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HUD Section 811 Project-Based Rental Assistance Program for Supportive Housing (HUD Section 811 PRA)

Minnesota Housing awarded third HUD Section 811 PRA Grant.

In early August 2020, the U.S. Department of Housing and Urban Development (HUD) announced that Minnesota Housing was one of 12 housing finance agencies from around the country selected to receive a HUD Section 811 Project-Based Rental Assistance (HUD Section 811 PRA) program grant. This is Minnesota Housing’s third HUD Section 811 PRA grant. The first two awards provided rental assistance to 159 households across the state and the new award will support an estimated 160. To learn more about the HUD Section 811 PRA program, watch this video (05:19) or visit HUD’s website.

Program Description

Program Description

Minnesota Housing, in partnership with the Minnesota Department of Human Services (DHS), administers HUD Section 811 PRA.

The purpose of the program is to expand the supply of supportive housing units that promotes and facilitates community integration for people with significant and long-term disabilities. This program also advances Minnesota's Olmstead Plan, a series of key activities to ensure people with disabilities live, learn, work and enjoy life in the most integrated setting possible.

Eligible properties include both existing properties as well as projects that are selected for capital funding through the Multifamily Consolidated RFP or HTC funding rounds. Applicants cannot apply for only HUD Section 811 PRA in the Multifamily Consolidated RFP or HTC funding rounds. They must also apply for capital funds. For existing developments, Minnesota Housing will announce an open application for funding in 2024. HUD Section 811 PRA awards are contingent on funding availability. Sign up for our eNews to receive Section 811 PRA news.

Selected properties enter into a Rental Assistance Contract (RAC) with Minnesota Housing and receive monthly housing assistance payments (HAP) by submitting payment vouchers in HUD’s Tenant Rental Assistance Certification System (TRACS). The term of the RAC is 20 years. No more than 25% of the total units in an eligible multifamily property can have occupancy restrictions or preferences for people with disabilities. This percentage includes the HUD Section 811 PRA units. Rent levels cannot exceed the applicable fair market rents (FMR) as determined by HUD.

Tenant Eligibility

Tenant Eligibility

Households eligible for HUD Section 811 PRA include single adults and families. Households must meet each of the following three criteria:

  • The household must include at least one adult with a disability who is at least 18 but less than 62 years of age at the time of admission.
  • The household must include at least one adult with a disability who is eligible for community-based, long-term services funded through Medicaid or state-funded sources, including Home and Community-Based Waivered Services, Housing Stabilization Services, Adult Mental Health Services, Money Follows the Person (MFP), or Long-term Homeless Supportive Services.
  • The household income cannot exceed the Extremely Low Income (ELI) limit established by HUD and published annually.

Target Populations

Beyond the initial eligibility for HUD Section 811 PRA, Minnesota Housing will work for maintaining a balance between the following targeted populations who meet the eligibility criteria:

  • Experiencing long-term homeless (LTH), have a serious mental illness (SMI), and are enrolled in Minnesota’s Projects for Assistance in Transition from Homelessness (PATH) outreach program (up to 25% of the units for this population will be further targeted to unsheltered LTH populations); OR
  • Exiting a qualified institution after a long-term stay of 60 days or more and enrolled in the MFP program. Qualified institutions include:
    • Intermediate care facilities for individuals with developmental disabilities
    • Nursing facilities
    • Hospitals, including community behavioral health hospitals
    • Institutions for Mental Disease (IMF), to the extent Medical Assistance pays for the stay (Medical Assistance typically pays if the person is under 21 years or 65 years plus therefore only these applicants would be eligible for HUD Section 811 PRA); 
    • Child and adolescent behavioral health services facility in Willmar (CABHS); OR
  • At risk of institutionalization and living in segregated settings

NOTE: Program eligibility for PATH and MFP is determined by the PATH outreach worker and the MFP transition coordinator, respectively. Minnesota Housing does not make eligibility determinations for these programs.

Additional Eligible Applicants

If there are no applicants on the waiting list for a site location from the target populations, the following individuals will be eligible for the program:

  • People experiencing homelessness and SMIs with or without substance abuse and that do not have a PATH outreach worker available in their location and who meet the tenant eligibility criteria
Tenant Referrals and Services

Tenant Referrals and Services

A DHS housing coordinator will continue to operate a centralized process to manage the referrals, waiting list, and service coordination throughout the state and to coordinate with each property throughout the state. A DHS housing coordinator will also work with owners of properties to stay informed of vacancies and will ensure that supportive services are offered to tenants.

IMPORTANT: Referrals are made by agencies working with the target populations listed in the tenant eligibility section. A DHS housing coordinator notifies the referring agencies when there are openings in the program or when more applicants can be added to the waiting list. Applicants cannot refer themselves to the program.

Tenant Selection Plan

Tenant Selection Plan

Property managers and owners are encouraged to recognize that supportive housing programs are intended to house people who often have poor credit, poor rental histories, or criminal backgrounds.

Supportive housing programs are successful in serving the people for whom they are designed only when these issues do not raise insurmountable barriers to accessing housing.

To the extent permitted by the rules and regulations related to the type of housing, housing providers are encouraged to adopt lenient and flexible criteria regarding these common barriers when creating a tenant selection plan. Refer to Minnesota Housing's Tenant Selection Plan Guidelines for more information.

The Tenant Selection Plan Guidelines are a requirement for all projects that are selected for an applicable program and funding source as a result of a funding application submitted to Minnesota Housing after March 31, 2021.

Program Materials