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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Introducing Merritt Crossing, Oakland, CA, by Affordable Housing Associates.

The Housing Services Office of Alameda County Behavioral Health Care Services is pleased to announce an affordable housing opportunity for seniors 55 years or older in downtown Oakland. Affordable Housing Associates (AHA) is the developer and operator of the 70 unit community of studio, 1 and 2 bedroom apartments. The building is expected to be ready for occupancy on June 1, 2012.

Affordable rents are income restricted in accordance with the Low-Income Housing Tax Credit program, the Section 8 Project-based Voucher program, and other regulatory agreements. The rents range between $485 to $1,038. More than half of the apartments will have project based Section 8 vouchers and the rent will be based on the occupants’ income. In addition, there are five (5) apartments reserved for Mental Health Services Act (MHSA) eligible households. MHSA units are designated for households or individuals that are currently homeless and have at least one individual who has a serious mental health issue that qualifies under MHSA.

Please feel free to call Affordable Housing Associates at 510.306.1605, if you have questions or need help in filling out the application. In addition, more information about this important project can be found at: http://www.merrittcrossingapts.com/

Click HERE for the application for the development and the MHSA eligibility certification form. The MHSA eligibility certification form and the documentation should be returned to the Housing Services Office at:


HSO, Merritt Crossing Apartments
2000 Embarcadero Cove, Ste. 400, Box 55
Oakland, CA 94606

The Merritt Crossing application from Affordable Housing Associates should be postmarked by Friday, January 6, 2012, and mailed to:


Merritt Crossing Apartments
Post Office Box 629
Oakland, CA 94604

Please liberally share this information with prospective applicants. Again, the application deadline is Friday, January 6, 2012.