Summary:
HUD provides funding to nonprofit organizations
to develop rental housing with the availability of supportive services
for very low-income adults with disabilities, and provides rent
subsidies for the projects to help make them affordable.
Purpose:
The Section 811 program allows persons
with disabilities to live as independently as possible in the community
by increasing the supply of rental housing with the availability
of supportive services. The program also provides project rental
assistance, which covers the difference between the HUD-approved
operating costs of the project and the tenants' contribution toward
rent. The program is similar to Supportive Housing for the Elderly
(Section 202).
Type
of Assistance:
HUD provides interest-free
capital advances to nonprofit sponsors to help them finance the
development of rental housing such as independent living projects,
condominium units and small group homes with the availability of
supportive services for persons with disabilities. The capital advance
can finance the construction, rehabilitation, or acquisition with
or without rehabilitation of supportive housing. The advance does
not have to be repaid as long as the housing remains available for
very low-income persons with disabilities for at least 40 years.
HUD also provides project rental assistance; this covers the difference
between the HUD-approved operating cost of the project and the amount
the residents pay--usually 30 percent of adjusted income. The initial
term of the project rental assistance contract is 3 years and can
be renewed if funds are available.
The available program funds for a fiscal year are allocated to HUD’s
local offices according to factors established by the Department.
Each project must have a supportive services plan. The appropriate
State or local agency reviews a potential sponsor's application
to determine if the plan is well designed to meet the needs of persons
with disabilities and must certify to the same. Services may vary
with the target population but could include case management, training
in independent living skills and assistance in obtaining employment.
However, residents cannot be required to accept any supportive service
as a condition of occupancy.
Eligible
Grantees:
Nonprofit organizations with
a Section 501(c)(3) tax exemption from the IRS can apply to develop
a Section 811 project if they can, among other requirements, submit
a resolution that they will provide a minimum capital investment
equal to 0.5 percent of the capital advance amount, up to a maximum
of $10,000.
Eligible
Customers:
In order to live in Section
811 housing, a household which may consist of a single qualified
person must be very low-income (within 50 percent of the median
income for the area) and at least one member must be 18 years old
or older and have a disability, such as a physical or developmental
disability or chronic mental illness.
Application:
Applicants must submit an application
for a capital advance, including a Request for Fund Reservation
(Form HUD-92016-CA) and other information in response to a Notice
of Funding Availability (NOFA) published in the Federal Register
each year. Applications must be submitted to the local HUD field
office with jurisdiction over the area where the proposed project
will be located. Those selected for funding must meet basic program
requirements, including nonprofit status, financial commitment,
and a certification from the appropriate State or local agency that
the supportive services are well designed to meet the needs of the
intended residents. Awards are usually announced in September.
Technical
Guidance:
This program is authorized
by Section 811 of the National Affordable Housing Act of 1990 (P.L.
101-625) as amended by the Housing and Community Development Act
of 1992 (P.L. 102-550), the Rescission Act (P.L. 104-19) and the
American Homeownership and Opportunity Act of 2000 (P.L. 106-569).
Program regulations are in 24 CFR Part 891.
To learn more about the Section
811 program, see Section 811 Supportive Housing for Persons with
Disabilities (HUD Handbook 4571.2) and Supportive Housing for Persons
with Disabilities, Conditional Commitment to Final Closing (HUD
Handbook 4571.4) which are available on HUDclips.
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