FY 1998 SuperNOFA Guidebook

Coordination of HUD's Competitive and Formula-Based Programs
Example 1: Section 811 Supportive Housing for Persons with Disabilities
and the Home Investment Partnerships Program

A nonprofit community development corporation (CDC) in a mid-size city wanted to create a housing facility that would provide an environment to encourage healthy social and interpersonal assimilation for persons with disabilities. Its plan was to create a facility that would set aside 50 percent of its units for very low-income persons with disabilities and leave the remaining units available to persons without disabilities. After much planning and searching, the CDC found two adjacent buildings that it felt would provide a suitable physical structure and geographic location for the proposed facility. The buildings would enable the CDC to create 30 units, 15 of which would be set aside as permanent housing for persons with disabilities. The CDC had financing available from its internal resources and from foundations that pledged their support for the project. Still, it needed to leverage additional financing to make the project feasible. A mix of HUD competitive and noncompetitive programs provided a great leveraging resource.

The CDC applied for an interest-free capital advance through the Section 811 Supportive Housing for Persons with Disabilities program to cover the acquisition and rehabilitation costs of the 15 apartment units for persons with disabilities. The CDC also arranged for any supportive services needed by the residents. Rental assistance provided through the Section 811 program covered the difference between 30 percent of the tenants' contribution toward rent and the HUD-approved operating costs of the project. To help fund acquisition, rehabilitation, and construction costs of the remaining units the CDC acquired HOME Investment Partnerships program funds through the State's community development agency. Further financing came from the State's department of human services and another community nonprofit.

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