HCR Issues RFP for MRT Housing Capital Program
As part of the effort to reduce Medicaid spending, the New York State Housing Trust Fund Corporation (HTFC) issued a Request for Proposal (RFP) in the July 9 State Register for $25 million in capital funding for supportive housing projects under the Medicaid Redesign Team (MRT) Housing Capital Program. The RFP defines supportive housing as the pairing of capital assistance, rental assistance and supportive services in either a building(s) constructed or renovated for this purpose. The MRT RFP can be found on the Homes and Community Renewal (HCR) website here.
HCR is seeking proposals from development teams that include service providers who have awards funded through the MRT Supportive Housing Allocation Plan, the NY/NY III Agreement, or from other federal, state and municipal funding streams that provide social service funding for high need and high cost Medicaid recipients, to develop multifamily supportive rental housing projects either through new construction, or the gut rehabilitation of vacant buildings. The RFP seeks to find applicants that are integrating services and leveraging funding from a variety of sources.
Applicants applying under this RFP for MRT Capital financing are expected to have projects that will also have first mortgages financed by tax-exempt Private Activity Bonds issued by the New York State Housing Finance Agency. However, HCR may also make a portion of this funding available as part of the upcoming Unified Funding Competitive Round for projects seeking allocations of 9 percent Low Income Housing Tax Credits (“LIHTC”).
This RFP seeks to increase the number of integrated housing developments with a portion of the residents receiving services, and the remainder are affordable or market rate housing residents who are not in need of services. There will be a cap of $200,000 per supportive housing unit on awards. Applicants are required to show evidence of a service award as part of the submission.
This RFP is just one of example of how the MRT has made investments in housing with services, recognizing that significant Medicaid savings could be generated as a result.
This opportunity was developed in an effort to make it simpler to bring about affordable housing for Medicaid-eligible individuals, and seeks to address some of the development challenges that LeadingAge NY and other stakeholders brought to the state. We believe that this funding will present an opportunity to some members.
The RFP also explains how HCR may offer a limited amount of Project Based Voucher (PBV) assistance, depending upon availability, for proposed projects seeking this funding.
Successful applicants and their service providers will be expected to collect and submit relevant Medicaid patient data to the Department of Health (DOH) or another state agency to track Medicaid cost savings.
HCR recommended that all prospective applicants schedule a pre-application meeting with HCR staff prior to submitting an application to assess project readiness and determine whether it is appropriate for the prospective applicant to proceed with a submission of an application.
LeadingAge NY serves on the MRT Affordable Housing Work Group and has been a strong supporter of supportive housing funding for senior housing and assisted living communities.
Contact: Ken Harris, kharris@leadingageny.org, 518-867-8835; Diane Darbyshire, ddarbyshire@leadingageny.org, 518-867-8828