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Appraiser News

HUD grants $749 million to fund housing for low-income seniors, disabled

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Appraiser News
Sunday, November 20, 2011

Thousands of very low-income senior citizens and persons with disabilities will have access to affordable supportive housing thanks to $749 million 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 on more than 189 housing developments in 41 different states and Puerto Rico. When complete, more than 4,800 elderly households and persons with disabilities will be affordably housed with access to needed services.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities find an affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "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."

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 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 meet their unique needs.

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. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four people, 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 people with disabilities the opportunity to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.

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.

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