The 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.

Elderly
HUD Section 202 Program

Eligible Applicants:
Private, nonprofit organizations and consumer cooperatives.

Eligible Occupants:
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:
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

Eligible Applicants:
Nonprofit organizations with a Section 501(c)(3) tax exemption ruling from the IRS.

Eligible Occupants:
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 persons.
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.

Supportive Services:
A Sponsor must ensure that residents have access to any necessary supportive services funded from non-HUD sources.