HUD Archives: News Releases

KNX-HUD No. 01-09
Mark Brezina
(865) 474-8205
For Release
January 14, 2009

Tennessee receives $7.4 million

TENNESSEE - 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, with $7,417,100 funds going to Tennessee. 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."

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.

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 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.

Tennessee Funding Summary

Section 802 - Supportive Housing for the Elderly

Douglas Cherokee Economic Authority
Project Location: Greeneville, TN
Grant Amount: $554,300
Number of units: 5
Project Description:
The funds will be used to construct 5 one-bedroom units for very-low income elderly persons. The project will
consist of one residential building and will have a community room complete with kitchen and laundry facilities. The project is located close to community and medical facilities. The site has gently rolling topography and will accommodate barrier-free access. Recreation areas will be established so the residents will have on-site
socialization and gardening areas.

Loretta Lion's Club
Project Location: Loretto, TN
Grant Amount: $1,245,000
Number of units: 12
Project Description:
The project provides affordable housing opportunities for elderly independent living. The building design consists of
12 one bedroom units located in three separate single story buildings. The facility will be an expansion to 20 units
that already exist adjacent to this site location. Social, recreational, educational and health facilities are easily accessible to elderly residents. A computer with internet access located in the manager's office is made available to residents. Computer instruction is available upon admission to project.

Charis Acres, Inc.
Project Location: Memphis, TN
Grant Amount: $3,136,600
Number of units: 30
Project Description:
The building design consists of five separate single story buildings totaling 29 units for elderly residents and one
unit for resident manager. The design places the manager's unit in proximity to the other units in such a way as to provide security and allows ease of access to the manager. A common area will be available for recreation and other social and supportive activities. A computer with internet access is available to residents. The facility is easily accessible to social, recreational, educational, and commercial and health facilities.

Section 811 - Supportive Housing for Persons with Disabilities

Cocaine & Alcohol Awareness Program, Inc.
Project Location: Memphis, TN
Grant Amount: $1,563,600
Number of units: 15
Project Description:
The building design is a single story facility consisting of 14 units for disabled residents and one manger's unit. The facility provides a modest family-like environment specifically addressing needs of the disabled. The manager's unit includes space for an office that can be utilized by residents and local supportive services providers. Location of the facility allows residents to integrate into the surrounding community and promotes their ability to live independently. Public transportation, churches and shopping are easily accessible.

Project Location: Memphis, TN
Grant Amount: $917,600
Number of units: 8
Project Description:
The project design consists of two four-plexes on one site. Each four-plex will consist of 2, one-bedroom apartments and 2, two-bedroom apartments, housing a total of 12 persons with disabilities. The buildings are designed to encourage and facilitate social interaction among residents, but also provide for individual privacy. Each building will also include a multi-purpose activity room, laundry room and interior common area. Activities and programs will be offered to meet social, recreational, educational and health needs.


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