FHA Supportive Housing For Persons With Disabilities - HUD Section 811 Mortgages
The Section 811 Supportive Housing for Persons with Disabilities program, HUD allows financing to develop and subsidize rental housing with the availability of supportive services for low-income adults with disabilities.
The Section 811 program gives the ability for persons with disabilities to live as independently as possible in the community by subsidizing rental housing which provides access to appropriate supportive services.
The Section 811 program is authorized to do the following: (1) Providing interest-free capital advances and operating subsidies to nonprofit developers of affordable housing for persons with disabilities; and (2) providing project rental assistance to state housing agencies.
Capital Advances - HUD has provided interest-free capital advances to nonprofit sponsors to finance the development of rental housing with the availability of supportive services for persons with disabilities. The capital advance can finance the construction, rehabilitation, or acquisition with or without rehabilitation of supportive housing. The advance 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.
Project Rental Assistance - This program allows state housing agencies that have entered into partnerships with state health and human services and Medicaid agencies to apply for Section 811 Project Rental Assistance for new or existing affordable housing developments funded by LIHTC, HOME, or other sources of funds. Under the state health care/housing agency partnership, the health care agency must develop a policy for referrals, tenant selection, and service delivery to ensure that this housing is targeted to a population most in need of deeply affordable supportive housing. This Section 811 assistance comes in the form of project rental assistance alone. No funds are available for construction or rehabilitation. Eligible grantees are state housing agencies that have entered into partnerships with state health and human services and Medicaid agencies who then allocate rental assistance to projects funded by tax credits, HOME funds, or other sources.