HUD Archives: News Releases

HUD No. 09-007
Joel Manske, ND Field Office Director
(701) 293-2828
For Release
January 13, 2009

Grand Forks, North Dakota Development Homes Inc received $720,900

WASHINGTON - Thousands of very low-income senior citizens and persons with disabilities will be able to find affordable housing thanks to more than $650 million in grants announced today by the U.S. Department of Housing and Urban Development. The funding will provide 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 and Section 811 grant programs.

"These grants will help thousands of our nation's very low-income elderly and persons with disabilities 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."

North Dakota Section 811 Project Funding

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Grand Forks, ND
Non-Profit Sponsor: Development Homes, Inc.
Capital Advance: $680,000
Three-year rental subsidy: $45,900
Number of units: 6
Project Description: 
The funds will be used to construct a 6 unit group home consisting of 5 independent living units for very low income developmentally disabled residents with autism and 1 two bedroom unit for a resident manager. The home will have
a multi-purpose room with a kitchenette and computer area as well as a laundry room that will also serve as a storm shelter. It will also have individual unit controls for heating and air conditioning for those residents who are sensitive to temperature fluctuations. All units comply with HUD visitability guidelines.

Section 811 Capital Advance ($124.5 million nationwide to assist very low-income people with disabilities)

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

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.

Section 202 Capital Advance ($525.9 million nationwide to assist very low-income elderly)

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 pay 30 percent of their incomes.

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.

Note: State-by-state breakdown of individual funding summaries is available on the HUD website.


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 and


Content Archived: July 11, 2011