Section 811 Supportive Housing for Persons with Disabilities (Capital Advance)

The Section 811 Supportive Housing for Persons with Disabilities Program aims to expand the supply of integrated affordable housing by providing Capital Advance funding for the development of permanent supportive rental housing for very-low-income persons with disabilities who are 18 years of age or older and less than 62 years of age at entry. The program also provides project rental subsidies in the form of a Project Rental Assistance Contract (“PRAC”) to maintain ongoing affordability over at least the next forty years. These units provide persons with disabilities the opportunity to live with dignity and independence within the community in an integrated environment that provides access to appropriate and voluntary supportive services.Individuals with disabilities have historically faced discrimination that limited opportunities to live independently in the community and often required persons to live in institutions and other segregated settings. In 1999, the United States Supreme Court issued the landmark decision in Olmstead v. L.C., 527 U.S. 581 (1999), affirming that the unjustified segregation of individuals with disabilities is a form of discrimination prohibited by Title II of the Americans with Disabilities Act (ADA). Olmstead held that persons with disabilities must have choice in the housing, health care, and related support services they receive. As individual states facilitate the transition and integration of persons with disabilities at serious risk of institutionalization and other segregated settings into the community, Sponsors/Owners of supportive rental housing for persons with disabilities have an opportunity to design innovative approaches to meet the associated challenges and opportunities. HUD is committed to helping offer very low-income persons with disabilities housing options that provide meaningful choices about housing, health care, and long-term services and support, so they can participate fully in community life. The Frank Melville Supportive Housing Investment Act of 2010 (Pub. L. No. 111-374) amended Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including the PRAC program, to better achieve this goal.HUD through this NOFO seeks to fund innovative Section 811 permanent supportive housing models that will be at the forefront of design, service delivery and efficient use of federal resources. To meet this goal, HUD expects successful applications to demonstrate best practices or innovation in both physical design and supportive services. Proposals must promote the long-term housing security and facilitate community integration of persons with disabilities. HUD aims to provide Capital Advance funding to those applicants who meet the goal of developing permanent supportive housing. For more information about specific Review Criteria see Section V.A.Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. Capital Advance funds bear no interest and repayment is not required if housing remains available for occupancy by Very-Low-Income Disabled Persons for at least 40 years. Applicants will include the requested Capital Advance funds in the SF424 and in the Development Budget (Section III.F.2.). The amount of the Capital Advance funds requested may not exceed the Total Development Cost as published by HUD (see 2022 UNIT TOTAL DEVELOPMENT COST (TDC) LIMITS) . The Total Development Cost limit is determined by identifying the appropriate building type (e.g., elevator) and unit size(s) in the development proposal. Project Rental Assistance Contracts (PRACs) are used to cover the difference between the tenants' contributions toward rent and the HUD approved cost to operate the project. HUD encourages applicants to use Capital Advance funds in combination with other non-Section 811 funding but, Capital Advance funds may only be used in connection with units that will be assisted under the PRAC. PRAC units may be developed or placed within a property that also includes non-PRAC residential units (whether restricted as affordable or rented at market rates) and non-residential units (such as first floor commercial space).Partnerships. Sponsors/Owners are encouraged to establish formal partnerships with health and human service agencies or other organizations with a demonstrated capacity to coordinate voluntary services and support to enable individuals to live independently in the community. These partner organizations should assist the Owners by providing referrals of potential tenants, assisting with a timely transition to a unit, and providing the opportunity to access supportive services and support. Demonstrated capacity may refer to previous experience as well as a well-developed plan to provide referrals, services, and support. At a minimum, a well-developed supportive services plan:Aligns with the applicant’s local/State government’s approach to expanding community living opportunities for persons with disabilities.Documents an implementation and sustainment strategy for providing outreach and referrals, transition services, tenancy support, and other services and support as needed.Discusses the applicant’s approach for development and capacity building within the partnership.In addition to receiving referrals from partner organizations, the Owners must allow non-elderly persons with disabilities to apply for housing directly without going through a partner agency. There is no limit to the number of agencies an Owner may partner with for referrals and supportive services.In addition to local service providers, HUD encourages applicants to partner with one or more of the following State service agencies that offer tenant support:State Medicaid AgencyState Developmental Disability Services AgencyState Mental Health AuthorityCenters for Independent LivingSuch partnerships cannot result in eligibility requirements which may violate non-discrimination requirements under any applicable Federal civil rights statutes and requirements, including Section 504 of the Rehabilitation Act (Section 504), titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR part 8; 28 CFR parts 35 and 36; 24 CFR part 100. In addition, compliance with HUD’s Equal Access Rule requires that eligibility determinations are made regardless of actual or perceived sexual orientation, gender identity, or marital status.