Supportive Housing for Persons with Disabilities

To expand the supply of supportive housing for very low-income persons with disabilities.

The Section 811 program helps expand the supply of affordable housing for very-low income persons with disabilties. It provides persons with disabilites with options to live as independently as possible in the community by subsidizing rental housing opportunities with access to appropriate supportive services.

Eligible Sponsors are nonprofit organizations with a Section 501(c)(3) tax exemption from the Internal Revenue Service. Eligible Owner entities are nonprofit organizations with a 501(c)(3) tax exemption from the Internal Revenue Service and, if the proposed project involves mixed financing, for-profit limited partnerships with a nonprofit entity as the sole general partner.

Beneficiaries of housing developed under this program must be very low-income (equal to or less than 50% AMI) adults (ages 18-61) with a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration, that substantially impedes his or her ability to live independently, and is of a nature that such ability could be improved by more suitable housing conditions.

Capital advances may be used to construct, rehabilitate or acquire structures to be used as supportive housing for low-income persons with disabilities. Project rental assistance is used to cover the difference between the HUD-approved operating costs of the project and the tenants' contributions toward rent (30 percent of adjusted income). Funds cannot be used to service debt on construction or permanent financing of any units; cash flow distributions to owners or creation reserves of non-811 units.

May not be used to fund supportive services. Prohibited facilities include housing that is currently operating for persons with disabilbities or the elderly, except in cases of rehabilitation as defined in 24 CFR 891.105; infirmaries, nursing stations, or respite care; nursing homes, hospital, intermediate or transitional care facilities; manufactured housing; and assisted living facilities.

The capital advance is not repayable if the project is available for very low-income persons with disabilities for at least 40 years. Projects are expected to start construction within 18 months of the date of the fund reservation, with limited provision for extensions. Funds will be advanced on a monthly basis during construction.

Applicants must forward a copy of their applications to the appropriate state or local agency for a review of the supportive services plan and a completed certification from the agency as to whether the provision of services is well designed to meet the needs of the anticipated occupancy must be included in the applicant's submission of its application to the HUD Field Office. An environmental assessment is required for applications containing evidence of site control.

Application must meet the criteria listed in the NOFO.

Applications are reviewed and selected for awards that meet the funding opportunity criteria. Those selected for funding must meet basic program requirements including, but not limited to: eligibility as a nonprofit entity, eligibility as a for-profit limited partnership with nonprofit entity as the sole general partner for mixed-finance projects, financial commitment and prior experience in housing or related service activities. The request for Capital Advance Financing is reviewed to update the determination of acceptability of project site and market, correctness of zoning, and the effect on environment as well as to determine the value of site, total development cost, and financial feasibility.

At the fund reservation stage, the sponsor usually is advised of the decision within 4 to 5 months from the end of the application period.

After five years of initial PRAC (for which the owner submits monthly vouchers to HUD for payment of rental assistance) the contract is renewed on a yearly basis based on availability of funds.

During the period of competition, Sponsors whose applications are rejected due to noncompliance with program requirements, have the right to appeal the rejection within 14 calendar days from the date of HUD's written notice of rejection.