MHSA Housing Program

State Funding for Developing Permanent Supportive Housing for Individuals with Severe Mental Illness

Statewide, the Mental Health Services Act (MHSA) Housing Program includes $75 million per year for the capital costs of permanent supportive housing for people with serious mental illness and their families that are homeless or at-risk of homelessness, and $40 million per year for operating subsidies in these developments. Capital funds will be available in the form of loans from the California Housing Finance Agency (CalHFA) to qualified housing developers. To be eligible, projects must be linked with MHSA-funded services.

The California Department of Mental Health (DMH) has allocated funds for the first 3½ years of the program using a formula. For this initial period, Alameda County Behavioral Health Care Services has been allocated about $14.7 million. Of this, up to $4.9 million may be used to capitalize 20-year operating subsidy reserves. Berkeley Mental Health has an initial allocation of nearly $1.3 million, of which up to $419,500 may be used for operating subsidy reserves. Continued funding for this program will depend on the availability of MHSA funds at the state level.

DMH and CalHFA have issued application materials for this funding source. BHCS and BMH must review and approve applications locally prior to their submission to CalHFA. For complete details, visit: California Department of Mental Health – Mental Health Services Act – Housing

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Dear Community Member:

Alameda County Behavioral Health Care Services (BHCS) is working with the California Department of Mental Health (DMH) and the California Housing Finance Agency (CalHFA) to develop more permanent, affordable supportive housing for formerly homeless households with a member with serious mental illness or a serious emotional disturbance. BHCS has over $14.6 million to invest in the creation of new housing opportunities through the Mental Health Services Act (MHSA) Housing Program. Information about the MHSA Housing Program can be found at:
http://www.dmh.ca.gov/prop_63/MHSA/Housing/default.asp or by contacting the BHCS Housing Services Office.

In order to access these funds, BHCS must partner with a housing developer/owner and propose a particular housing project to DMH and CalHFA. In the months of July and October 2009, the MHSA Housing Review Committee, a local advisory group on the MHSA Housing Program, recommended moving forward with a proposed housing project in partnership with Housing Consortium of the East Bay (HCEB), Hallmark Community Solutions (HCS), and Bay Area Community Services (BACS). The proposed project known as the Ashland Neighborhood Stabilization Program (NSP) involves the acquisition and rehabilitation of 3 single family homes in the unincorporated area of Ashland within Alameda County. At the October 2011 meeting of the MHSA Housing Review Committee, the Committee supported the expansion of this collaborative housing program model to include a fourth home in the City of Livermore.

The overall project will operate as supported independent living for 13 adults with histories of homelessness and serious mental health issues. Tenants will live together in a shared housing situation with each tenant having their own room within a 3-4 bedroom house. The tenant portion of rent will be fixed at 30% of the current Supplemental Security Income (SSI) rate or 30% of a tenant’s income whichever is higher. Bay Area Community Services (BACS) will provide supportive services to tenants at the housing sites. As part of the process of preparing the application for this project, DMH and CalHFA require a 30-day public comment and review period on the proposed project.

CLICK HERE for key documents outlining the expansion of the Ashland NSP project to include a fourth house in Livermore. BHCS and the project developers would greatly appreciate your feedback and questions related to this project over the next month. We will be accepting public comment on the project through Friday, May 4, 2012, at 5 pm. Comments that we receive will be utilized in developing our final project proposal for submission to DMH and CalHFA. One section of the application will address specific questions and concerns raised during this public comment period. Thank you in advance for your feedback!


Please send your questions and comments to:
Robert Ratner
Alameda County Behavioral Health Care Services
Housing Services Director
2000 Embarcadero Cove, STE 400; Oakland, CA 94606
(510) 567-8124;
rratner@acbhcs.org