HUD Archives: News Releases

HUD No. 11-16-11
Knoxville: Ed Ellis - (865) 474-8205
Memphis: John Gemmill - (901) 544-3403
Nashville: Keith Richardson - (615) 515-8510
For Release
November 16, 2011


KNOXVILLE - Today, many more very low-income senior citizens and persons with disabilities in Tennessee will have access to affordable supportive housing thanks to $4,028,600 in housing assistance announced by the U.S. Department of Housing and Urban Development (HUD). These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly and persons with disabilities.

The grant funding awarded under HUD's Sections 202 and 811 Supportive Housing programs will kick start
construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico.
In Tennessee, more than 32 elderly households and persons with disabilities will be affordably housed with access to needed services. A detailed summary of Tennessee grants is attached to this release.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Southeast Regional Administrator Ed Jennings, Jr. "Recent bipartisan changes to these two supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."


Tennessee Section 202 Oak Ridge CRDC
Tennessee Section 811 Knoxville Breakthrough Corporation
Tennessee Total:

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to both programs. Nonprofit grant recipients will now receive federal assistance that is better leveraged and better connected to state and local health care investments, allowing greater numbers of vulnerable elderly and disabled individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program
will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes. Section 202 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.

Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

HUD's Section 811 program provides 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 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 these 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 Contracts. This is funding that goes to each development to cover the
    difference between the residents' contributions toward rent and the cost of operating the project.

Residents must be "very low income" with household incomes less than 50 percent of their median for that area. However, most households that receive Section 811 or Section 202 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.


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 You can also follow HUD on twitter @HUDnews, on facebook at, or sign up for news alerts on HUD's News Listserv.


Section 202 - Supportive Housing for the Elderly

Project Location: Oak Ridge, TN
Non-Profit Sponsor: CRDC
Capital Advance: $2,534,100
Three-year rental subsidy: $227,100
Number of units: 24

Project Description: The funds will be used to construct 23 one-bedroom units for very low income elderly persons
and 1 two-bedroom unit for a resident manager. There will be a public area that will include casual seating and social areas, a community room with warming kitchen, laundry and maintenance areas and a management office. The building will be designed and built to meet the EPA Indoor AirPlus guidelines and will incorporate products, materials, and appliances that meet or exceed the current ENERGY STAR program requirements.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Knoxville, TN
Non-Profit Sponsor: Breakthrough Corporation
Capital Advance: $1,178,300
Three-year rental subsidy: $89,100
Number of units: 9

Project Description: The funds will be used to construct three single story group homes for nine very low income persons with autism. 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, etc. 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: June 24, 2013