State housing agencies can apply for $120 million in new federal funding to support housing options for disabled people transitioning out of long-term care facilities, the Department of Housing and Urban Development recently announced.

The funds are authorized by the Frank Melville Supportive Housing Act of 2010 and support the mandate of the Olmstead v. L.C. Supreme Court ruling of 1999, HUD stated.

The Olmstead decision requires state and local governments to facilitate community-based long-term services and supports for those who could thrive outside institutional settings. Consequently, state housing agencies are working with Medicaid and the Department of Health and Human Services to “identify, refer and conduct outreach” to help those in need of long-term care to live as independently as possible, HUD noted when announcing the new funds.

States have been slow to follow through on Olmstead, according to a Senate report issued in July.

The latest HUD money is meant to provide rental assistance to low-income persons with disabilities, including those transitioning from nursing homes or at risk of homelessness. Regional, state or local housing agencies are eligible to apply for the assistance if they meet certain requirements, such as having a formal partnership with the state Medicaid agency.

Click here to access the complete HUD grant synopsis. The application deadline is May 5.