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HUD $749 Million Fund to Aid Low-Income Seniors and People with Disabilities

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HUD $749 Million Fund to Aid Low-Income Seniors and People with Disabilities

December 2, 2011

The U.S. Department of Housing and Urban Development (HUD) announced a $749 million fund to assist very low-income seniors and persons with disabilities. 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 42 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. Read a detailed summary of each grant.


Section 202 Capital Advances will provide $545 million nationwide to 97 projects in31 states and Puerto Rico. 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 34 states.An additional $12.6 million will be available for project rental assistance contracts (see attached funding chart).Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons 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 persons with disabilities the opportunity to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.


HUD provides these funds to nonprofit organizations in two forms:



  • Capital advances:This funding covers the cost of developing, acquiring or rehabilitating the development.Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with disabilities (under Section 811).

  • Project rental assistance contracts: This funding goes to each development to cover the difference between the residents’ contributions toward rent and the cost of operating the project.

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.