people between the ages 

of 18 and 61 who have a disability and are eligible for 

Medicaid services. Pennsylvania further prioritizes 

people with physical disabilities, intellectual disabilities, 

and mental illness disabilities. Pennsylvania targets the 

811 PRA program’s resources by prioritizing the three 

subpopulations described. 

• The Priority 1 population consists of people who 

are institutionalized, but who are able to live in the 

community in PSH. Institutions include, but are not 

limited to, mental health hospitals, nursing facilities, 

and immediate care facilities for persons with 

intellectual disabilities.

• The Priority 2 population consists of people who 

are at risk of institutionalization in the absence of 

PSH. This population includes, but is not limited to, 

people who are living with elderly caregivers or in 

unstable situations; homeless; aging out of the Early 

and Periodic Screening, Diagnosis and Treatment 

Program with no family support; and individuals aging 

out of foster care.

• The Priority 3 population consists of people who 

are currently residing in congregate settings who 

want to move into the community. This population 

includes, but is not limited to, people in community 

residential rehabilitation facilities, long-term structured 

residences, personal care homes, and domiciliary care.

Local lead agencies will have some discretion over 

additional eligibility criteria for the 811 PRA program, 

depending on local needs and priorities. For people to 

be considered eligible for the Dauphin County 811 PRA 

program pilot (the only site implemented as of October 

2015), they must meet the basic criteria for the 811 PRA 

program and be receiving medical assistance for one of 

the following disability categories.

• Adults with autism.

• Intellectual disabilities.

• Physical disabilities.

• Serious mental illness.

• Transitional age youth with disabilities.
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At the time of the site visit, Pennsylvania had not yet 

housed anyone through the Dauphin County pilot 

program, but conversations with both PHFA and DHS 

indicate that the actual population served will be the 

same as the population proposed in Pennsylvania’s 811 

PRA program application. 

A potential issue that may arise with the targeted 

population relates to geography. It was not clear if enough 

people or units in each county across the Commonwealth 

were going to meet the criteria for the 811 PRA program. 

PHFA and DHS seemed certain that units in Philadelphia 

and Pittsburgh could be filled quickly given the number 

of nonelderly people with disabilities currently served by 

nursing homes and other institutional settings in those 

areas who are ready to move to a community setting. 

However, in more rural parts of the state, it was less clear 

if they were going to have the right number of people to 

match the number of units. 

Another potential issue that arose is mismatch between 

the size of the available units (based on bedroom 

size) and the needs of the target population, which is 

composed mostly of individuals needing one-bedroom 

units. Although only one Rental Assistance Contract for 

two units had been executed in Dauphin County thus 

far, the RAC is for two-bedroom units because those 

were the unit sizes available. According to PHFA and 

DHS, this issue may also be present in other areas of the 

Commonwealth as well.

Outreach, Referral, and Application

Because Dauphin County is the only site that has begun 

implementing the program, this section reviews its client 

flow processes. Although representatives from the 

Mental Health and Intellectual Disabilities office, NHT, 

and RHC likely will be in most or all local lead agencies 

across the Commonwealth, the direct service providers 

likely will vary based on the service area.

Although other local lead agencies may do things slightly 

differently than Dauphin County, PHFA and DHS expect 

Dauphin County’s implementation processes to be a 

model for other local lead agencies.

In Dauphin County, the Capital Area Coalition on 

Homelessness (CACH) serves as its local lead agencies. 

Outreach to potential applicants and referrals occur at 

the county level. CACH entered into memorandum of 

understandings with all collaborating agencies (called 

stakeholders) in the county. Stakeholders include the 

county’s Mental Health and Intellectual Disabilities office, 

NHT coordinator, RHC, and other direct service providers 

serving the target population. Most stakeholders are direct 

service providers, assisting people with disabilities that 

fall into one of the three priority populations, but local lead 

agencies ensure that sufficient stakeholders are involved 

to represent all disability groups and priority populations 

for the 811 PRA program. The service providers conduct 

outreach to people who are already in existing programs, 

such as nursing home facilities, or by RHC Programs 

through the NHT Program. People who are ready to live in 

a community-based setting or are about to be discharged 

are prescreened by the service provider, who helps 

interested applicants to secure necessary documentation.

Once referral source representatives confirm a potential 

tenant is interested in participating in the program, the 

service provider assists the individual in filling out an 

application for the 811 PRA program and other area 

supportive housing. Pennsylvania plans to use the webbased SocialServe system as its applicant tracking, 

waiting list and reporting system; however, the system is 

not yet fully implemented. Once the system is operational, 

information, such as the priority population the individual 

falls into, federal housing eligibility information, 

demographic information, disability information, and 

income information, will be entered into SocialServe and 

the local lead agencies will be notified of the referral. 

When the application is complete and the referral 

is determined to be eligible, CACH then reviews the 

information for completeness, and the referral is 

brought to the monthly stakeholder meeting. CACH 

presents the referral to the entire group, and together 

the stakeholders make a determination on eligibility. 

Once the application is complete and the referral is 

determined eligible, CACH places the individual on a 

waiting list and notifies the individual and the referring 

agency of his or her acceptance. The SocialServe 

software will contain an automated waiting list function 

in the future. For the time being, CACH will develop and 

maintain its own waiting list. 

When a unit becomes available, CACH inspects the 

unit to determine whether it will meet the needs of the 

person next on the waiting list, such as wide doorways 

or an accessible shower. If the unit is appropriate, the 

individual visits the unit (or more than one if more than 

one unit is available), chooses a unit, and applies for 

housing. The property manager or owner will determine 

applicant eligibility for the unit. Once the application is 

approved, the individual moves into the unit. The referring 

agency helps the potential tenant visit the unit, complete 

the application, and coordinate the physical move. The 

program under which the individual receives services may 

have a set-aside of funds to assist with move-in costs and 

security deposits. 
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As of June 2015, three referrals were to this site; however, 

two of the referrals (both persons who were homeless) 

were deemed ineligible. The third person was referred from 

a nursing home and moved into a unit in December 2015. 

The memorandum of understanding details the roles and 

responsibilities of all stakeholders, including the local lead 

agencies. Those responsibilities are described in table 6.2.

One issue that the Dauphin County local lead agencies 

noted was the potential for the temporary loss of services 

if an applicant moves across counties to participate 

in the 811 PRA program. If an individual is receiving 

services through medical assistance, then the individual 

is enrolled with medical assistance and the transfer 

between HealthChoices plans should not result in an 

administrative drop in services. However, if the individual 

needs to transfer to a new provider as a result of the 

move, any drop in service will be consistent with the time 

it takes to select the new provider and establish the first 

appointment. Continuity of Care agreements are in place 

between HealthChoices County or Behavioral Health 

Managed Care Organizations for Medicaid Managed 

Care, and eligible individuals who are awaiting medical 

assistance enrollment should require only county-funded 

services for a short period of time. This coordination 

helps to ensure individuals are transferred to a new 

service provider in the county of the location where the 

individual is moving. 

Although Medicaid-funded services are distributed at the 

state-level with no geographic restrictions, many broad 

community-based services are funded through county 

Mental Health and Developmental Services programs. 

The service provider voiced concerned about having to 

absorb increased costs if applicants move in from another 

county and request services in the new county. Referrals 

from other counties could increase the caseload of their 

staff and pose an administrative and service coordination 

burden on the local lead agencies. This decentralized 

approach can be difficult to coordinate at times, but is 

beneficial with regard to the local lead agency being very 

familiar with their clients, the area, and the local providers 

so that they ensure each applicant’s needs are met.

Housing Strategies

PHFA did considerable outreach and marketing to both 

existing landlords and to developers to encourage 811 

PRA program participation. The housing component of 

Pennsylvania’s 811 PRA program is currently composed 

of new development and rehabilitation. Although 

PHFA intends to expand its outreach to existing units, 

initially the National Environmental Policy Act’s rules 

created some confusion, so PHFA focused on new 

construction and rehabilitated units. In addition, most 

of the one-bedroom units in existing properties that 

became available were in buildings that already met the 

25-percent limit on the percentage of supportive housing 

units for people with disabilities, exempting them from 

program participation. Moving forward, PHFA estimates 

that people will be housed through new construction and 

existing units and will focus on landlord recruitment to 

expand housing choices for program participants.

Table 6.2: Pennsylvania—Responsibilities of Local Lead Agencies and Stakeholders

Local Lead Agencies Stakeholders

• Serving as Single Point of Contact for the 811 PRA program. • Conducting outreach to potential applicants.

• Tracking the availability of 811 PRA program units. • Prescreening potential tenants prior to referral.

• Conducting eligibility assessments using SocialServe. • Referring people with disabilities to the local lead agencies for the 811 PRA 

program.

• Monitoring tenant selection. • Assisting referred applicants in securing the necessary paperwork.

• Maintaining all referral and application information. • Conducting a supportive services needs assessment.

• Matching potential tenants to units, managing the referral process. • Providing transition assistance and moving assistance.

• Establishing a stakeholder group. • Coordinating support services to tenants in the program by identifying 

community-based services.

• Promoting local government participation in the 811 PRA program. • Providing services to tenants once in housing.

• Working with property manager on emergent issues.

• Participating in meetings with the local lead agencies and other stakeholders.

PRA = Project Rental Assistance.
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Property and Unit Characteristics 

At the time of the site visit in October 2015, the one 

property under RAC at that time, Felton Lofts, was 

financed with LIHTCs. Felton Lofts applied for and signed 

a RAC for two, two-bedroom units in Dauphin County. 

Felton Lofts is a mixed-income property developed by 

Pennrose Properties, LLC, a developer with whom PHFA 

has worked in the past on the Rental Subsidy Fund 

Program and numerous LIHTC projects. These units were 

vacant at the time of the site visit.

Property Selection Methods and Financing

Prior to engaging property developers, PHFA examined 

the inventory of properties and screened out all ineligible 

properties, such as buildings for people aged 62 and older. 

At that point, they screened for newer construction (2011 and 

newer) due to the environmental requirements of the grant. 

PHFA held two regional meetings to explain and market 

the program to property owners and landlords. In addition, 

PHFA issued press releases on the program and sent out 

mass emails to eligible property owners to get the word out.

Originally, Pennsylvania’s 811 PRA program application 

stated that it intended to obtain units for its 811 PRA 

program from units newly developed using LIHTC 

allocations from the 2011 to 2013 allocation rounds. In other 

words, a mix of both “existing,” already developed units, 

and “new,” recently constructed units, would be utilized 

for the 811 PRA program. PHFA discovered that far fewer 

developers were interested in participating in the program 

than PHFA had expected. In addition, during 2015, the 

developers that were interested were only able to commit 

to two-bedroom units due to a limited availability of onebedroom units in the pilot area, Dauphin County. Because 

of this outcome, PHFA is now reaching out to all potentially 

eligible properties regardless of when LIHTCs were awarded 

in an effort to allocate the 2012 811 PRA subsidy funds. In 

addition, PHFA implemented preferences in its QAP for the 

most recent round of tax credit awards. Although PHFA is 

not technically awarding “points,” if two developers had 

applications that scored exactly the same and one had 

identified an interest in the 811 PRA program, that developer 

would be given preference in receiving LIHTCs and would 

be required to provide units for 811 PRA program tenants.

Dauphin County used the following process to identify 

an appropriate property for the 811 PRA program. This 

process will be replicated as the program is extended to 

other areas in the Commonwealth.

1. When a developer expresses interest in the 811 PRA 

program through conversations with PHFA, PHFA 

sends the developer an informational packet with all 

the necessary paperwork, including a RAC template. 

2. PHFA maintains close contact with the developer 

throughout the process. 

3. PHFA ensures that the set-asides for people with 

disabilities in the building have not already been met 

and then works with the local lead agency to approve 

the property. 

4. If the local lead agency does not believe the property 

would be a good fit for the population, PHFA will not 

move forward with the property. 

Implementation Schedule 

Pennsylvania’s 811 PRA program budget indicates that it 

expects to support 200 units of affordable rental housing 

with 811 PRA subsidies over the grant period. Starting in 

2014, Pennsylvania’s annual goal was to place 50 units 

under RAC each year for 4 years. At the end of 2015, 

however, only two units were under a RAC and one unit 

was occupied. 

Implementation has lagged due to a number of factors, 

including the loss of key Department of Human Services 

and PHFA staff during early program startup, the 

geographic breadth of the program, identifying Dauphin 

County as its pilot site where not many properties are 

available, and delays around HUD’s approval of the 

Cooperative Agreement, which was not sent by HUD 

until October 30, 2014. Additionally, PHFA had difficulty 

engaging interested developers and landlords to commit 

units to the 811 PRA program. However, PHFA and DHS 

expect the Philadelphia metro area to implement the 

811 PRA program next. Program implementation in the 

Philadelphia area will result in considerable progress 

toward the program goals of placing 50 units under RAC 

each year. Once the program is under way in Philadelphia, 

two other pilot sites (to be determined) will begin as well. 

PHFA and DHS expect that by 2017, most local lead 

agencies will begin implementing the 811 PRA program.

Rent and Subsidy Levels

Participants in the program will pay no more than 

30 percent of their adjusted monthly income toward 

rent. Income will be recertified annually. The two units 

currently set aside by Pennrose for the 811 PRA program 

will have rents affordable at 50 percent of the AMI as 

required in the cooperative agreement. The budget in 

Pennsylvania’s cooperative agreement indicates an 

anticipated average contract rent of $678 per unit per 

month, with an average tenant payment of $300. The 

average 811 PRA program subsidy is anticipated to be 

$378 per unit per month, as provided by the 811 PRA 

program budget for 200 units.
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Unit and Tenant Turnover

Pennsylvania had not encountered any unit or tenant 

turnover at the time of the site visit. However, PHFA, the 

local lead agencies, and the property owner believed 

that the process would work much like it does for the 

Rental Subsidy Fund program. Once a tenant leaves 

the unit, the property manager will notify the local lead 

agencies to alert the agency of the vacancy. At that 

point, the local lead agencies will begin the placement 

process with the next eligible person at the top of the 

waiting list, contacting the referral agency and potential 

tenant to have them visit the unit and begin the property 

application process.

PHFA reported that it does intend to make vacancy 

payments to property owners when a resident moves 

out. The owner is eligible for 80 percent of the contract 

rent for up to 60 days after the unit is ready for 

occupancy. Property owners have 180 days to submit a 

special claim request, and on approval or adjustment of 

the request, PHFA will notify the owner in writing. 

Service Provision and Coordination

Service Models

DHS will work directly with local lead agencies to 

individualize supportive services to people referred to 

the program. Each service provider that refers people 

to the program will identify the service planning needs, 

housing needs, and supports necessary for the referred 

candidate for housing. Services can then be tailored to 

the needs of the individual. 

Stakeholders or service providers in the community 

serving participants are already providing services to the 

individual. The services provided to program participants 

are largely individualized based on their needs and 

referral source. All participants are eligible to apply 

for Medicaid. When individuals indicate they want to 

participate in the 811 PRA program, and it is determined 

they are not enrolled in Medicaid, the referral entity 

immediately assists them with the application to enroll 

in Medicaid. All agencies provide intensive services to 

potential participants during the outreach, application, 

and referral processes. 

Participants are also provided housing transition 

assistance by their case manager or the service 

coordinator from their referring agency. However, once 

participants are housed, services are voluntary. Tenants 

are not required to participate in any services to continue 

receiving housing assistance. 

Coordination of Services and Housing

The local lead agencies serves as the coordinating 

entity in each implementation area. DHS supports 

local lead agencies and provides technical assistance 

as necessary, but the coordination piece occurs at 

the county level. The local lead agencies engages 

and recruits service providers, bringing them into 

the stakeholder group, and signing memorandum of 

understandings with each. The local lead agency’s 

responsibilities between the time that a referral is made 

and an individual is housed include—

• Regularly notifying agencies of unit availability based 

on regular contact with property managers.

• Ensuring the community-based service provider helps 

the prospective tenant visit an available unit.

• Working with the primary service provider to help 

potential tenants gather paperwork and apply for the 

unit.

• Working with the primary service provider if issues 

related to tenancy arise.

• Serving as the tenant services liaison to property 

owners and managers.

• Tracking referrals, move-ins, and changes of service 

providers, and reporting performance to DHS.

Service Provision (Types, Transition Versus 

Ongoing, by Target Population, Gaps)

The types of services available to 811 PRA program 

tenants vary by both their specific needs and their desire 

for services. At the point of tenancy, all services become 

voluntary. The service provider attached to the potential 

tenant at the time of referral is responsible for the 

transition services. If services are funded through MFP, 

potential tenants receive 180 days of transition services. 

Services provided to people through the ODP are 

provided by “support coordinators” who help provide 

support services, identify funds to help with unit startup 

costs (such as linens, pots, pans and other necessities), 

home modifications if necessary, and furniture. For 

individuals receiving services through the OLTL and the 

Office of OMHSAS, those services are similarly available. 

A service coordinator provides services, and an OLTL 

$4,000 lifetime cap is on the amount an individual can 

receive through the Community Transition Funds. 

NHT coordinators also provide transition services to 

people exiting nursing home facilities. Like support 

coordinators and service coordinators, NHT coordinators 

will tailor transition services to individual needs. Through 

the independent enrollment broker, consumers can 
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choose an ongoing service provider (service coordination 

agency). The NHT coordinators will follow up with noncare 

managed individuals for 1 year following transition.

Most tenants will be able to continue with their existing 

primary service provider for ongoing support services. 

Individual service plans are created for the tenant at the time 

of discharge and assess each person’s individual needs. 

Service needs are reassessed annually by the tenants’ 

service provider to identify any changes or additional needs.

2013 811 PRA Application

In the 2012 and the 2013–2014 811 PRA program 

application rounds, HUD awarded Pennsylvania funding to 

provide subsidy for 200 units in each round, for 400 units. 

Funding per application varied substantially. $5,870,880 

was awarded for the 2012 program and $8,557,014 was 

awarded for the 2013–2014 program. The higher funding 

amount can partially be attributed to the grantee’s 

anticipation of rent increases and market changes. No 

major policy shifts were in the 2013–2014 application, 

and Pennsylvania indicated that it intended to continue 

its statewide program for the same target population as it 

established in its 2012 811 PRA program application.

Leveraging

PHFA worked with public housing authorities to provide a 

leverage commitment of 151 housing choice vouchers for 

nonelderly people with disabilities. Prior to application, 

most or all Pennsylvania’s public housing authorities 

were in full support of the 811 PRA program application 

for funding, and several committed resources to support 

the effort. In total, six Public Housing Agencies (PHAs) 

committed 151 HCVs or public housing units to the effort. 

At the time of the October 2015 site visit, none of the 

HCVs had been utilized. During a startup meeting 

with Philadelphia, the housing authority committed 50 

vouchers, but had not initially targeted Olmstead-related 

populations. PHFA was working through the issues, 

ensuring that Priority 1 populations (those transitioning 

from nursing homes) were being targeted and that the 

public housing agency had formal processes in place to 

track the vouchers.

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

PHFA and DHS work cooperatively to oversee program 

implementation, and to make sure program components 

are administered as designed. Meeting weekly, PHFA and 

DHS are attuned to each part of program administration 

and work together to deal with any issues that may arise. 

PHFA Program Monitoring

PHFA is the Performance Based Contract Administration 

for the state and administers contracts in Pennsylvania 

that cover more than 45,000 units of housing. PHFA also 

administers various other programs that provide rental 

assistance for lower-income renters with disabilities as 

described in the section titled Service Provision and 

Healthcare. As a result of its administration of other 

affordable rental programs, PHFA already has a financial 

management system in place that is used across all 

programs and will be used for 811 PRA program grant 

management. 

In addition to managing grant status, PHFA developed 

quality control mechanisms that will ensure accurate and 

timely fund disbursement to 811 PRA program property 

owners. These mechanisms include verifying the accuracy 

of monthly vouchers, rent adjustments, and mechanisms 

around tenant health, safety, and housing maintenance. 

PHFA will also submit monthly tenant certifications to the 

Tenant Rental Assistance Certification System. To monitor 

and implement annual increases in rent (and utilities where 

appropriate), PHFA will use the Integrated Real Estate 

Management System to record and track annual increases.

In addition to HUD systems, PHFA has multiple inhouse 

tracking systems for its programs. Systems track tenant 

characteristics of each program, with built-in systems 

to check income and make sure tenant income meets 

the restrictions. In addition, PHFA and DHS developed a 

series of performance measurements that they will use 

to monitor program implementation. These performance 

measurements include— 

• Rate at which 811 PRA program units are occupied.

• Percent of units occupied with eligible tenants.

• Percent of rental payments made on time.

• Percent of referrals made by local lead agencies to 

property owners.

• Percent of tenants who retain units for 1 or more years.

• Satisfaction of 811 PRA program tenants.

• Satisfaction of property owners.

PHFA also oversees housing construction. A dedicated 

full-time staff person conducts the environmental reviews 

for all the projects during construction, after construction, 

and after occupancy to ensure that the property meets 

housing quality standards, accessibility standards, and 

environmental standards. The staff person will also be 

assigned to oversee 811 PRA program development. 
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DHS Program Monitoring

Statewide DHS is implementing SocialServe, a web-based 

tool that service providers will use to log the service needs 

of individuals and submit referrals. The system is not yet 

implemented, so for the pilot local lead agencies, Dauphin 

County, referrals are done through completing a form and 

submitting it by email to the local lead agencies. The data 

collected are kept in a spreadsheet.

Successes 

Strong Partnerships

DHS, PHFA, and the stakeholders interviewed in Dauphin 

County all pointed to the strength in the partnerships as 

the biggest program success to date. DHS and PHFA 

built on an existing partnership, strengthening it through 

shared responsibility and trust. Meeting weekly and 

keeping each other informed of progress has proven 

beneficial for this program and others they administer 

together. Pennsylvania is also proud of its networks of 

local lead agencies that perform outreach and referrals 

for 811 PRA program housing and services. However, the 

program was still in the implementation process at the 

pilot site during the time of the site visit, so not a lot of 

evaluative information was available.

Dauphin County, the pilot site, similarly believed that 

the partnerships between the stakeholders have been 

the biggest success so far. The local lead agencies 

stakeholder team for the program is composed of people 

with substantial experience and knowledge. Meeting 

frequently has helped the program, but it has also helped 

better serve the community. Stakeholders were forced to 

think outside their own service systems and look at the 

community needs holistically. The Dauphin County local 

lead agencies also believes it was critical to have the 

right stakeholders involved. 

Leveraging Existing Programs

DHS’s existing Regional Housing Coordinator initiative 

and Nursing Home Transition program are key to 

Pennsylvania being able to quickly serve the target 

population. These two programs are already familiar with 

the target population’s needs and the available housing 

transition services. This familiarity eliminates a need for 

training and reduces the learning curve for implementing 

811 PRA services.

Challenges

Securing One-Bedroom Units 

Thus far, Pennsylvania’s primary challenge has been 

securing the right type of housing units for the program 

in Dauphin County. In the one RAC signed thus far, twobedroom units were available but no one-bedroom units 

were identified for the program. PHFA, which has done 

considerable outreach to developers, is concerned about 

the lack of existing landlords agreeing to participate and 

new developers having no one-bedroom units available 

in properties that did not already meet the maximum 

threshold of 25 percent.

Staff Turnover

Another challenge faced by both PHFA and DHS was 

staff turnover. Key staff members involved in writing the 

grant application were no longer with the departments. 

Although this turnover resulted in some loss of 

institutional knowledge and initial groundwork, both 

departments filled those vacancies quickly with qualified 

staff.

Breadth of Geographic Differences

Moving forward, the program’s geographic reach may 

be a challenge. Both DHS and PHFA are confident 

that the program will be implemented well across 

the Commonwealth, but they also recognize that the 

decentralized approach to implementation will be 

a considerable undertaking given the difficulties of 

coordination. Furthermore, it is not clear whether or not 

Pennsylvania can match the right number of people to 

the number of units, particularly in the rural counties.

Shift in Housing Strategy

As discussed previously, Pennsylvania had to pivot 

from its plan of focusing on existing properties. With 

a 25-percent limit on the percentage of supportive 

housing units for people with disabilities, many existing 

properties could not participate in the 811 PRA. 

Coupled with confusion over the environmental review 

rules, Pennsylvania had to increase its focus on new 

construction and rehabilitated properties. 
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Case Studies – HUD Section 811 PRA Program

87

Washington Section 

811 Project Rental 

Assistance Program 

Introduction

HUD awarded the Washington Department of Commerce 

(Commerce) $5,739,717 in Section 811 Project Rental 

Assistance program funding in the 2012 funding round. 

Commerce partnered with the Washington State 

Department of Social and Health Services (DSHS) to apply 

for the 811 PRA funding and implement the demonstration. 

The 811 PRA funding is estimated to provide rental 

subsidies for up to 215 units. The target populations 

served by the 811 PRA program are extremely lowincome, nonelderly adults with developmental disabilities, 

functional disabilities, or mental illness, or are individuals 

participating in the Roads to Community Living (RCL) 

program, which serves individuals who have complex, 

long-term care needs and want to move from institutional 

settings to a community living setting. 

Evaluators conducted a site visit in November 2015 to 

learn how the two agencies and their partners were 

implementing the 811 PRA program. At the time of the 

visit, Commerce had executed RACs for 26 units at 

four different developments throughout the state. Nine 

residents were living in 811 PRA-funded units. The 

evaluators also visited Channel Cove in La Conner, the first 

property in Washington to receive the 811 PRA subsidy 

and the home of two 811 PRA participants at the time of 

the visit. At the end of 2015, 32 units were under RAC, and 

11 units were occupied.

Grantee Partnerships 

Organizational Structure, and 

Management

Application Background 

Commerce and DSHS applied for 811 PRA funding to 

increase the inventory of affordable housing for lowincome residents, specifically for people with disabilities. 

DSHS had previous experience coordinating housing 

resources with local public housing authorities for federally 

funded vouchers for nonelderly people with disabilities. 

The high utilization of these vouchers demonstrated the 

significant demand for rental subsidies for the 811 PRA 

target population. The 811 PRA program provided an 

opportunity to increase rental subsidies for people with 

disabilities and increase the availability of dedicated 

housing inventory for this population. DSHS also had 

already developed outreach and referral mechanisms for 

transitioning people out of institutional care and could 

utilize those same procedures for the 811 PRA program. 

Commerce submitted its 811 PRA application in August 

2012 and HUD awarded 811 PRA funds in February 2013. 

HUD signed the Cooperative Agreement with Commerce 

on October 30, 2014. 

Partnerships and Organizational Structure

The Washington Department of Commerce operates more 

than 100 programs for businesses, local governments, 

and communities and makes both direct and indirect 

funding available for more than 6,000 grants, loans, or 

contracts a year. Commerce also oversees the state’s HTF 

for the development of affordable multifamily housing and 

administers several federal and state programs for people 

who are homeless or at risk of homelessness. 

Commerce operates the 811 PRA program in its Housing 

Assistance unit within the Community Services and 

Housing Division. Commerce’s 811 PRA program 

responsibilities include marketing the program to 

owners of state-financed properties, reviewing owner 

applications for 811 PRA funding, and executing the 

RAC with owners. Commerce staff also monitor ongoing 

owner compliance. As the grantee, Commerce monitors 

the performance of DSHS and its partners and submits 

quarterly reports to HUD. 

Commerce administers the 811 PRA program in 

partnership with the DSHS, the state human services 

agency. DSHS provides long-term care services for 

persons with disabilities through its Aging and LongTerm Support Administration (ALTSA). ALTSA, through 

its Home and Community Services Division, administers 

the RCL program, the state’s Money Follows the Person 

Rebalancing Demonstration program for persons with 

disabilities exiting from institutions. Those targeted to 

receive 811 PRA subsidies are DSHS clients enrolled in the 

RCL program, consumers served by other programs in the 

Home and Community Services Division, and individuals 

served by the Developmental Disabilities and Behavioral 

Health and Recovery divisions. 

DSHS, through contracted service providers, conducts 

outreach to and screening of potential applicants for the 

811 PRA program, referring eligible applicants to available 

units and overseeing contracted service providers to 

ensure residents have ongoing connection to the services 

Chapter 7. Washington Section 811 Project Rental Assistance Program 
Chapter 7. Washington Section 811 Project Rental Assistance Program 

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88

they need. Service provider case managers identify and 

screen their clients who are living in institutional settings 

or other residential settings who are eligible for the 811 

PRA program. RCL housing program managers coordinate 

housing referrals within the three regions of the state and 

market the 811 PRA program to owners and properties in 

their regions.

The Bremerton Housing Authority, through its Contract 

Management Services Division, is the PBCA for 

Commerce and the 811 PRA program. As a PBCA, the 

authority obtains tenant data from owners, reviews and 

enters the data in HUD’s tenant data reporting system, 

TRACS, and submits the vouchers to HUD for payment. 

Bremerton Housing Authority acted as a PBCA since 2000 

and administers more than 9,000 PBCA contracts in four 

states—Hawaii, Nebraska, Utah, and Washington.

Two other state agencies play indirect roles in the 811 

PRA program. The Washington State Housing Finance 

Commission (WSHFC) is the state’s housing finance 

agency. WSHFC allocates federal Low-Income Housing 

Tax Credits and tax-exempt bonds for the development 

of affordable, multifamily housing. Properties funded by 

WSHFC are eligible to apply for 811 PRA units. WSHFC 

asset management staff monitor tax credit properties, 

including those that have 811 PRA-funded units. The 

Washington State Health Care Authority is the state 

Medicaid Agency and coordinates with DSHS to provide 

Medicaid services. WSHFC and Health Care Authority 

signed as parties to the 2012 application but do not play 

active roles in 811 PRA program administration. 

Table 7.1 summarizes the agencies’ respective roles in the 

811 PRA program. The agency roles are the same as those 

proposed in the 2012 funding application.

Program Financial Structure 

The 811 PRA program is supported through the 

Section 811 administrative grant fees and from in-kind 

contributions of staff time. Administrative funding from the 

811 PRA award is 8 percent of the awarded rental subsidy 

amount, or $425,165. An administrative fee is passed 

through to the Bremerton Housing Authority to pay for 

voucher processing. All 811 PRA functions at Commerce 

and DSHS have been absorbed by existing staff and 

funded through other programs. Within Commerce, the 

direct and indirect costs for staff and tasks related to the 

811 PRA program are absorbed by Commerce. DSHS 

staff positions for the 811 PRA program are paid through 

the MFP Demonstration project administrative funds, 

which are funded through 2020. 

Table 7.1: Washington State — Agency Roles in the 811 PR A Program

Washington State Department 

of Commerce

Department of Social and 

Health Services

Washington State Housing 

Finance Commission Bremerton Housing Authority

• State grantee or state housing 

authority.

• State health and human services 

agency. • State housing finance agency • Performance-Based Contract Administrator.

• Perform 811 PRA program planning. • Perform 811 PRA program planning.

• Issue Low-Income Housing Tax 

Credit (dedicated financing source 

for 811 PRA units).

• Obtain tenant data from owners.

• Market 811 PRA to owners. • Market 811 PRA to owners. • Inspect and monitor 811 PRA 

properties.

• Submit vouchers to HUD for 

payment.

• Review owner applications. • Review owner applications.

• Administer Rental Assistance 

Contract and subsidy payments. • Coordinate 811 PRA referrals.

• Produce HUD quarterly reporting. • Oversee coordination of services by 

contracted service providers.

• Provide Owner Notice of Funding 

Availability development. • Produce HUD quarterly reporting. 

• Review owner applications. • Washington State Health Care 

Authority

• Inspect and monitor 811 PRA 

properties. • State Medicaid agency.

PRA = Project Rental Assistance.
Chapter 7. Washington Section 811 Project Rental Assistance Program 

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In the 2012 funding application, Commerce estimated a 

total staff burden of about a third of one full-time equivalent 

(0.35 FTE) for administering the 811 PRA program, 

including the 811 PRA program manager (0.15 FTE), Policy 

and Data Analyst (0.10 FTE), and Contracts Specialist (0.10 

FTE). Commerce staff report that they spent considerably 

more time on implementing the 811 PRA program in the 

first year than they initially had expected; a significant 

portion of that time was spent marketing the program 

to potential owners. Although the time estimate for the 

Policy and Data Analyst and Contracts Specialist has been 

relatively accurate, the 811 PRA program manager has 

routinely spent about two-thirds of her or his time on the 

811 PRA program to date, more than four times as much 

time as planned. In addition, a supporting staff member in 

the Housing Assistance unit has also spent about .65 FTE 

on the program. Overall, Commerce staff time spent on the 

program thus far has exceeded the proposed staffing plan 

by more than one FTE. 

DSHS committed one-third of the time of each of its three 

regional Housing Program Managers for a total of one 

full-time staff position dedicated to the 811 PRA program. 

In addition to the three regional managers, DSHS expected 

that the RCL project director would spend a nominal 

amount of time overseeing the overall 811 PRA program 

implementation and coordination of program referrals and 

services. Although DSHS did not commit any substantial 

time of the RCL project director in the funding application, 

this staff person has spent about one-third of staff time 

administering the 811 PRA program to date. 

State Context: Housing Programs

Housing Programs and Funding

The State of Washington has a significant need for 

affordable and suitable housing for people with disabilities. 

The state’s Affordable Housing Advisory Board issued 

a Housing Needs Assessment Report in 2015, which 

estimated that 36 percent (936,000 households) are 

cost-burdened and pay more than 30 percent of their 

income toward rent. The report also noted that more than 

390,000 households are severely cost-burdened and pay 

more than 50 percent of their income toward rent (AHAB, 

2015). Low-income people with disabilities may have an 

especially difficult time obtaining affordable housing. 

The 2013 American Community Survey estimated that 

about 12 percent of the state population, or more than 

400,000 people, have a disability (Census Bureau, 2013). 

In 2014, nearly 100,000 people were receiving Social 

Security payments for disability in Washington State. The 

average Social Security Disability Insurance payment 

in Washington was $767, requiring those whose sole 

income is Social Security Disability Insurance to spend 

104 percent of their income to rent a one-bedroom unit 

(Social Security Administration, 2014b). The amount of 

Supplemental Security Income benefits in Washington 

State varies by location but does not exceed the poverty 

level income for the state. 

State agencies are committed to securing housing 

resources for people with disabilities in Washington. 

Commerce manages five major housing programs 

that provide permanent supportive housing for people 

with disabilities, including programs that finance the 

development of affordable housing and programs that 

provide rental subsidies for low-income households. 

WSHFC also finances development of affordable 

multifamily housing with incentives to develop supportive 

housing units and for serving people with disabilities. Since 

2007, DSHS has provided tenant support services for its 

Medicaid consumers through the MFP program. Many 

other low-income individuals with disabilities receive rental 

subsidies through federally funded programs administered 

by local housing authorities. 

Existing Housing Programs That Serve 

People With Disabilities

The 2015 Housing Needs Assessment report estimated 

that, as of December 2013, more than 118,000 hard units of 

subsidized rental housing that had been built using federal, 

state, and local funds, and 40,000 households accessing 

affordable housing through tenant-based rental subsidies 

(AHAB, 2015). The following are descriptions of the major 

housing programs that are administered in Washington 

that support people with disabilities of all ages. 

Commerce Housing Programs. Commerce operates 

several housing programs that serve people with 

disabilities. These programs include both financing for 

multifamily rental housing and rental assistance funding for 

low-income households. 

Commerce administers one program that provides housing 

targeted specifically to people with disabilities of all ages. 

The Washington State Housing Trust Fund finances 

affordable housing projects for households earning up 

to 80 percent of Area Median Income, but mostly serves 

households earning up to 30 percent of AMI. Since 

1987, HTF has awarded nearly $1 billion in funding that 

has helped create 40,000 affordable housing units. The 

application for HTF funding is competitive, and most units 

are set aside to serve specific special-needs populations, 

including people with disabilities. However, other special 

populations are served, such as homeless families and 

youth, farmworkers, people with chronic mental illness, 

and veterans. Allocations for special populations are set by 
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the legislature and vary by year. In 2015, the HTF awarded 

$47 million toward the development of 1,369 housing units. 

Of these units, 176 are specifically set aside for persons 

with disabilities.

In addition to unit set-asides in the HTF, Commerce also 

operates programs targeted to people who are homeless 

or at risk for homelessness that includes people with 

disabilities. 

• The HOME Tenant-Based Rental Assistance programs 

provide homeless and low-income households with 

security and utility deposits and rent assistance for up 

to 24 months. The TBRA programs serve approximately 

620 households annually in 25 counties.

• Commerce allocates federal Continuum of Care 

grant funds to 33 counties. With annual funding of 

approximately $5 million, Continuum of Care funding 

has financed more than 20 permanent, supportive 

housing projects and provided 536 beds (units) for 

homeless persons with disabilities. 

• Commerce administers $2.5 million annually in Federal 

Emergency Solutions Grant funds that provide funding to 

counties for a variety of services to prevent homelessness 

or rapidly rehousing persons who are homeless. 

• Through its state Homeless Assistance Programs, 

Commerce has created 2,074 PSH beds.

• The Consolidated Homeless Grant is a statefunded program which helps fund approximately 

300 emergency shelter, transitional housing, rapid 

rehousing, and PSH programs throughout the state.

Although these homeless programs are not targeted 

specifically to people with disabilities, the programs serve 

many of those in the 811 PRA target population. Another 

federal program that Commerce administers, which serves 

people with disabilities, is the Housing Opportunities 

for People With AIDS Program. The program serves 

approximately 200 households annually with HIV/AIDS, 

including 87 with tenant-based rental assistance. 

Low-Income Housing Tax Credits. The WSHFC awards 9 

percent competitive and 4 percent noncompetitive federal 

LIHTC. WSHFC also administers the Multifamily Housing 

Bonds Program that provides developers access to bond 

financing for affordable housing for people typically earning 

50 to 60 percent of AMI. Currently, more than 57,000 units 

exist throughout the state that were developed using 

federal tax credits. Between 2011 and 2015, the WSHFC 

awarded nearly $900 million in LIHTCs for 88 projects 

totaling 5,390 housing units. Of awards made between 

2011 and 2015, 12 percent (655 units) of the units were set 

aside specifically for persons with disabilities. 

The state’s QAP lays out the criteria for competitive tax 

credits. Between 10 and 35 priority points are awarded for 

serving various special populations, including people with 

disabilities, elderly people, homeless families, and large 

households. Properties that provide at least 20 percent 

of the total units as housing for persons with disabilities 

receive 10 points. Properties that set aside at least 75 

percent of the total housing units for supportive housing 

units for people who are homeless receive the maximum 

35 points. Projects receiving tax credits typically receive 

points for serving more than one special population. (For 

example, properties for seniors typically also receive 

points for serving people with disabilities). WSHFC did not 

consider adding priority points specifically for the 811 PRA 

program because priority points are already established 

for serving people with disabilities within the special 

population’s set-aside. 

Aging and Long-Term Support Administration housing 

programs. The ALTSA administers long-term services for 

more than 60,000 seniors and persons with disabilities. 

ALTSA administers the federally funded MFP program, 

RCL and Washington Roads, a state-funded supplemental 

program, within the Home and Community Services 

Division. The RCL program provides services and supports 

for individuals interested in moving from institutional 

settings, such as from skilled nursing facilities to 

community settings. To be eligible for services, individuals 

must have resided in institutional care for at least 90 days. 

Participants receive assistance locating and transitioning 

to new housing, along with case management services 

and other services for a year after moving. 

The MFP program also provides funding to states for 

their LTSS systems by devoting a greater proportion of 

Medicaid spending to home- and community-based 

services instead of institutional care. DSHS uses its MFP 

rebalancing funds to create a temporary rental subsidy 

program for people transitioning from institutional care. 

The housing Bridges program provides up to 24 months 

of rental subsidy. Participants must apply for affordable 

housing and reasonably expect to be housed within 2 

years. Bridges program subsidies are also available to 

individuals who do not qualify for MFP. As of late 2015, 

26 individuals were utilizing Bridge subsidies. Through 

2018, the program is 100 percent state funded through 

rebalancing funds.

DSHS coordinated with five public housing authorities 

to apply for and administer 215 NED Category 2 HCVs 

beginning in 2011. NED Category 2 is a joint effort 

between HUD and Centers for Medicare and Medicaid 

Services and provides rental subsidies for housing for 

low-income, nonelderly people with disabilities residing 
Chapter 7. Washington Section 811 Project Rental Assistance Program 

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in institutional care settings. DSHS was responsible 

for helping residents transition out of institutions and 

coordinating necessary service supports. All NED 

Category 2 vouchers were leased within 18 months and 

have served nearly 400 households in the subsequent 4 

years. Approximately 70 percent of households under the 

program are still being housed using their original voucher. 

In addition to NED Category 2 vouchers administered 

in conjunction with DSHS, public housing authorities 

administer 4,603 Category 1 NED Vouchers throughout 

the state. Category 1 NED Vouchers are available to 

all eligible low-income, nonelderly households with a 

person with a disability, regardless of whether they move 

from institutional settings. 

Additional Federal Housing Programs 

In addition to state agencies, local governments, 

housing authorities, and private owners develop and 

administer affordable housing in Washington for people 

with disabilities. Table 7.2 provides an overview of the 

number of persons served by six major federally funded 

housing programs. As shown, about one-half of public 

housing households and HCV recipients are headed by a 

nonelderly person with a disability.

How the 811 PRA Program Fits With Other 

State Housing Programs

The 811 PRA program fills a need for rental subsidies 

specifically for nonelderly people with disabilities. Several 

housing programs in Washington—including public 

housing, HCVs, and other state and federal housing 

programs—serve people with disabilities, but NonElderly Disabled Vouchers are the only other existing 

rental subsidy resource in the state specifically set aside 

for this population. Although NED Category 2 vouchers 

are specifically set aside for nonelderly people with 

disabilities, only people transitioning from institutional 

care are eligible, whereas the 811 PRA units target a 

broader range of people with disabilities living in other 

residential settings and who are homeless. 

811 PRA subsidies support one additional permanent 

housing resource that DSHS case managers can use to 

help their nonelderly clients locate affordable housing 

in the community and prevent them from unnecessarily 

living in institutional care. HOME TBRA and Bridge funds 

can only be used for up to 2 years, although 811 PRA 

subsidies will be available for 5 to 20 years. Most PSH 

developed under the LIHTC program is specifically for 

formerly homeless people, which may include people 

with disabilities, but are not specifically set aside for 

that population. In addition, supportive housing priority 

points are awarded only when owners set aside at least 

75 percent of units in a property for supportive housing, 

exceeding the 811 PRA program regulation that limits 

the number of supportive housing units for people with 

disabilities to 25 percent for one property. 

Rental Housing Market

The rental housing market in Washington varies by 

region, with the most expensive and tightest market in 

and near the Seattle metropolitan area. Table 7.3 shows 

characteristics of the rental market in three areas where 

811 PRA units are under contract. Median Family Income 

and Fair Market Rents vary throughout the state but is 

highest on the coast. The rental vacancy rate varies by 

region but is 3.9 percent for the state overall for the fourth 

quarter of 2015.

Table 7.2: Washington State — Overview of Major Federal Housing Programs

Program Units Available

Number of Household 

Members

Percent Extremely 

Low-Income

Percent With 

Disabilities Among 

Head, Spouse 

Aged <62 

Percent of All Persons 

With Disability

Public Housing 12,292 23,849 79 49 28

Housing Choice Voucher 56,136 123,687 79 49 29

Moderate Rehabilitation 998 1,212 92 66 49

Project-Based Section 8 15,305 22,098 80 51 25

202/PRAC 2,540 2,821 79 – 1 16

811/PRAC 603 624 87 100 89

PRAC = Project Rental Assistance Contract.

Source: HUD (2016)
Chapter 7. Washington Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

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Table 7.3 : Washington State — Rental Housing Markets

Geographic Area Population MFI One-Bedroom FMR

Percent of MFI Needed To 

Afford One-Bedroom FMR

Seattle Urbanized Area 3,075,787 $88,000 $912 59.2

Olympia-Lacey Area 177,704 $75,000 $703 54.6

Skagit County 117,087 $65,900 $742 64.3

FMR = Fair Market Rent. MFI = Median Family Income.

Source: Affordable Housing Advisory Board (2015)

Service Provision and Healthcare

Current Status of Service and Healthcare 

Programs That Support Community Living

DSHS administers waiver programs that provide HCBS. 

HCBS waivers and State Plan Programs support 

participants in their home or community-based setting 

as an alternative to care in a nursing facility or institution. 

Each of the waivers provides an array of services tailored 

to the specific populations they serve.

ALTSA administers two HCBS waivers for people 

with functional disabilities—the Community Options 

Program Entry System, or COPES, waiver and the 

New Freedom Waiver. The Developmental Disabilities 

Administration within DSHS offers five HCBS waivers 

for people with developmental disabilities—Basic Plus 

Waiver, Children’s Intensive In-home Behavioral Supports 

Waiver, Community Protection Waiver, Core Waiver, and 

the Individual and Family Services Waiver. DSHS also 

administers State Plan Programs that support community 

living, including Community First Choice, Program of AllInclusive Care of the Elderly, and Private Duty Nursing. 

Changes in Medicaid resources away from 

institutional settings and toward community living.

Between 2008 and 2014, total Medicaid spending in 

Washington State increased from $6.3 billion to $10.4 

billion, a 63.4-percent increase. Funding for long-term 

services and supports went from $2.2 billion in 2008 to 

nearly $2.5 billion in 2013 (Eiken et al., 2015; KFF, 2017). 

HCBS as a portion of LTSS also increased during this 

period, indicating the continuing trend of decreased 

funding for institutionalized care and increased funding 

for community-based services and supports. HCBS 

funding increased from 59.7 percent of LTSS in 2008 to 

64.4 percent in 2013, which is significantly more than the 

national average of 51.3 percent (Eiken et al., 2015). In 

fact, Washington ranks the sixth highest in the nation for 

its percentage of Medicaid funds spent on HCBS (Eiken 

et al., 2015).

Trends in funding for institutional care and home- and 

community- based services reflect DSHS’s goals away 

from unnecessary institutional care. Between 1992 and 

2015, the percentage of long-term ALTSA clients served 

in home- and community-based settings increased from 

53 to 84 percent. DSHS has placed a heavy focus on 

transitioning individuals with disabilities out of institutions 

and into community-based housing settings since the early 

1990s. At the same time, the percentage of clients living 

in nursing homes decreased from 47 to 16 percent. Since 

2007, DSHS has helped transition more than 6,000 people 

from institutional settings to residential settings in the 

community through the RCL program. 

Changes to Medicaid eligibility criteria. Washington 

expanded Medicaid eligibility criteria under the Affordable 

Care Act. As of November 2015, nearly 1.8 million state 

residents were enrolled in Medicaid, including about 

150,000 people with disabilities. 

Washington’s Olmstead Plan

When the Supreme Court ruled on Olmstead v. L.C. 

in 1999, DSHS was already well into the process of 

transitioning individuals with disabilities out of institutions 

into community-based residential settings. As such, the 

Olmstead decision was not a major driver in state plans to 

serve people with disabilities. No lawsuits have been related 

to the Olmstead decision in Washington. The state created 

its Olmstead plan voluntarily in 2005 and does not have any 

plans to update it. The plan is general in nature and does not 

include any numerical goals related to the development of 

affordable housing for people with disabilities. 

Local Issues: Homelessness

Homelessness is a significant issue in Washington State. 

The 2014 homeless annual point-in-time count identified 

18,839 people who are homeless, including 6,289 

unsheltered. As previously noted, Commerce administers 

state and federal programs that serve people who are 

homeless or at risk for homelessness, and WSHFC’s 

LIHTC program awards the most special population priority 
Chapter 7. Washington Section 811 Project Rental Assistance Program 

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points to properties serving homeless families. In the past 

10 years, the state has placed a considerable focus on 

reducing the number of homeless people in Washington. 

The state legislature passed The Homelessness Housing 

and Assistance Act in 2005 to require counties and state 

agencies to undertake efforts to address homelessness. 

The state’s Interagency Council on Homelessness and 

Affordable Housing Advisory Board developed a 10-year 

plan to reduce homelessness by 50 percent by 2015. 

Although the 50 percent goal was not met, the results of 

local, state, and federal investments have resulted in a 

14-percent decline in homelessness since 2006. 

Population Served

To be eligible for the 811 PRA program, applicants must be 

persons with disabilities, between the ages of 18 and 61 at 

move in, have incomes at or below 30 percent of AMI, and 

receive or be eligible to receive Medicaid services through 

ALTSA. Beyond these general program requirements, 

individuals eligible for 811 PRA units include the following 

subpopulations of ALTSA consumers.

• Individuals served through the RCL program.

• Individuals with developmental disabilities served 

through the Developmental Disabilities Division.

• Individuals with functional disabilities served through 

the Home and Community Service (HCS) Division.15

• Individuals with mental illnesses served through the 

Division of Behavioral Health and Recovery (DBHR). A 

person whose sole impairment is alcoholism or drug 

addiction is not eligible for 811 PRA units. 

The state tries to target 811 PRA units to areas that most 

need affordable housing for persons with disabilities. 

Applicants can apply statewide as long as they meet 

eligibility criteria. ALTSA and Commerce have not made 

any changes to the 811 PRA program’s target population 

as described in their funding application. 

Through December 2015, 27 individuals had been referred 

to the 811 PRA program and 14 individuals had been 

referred to available 811 PRA units. At the end of the year, 

11 households were living in units with 811 PRA rental 

subsidies. Of these households, 10 included individuals 

had physical disabilities and were referred to the program 

through ALTSA. 

Outreach, Referral, and Application

This section focuses on the outreach and referral methods 

for individuals served through the HCS Division who are 

expected to make up most of 811 PRA applicants. 

Participant Outreach and Referral Process

For participants in the RCL program, 811 PRA units are 

one option for low-income Medicaid consumers seeking 

alternatives to institutional care. Transition coordinators, 

case managers, and nurses who work with HCBS 

Medicaid waiver consumers identify individuals among 

their caseloads who are interested in applying for 811 

PRA units. Individuals could reside in a variety of settings, 

including nursing facilities, assisted living centers, group 

homes, or in their own family homes. 

Other potential 811 PRA participants include other 

consumers in the HCS Division and individuals (served by 

the Developmental Disabilities Division and the Division 

of Behavioral Health and Recovery) who learn about the 

availability of 811 PRA funds through their case manager. 

All recipients of HCBS waiver services are assigned a 

case manager. Case managers work with consumers at 

nursing facilities to actively work with participants toward 

discharge. They also work with individuals in their own 

homes or other residential settings to support staying in 

their current home. Case managers identify eligible 811 

PRA participants within their caseload and screen them for 

initial eligibility for the 811 PRA program. 

Participant Screening and Eligibility

Case managers use an online assessment tool to 

determine clients’ service needs as they transition to 

and live in 811 PRA-funded housing. The transition 

assessment is part of a single comprehensive 

assessment tool that DSHS uses for determining eligibility 

and service needs for many of their consumers, including 

those served by HCBS waivers. The tool, Comprehensive 

Assessment Reporting Evaluation, or CARE, assesses 

individuals in a number of areas, including activities 

of daily living, treatments and medication, cognitive 

capacity, and family supports. The tool determines 

service needs and waiver eligibility. The CARE database 

is used for persons with functional disabilities and 

with developmental disabilities. Individuals receiving 

behavioral health services have their own assessment tool 

to determine eligibility for their programs. 

Case managers evaluate clients to determine their service 

needs when they first are admitted into nursing facilities 

15 Functional eligibility is based on a person’s unmet needs for personal care. A social worker, case manager, or nurse authorizes the number of 

service hours based on the person’s unmet needs. Functional eligibility requirements vary between funding sources.
Chapter 7. Washington Section 811 Project Rental Assistance Program 

Case Studies – HUD Section 811 PRA Program

94

or into inhome or residential long-term care services, and 

on a regularly thereafter. When a case manager learns 

a person is interested in moving out of a nursing facility 

or requires support to avoid institutionalization, he or 

she assesses the individual for the ability to succeed in 

community settings with supportive services, develops 

service plans, and coordinates transition services. 

Referring 811 PRA Applicants to Available 

Units

Commerce notifies the RCL program manager that a 

811 PRA unit will become available. The RCL housing 

program manager of the region where the unit is 

located sends out an email to the DSHS network and 

contracted service provider organizations in the region 

with information about the property and unit. The email 

is sent to organizations serving applicants within HCS, 

Developmental Disabilities Administration, and DBHR. 

Case managers within the divisions with an individual 

in their caseload interested in the 811 PRA unit at that 

property forwards their client’s information to the housing 

manager. The housing manager reviews the client’s CARE 

file to determine 811 PRA program eligibility. 

Housing managers send referrals to property managers 

on a first-come, first-served basis as applicants are found 

eligible for 811 PRA. DSHS has no maximum number of 

referrals that it sends to properties, although it has learned 

from experience with NED Category 2 that two to three 

referrals are typically needed for each available unit. 

811 PRA tenants must complete the rental application 

and meet the owners’ requirements, the same as for 

any other applicant to the property. Individual property 

owners establish their own rental criteria, including rental 

history, credit, and criminal background checks. DSHS 

staff state that they try to work with property owners 

and managers to make reasonable modifications to 

their resident eligibility criteria to accommodate some 

of their clients. DSHS staff have reported that they 

are not always successful in these efforts. They also 

reported difficulty in getting property owners to accept 

participants’ medical deductions when determining 

financial eligibility. As a result, some property owners 

have been turning away otherwise-qualified individuals. 

Waitlists are maintained by the 811 PRA site if it receives 

more applicants than it can accept. Each regional housing 

specialist maintains a waiting list for 811 PRA units in their 

region. The waitlist is organized by region and managed by 

the regional housing specialist. Through December 2015, 

eight individuals were on a waiting list for 811 PRA units.

Implications of Target Population and 

Outreach and Referral Methods

Referrals are tracked by date of application for each 811 PRA 

opening as it occurs. In the event of multiple applications for 

limited units, the following priorities will apply.

• First priority is individuals living in institutional settings 

or those that are homeless.

• Second priority is individuals wishing to move from 

residential settings.

• Third priority is inhome clients needing other housing.

Property owners also establish their own waiting list per 

property. Although individual case managers may establish 

their own waiting lists, no centralized waiting list exists for 

persons interested in obtaining 811 PRA subsidies. Those 

interested in 811 PRA units learn about the program and 

availability of 811 PRA units through their case manager. 

Case managers vary in their knowledge and experience 

of housing options and specifically the 811 PRA program 

and the speed in which they inform their client. These 

differences may lead to some eligible individuals having 

access to 811 PRA units sooner than others. 

Housing Strategies

Property and Unit Characteristics 

Commerce signed its first RAC in April 2015 for a total of 

four 811 PRA units. The first 811 PRA unit was occupied in 

April 2015. As of December 2015, Commerce had entered 

into RACs with five different owners to provide rental 

assistance to 32 811 PRA units. Of these units, 11 were 

leased to 811 PRA participants and 21 were not available 

because they were occupied by other non-811 PRA 

participants. As existing tenants move out, the units will 

become available for 811 PRA participants.

Table 7.4 shows the characteristics of the five properties 

under contract with Commerce as of December 2015. All 

properties are existing properties. Of the 32 units under 

contract, 5 are studios, 24 are one-bedroom units, and 3 

are two-bedroom units. The existing portfolio of bedroom 

size under contracts matches the demand, because most 

of the target population are one-person households. Seven 

units, or 22 percent, are identified as being accessible for 

persons with mobility impairments. 

811 PRA Units at Channel Cove

As part of the evaluation site visit, the study team visited 

Channel Cove, a property with 811 PRA units in La Conner, 

a seaside town north of Seattle. HOME Trust of Skagit 

was the first owner in Washington State to sign a Rental 

Assistance Contract with Commerce for four 811 
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Table 7.4 : Washington State — Characteristics of Proper ties With 

811 PRA Rental Assistance Contracts

Property Name City and County 811 PRA Units Total Units Percent of Total Units Initial Occupancy Date

Mill Creek Battle Ground 5 50 10 TBD

Channel Cove La Conner 4 21 19 4/2015

Boylston-Howell Seattle 7 30 23 5/2015

Aspen Grove Spokane 10 40 25 7/2015

El Estero Spokane 6 123 5 TBD

PRA = Project Rental Assistance. TBD = to be determined.

Source: Internal grantee report

PRA units. Home Trust is a nonprofit organization with a 

mission to secure long-term, affordable housing. Channel 

Cove is an Housing Trust Fund-funded property with 

rents restricted at 50 percent of AMI. Channel Cove has a 

combination of affordable rental units and privately owned 

homes; many of its residents are long-time occupants. 

The Skagit Housing Authority had been managing the 

affordable rental units of the property, but HOME Trust 

planned to take over this responsibility in January 2016. 

HOME Trust learned about the availability of 811 PRA 

units through its relationship with the RCL regional 

program manager. A resident had resided at Channel 

Cove with rent subsidized through the Bridge Program 

and the 24-month period was running out. HOME Trust 

believed in the program goal and wanted to help the 

tenant remain in place. 

HOME Trust signed an RAC for four units in April 2015; 

as of November 2015, two units had been occupied. Both 

occupied 811 PRA units are mobility accessible. Home 

Trust made some accessibility modifications to the units, 

paid for out of its own funds. A tenant leaving a nursing 

facility filled one of the two occupied units. The remaining 

two units are currently occupied and will be occupied 

on turnover. However, availability of the two units may 

take 1 to 2 years, which is the average number of annual 

vacancies at Channel Cove.

Property Selection Methods 

The 811 PRA program application period began in April 

2015 and is continuously open until all 811 PRA funds are 

awarded. Through November 2015, Commerce received 

18 applications for 811 PRA units. Four applicants were 

ineligible for the program, because the number of units set 

aside for supportive housing or persons with disabilities 

exceeded 25 percent of the total number of units. The 

eligible applications included 14 properties with 98 

units, 26 of which were under RAC at the time of the site 

visit. The additional 72 units will be filled as vacancies 

occur, assuming these other projects receive funding for 

construction and continue to be eligible for 811.

Outreach to owners. Both Commerce and DSHS staff 

have extensively marketed the availability of 811 PRA units 

to developers and owners of state-funded units. Staff at 

Commerce analyzed HTF-funded properties and owners 

that would be good candidates for the 811 PRA program, 

including properties with 40 or more units or high numbers 

of accessible units. The 811 PRA program staff attended 

local housing conferences and met with regional support 

network providers and homeless assistance providers. 

Through November 2015, Commerce staff estimated they 

had spoken to approximately 50 owners. 

Owner application process. Owners can download 

the application for funding on Commerce’s website and 

submit their application by email. Commerce and DSHS 

staff developed the application process. The application 

is designed to help the owner determine if the property 

is eligible for the 811 PRA program and how many 811 

PRA units the property could support. No formal or 

written policies exist for reviewing or evaluating 811 PRA 

applications from owners. Applications are reviewed 

as they are received. Staff from both agencies review 

applications for eligibility based on the number of units 

in the property, the 811 PRA units requested, and the 

types of subsidy already attached to units at the property. 

Commerce and DSHS staff also review the owner for 

organizational capacity and the property’s proximity to 

transportation and services. 

Commerce staff provide technical assistance to owners 

throughout the application process, and applications are 

usually submitted after several conversations are held 

between owners and Commerce staff. 
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Financing. The financing programs utilized for properties 

eligible for 811 PRA funds are primarily the HTF and LIHTC. 

Neither of these financing methods have set-asides or 

priority points specifically for the 811 PRA units, but both 

have priority points for developing housing for populations 

that include people with disabilities. 

Implementation Schedule

In its 811 PRA application, Commerce had expected to 

occupy all 811 PRA units within 24 months of award. In its 

Cooperative Agreement Budget, Commerce planned to have 

65 units under RAC by the close of year one and all 215 units 

filled by the close of year 4. Commerce did not meet its 2015 

goal as it had 32 units under RAC at the end of the year. 

The challenges Commerce experienced in recruiting owner 

participation in the program and in accessing vacant units 

are explained in the section titled Successes and Challenges 

that follows and account for why the first year RAC goal 

was not met. Despite production lagging somewhat in 

2015, Commerce also had several other properties in their 

application pipeline and expected to execute contracts with 

nine other properties for 66 811 PRA units. Combined, as of 

November 2015, Commerce hoped to have at least 98 811 

PRA units under lease by the end of 2016. 

Rent and Subsidy Levels

Commerce initially applied for funding for 275 811 PRA 

units, determining this target by surveying housing providers 

who might be interested in participating in the 811 PRA 

program. Commerce found evidence that developers would 

accept 185 units in 45 properties. Commerce expected that 

811 PRA units would turn over every 1.5 years, resulting 

in a request for 275 units. Commerce ultimately signed 

a Cooperative Agreement with HUD for funding for 215 

units. The number of units was downgraded in response to 

adjusted expectations of owner interest in the program and 

advice from HUD on how to calculate the 811 PRA budget. 

Commerce had based its budget on the expectation that 

the number of 811 PRA units under contract would increase 

over time, although HUD required a budget for 60 months of 

subsidy for each 811 PRA unit.

Commerce established initial 811 PRA rents based on 

50 percent of AMI. It selected the maximum rent level 

it could set for the funding application. The executed 

811 PRA budget assumes an average monthly contract 

rent of $589, which is comprised of an average tenant 

contribution of $235 and an average 811 PRA subsidy of 

$354. This amount happens to be the lowest level of rent 

for all six case studies. Given the difficulty Commerce 

had finding units at this rent level, it eventually requested 

and received from HUD a waiver that enables units to 

rent at FMR or 50 percent AMI, whichever is higher.

Unit and Tenant Turnover

As of November 2015, no units had turnover. If 811 PRA 

tenants are interested in moving to another unit within 

the same property, they must follow the owner’s regular 

turnover policies. 

Service Provision and Coordination

The exact services 811 PRA participants receive depends 

on their individual needs and the waiver services for which 

they are eligible. Case managers work with consumers 

within their division and develop person-centered plans that 

outline individual consumer medical and service needs. 

ALTSA waiver services include the following services, 

which are available to 811 PRA participants according to 

their person-centered plan.

• Personal care.

• Adult day care and day health.

• Environmental modifications.

• Home delivered meals.

• Home health aide.

• Personal emergency response system.

• Skilled nursing.

• Medical equipment and supplies.

• Client support training.

• Transportation.

• Nursing services.

• Community transition services.

• Health care for workers with disabilities.

Persons with developmental disabilities and served by 

Developmental Disabilities Administration through the 

five Developmentally Disabled Waivers can access the 

following services.

• Behavior health stabilization services.

• Behavior support and consultation.

• Behavioral health crisis diversion bed services.

• Client support training.

• Community access.

• Community guide.

• Emergency assistance.

• Environmental modifications.

• Extended state plan services.

• Prevocational services.
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• Respite care.

• Skilled nursing.

• Specialized medical equipment and supplies.

• Specialized psychiatric services.

• Supported employment.

• Transportation.

Individuals served through the Division of Behavioral 

Health and Recovery can access services for mental 

illness and alcohol and substance abuse. Services 

vary based on individual assessments, but may 

include assessment services, treatment services, crisis 

intervention and stabilization, case management, peer 

support, and residential mental health services. 

Transitional Services

Transitional services, including housing setup costs, 

security deposits, and other moving expenses, vary 

according to need and waiver or state plan eligibility. 

Individuals enrolled in the RCL program have additional 

transitional services available to them that are not 

available to other ALTSA consumers. For consumers with 

developmentally disabilities, transitional services can be 

provided as long as they are in an individual’s service plan. 

Transitional services may be provided to an individual, at 

the discretion of his or her case manager, by contracted 

Community Choice Guide. Community Choice Guides are 

funded by a combination of state and federal funding and 

provide short-term services. Community Choice Guide 

transition services for individuals moving into 811 PRA 

units include help locating housing, moving, obtaining 

furniture and household goods, and other support needed 

to ensure a successful transition to new housing. ALSTA 

customers may also have access to other state-funded 

resources that help individuals stabilize in community living 

that vary by waiver. In all three divisions, case managers 

ensure ongoing connection to services for their clients 

after individuals move into 811 PRA units. 

Gaps in Services

Gaps in services may occur because different services are 

available in different locations of the state. For example, 

rural areas have less access to services. Individuals who 

do not meet the 90-day institutional stay criteria do not 

qualify for services funded through MFP. 

2013 811 PRA Application

At the time that HUD published its 2013–2014 Notice 

of Funding Availability on March 4, 2014, with funding 

applications due on May 5, 2014, the 2012 grantees had 

not yet received an executed Cooperative Agreement from 

HUD. Washington decided it would not apply for an award 

by the 2013–2014 811 PRA funding round as it wanted 

to work out any program challenges it encountered in 

implementing its 2012 811 PRA program before applying 

for more rental assistance. 

Leveraging

For the 2012 funding application, Commerce secured a 

leverage commitment from the Housing Authority of Skagit 

County for nine HCV set aside for nonelderly people with 

disabilities. At the time of the visit, the Housing Authority of 

Skagit County had not issued any HCVs. 

Program Administration, 

Assessment, Information Systems, 

and Data Infrastructure

As grantee, Commerce administers the 811 PRA program 

and reporting program outcomes to HUD. In 811 practice, 

Commerce and DSHS administer the program jointly 

and work together to address issues that may arise. Staff 

from the two agencies communicate regularly by phone 

and email and utilize a secure, shared website to store 

and share program data with one another. Although the 

program is still in the initial stages, in general, Commerce 

asset management staff report that managing the 

contracting process for the first few properties has not 

been difficult aside from some challenges in working with 

HUD data systems as discussed in the following sections.

Commerce and DSHS have an existing agreement to 

share participant data with each other. In 2009, Commerce 

entered into an agreement with the DSHS Research and 

Data Analysis Division to collect and share information on 

programs and participants in common. Commerce tracks 

client data through the Homeless Management Information 

Systems. DSHS tracks client data through the CARE data 

system. The agencies plan to integrate the databases to 

track participant characteristics and outcomes, but did not 

have a timeline for this integration as of November 2015.

In addition to the number of 811 PRA units leased 

and individuals served through the 811 PRA program, 

Washington’s 811 PRA program goals include an increase in 

the use of HCBS and a decrease in the use of institutionally 

based services. At the time of the evaluation site visit, 

Commerce and DSHS had not developed any specific 

numerical targets for the reduction in use of institutional care 

or developed other 811 PRA program goals. 
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Successes and Challenges

Program staff from Commerce, DSHS, and their 

contracted partners discussed the initial successes and 

challenges they have experienced in implementing the 

811 PRA program. The 811 PRA program staff reported 

some challenges in the initial program administration 

involving constraints of the 811 PRA program requirements 

or structures. The evaluation team also identified some 

program areas that could have an effect on the efficiency 

and effectiveness of the 811 PRA program.

Program Successes and Replicable 

Innovations

Housing Bridge Program. DSHS’s Housing Bridge 

Program has been a key driver in utilizing 811 PRA funding. 

The two are a good match because Bridge funding 

provides temporary rental subsidies for up to 24 months, 

and 811 PRA funds are permanent sources of subsidy. 

If property owners currently housing tenants receiving 

Bridge subsidies can enroll in the 811 PRA program 

and switch the funding mechanisms, tenants can live 

uninterrupted in stable housing. 

Owner application process. Commerce developed an 

application process for owners that makes it as easy as 

possible for owners to determine if their properties are eligible 

for 811 PRA units. Washington’s owner application forms have 

been used as a model by another 2012 grantee that modified 

the Washington forms for use in its own 811 PRA program. 

Program Challenges

Challenges in recruiting owners. The most significant 

challenge Commerce has faced in the first year of its 811 

PRA program is in recruiting owners to apply for 811 PRA 

funding. Commerce initially expected that 80 owners 

would be interested based on the results of a survey it 

conducted prior to the funding application. Some owners 

who were initially interested had properties that were 

incompatible with the 811 PRA program due to the rule 

that limits properties participating in the 811 PRA to have 

no more than 25 percent of units set aside for the target 

population or for supportive housing. 

Applicants for 811 PRA grants receive additional points 

if they proposed the rent level. Washington may have 

underestimated the extent that a 50-percent AMI 

limit would pose on owner interest. (The waiver that 

Commerce received that allows for the higher or FMR or 

50 percent AMI, likely will increase owner participation.) 

Other reasons that owners have for not applying for 

811 PRA funds include inexperience with HUD housing 

programs and data systems, not wanting to be the first 

owners to try out a new program, and the requirement to 

sign a 30-year agreement with Commerce when 811 PRA 

subsidies are funded only for 5 years. 

Although the property recruitment process has been 

time-consuming and labor intensive, the strategies have 

been successful in gaining owner interest in the program 

and in raising program awareness. Staff point to in-person 

meetings with owners as the most beneficial method 

leading to successful owner applications. 

Challenges in accessing vacant units. Two-thirds of 

units under RAC were not available as of December 2015 

because they were occupied by other tenants when the 

RAC was executed. Because the units can be filled only 

with 811 PRA participants on turnover, Commerce staff are 

uncertain when the units will be available to be leased by 

811 PRA tenants. 

Challenges working with HUD data systems. Because 

Commerce was one of the first states with executed RACs 

and tenants residing in 811 PRA units, staff faced some 

challenges in navigating HUD’s data systems. The first 

resident moved in April 2015, but the owner did not receive 

the first subsidy payment until September 2015. Voucher 

administration has been challenging for the individual 

properties and for the contract administrator, Bremerton 

Housing Authority. Management staff at the 811 PRA 

properties had to be trained on how to submit TRACS 

data, leading to delays in submitting the information to 

Bremerton Housing Authority. The software program that 

Bremerton Housing Authority used for voucher processing 

was not designed to administer 811 PRA subsidies. 

Bremerton Housing Authority staff have to manually check 

each voucher invoice before submission, leading to further 

delays in submitting the voucher to HUD for payment. 

Because parent vouchers include voucher data for all 811 

PRA properties, delays in one property submitting data 

can hold up the entire parent voucher payment.16,17 The 

cost of obtaining the software systems necessary to enter 

data into TRACS has also been a barrier for some property 

owners to participate in the 811 PRA program.

16 Parent account refers to the “parent voucher” for the entire state. Each individual Section 811 PRA property within the state has a “child voucher.” 17 HUD has since provided guidance that incomplete parent vouchers may be submitted to HUD and then revised once all child voucher data are 

received.
References

Case Studies – HUD Section 811 PRA Program

99

References

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Additional Reading

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Additional Reading

Lipsom, Debra, Denise Hoffman, and Matthew Kehn. 

2014. “Non-Elderly Disabled Category 2 Housing 

Choice Voucher Program: An Implementation and 

Impact Analysis.” https://aspe.hhs.gov/system/

files/pdf/76986/Cat2Housing.pdf. 

U.S. Department of Housing and Urban Development. 

2012. HUD’s Fiscal Year (FY) 2012 Notice of Funding 

Availability (NOFA) for Section 811 Supportive 

Housing for Persons with Disabilities (Section 811) 

Project Rental Assistance Demonstration (811 PRA 

Demo) Program. Washington, DC: U.S. Department 

of Housing and Urban Development.

——. 2014. Solicitation DU208WP-14-R-0010, Request 

for Quotes: Housing for Persons with Disabilities, 

Evaluation of the Section 811 Project Rental 

Assistance Program – Phase I. Washington, DC: U.S. 

Department of Housing and Urban Development.
U.S. Department of Housing and Urban Development

Office of Policy Development and Research

Washington, DC 20410-6000

January 2018