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OHCS will generally not fund new SROs via ORCA; scattered-site projects allowed with conditions
Summary
OHCS staff said the ORCA manual will generally not support single-room occupancy (SRO) projects except by exception; scattered-site preservation projects may be considered if properties are within 120 miles, share management, and are bundled to make projects viable. Staff will publish exception criteria in the ORCA manual.
Staff from the Affordable Rental Housing division told the Housing Stability Council that the mid-year ORCA update will introduce clearer rules on single-room occupancy (SRO) housing and scattered-site projects. Olivia Ball said the agency will "generally not be supporting SROs" through ORCA but that partners may seek exceptions when appropriate.
On scattered-site applications, Ball said a policy developed for preservation projects will apply more broadly: sponsors can bundle properties when necessary to make a viable project provided sites are in reasonable proximity (defined by staff as no more than 120 miles apart), they use the same management company, and one entity assumes reporting and compliance responsibilities. The ORCA manual will include specific exception submission requirements (including market studies) and the application team will help partners convert to new forms during recertification.
The council asked follow-up questions about how the exception process would be judged and what evidence is required; staff pointed to the ORCA manual's exception checklist and offered office hours and TA to walk partners through submissions. No policy vote was taken during the briefing.
