SRO Program
Type
Operating
Source
Federal
Procurement Agency
U.S. Department of Housing and Urban Development (HUD)
AKA/Previously Known As
SRO Moderate Rehabilitation Program
Total Annual Award
These funds are part of the McKinney-Vento Homeless Assistance Program awards. None have been awarded in New York State for the past several years.
Eligible Populations
Homeless individuals with disabilities, including mental illness, substance abuse, HIV/AIDS and domestic violence.
Eligible Projects
Rehabilitation projects of 100 units or less requiring at least $3,000 per unit in rehabilitation costs.
Funding Award Details
The SRO Program provides ten years of rental assistance to projects that rehabilitate former hotels or Ys into permanent supportive housing for homeless individuals. Rental assistance is based on the Fair Market Rent for a studio apartment. Owners are compensated for the cost of some of the rehabilitation, as well as the other costs of owning and maintaining the property, through the rental assistance payments, payable through a contract with the local public housing authority.
Rate Details
Rental assistance within local FMR, with annual increases by HUD formula. These are usually less than the annual FMR increase.
Term of Service/Length of Grant
Initial grant is 10 years, at which time rental payments are renewable annually.
Limitations
Tenants pay 30% of their income for rent. However, rental formulas are calculated by the housing authority that processes the rental payments and are often inadequate to the special needs of the population served.
Network Notes
Due to the long term of the initial grant period (10 years), this program is no longer popular. Shorter time periods in other McKinney-funded programs allow for larger annual grant amounts. Nonprofit providers have found it difficult to negotiate rents sufficient to sustain the project after the 10-year term is up for renewal. Ongoing rental assistance originates from HUD's multifamily division, differing from where the McKinney funds are, which is the cause of much confusion about these programs.
This Continuum of Care (CoC) program will be merged into the supportive housing rental assistance funding available through McKinney as amended by the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, reauthorized last year as part of the Helping Families Save their Homes Act which goes into effect in 2012.
For More Information
For more information on this program, visit HUD's website, where you'll find a factsheet and program overview.
Contact
Find your local Continuum of Care contact here.
Last updated: 09/15/2011
Did you know…
Supportive housing for youth aging out of foster care can generate a lifetime net savings of $90,000 in public sector money for every young adult?