Supportive Housing for Persons with Disabilities (Section 811)

Summary:
The Section 811 program advances capital to nonprofit organizations to support the construction, acquisition, or rehabilitation of rental housing that also provides supportive services for very low-income persons with disabilities. These capital funds do not have to be repaid as long as the funded units continue to serve this population.

Purpose:
The Section 811 program allows persons with disabilities to live independently by increasing the supply of rental housing with supportive services and related facilities. The program is similar to Supportive Housing for the Elderly (Section 202).

Type of Assistance:
The program provides interest-free capital advances to help nonprofit sponsors finance the development of rental housing with supportive services for persons with disabilities. The capital advance can finance the construction or rehabilitation of supportive housing. The advance is interest free and does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years.

The program also provides project rental assistance; this covers the difference between the HUD-approved operating cost per unit and the amount the resident pays�usually 30 percent of adjusted income. A rental assistance contract can last up to 20 years, can be reduced by waiver authority to 5 years, and can be renewed if funds are available.

Each project must have a supportive services plan. The appropriate State or local agency reviews a potential sponsor's application to determine if the plan is well designed to meet the needs of disabled people. Services may vary with the target population, but could include items such as personal care, 24-hour staffing, in-unit call buttons, and planned activities.

Eligible Grantees:
A nonprofit organization can apply to develop a Section 811 project. As a minimum capital investment, owners must deposit into a special escrow account an amount equal to 0.5 percent of the capital advanced (not to exceed $10,000). Owners must maintain complete records and submit an annual financial statement to HUD, which also has the right to audit the records for compliance with HUD regulations. Any change of ownership during the 40-year period must be approved by HUD. The available program funds for a fiscal year are allocated according to factors that include the number of persons age 16 years or older with or without a work disability.

Eligible Customers:
The Section 811 program houses very low-income households in which at least one adult has a physical or developmental disability and/or chronic mental illness.

Application:
A Notice of Fund Availability is published in the Federal Register each fiscal year announcing the allocation of funds to HUD Field Offices. An applicant must respond to this notice (or to a notice from the local Field Office) by submitting a "Request for Fund Reservation" (HUD Form 92016-CA). A State agency also reviews the supportive services plan (see above). Those selected for funding must meet basic program requirements, including nonprofit status, financial commitment, and experience in housing or related service activities.

Funding Status:
In FY 1995, $234 million in Section 811 funds was reserved for capital grants and rental assistance to 2,321 units. In FY 1996, $171.6 million was reserved for 1,971 units. In FY 1997, $94 million was reserved for 1,169 units. The appropriation for FY 1998 is $90 million.

Technical Guidance:
This program is authorized by Section 811, National Affordable Housing Act. Program regulations are in 24 CFR 891. The program is administered by HUD's Office of Multifamily Housing.

For More Information:
To learn more about this program, see Section 811 Supportive Housing for Persons with Disabilities (HUD Handbook 4571.2) and Supportive Housing for Persons with Disabilities (HUD Handbook 4571.4), both of which are available electronically through HUDCLIPS (http://www.hud.gov/hudclips). Potential sponsors should contact the Multifamily Housing director of their local HUD Field Office.

Success Stories:
Carol Haynes Apartments, a Las Vegas, Nevada, project for persons with severe brain injuries, received a 1997 Maxwell Award of Excellence from the Fannie Mae Foundation.