HUD Section 811



The Section 811 program, available to non-profit organizations with a Section 501(c)(3), allows persons with disabilities to live as independently as possible in the community by increasing the supply of rental housing with the availability of supportive services. The program also provides project rental assistance, which covers the difference between the HUD-approved operating costs of the project and the tenants' contribution toward rent. The program is similar to Supportive Housing for the Elderly (Section 202).

HUD provides interest-free capital advances to nonprofit sponsors to help them finance the development of rental housing such as independent living projects, condominium units and small group homes with the availability of supportive services for persons with disabilities.

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 persons with disabilities and must certify to the same. Services may vary with the target population, but could include case management, training in independent living skills and assistance in obtaining employment. However, residents cannot be required to accept any supportive service as a condition of occupancy.

Occupancy in Section 811 housing is open to any very low-income (within 50% Area Median Household Income) comprised of at least one person that must be 18 years old or older and have a disability, such as a physical or developmental disability or chronic mental illness.

VSI provides the market analysis that assists Section 811 applications. The analysis includes 1) identification of a market area for a project; 2) impact of the proposed development on other low-income rental housing properties serving similar populations in the market area; 3) an analysis of the proposed project's capture into the number of size-, disability- and income-appropriate households within the market area; and 4) reconciliation of the number of supportable units for Section 811 housing.

Contact VSI for more information about this program.