HUD OFFERS $511 MILLION IN CAPITAL ADVANCES FOR HOUSING VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

WASHINGTON - The U.S. Department of Housing and Urban Development today announced $511 million is available to provide non-profit organizations interest-free capital advance funds to produce affordable rental housing with supportive services for the elderly and persons with disabilities through HUD's Section 202 and Section 811 Capital Advance programs.

"These capital advances will help thousands of our very low-income elderly and persons with disabilities to find good housing they can afford," said HUD Secretary Shaun Donovan. "Senior citizens and persons living with a disability should never have to worry about being able to find a decent place to live."

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.

Section 202 Supportive Housing for the Elderly Program ($420.9 million nationwide)

HUD's Section 202 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 new construction, acquisition, or 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 Supportive Housing for Persons with Disabilities Program ($90 million nationwide)

HUD's Section 811 program expands the supply of affordable housing with supportive services for persons with disabilities. It provides very low-income persons with disabilities the opportunity to live independently in an environment that provides the services they need. Eligible households must have one or more very low-income adult, 18 years or older, who has a physical or developmental disability or a 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. In addition to funding new construction, acquisition, or rehabilitation of developments that can be either group homes or independent living developments, HUD's Section 811 program subsidizes the rents so persons with disabilities can limit their housing costs to only pay 30 percent of their incomes.

Section 202 applications may be downloaded from HUD's website including instructions on submitting proposals via Federal Express (FedEx), United Parcel Services (UPS), and the U.S. Postal Service. Section 811 applications may also be downloaded from HUD's website. Section 202 applications must be postmarked on or before November 13, 2009, and received by the designated reviewing office within five days. Section 811 applications must be postmarked on or before November 16, 2009, and received within five days.

###

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 www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.