Section 811 Housing for Persons with Disabilities
The U.S. Department of Housing and Urban Development’s Section 811 Supportive Housing for Persons with Disabilities 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.
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-based rental assistance, which covers the difference between the HUD-approved operating cost of the project and the tenants’ contributions for rent– 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.
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. Services may vary with the target population but could include case management, training in independent living skills, and assistance in obtaining employment.
Eligible Applicants:
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 Beneficiaries:
In order to live in Section 811 housing, a household must be very low-income (at or below 50 percent of area median income) 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.
Funding Mechanism:
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.
