U.S. Department of Housing and Urban Development (HUD) provides funding to
expand the supply of housing with supportive services for the target
population (Elderly or Persons with Disabilities) through an annual
competitive application process.
The funding is awarded in the form of a capital advance (grant) to finance
the construction, rehabilitation or acquisition of housing. Repayment
of the capital advance is not required provided the housing remains
available for occupancy by very low-income individuals of the target
population for at least 40 years.
Project Rental Assistance is included with the capital advance to cover the
difference between the HUD-approved operating cost per unit and 30 percent
of the resident's adjusted income.
HUD Section 202 Program
Private, nonprofit organizations and consumer cooperatives.
Very low-income elderly persons 62 years of age or older.
Types of Housing:
Independent Living Facility:
A project consisting of at least five (5) individual apartment units.
Supportive services must be appropriate to the category or categories
of elderly residents to be served. It is the responsibility of the
Sponsor to arrange for the provision and funding of these services
appropriate to the assessed needs of the residents.
Persons with Disabilities
HUD Section 811 Program
Nonprofit organizations with a Section 501(c)(3) tax exemption ruling from
A very low-income person (18 years of age or older) living with a
physical or developmental disability or disabled by chronic mental illness.
Types of Housing:
Group Home: A single family residential structure for two to six
Independent Living Facility: A project consisting of 5 - 14
individual apartment units. A project may be developed through the purchase
of units in an existing condominium association.
A Sponsor must ensure that residents have access to any necessary
supportive services funded from non-HUD sources.