By Erika Schnitzer, Associate EditorWashington, D.C.–The U.S. Department of Housing and Urban Development (HUD) has awarded $650 million in grants for the development of affordable housing, as well as rental assistance and aid for supportive services. The funding will provide non-profit developers interest-free capital advances for these initiatives. The Section 202 Capital Advance program received $525.9 million to fund the construction, acquisition, and rehabilitation of multifamily developments for very low-income seniors. In addition, the program subsidizes the rents of seniors so they only contribute 30 percent of their incomes toward rent.The Section 811 Capital Advance program received $124.5 million to assist very low-income people with disabilities. Households must have at least one very low-income disabled adult. The Section 811 program typically covers condominium units and group homes. Residents of this type of housing pay 30 percent of their income for rent, while the federal government pays the remainder. The grants will provide funding for 4,704 affordable housing units nationwide–3,774 units for the Section 202 program and 930 units for the Section 11 program.For these programs, HUD provides funds to non-profit organizations in capital advances and Project Rental Assistance Contracts (PRACs), funding that covers the difference between residents’ rental contributions and the HUD-approved cost of operating the project. PRACs are approved for three years and are renewable based on availability of funds.
HUD Awards $650M in Grants for Affordable Housing
1 min read