Subsidized Housing Programs

In keeping with the mental health recovery philosophy, it is critical that individuals with mental illness have access to the full range of affordable housing options in the community and that the appropriate services be available to support their successfully living in their own home.  Affordable generally means that the individual or family pays no more than 30% of their income for their rent and utilities.

The National Association on Mental Illness (NAMI) provides a Housing Toolkit with in-depth information about housing resources available to individuals with mental illness.  Click here to access Housing Toolkit: Information to help the public mental health community meet the housing needs of people with mental illnesses.

Subsidized Housing is housing in which tenants pay less than the going market rate for rent, typically no more than 30% of their income. Subsidized housing developers receive financial assistance from a government or other public entity to build or operate the development, or to help pay for some of the rent and utility costs. In general, low and moderate income families with children, elderly, and individuals with disabilities are eligible for subsidized housing.  However, the income criteria and household eligibility vary with the funding source so you should contact each housing provider to get current information on eligibility. Subsidized housing may be site-based in specific buildings or complexes or tenant-based housing.

Site-Based Subsidized Housing

Site-based subsidized housing may be apartment buildings or complexes in which all or a portion of the units were built using public funds and the rents are set at a level that is affordable to low and moderate income households.  These may be owned by a local public housing authority or by a private entity.  Examples of site-based subsidized housing include:

  • Public Housing

In Pennsylvania under state enabling legislation, any city or county can establish a local Public Housing Authority (PHA).  The U.S. Department of Housing and Urban Development (HUD) administers federal aid to PHAs to provide housing to individuals with low-incomes at rents they can afford, generally 30% of their incomes toward rent.  Local PHAs own and typically operate this housing.  Public housing is generally provided in apartment developments– either in high rises, garden apartments or townhouses.  However, some PHAs also provide public housing in houses and apartments scattered throughout the community, referred to as “scattered site” public housing.  Some PHAs have websites that list their public housing sites.  This information is available at: http://www.hud.gov/local/pa/renting/hawebsites.cfm

  • HUD Section 811

Local non-profit organizations can apply to HUD for funding under the Section 811 Program to provide site-based housing specifically for persons with disabilities; there is an annual national competition for this program.  These units can be used to provide housing for individuals with justice involvement and mental illness.  While HUD provides funds for development and 40 years of operating subsidies, the nonprofit must demonstrate that services will be made available from community resources.

Click here for a list of of HUD 811 projects in PA.

For more information about HUD 811 projects, see HUD 811 PowerPoint.

  • Privately Owned Publicly Subsidized Housing

In many communities, there are apartment and townhouse developments that are owned and operated by a private developer or management company that receive public subsidies.  These privately owned subsidized housing developments have been funded through many different programs over the years, each with its own rent structure and guidelines. The rents are made affordable to low and moderate income tenants through subsidies to the developer toward the cost of building their developments. This, in turn, allows them to charge lower rents for than those charged for comparable units built without these subsidies. In some of these developments, the rent is also subsidized through project based rental assistance (PBRA) which allows tenants to pay 30% of their income towards rent with the balance paid through the subsidy.  A list of many of the privately-owned affordable housing developments, along with updated information on vacancies can be found on PAHousingSearch.com.

Currently, the primary funding source for privately owned subsidized housing is the Low Income Housing Tax Credit Program (LIHTC) administered by the Pennsylvania Housing Finance Agency (PHFA).   Of significance to individuals with mental illness are the following two opportunities under this program (these are as of FY 2010 – priorities and guidelines are revised annually in the Qualified Allocation Plan – QAP available from PHFA):

  1. Supportive Housing Set-Aside:  A portion of the allocation of LIHTCs is set-aside for developments in which units are targeted to “persons who are homeless; or to non-homeless households that require supportive services….”  These housing developments must have an appropriate supportive services plan for the targeted individuals.
  2. Affordable Units:  Beginning in 2010, at least 10% of the units in a development receiving LIHTCs must be affordable to very low income households, or those with incomes at or below 20% of the area median income.  In addition, there must be supportive services available to support these tenants.
  • United States Department of Agriculture Rural Housing

The United States Department of Agriculture (USDA) funds another site-based privately owned publicly subsidized housing program.  USDA’s Rural Housing Section 515 program provides subsidized housing throughout Pennsylvania.  Under the Section 515 program, USDA makes direct loans to private developers to finance affordable multifamily rental housing for very low, low, and moderate income families, elderly people and persons with disabilities.  Funds may be used to construct new housing or to purchase and rehabilitate existing structures for rental purposes.  Click here to see a list of USDA funded properties in your county visit.

Tenant-Based Subsidized Housing

Tenant-based subsidized housing is generally referred to as Tenant Based Rental Assistance (TBRA).  TBRA is a subsidy provided directly to a household to be used to rent the housing of their choice so long as it meets the requirements of the funding source for the subsidy.  These requirements generally relate to the income of the household as well as the condition of the rental unit, its actual rent, and its location.  Under TBRA programs, the tenant typically pays 30% of their income toward rent and utilities and the balance of the rent is paid through the subsidy.

For more information about TBRA, see TBRA PowerPoint.

Examples of TBRA programs include:

  • Housing Choice Voucher Program

Housing Choice Voucher Program (formerly the Section 8 Program): The most frequently used form of TBRA is administered by the PHA under the Housing Choice Voucher (HCV) Program.  Under this program, the housing must be within HUD established Fair Market Rents for your community and meet HUD’s Housing Quality Standards (HQS).  A household applies at the PHA for a Housing Choice Voucher.  Many PHAs have long waiting lists for their HCV Program so it is important for households to sign up as soon as possible. Further, some PHAs have closed the waiting list so it is important to ask to be notified when the list re-opens.

For more information about increasing housing options through the Housing Choice Voucher program, see:  Section 8 Made Simple: Using the Housing Choice Voucher Program to Assist People with Disabilities, 2nd edition by Technical Assistance Collaborative

In addition to the Housing Choice Voucher program, some PHAs have special set-aside vouchers.  The Technical Assistance Collaborative (TAC) provides a detailed description of these special set-aside vouchers on their website at http://www.tacinc.org/Program_Policy/setasides.html.  Below is a description of some of the set-aside vouchers in use in Pennsylvania:

  • Mainstream Housing Vouchers:  Periodically HUD makes Housing Choice Vouchers available to PHAs to be set aside specifically for persons with disabilities.  The advantage of these vouchers is that the PHA is required to re-issue them to households with disabilities upon turnover, thus ensuring that the vouchers are a long term resource for the target population.   Contact your PHA to see if new Mainstream Vouchers (new vouchers may now be referred to as “Certain Development Vouchers” or “Designated Housing Vouchers”) are being made available from HUD.  You or another organization in your community may be helpful in committing support services to the tenants that will be necessary for the PHA to successfully compete for these vouchers.  Click here to view a list of Pennsylvania PHAs with Mainstream Vouchers.
  • HUD-Veterans Affairs Supportive Housing Program (VASH): The HUD-VASH program provides local PHAs with housing choice vouchers specifically targeted to assist homeless veterans in their area. PHAs work with the local Veteran Affairs Medical Centers, which provide supportive services and case management to eligible homeless veterans. Click here for a list of PHAs that have been awarded HUD-VASH vouchers.
  • Other TBRA Programs

Although the Housing Choice Voucher program administered by the PHA is the most common TBRA program, TBRA can be administered in many different ways and through many different sources such as federal HOME dollars, county housing trust funds, Health Choices reinvestment dollars, or other county resources.

Some counties have partnered with their Public Housing Authorities to administer a local non-HUD funding.  Below are sample documents that may be useful in creating this type of program in your county.