Budget Reforms 811 and 202

Ends Capital Advance funding
Establishes funding for project-based rental assistance

TAC 811 SummaryThe 2012 HUD Budget bill, according to the Center for Budget and Policy Priorities (CBPP), provided $375 million for the Section 202 elderly housing program and $165 million for the Section 811 housing for people with disabilities program.

According to the Obama budget request, these amounts should be sufficient to renew existing rental assistance contracts, but the bill text does not appear to authorize the use of funds for the construction of new units of affordable housing. A portion of these funds may be used, however, for the new types of project-based rental assistance (PRA) authorized by the 202 and 811 bills enacted at the end of the last Congress.

In regards to Section 202, according to the National Low Income Housing Coalition, the bill does not provide enough funding for new construction, which could mean 2,500 to 3,000 new units for elderly households will not be developed.

According to the Technical Assistance Collaborative, the Senate Appropriations bill which would have provided $150 million for Section 811 would require all new units to be created through the new PRA approach, and does not provide any funding for new Section 811 Capital Advances. Under the Senate bill, as many as 2,000 new Section 811 PRA units could be created. Both House and Senate proposals would also fund all Section 811 Project Rental Assistance Contract (PRAC) renewals, which HUD has estimated will cost $85 million. New Jersey’s share of the PRA could range between 55 and 85 units per year.

Eligible projects can be either new or existing multi-family developments in which the development costs are paid for from other public or private sources, including projects that have a commitment of federal Low Income Housing Tax Credits, HOME funds, or other commitments of funding from federal, state, or local government or any other source. To ensure Section 811 community integration goals are achieved under this new approach to supportive housing, no more than 25 percent of the total number of dwelling units in any project receiving Section 811 Project Based Rental Assistance may be used for supportive housing or have an occupancy preference for people with disabilities.

This is the last schedule that HUD rleased for implementation.

January, 2012 Invite applications from housing finance or other appropriate agencies for Project Rental Assistance (PRA) authority
March Select participants in PRA authority
Publish Fiscal Year 2012 Notice of Funding Availability
April Enter into agreements with agencies for PRA authority