Christie Administration Announces Innovative Loan Program to Increase Housing Options for Nursing Home Transitions
$2.85 Million Fund Available to Eligible Nonprofit and For-Profit Developers
Trenton, NJ – December 16, 2015 – (RealEstateRama) — The New Jersey Housing and Mortgage Finance Agency (HMFA), an affiliate of the New Jersey Department of Community Affairs (DCA), together with New Jersey Department of Human Services, Division of Aging Services (DoAs) recently launched the Money Follows the Person Housing Partnership Program (MFPHPP). This innovative loan program will provide $2.85 million in capital subsidy to eligible nonprofit and for-profit developers to build rental housing for individuals transitioning from nursing facilities to community settings.
“The creation of the MFPHPP is a first-of-its-kind collaboration with DoAS in the State of New Jersey,” says New Jersey DCA Commissioner Charles A. Richman. “This alliance represents a sound and viable solution to the challenges being faced by aging Baby Boomers and others looking for realistic solutions to aging as independently as possible.”
The federally-funded Money Follows the Person Program (MFP) — also called “I Choose Home NJ” www.ichoosehome.nj.gov — was created to assist in transitioning people out of nursing homes and developmental centers into the community with the Medicaid services they need to thrive. Since the program’s inception, New Jersey has moved more than 1,500 people out of these institutions for a total savings of $16 million, which continues to grow. These savings, known as “rebalancing funds,” must be invested to enhance or expand access to home and community-based services and to build community infrastructure and capacity for the long-term care system. To this end, DoAS is investing $2.85 million of its rebalancing fund to establish the MFPHPP, with the option to contribute future savings as they accrue.
“As we continue to pursue community living options for individuals with disabilities, this partnership opened up new opportunities,” said Department of Human Services’ Acting Commissioner Elizabeth Connolly. The Department oversees the programmatic activities of the Division of Aging Services, which provide services to many individuals currently living in nursing facilities but hoping to move out. “Our continued goal is to provide diverse housing choices that meet the needs of eligible participants and this program helps make it possible.”
The MFPHPP will create affordable and accessible housing specifically designed for individuals with physical disabilities aged 18 and over who are living in nursing homes and who are capable of living in the community with supportive Medicaid services. Many of these individuals have been living in nursing homes for months or years, simply because they have nowhere else to go. Many also live only on Supplemental Security Income (SSI), which makes securing a clean, decent, accessible apartment financially challenging.
“Studies have shown that people with disabilities broadly prefer living at home or in the community rather than in nursing or institutionalized settings,” says HMFA Executive Director Anthony L. Marchetta. “We at New Jersey Housing and Mortgage Finance Agency are very pleased to be at the forefront of providing nursing home residents with an attractive lifestyle alternative that encourages community participation and vibrant day-to-day interaction with others in the same situation – but most importantly linking them with supportive services that meet their specific needs while enhancing quality of life.”
Housing developers may apply for MFPHPP financing for up to five units in any one project. Financing for more than five units per project will be considered on a case-by-case basis. The maximum capital subsidy per set-aside unit is $75,000. Projects that are applying for 4% low-income tax credits, 9% low-income tax credits, the Fund for the Restoration of Multifamily Housing and multifamily bond financing are eligible to apply. Developers must indicate their interest to participate in the MFPHPP in concert with their submission of their application for funding through NJHMFA. Applications will be expected to meet MFPHPP guidelines.
In coordination with NJHMFA, DoAS will review all MFPHPP applications, and units will be selected based on project location in one of the seven targeted counties as determined by DoAS (Bergen, Passaic, Essex, Morris, Hudson, Monmouth, and Ocean); amenities necessary to enable the tenant to transition into the community; and the developer’s experience with special needs housing, among other factors. Once a unit has been selected, the developer will receive a letter of support from DoAS for the allocation of funds for the set-aside units.
Applications will be processed on a rolling basis until all MFPHPP monies are exhausted.
Supportive services for MFPHPP tenants are provided through New Jersey’s Managed Long-Term Services and Supports (MLTSS) Medicaid program. DoAS staff oversees and monitors the person’s initial transition plan from the nursing home, which is developed and carried out by the individual’s chosen managed care organization (MCO). The MCO assigns each participant moving out with a care manager who will work with the tenant to ensure their care needs are being adequately addressed in the community.
Additional information about the MFPHPP is available on the HMFA website at http://www.nj.gov/dca/hmfa/developers/needs/mfphpp/index.shtml
For more information about the I Choose Home/ Money Follows the Person program in New Jersey, please visit www.IChooseHome.NJ.Gov or call 1-855-466-3005.
CONTACT:
Tammori Petty
or Emike Omogbai
(609) 292-6055
