Supportive Housing for Persons with Disabilities (14.181)

 

Program

14.181 Supportive Housing for Persons with Disabilities

 

Federal Agency

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

Authorization

National Affordable Housing Act, Public Law 101- 625, 42 U.S.C. 8013, 104 Stat. 4324, 4331; American Homeownership and Economic Opportunity Act of 2000, Public Law 106-569.

 

Program Number

14.181

 

Last Known Status

Active

 

Objectives

To provide for supportive housing for persons with disabilities.

 

Types of Assistance

Direct Payments for Specified Use.

 

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).

 

Eligibility Requirements

Applicant Eligibility

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 dividend organizations 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).

Credentials/Documentation

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.

 

Application and Award Process

Preapplication Coordination

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. A-102. 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.

Application Procedure

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 application, including a Request for Fund Reservation using Form HUD- 92016-CA, in response to the Notice of Fund Availability (or Funding Notification issued by the local HUD Field Office.) 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.

Award Procedure

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, 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.

Deadlines

Applications must be submitted within the time period specified in the Notice of Fund Availability.

 

Range of Approval/Disapproval Time

Appeals

Applicants are afforded the right to appeal HUD's determination of technical rejection.

Renewals

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 5-year term subject to the availability of funds.

 

Assistance Considerations

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 5 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 for work in place.

 

Post Assistance Requirements

Reports

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 to HUD.

Audits

HUD reserves the right to audit the accounts of the owners in order to determine compliance and conformance with HUD regulations and standards.

Records

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.

 

Program Accomplishments

In fiscal year 2002, HUD funded 1,859 units. The Department anticipates a similar level of funding in fiscal year 2003.

 

Financial Information

Account Identification

86-0320-0-3-371.

Obligations

FY 02 $240,865,000; FY 03 est $250,515,000; and FY 04 est $250,515,000.

Range and Average of Financial Assistance

$254,500 to $3,775,700; $1,077,494.

 

Regulations, Guidelines and Literature

24 CFR, 891; HUD Handbooks 4571.2.

 

Related Programs

14.157, Supportive Housing for the Elderly; 14.195, Section 8 Housing Assistance Payments Program_Special Allocations.

 

Information Contacts

Regional or Local Office

Contact the appropriate HUD field office listed in Appendix IV of the Catalog.

Headquarters Office

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.

Web Site Address

http://www.hud.gov/progdesc/811main.cfm

 

Examples of Funded Projects

Not applicable.

 

Criteria for Selecting Proposals

Not applicable.