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.
To provide for supportive
housing for persons with disabilities.
TYPES OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
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 include nonprofit
organizations with a Section 501(c)(3) tax exemption from the Internal Revenue
Service. Eligible Owner entities include nonprofit organizations with a
501(c)(3) tax exemption from the Internal Revenue Service and 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.
Pre-application 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 HUD Form 92016-CA, in response to the Notice of Fund
Availability (or Funding Notification issued by the local HUD Field Office.)
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.
Deadlines: Applications must be submitted within the time period
specified in the Notice of Fund Availability.
Range of Approval/Disapproval Time: At the fund reservation stage, the
sponsor usually is advised of the decision within 4 to 5 months from the end of
the application period.
Appeals: Applicants are afforded the right to appeal HUD's
determination of technical rejection.
Renewals: None.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: This program has maintenance of
effort (MOE) requirements; see funding agency for further details. Statistical
factors used for fund allocation include a measure of the number of
non-institutionalized persons age 16 or older with a work disability and a
mobility or self-care limitation, and the number of non-institutionalized
persons age 16 or older having a mobility or self- care limitation but having no
work disability from the Census. Statistical factors used for eligibility do not
apply for this program.
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 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.
FINANCIAL INFORMATION:
Account Identification: 86-0320-0-3-371.
Obligations: Reported under program 14.157.
Range and Average of Financial Assistance: In fiscal year 2001, the
average award was $1,077,494; the smallest, $254,500; the largest $3,775,700.
In fiscal year 2001, HUD funded 1,570 units. The Department anticipates a
similar level of funding in fiscal year 2002.
REGULATIONS, GUIDELINES, AND LITERATURE:
24 CFR, 891; HUD Handbooks 4571.2.
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) 708-2866. Use the same number for FTS.
Web Site Address: http://www.hud.gov/progdesc/811main.cfm.