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Section 811 Project Rental Assistance

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:
    1. Units with existing occupancy or use restrictions for persons with disabilities.
    2. Units with existing occupancy or use restrictions for persons aged 62 or older.
    3. 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.

Section 811 Project Rental Assistance Documents

Program Guidelines

Developer Fact Sheet

Program Contacts

Susan Biernacki
Tax Credit Program Manager

Direct: (505) 767-2273
Fax: (505) 242-2766
Toll free: (800) 444-6880