HUD Archives: News Releases

HUD No. 09-004
Dale Gray
(913) 551-5542
For Release
January 13, 2009


KANSAS CITY, KS - Very low-income senior citizens and persons with disabilities in Kansas will be able to find affordable housing thanks to $6,710,700 in grants announced today by the U.S. Department of Housing and Urban Development. The funding will provide two non-profit developers interest-free capital advances to produce
accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with
disabilities through HUD's Section 202 (Supportive Housing for the Elderly) and Section 811 (Supportive Housing for Persons with Disabilities) programs. The funding is part of $650 million in grants announced nationwide.

"These grants will help very low-income elderly and persons with disabilities in Kansas find decent housing that they can afford," said HUD Secretary Steve Preston. "Neither group should ever have to worry about being able to find a safe place to live."

A Section 202 grant in the amount of $5,593,900 is awarded to Mennonite Housing Rehabilitation Services in Wichita. The grant will fund the construction of a 44 unit project for low-income elderly persons. The building includes forty-three one-bedroom units for residents, and a two-bedroom non-revenue-producing unit for the on-site manager.
The design of the building accommodates the needs of the frail population and will exceed national energy efficiency standards. The planned community room promotes resident interaction and will be used for meetings, dining,
activities, and crafts.

A Section 811 grant in the amount of $1,116,800 is awarded to Mosaic in Garden City, KS. The grant will provide housing for a total of 14 persons with disabilities. The project will consist of two five-plexes on one site in Garden City. Each five-plex will offer three one-bedroom apartments and two two-bedroom apartments. The buildings will
be designed to encourage and facilitate social interaction among residents, but also provide for individual privacy.

Section 202 Capital Advance

HUD's Section 202 Capital Advance Program expands the supply of affordable housing with supportive services for
the elderly. It provides very low-income persons 62-years and older with the opportunity to live independently in an environment that provides the services they need. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program subsidizes the rents of senior citizens so they can limit their housing costs to only 30 percent of their incomes.

Section 811 Capital Advance

Housing constructed using interest-free capital advances under HUD's Section 811 Program are primarily used in smaller newly constructed buildings, typically group homes for three to four people, or condominium units. Eligible residents pay 30 percent of their income for rent and the federal government will pay the rest. Households must
have one or more very low-income adult with physical or developmental disability or living with chronic mental illness.

The term "person with disabilities" may also include two or more people with disabilities living together, or one or
more persons with disabilities living with one or more live-in attendants. The program provides persons with
disabilities the opportunity to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.

HUD provides the Section 202 and Section 811 funds to non-profit organizations in two forms:

  • Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development.

  • Project Rental Assistance Contract (PRAC). This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the HUD-approved cost of operating the project.


HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet


Content Archived: March 15, 2011