The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
In Fiscal Year 2007, HUD funded 1,004 units. The Department anticipates that the level of funding in Fiscal 2008 will result in about 800 new Section 811 housing units.
Uses and Use Restrictions
Capital advances may be used to construct, rehabilitate or acquire structures to be used as supportive housing for persons with disabilities.
Project rental assistance is used to cover the difference between the HUD-approved operating costs of the project and the tenants' contributions toward rent (30 percent of adjusted income).
Eligible Sponsors are nonprofit organizations with a Section 501(c)(3) tax exemption from the Internal Revenue Service.
Eligible Owner entities are nonprofit organizations with a 501(c)(3) tax exemption from the Internal Revenue Service and, if the proposed project involves mixed financing, for-profit limited partnerships with a nonprofit entity as the sole general partner.
Beneficiary Eligibility: Beneficiaries of housing developed under this program must be very low-income persons with a physical disability, developmental disability or chronic mental illness (18 years of age or older).
The nonprofit sponsor and owner must receive certification of eligibility from HUD. The owner must submit financial statements to support its ability to provide a minimum capital investment of 1/2 of 1 percent of the capital advance amount, up to a maximum of $10,000. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Applicants must forward a copy of their applications to the appropriate state or local agency for a review of the supportive services plan and a completed certification from the agency as to whether the provision of services is well designed to meet the needs of the anticipated occupancy must be included in the applicant's submission of its application to the HUD field office.
This program is excluded from coverage under OMB Circular No.
An environmental assessment is required for applications containing evidence of site control.
This program is eligible for coverage under E.O.
12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
A Notice of Funding Availability is published in the Federal Register each fiscal year announcing the availability of funds to HUD Field Offices. Applicants must submit an electronic application through grants.gov in response to the Notice of Fund Availability. The application for capital advance is used to determine the eligibility of the applicant and proposed project as well as the acceptability of the site and market, correctness of zoning and the effect on the environment. This program is excluded from coverage under OMB Circular No. A-110.
Applications are reviewed and selected for funding within the funding allocation of the particular HUD Field Office. Those selected for funding must meet basic program requirements including, but not limited to: eligibility as a nonprofit entity, eligibility as a for-profit limited partnership with nonprofit entity as the sole general partner for mixed-finance projects, financial commitment and prior experience in housing or related service activities. The request for Capital Advance Financing, using Form HUD-92013 is reviewed to update the determination of acceptability of project site and market, correctness of zoning, and the effect on environment as well as to determine the value of site, total development cost, and financial feasibility.
Applications must be submitted within the time period specified in the Notice of Fund Availability, usually 60 to 90 days.
National Affordable Housing Act, Public Law 101-625, 42 U.S.C. 8013, 104 Stat. 4324, 4331; Housing and Community Development Act of 1992, Public Law 102-550; the Rescissions Act, Public Law 104-19; American Homeownership and Economic Opportunity Act of 2000, Public Law 106-569; and the Revised Continuing Appropriations Resolution, 2007, Public Law 110-5.
Range of Approval/Disapproval Time
At the fund reservation stage, the sponsor usually is advised of the decision within 4 to 5 months from the end of the application period.
Applicants are afforded the right to appeal HUD's determination of technical rejection.
Not applicable to Section 811 capital advances. However, Project Rental Assistance contracts may be renewed for up to a one-year term after the initial 3-year term subject to the availability of funds.
Formula and Matching Requirements
This program has maintenance of effort (MOE) requirements; see funding agency for further details. The formula used for allocating funds consists of one data element from the 2000 Census: the number of persons age 16 to 64 with a disability.
Length and Time Phasing of Assistance
The capital advance is not repayable if the project is available for very low-income persons with disabilities for 40 years. Project Rental Assistance Contracts may not exceed 3 years. However, contracts are renewable for up to a one-year term based on availability of funds. Projects are expected to start construction within 18 months of the date of the fund reservation, with limited provision for extensions. Funds will be advanced on a monthly basis during construction.
Post Assistance Requirements
Any change in the owner during the 40-year period of the capital advance must be approved by HUD.
All owners will be required to submit an annual financial statement and Outcome Logic Model Report to HUD.
HUD reserves the right to audit the accounts of the owners in order to determine compliance and conformance with HUD regulations and standards.
Regular financial reports are required. Owners must service and maintain records in accordance with acceptable mortgage practices and HUD regulations. Owners also must supply those records necessary to indicate compliance with the project rental assistance contract.
(Obligations) FY 07 $246,569,077; FY 08 est $259,171,000; and FY 09 est $237,000,000.
Range and Average of Financial Assistance
$341,000 to $3,272,200; $1,113,460.
Regulations, Guidelines, and Literature
24 CFR 891; HUD Handbooks 4571.2 and 4571.4; and Notice H 96-102, as extended.
Regional or Local Office
Contact the appropriate HUD field office listed on HUD website address http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Office of Housing Assistants and Grants Administration, Department of Housing and Urban Development, Washington, DC 20410. Telephone: (202) 708-3000. Use the same number for FTS.
Criteria for Selecting Proposals