Opportunity Information: Apply for FR 5200 N 25

  • The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Section 811 Supportive Housing for Persons with Disabilities" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.191 Multifamily Housing Service Coordinators.
  • This funding opportunity was created on Sep 2, 2009 and posted on May 4, 2008.
  • Applicants must submit their applications by Jul 16, 2008. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $99,345,000.00 in funding.
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
  • Nonprofit organizations with a section 501(c)(3) tax exemption from the Internal Revenue Service and who meet the threshold requirements contained in the General Section NOFA and Section III.C.2 below are the only eligible applicants for this program. Applicant eligibility for purposes of applying for a Section 811 fund reservation under this NOFA has not changed i.e., all Section 811 Sponsors and Co Sponsors must be nonprofit organizations. However, the Owner corporation, when later formed by the Sponsor, may be (1) a single purpose nonprofit organization that has tax exempt status under Section 501(c)(3) of the Internal Revenue Code (IRS) of 1986, OR (2) for purposes of developing a mixed finance project pursuant to the statutory provision under Title VIII of the American Homeownership and Economic Opportunity Act of 2000, a for profit limited partnership with a nonprofit organization that has tax exempt status under Section 501(c)(3) of the IRS code as the sole general partner.
Apply for FR 5200 N 25

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Opportunity Summary:

The Section 811 Supportive Housing for Persons with Disabilities grant opportunity (Funding Opportunity Number FR-5200-N-25) is a discretionary HUD program designed to expand and preserve affordable, supportive housing specifically for very low income people with disabilities. The core idea is to help qualified nonprofit sponsors create housing that is both physically suitable and financially sustainable for tenants who would otherwise struggle to access stable, accessible housing in the private market. The program is tied to HUD regulations at 24 CFR part 891 and is listed under CFDA 14.191 (Multifamily Housing Service Coordinators). There is no cost sharing or matching requirement noted for this opportunity.

Funding is provided through two main components that work together. First, HUD offers a capital advance, which functions like an interest-free development subsidy that can be used to build new housing, rehabilitate an existing structure, or acquire a property (with or without rehabilitation) and convert it into eligible supportive housing. The amount is governed by HUD development cost limits referenced in the notice (Section IV.E.3). Importantly, the capital advance does not have to be repaid as long as the assisted housing remains available to very low income persons with disabilities for at least 40 years. In practical terms, this creates a long-term affordability commitment: the public investment is forgiven over time provided the property continues to serve the intended population.

Second, HUD provides Project Rental Assistance Contracts (PRAC), which address the ongoing operating affordability of the housing. Under PRAC, tenants generally contribute 30 percent of their adjusted income toward rent, and PRAC funds cover the gap between that tenant payment and the HUD-approved cost to operate the project. This structure is meant to keep rents affordable for extremely low-income households while still ensuring the property has stable operating revenue for maintenance, management, and services coordination as applicable. In other words, the capital advance helps get the building created or improved, and PRAC helps keep it financially viable and affordable after it opens.

Eligibility is narrowly focused on nonprofit organizations. Applicants must be nonprofit entities with 501(c)(3) tax-exempt status from the IRS and must meet threshold requirements found in the General Section NOFA and referenced program sections (including Section III.C.2 in the announcement). The notice emphasizes that, for applying, all Section 811 sponsors and co-sponsors must be nonprofit organizations, which keeps control of the application and sponsorship responsibilities in the nonprofit sector. However, it also allows some flexibility later at the ownership structure stage once the sponsor forms the owner entity. The eventual owner may be either (1) a single-purpose nonprofit with 501(c)(3) status, or (2) for mixed-finance development under authority added by the American Homeownership and Economic Opportunity Act of 2000, a for-profit limited partnership so long as a 501(c)(3) nonprofit is the sole general partner. This mixed-finance provision is meant to enable layering of other capital sources while preserving nonprofit control and the program’s long-term mission requirements.

The legal authority for the program is Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), as amended by several subsequent laws including the Housing and Community Development Act of 1992, the Rescissions Act, and the American Homeownership and Economic Opportunity Act of 2000. The notice also explains the historical context: this framework created and updated a supportive housing program for persons with disabilities and replaced earlier disability-related assistance that had been provided under Section 202 of the Housing Act of 1959 (while Section 202 continues to support housing for the elderly).

From an administrative standpoint, the opportunity was posted May 4, 2008, with an original and final closing date of July 16, 2008, and it was archived July 17, 2008. The maximum award ceiling listed is $99,345,000. The administering agency is the U.S. Department of Housing and Urban Development, and the program contact listed is Marvis Hayward at (202) 402-2255 for assistance accessing the full announcement electronically.

Section 811 Supportive Housing for Persons with Disabilities (FR-5200-N-25) - FAQs

What is the Section 811 Supportive Housing for Persons with Disabilities grant opportunity?

This is a discretionary U.S. Department of Housing and Urban Development (HUD) program intended to expand and preserve affordable, supportive housing for very low income people with disabilities. The opportunity is identified as Funding Opportunity Number FR-5200-N-25 and is tied to HUD regulations at 24 CFR part 891.

What population is this funding intended to serve?

The program is specifically designed to serve very low income persons with disabilities by supporting housing that is both physically suitable (including accessibility needs) and financially sustainable for tenants who might otherwise struggle to secure stable housing in the private market.

What types of funding does the program provide?

The program provides two components that work together: (1) a capital advance to support development activities and (2) Project Rental Assistance Contracts (PRAC) to support ongoing affordability and operations after the project opens.

What is a capital advance under this program?

A capital advance functions like an interest-free development subsidy. It can be used to build new housing, rehabilitate an existing structure, or acquire a property (with or without rehabilitation) and convert it into eligible supportive housing.

Does the capital advance have to be repaid?

The capital advance does not have to be repaid as long as the assisted housing remains available to very low income persons with disabilities for at least 40 years. This effectively creates a long-term affordability and use commitment tied to the public investment.

How is the amount of the capital advance determined?

The amount is governed by HUD development cost limits referenced in the notice (Section IV.E.3), which sets parameters on eligible development costs for purposes of the capital advance.

What is PRAC and what does it cover?

PRAC stands for Project Rental Assistance Contracts. PRAC is designed to address operating affordability by covering the gap between what tenants pay and the HUD-approved cost to operate the project.

How is tenant rent calculated under PRAC?

Under PRAC, tenants generally contribute 30 percent of their adjusted income toward rent. PRAC funds then cover the remaining amount needed to reach the HUD-approved operating cost level.

Why does the program use both a capital advance and PRAC?

The capital advance helps finance the creation, acquisition, or rehabilitation of the housing, while PRAC helps ensure the property remains financially viable and affordable once it is operating. Together, they support both development feasibility and long-term affordability.

Who is eligible to apply for this opportunity?

Eligibility is focused on nonprofit organizations. Applicants must be nonprofit entities with IRS 501(c)(3) tax-exempt status and must meet the threshold requirements found in the General Section NOFA and referenced program sections (including Section III.C.2 in the announcement).

Are for-profit organizations allowed to apply?

The notice emphasizes that, for applying, all Section 811 sponsors and co-sponsors must be nonprofit organizations. That means for-profit organizations are not identified as eligible applicants for sponsorship responsibilities at the application stage.

Can the ownership entity be for-profit?

After the sponsor forms the owner entity, the eventual owner may be structured as either (1) a single-purpose nonprofit with 501(c)(3) status, or (2) for mixed-finance development (authorized by the American Homeownership and Economic Opportunity Act of 2000), a for-profit limited partnership as long as a 501(c)(3) nonprofit is the sole general partner.

What is the purpose of the mixed-finance ownership option?

The mixed-finance provision is meant to enable projects to layer other capital sources while preserving nonprofit control and the long-term mission requirements of the Section 811 program.

Is there a cost sharing or match requirement?

No cost sharing or matching requirement is noted for this opportunity based on the information provided.

What regulations govern this program?

The opportunity is tied to HUD regulations at 24 CFR part 891.

What is the CFDA listing for this opportunity?

The opportunity is listed under CFDA 14.191 (Multifamily Housing Service Coordinators).

What is the legal authority for the Section 811 program?

The legal authority is Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), as amended by subsequent laws including the Housing and Community Development Act of 1992, the Rescissions Act, and the American Homeownership and Economic Opportunity Act of 2000.

How does this program relate to Section 202?

The notice describes that this supportive housing framework for persons with disabilities replaced earlier disability-related assistance that had been provided under Section 202 of the Housing Act of 1959, while Section 202 continues to support housing for the elderly.

When was this funding opportunity posted and when did it close?

The opportunity was posted on May 4, 2008. The original and final closing date listed is July 16, 2008. It was archived on July 17, 2008.

What is the maximum award ceiling listed for this opportunity?

The maximum award ceiling listed is $99,345,000.

Which federal agency administers this opportunity?

The administering agency is the U.S. Department of Housing and Urban Development (HUD).

Who is the program contact for help accessing the full announcement?

The program contact listed is Marvis Hayward at (202) 402-2255 for assistance accessing the full announcement electronically.

Where are the application threshold requirements referenced?

The notice points applicants to threshold requirements found in the General Section NOFA and referenced program sections, including Section III.C.2 in the announcement.

What long-term commitment is associated with accepting Section 811 assistance?

Based on the information provided, the key long-term commitment is that the assisted housing must remain available to very low income persons with disabilities for at least 40 years in order for the capital advance to remain non-repayable.

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