In 2015, MFA received a $2.3 million award to participate in HUD’s Section 811 Project Rental Assistance (PRA) program, which provides project-based rental assistance for extremely low- income persons with disabilities who are linked with long-term services. The rental assistance covers the difference between the tenant payment and the property’s contract rent.
New Mexico’s Section 811 PRA Program
- Serves extremely low-income, non-elderly persons with Serious Mental Illness (SMI), with a focus on persons who are homeless, at risk of institutionalization or are young adults transitioning from foster care or the juvenile justice system.
- Targeted counties include Bernalillo, Santa Fe and Doña Ana. Other areas may be eligible if supportive services are available.
- An estimated 95 households will receive rental assistance under the grant, with the first units leasing up in 2016.
- Partners include MFA and state agencies that coordinate services for persons with SMI: New Mexico Human Services Department (HSD), New Mexico Department of Health (DOH) and Children, Youth and Families Department (CYFD).
Property Eligibility
- New construction or rehabilitation projects applying for MFA multifamily financing, including Low Income Housing Tax Credits (LIHTCs), Risk Share HUD 542(c), New Mexico Housing Trust Fund, Primero and HOME/Rental.
- Existing multifamily properties, provided that Section 811 rental assistance is not used for:
- Units with existing occupancy or use restrictions for persons with disabilities.
- Units with existing occupancy or use restrictions for persons aged 62 or older.
- Units that have received any form of long-term operating subsidy in the last six months.
- There must be a minimum of five Section 811 PRA units per property.
- No more than 25 percent of the total units in a property may be restricted to persons with disabilities, including Section 811 PRA units. Section 811 PRA units must be dispersed throughout the property.
- Rent generally cannot exceed the applicable Section 8 Fair Market Rent levels published by HUD.
Tenant Eligibility
- At least one person in the household must be non-elderly (18-62 years of age), have a disability that meets the criteria for Serious Mental Illness (SMI), and be eligible to receive Medicaid and services/supports. New Mexico’s focus is on housing persons with SMI who are homeless or are at risk of institutionalization, as well as young adults (ages 18-21) who are emancipated from foster care or transitioning from the juvenile justice system.
- The household must be extremely low-income (earning 30 percent of AMI or below) as defined by HUD.
