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Presentation, discussion, and possible action authorizing the Department to submit an application in response to the U.S. Department of Housing and Urban Development’s 2025 Notice of Funding Opportunity for Section 811 Project Rental Assistance for Persons with Disabilities funds, and if successfully awarded to operate such program
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RECOMMENDED ACTION
recommendation
WHEREAS, on May 15, 2026, the U.S. Department of Housing and Urban Development (HUD) released a Notice of Funding Opportunity (NOFO) for the Section 811 Project Rental Assistance (PRA) Program to enable State Housing Agencies to provide project-based rental assistance in the development of supportive housing for low-income persons with disabilities;
WHEREAS, the Texas Department of Housing and Community Affairs (TDHCA or the Department) currently operates a Section 811 PRA Program supported by previous awards from HUD in 2012, 2013, and 2019 totaling $31 million; and is pending contract execution with HUD for an award made in 2023 for an additional $8 million;
WHEREAS, TDHCA’s existing Section 811 Program operates successfully and has the appropriate expertise, partnerships and systems in place to pursue additional funds and, if awarded to perform such work;
WHEREAS, after the award of the 2023 grant from HUD, provision of points were integrated into the 2025 and 2026 Qualified Allocation Plans (QAPs) to encourage participation from properties in the program’s delivery; and
WHEREAS, the Department, as required by HUD, has an existing collaboration with the Texas Health and Human Services Commission and the Texas Department of Family and Protective Services established through an Inter-Agency Partnership Agreement;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each of them hereby are authorized, empowered, and directed, for and on behalf of the Department, to submit an application for up to the award ceiling, estimated to be $9.875 million in funding in response to the NOFO and provide any other appropriate responsive documents to HUD; and
FURTHER RESOLVED, that if HUD makes an award from this NOFO to the Department, the Department is authorized to proceed with accepting such an award, including but not limited to releasing any needed Requests for Applications or Notice of Funding Availability and including 811 participation in subsequent QAPs, and implementing the program in accordance with the rules and policies in place for the Section 811 Project Rental Assistance Program.
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BACKGROUND
On May 15, 2026, HUD released a NOFO announcing the availability of $158 million for the Section 811 PRA Program which seeks to identify, stimulate, and support sustainable state approaches that will transform the provision of housing for persons with disabilities while providing access to appropriate supports and services. HUD expects to make approximately 16 awards with an estimated maximum award amount of $9.875 million. The NOFO allows state housing agencies to creatively combine or bundle Section 811 PRA funds with existing state administered affordable rental housing finance and development programs.
Like the existing 811 PRA Program that TDHCA operates, the NOFO requires that funds be used as project-based rental assistance for housing units integrated within multifamily properties that are set-aside for extremely low-income persons with disabilities who are eligible for community-based long-term care services and supports provided under a State Medicaid Program or other comparable long-term services program. The NOFO also allows limited use for the Department’s administrative costs.
If awarded this fifth round of 811 funding, the Department anticipates that we may seek to garner participation through the issuance of a Request for Applications or Notice of Funding Availability in specific areas of the state. We also anticipate that there will continue to need to be incentives integrated into the subsequent QAPs to encourage participation from multifamily properties. The 2025 and 2026 QAPs already has included the 811 program points in response to the 2023 award of funds from HUD. TDHCA, together with our Texas Health and Human Services partners, have established a robust referral network to ensure these units can be filled once funding is made available.
The Department is designing its application to substantially mirror the current Section 811 PRA program design including serving the same target populations and the same geographic areas, as there is already sufficient demand without further expansion. Staff recommends the Department be authorized to apply to HUD for the Section 811 PRA NOFO, and to have the flexibility in designing TDHCA’s application to develop a responsive program design.