HUD Archives: News Releases

Knoxville - Mark Brezina - (865) 474-8205
Memphis - John Gemmill - (901) 544-3403
Nashville - Bill Dirl - (615) 515-8510
For Release
July 12, 2010


NASHVILLE - Senior citizens and persons with disabilities in Tennessee will soon be able to find additional affordable housing, thanks to more than $9.2 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities.

Nationwide, more than $550 million in grants were announced today. They are provided through HUD's Section 202 and Section 811 Supporting Housing programs, and will fund 169 projects in 46 states. See below for a list of Tennessee's grants.

"The Obama Administration is committed to making sure our senior citizens and persons with disabilities have opportunities to live in decent, affordable homes," said HUD Secretary Shaun Donovan. "Neither of these groups should ever have to worry about being able to find a safe place to live."

"This funding will help ensure that our senior citizens and persons with disabilities are cared for with decent,
affordable and accessible places to live," said Southeast Region Regional Administrator Edward Jennings, Jr.

Section 202 Capital Advance ($454.5 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 elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.

In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section
202 program also provides Project Rental Assistance Contract (PRAC) funds to subsidize the rents so that residents only pay 30 percent of their adjusted incomes.

To be eligible for the assistance a household must be classified as "very low-income," which means an income less than 50 percent of the area median. Nationally, based on 50 percent of the national median family income with an applicable adjustment for household size, a one-person household would need to have an income equal to or less
than $22,400 a year

Section 811 Capital Advance ($95.7 million nationwide to assist very low-income with disabilities)

This housing, most of which will be newly constructed, typically is small apartment buildings, group homes for three
to four people per home, or condominium units. Residents will pay 30 percent of their adjusted income for rent and
the federal government will pay the rest.

Capital advance funds are awarded under HUD's Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have a physical or developmental disability or chronic mental illness. The term "person with disabilities" also includes two or more people with disabilities living together, and 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.

To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $13,450.

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. Repayment is not required as long as the housing remains available for occupancy by very
    low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with
    disabilities (under Section 811).

  • 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

Tennessee's Recipients: (To view details, click here)

Section 202 Capital Advance

Metropolitan Housing and CDC, Inc. Johnson City $2,464,100
Cumberland Regional Development Corp. Lebanon $4,232,200
Volunteer Housing Development Corp. Monterey $1,277,000

Section 811 Capital Advance

Breakthrough Corporation Knoxville $1,301,500


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and



Project Location : Johnson City, TN
Non-Profit Sponsor : Metropolitan Housing and CDC, Inc.
Capital Advance : $2,282,000
Three-year rental subsidy : $182,100
Number of units : 20
Project Description:
The funds will be used to construct a single story building with 19 one-bedroom units for very low-income elderly persons and one two-bedroom unit for a resident manager. The site for the project is located near churches, pharmacies, and convenience stores. Community areas include a community room with a party kitchen, laundry facilities, and outdoor areas for gardening and walking.

Project Location : Lebanon, TN
Non-Profit Sponsor : Cumberland Regional Development Corp.
Capital Advance : $3,919,000
Three-year rental subsidy : $313,200
Number of units : 35
Project Description:
The funds will be used to construct a 35 unit independent living facility with accessible design for very low-income elderly tenants. The facility's public areas will include casual seating and social areas, a community room with
warming kitchen, toilets and laundry. Wellness education, health service and supportive service programs are offered as part of the social services package. These programs provide the living environment that will help senior residents
to age in place and remain independent for a much longer period of time.

Project Location : Monterey, TN
Non-Profit Sponsor : Volunteer Housing Development Corp
Capital Advance : $1,184,900
Three-year rental subsidy : $92,100
Number of units : 11
Project Description:
The funds will provide eleven units of independent living for very low-income elderly tenants. A relaxed and quiet environment allows each resident to enjoy their home. The facility is located close to shopping, banking, medical facilities, library and restaurants. Transportation will be provided to encourage residents to take outings and participate in community social gatherings. Flower and vegetable gardens will be available for the residents
interested in these activities. An exercise program is offered in the community room.


Project Location : Knoxville, TN
Non-Profit Sponsor : Breakthrough Corporation
Capital Advance : $1,215,100
Three-year rental subsidy : $86,400
Number of units : 9
Project Description :
The funds will be used to construct three single story group homes for 9 very low income persons with
developmental disabilities. The homes will consist of a total of nine tenant bedrooms and one staff bedroom. The location is in close proximity to services such as medical, shopping, churches, and banks. This facility will allow residents to blend into the surrounding community and the availability of supportive services will allow them to live independently.


Content Archived: April 05, 2012