The North Carolina Housing Finance Agency (NCHFA) is one of 18 state housing agencies that recently received an award from the U.S. Department of Housing and Urban Development (HUD) to secure affordable housing for people with disabilities. NCHFA will receive nearly $8 million to help people with disabilities pay for affordable, safe housing. The agency will spend the money on 225 housing units in the form of rental assistance.

The awards may be used to address long-term housing security and affordability issues within existing, new or renovated multifamily developments. Agencies will will work with Medicaid and/or state health and human services agencies to connect tenants with community-based support services.

“Adults with disabilities often face significant barriers in securing a safe and stable place to live,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said in a statement. “These awards create opportunities for more housing that’s available, accessible, and inclusive.”

Funding for the grants come from HUD’s Section 811 Project Rental Assistance for Persons with Disabilities program.

“Under the Biden-Harris Administration, we are committed to removing barriers to housing and ensuring that everyone has access to an accessible, quality, and affordable home that meets their needs,” said HUD Acting Secretary Adrianne Todman. “Today’s [August 14] awards will support Americans with disabilities by both creating affordable housing and expanding crucial support services.”

Scott Farmer, executive director of NCHFA said his agency applied for the Section 811 award in partnership with the N.C. Department of Health and Human Services.

“Our intent with the plan we submitted to HUD, we’re going to utilize this as rental assistance for units that are set aside within some of our recently funded or to be funded Housing Credit property,” Farmer said. “With our tax credit program, we’re already setting aside 10% of all of the units for persons with disabilities through what we call the Targeting [Housing] Program.”

The state’s Targeting Housing Program to which Farmer referred is a supportive housing program for people who are very low income and disabled and in need of affordable housing. The program is a partnership between NCHFA and NCDHHS in collaboration with owners, property management and service provider agencies.

Each year, 10% of all the rental apartments that are developed using the federal Low Income Housing Tax Credit (LIHTC) are reserved to allow people with disabilities to apply to live in them. Under the housing tax credit program, developers are awarded tax credits in exchange for agreeing to maintain the property as affordable housing for a minimum of 30 years.

Farmer said the state funded rental assistance program administered through NCDHSS doesn’t meet all of the needs.

“It’s not enough,” Farmer said. “With rents escalating and an increase in demand for units overall, but especially for those at the lowest incomes and those with different disabilities, there needs to be additional resources. So, when this federal resource popped up, we applied for it.”

The agency received a Section 811 award in 2019, Farmer said, but did not receive it until January 2024 due to the pandemic and other delays.

“We were getting ready to implement those funds [from 2019] while we were applying for this second round,” Farmer said.

NC Newsline recently reported that the N.C. Department of Health & Human Services Strategic Housing Plan published in March 2023 calls for the agency to support the “creation of 3,500 PSH [permanent supportive housing] opportunities for people with disabilities through new construction and rehabilitation of existing properties.

“Research shows that PSH is effective for those with more severe disabilities and complex needs — including people with severe mental illness, people with intellectual and developmental disabilities (I/DD), people impacted by substance use and substance use disorder, those experiencing chronic homelessness, and people exiting institutions,” the strategic housing plan said.

The research also shows that such housing is cost effective for people with co-occurring conditions who are experiencing homelessness and frequently use costly emergency and institutional services, the plan says. And overall, PSH results in positive outcomes on health, including behavioral health, as well as overall housing stability, according to the plan.