HUD $212 Million Housing Assistance for Disabled Low-Income Residents

Overview of the Section 811 Program

HUD's Section 811 Supportive Housing for Persons with Disabilities program is the only federal housing program dedicated exclusively to creating affordable rental housing for very-low-income non-elderly adults with significant disabilities. Funded annually by Congress, the program supports the development of accessible, independent-living apartments linked to voluntary supportive services. HUD's $212 million funding notice for the program provided $106 million for new or rehabilitated supportive housing and $106 million for Project Rental Assistance contracts.

The Two Halves of the Funding

Capital Advance Program ($106 Million)

The Capital Advance portion of the $212 million supports the development of new or rehabilitation of existing supportive housing for persons with disabilities. Nonprofit sponsors use capital advances, which function as a zero-interest, forgivable loan that does not need to be repaid as long as the property continues to serve eligible tenants for the required period. The funds pay for construction, acquisition, or substantial rehabilitation of small-scale housing developments.

Project Rental Assistance Program ($106 Million)

The Project Rental Assistance (PRA) portion funds long-term rental subsidies that cover the difference between what low-income tenants with disabilities can afford to pay (typically 30 percent of adjusted income) and the actual rent on Section 811 units. PRA is distributed through state housing agencies that partner with state disability services agencies to identify tenants. This state-administered model is more flexible than older Section 811 structures and allows units to be integrated into mixed-income affordable housing properties rather than segregated developments.

Who the Program Serves

Eligible tenants are very-low-income (generally at or below 50 percent of area median income) non-elderly adults with significant disabilities, including intellectual or developmental disabilities, serious mental illness, and physical disabilities. Many tenants are referred from state Medicaid waiver waiting lists, institutional settings, or homelessness. The program emphasizes community-integrated housing, giving residents the opportunity to live independently rather than in congregate or institutional settings.

Supportive Services

Voluntary supportive services are a central feature of Section 811. Although housing is not conditioned on service participation, tenants have access to services that help them live independently, such as case management, assistance with activities of daily living, employment support, and connections to health care. Services are typically funded through Medicaid, state agencies, or nonprofit partners rather than through HUD directly.

How the Funding Gets Distributed

State housing finance agencies apply to HUD for PRA allocations. The competitive process favors states with strong partnerships between housing and human services agencies and a demonstrated plan for integrating Section 811 units into existing affordable housing. Capital Advance funds are awarded to qualified nonprofit sponsors that meet HUD's development standards. Once awarded, funds flow over multiple years as projects are built and leased up.

Why Section 811 Matters

For adults with disabilities, the housing affordability gap is severe. Median Supplemental Security Income benefits typically cover far less than market rent in most of the country, and many adults with disabilities live with aging parents or in institutions because they cannot find affordable accessible housing. Section 811 is one of the few dedicated federal tools to address this gap. Its community-integrated model aligns with the Olmstead decision, which requires states to serve people with disabilities in the least restrictive setting.

How to Learn More

Adults with disabilities seeking Section 811 housing should contact their state housing finance agency or state disability services agency for referrals. Developers and nonprofit sponsors can learn more at HUD's Section 811 program pages and through the HUD Exchange. Because Section 811 units are limited, waiting lists may be long, but the units provide some of the most stable, deeply affordable housing available to very-low-income adults with disabilities.