Nowadays, it’s easier than ever for non-profit property investors looking to do some good in the world to make a real difference for real people in need of supportive housing.
Non-profit organizations have the opportunity to create homes for the benefit of individuals with disabilities through the Section 811 program from The U.S. Department of Housing and Urban Development (HUD). Grants are available to design and build rental housing options for low income adults.
Affordable Housing for Adults with Disabilities
The funding carries through once the project is complete, by subsidizing rent and ensuring supportive services are available.
How Does It Work?
The purpose of the HUD Section 811 program is to provide people with disabilities the chance to live semi-independently as members of the community. It works in two ways:
- Gives non-profits no-interest capital for purchasing, building, or renovating housing projects, such as apartment complexes, condo units, and small group homes. These funds do not have to be repaid, as long as the homes are available for the specified purpose at least forty years.
- Once occupied, the program subsidizes the difference between residents’ rental payments and operating costs for three years. Rents are typically 30% of tenants’ adjusted incomes, and the operating budget must be approved by HUD before funds will be granted. Renewal applications to extend the subsidy are available past the three-year mark, if there is money available.
What Programs are Eligible?
Determining whether your organization can apply for Section 811 financing is easy. Here are the few simply guidelines published by HUD:
- Proposals are accepted from non-profit organizations that have 501(c)(3) tax-exempt status.
- Organizations must show that their housing development will offer supportive services for people with disabilities, such as employment assistance, independent living skills training, and/or case management. Note that the services must not be a condition of residency in order to be eligible for Section 811 funding.
- Organizations must be able to contribute at least 0.5% to initial capital funding, not to exceed $10,000.
Who is the Target Population?
The HUD Section 811 program targets housing creation for a very specific segment of the population. Organizations should design residences for individuals who meet these three qualifications:
- Very low income – no more than 50% of the median income in the surrounding area.
- One or more members of the household are at least 18 years old.
- The adult resident must be diagnosed with a physical, developmental or mental disability.
Successful Programs
Housing for adults with disabilities is urgently needed, especially in big cities. HUD Section 811 funding makes these programs possible for organizations that could not otherwise afford to design new homes. The benefits for residents include:
- Increased independence for adults who have never had the opportunity to live on their own
- Reduced homelessness among adults who can’t maintain completely independent lifestyles
- Opportunity for otherwise marginalized adults to provide real contributions to the community
HUD Section 811 funding is an excellent, and underutilized, chance for non-profit organizations to add to the limited supply of appropriate homes for people with disabilities. More information and application instructions can be found online at the HUD website.
This article was provided by Guest Blogger Aaron Seekford, an Arlington VA Realtor. You can learn more about special housing options on Aaron’s Arlington homes for sale website. You can also search all Arlington VA neighborhoods for a chance to find the perfect home.