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