Special Needs Housing Program

CalHFA has operated the Local Government Special Needs Housing Program (SNHP) on behalf of jurisdictions throughout California. The SNHP allows local governments to use Mental Health Services Act (MHSA) and other local funds to provide financing for the development of permanent supportive rental housing that includes units dedicated for individuals with serious mental illness, and their families, who are homeless or at risk of homelessness.

SNHP News & Updates

CalHFA has operated the Local Government Special Needs Housing Program through Participation Agreements with the following county mental health agencies:

Butte, Del Norte, Fresno, Imperial, Lake, Lassen, Los Angeles, Orange, Riverside, Sacramento, San Bernardino, San Diego, Santa Cruz, Shasta, Tehama and Tulare.

SNHP Info For Local Government and Developers Termsheet - No longer accepting applications

The SNHP has been an option for local governments to begin or continue to develop supportive housing for MHSA-eligible persons, and to more fully use MHSA funds for housing purposes. It was created as a bridge between the expired MHSA Housing Program and the No Place Like Home Program, which is now up and running through the Department of Housing and Community Development. Deadline for counties to submit applications for viable SNHP projects has passed:

  • January 3, 2020 Deadline for counties to submit applications
  • December 31, 2022 Deadline for construction loan closing

Participation in the SNHP ensures County MHSA funds are not redirected locally for other purposes. Over time counties can also roll over any residual receipt loan payments and deposit supplemental MHSA funds into the SNHP for the development of new housing opportunities and supplement expiring capitalized operating subsidy reserve (COSR) accounts to ensure a longer term of affordability for their MHSA residents.

CalHFA, the state's affordable housing lender, is uniquely qualified to provide housing development expertise and real estate lending services for the benefit of other governmental entities in the State of California for the construction, rehabilitation, and development of housing for persons qualifying for mental health services under the Act.

MHSA Housing Program Overview - Overview of the eight-year implementation of the Mental Health Service Act Housing Program (MHSA) by CalHFA and California Department of Mental Health (DMH).