Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) | FR 6700 N 49

Opportunity Information: Apply for FR 6700 N 49

The Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) grant is a U.S. Department of Housing and Urban Development (HUD) funding opportunity designed to increase the supply of integrated, affordable, permanent supportive housing for very-low-income adults with disabilities. The target population is people age 18 or older who are under age 62 at the time they move in. The central idea is to create housing that supports dignity and independence in typical community settings, rather than separating people into institutions or other segregated environments, while also ensuring tenants can access supportive services on a voluntary basis.

A major policy foundation for this program is the civil rights principle reinforced by the U.S. Supreme Court decision Olmstead v. L.C. (1999), which held that unjustified segregation of people with disabilities can violate Title II of the Americans with Disabilities Act. HUD frames this funding as part of a broader effort to expand real choice for people with disabilities in where they live and how they receive health care and long-term services. The program is also shaped by the Frank Melville Supportive Housing Investment Act of 2010, which updated Section 811 to better support community integration and long-term affordability, including through the Project Rental Assistance Contract (PRAC) structure.

The funding package has two connected parts. First, HUD provides Capital Advance funds to develop the housing itself. These dollars can be used for construction, reconstruction, acquisition (with or without rehab), and moderate or substantial rehabilitation. The Capital Advance is effectively forgivable: it carries no interest and does not need to be repaid as long as the property continues to serve very-low-income persons with disabilities for at least 40 years. Second, HUD provides ongoing operating support through a PRAC subsidy, which pays the gap between what tenants can afford to pay and HUD-approved operating costs. Together, the Capital Advance and PRAC are meant to keep rents affordable and the project financially stable over the long term, with affordability maintained for at least the next forty years.

HUD emphasizes that it is looking for strong proposals that show either best practices or genuine innovation in both building design and supportive service delivery. Applications are expected to show how the project will promote long-term housing stability and meaningful community integration. While HUD encourages applicants to layer Capital Advance with other non-Section 811 financing sources, a key restriction is that the Section 811 Capital Advance can only be used for units that will be covered by a PRAC. The assisted units can be part of a broader mixed project that also includes non-PRAC residential units (including market-rate or other affordable units) and even non-residential space like ground-floor commercial uses, as long as the PRAC-assisted units meet program requirements.

On costs, requested Capital Advance amounts are limited by HUD Total Development Cost (TDC) limits, which are published by HUD and vary based on building type and unit sizes (for example, elevator buildings versus other configurations). Applicants must reflect the requested Capital Advance in the standard federal application form (SF-424) and in the required development budget sections. In practical terms, this means applicants need to build a development plan that fits within HUD cost ceilings while also meeting accessibility, service, and integration expectations.

A core requirement and review focus is partnership and service coordination. Sponsors and Owners are encouraged to establish formal partnerships with health and human services agencies or other organizations that can help tenants live independently in the community. These partners are expected to support referrals, help people transition into housing quickly, and connect tenants to voluntary services and supports such as tenancy support, outreach, and other individualized assistance. HUD expects at minimum a well-developed supportive services plan that aligns with local and state strategies for expanding community living options, includes a clear implementation and sustainment approach, and explains how the partnership will be developed and strengthened over time. HUD also encourages partnerships with state-level entities that commonly deliver tenant supports, such as the State Medicaid Agency, the State Developmental Disability Services Agency, the State Mental Health Authority, and Centers for Independent Living.

At the same time, the program is explicit that housing access cannot be controlled only through referral pipelines. Even if a project has partner agencies providing referrals, the Owner must still allow non-elderly persons with disabilities to apply directly, without being required to go through a partner organization. There is also no cap on the number of referral or service partners a project can have, which allows applicants to build broad networks tailored to local needs.

Fair housing and civil rights compliance is a non-negotiable condition of participation. Partnerships and service models cannot impose eligibility rules that violate federal nondiscrimination laws, including Section 504 of the Rehabilitation Act, the Americans with Disabilities Act, and the Fair Housing Act (and their implementing regulations). HUD also highlights compliance with its Equal Access Rule, meaning eligibility and access decisions must be made without regard to actual or perceived sexual orientation, gender identity, or marital status. In other words, service coordination is encouraged, but it cannot be used to screen out protected classes or create discriminatory barriers to tenancy.

From the competition details provided, this is a discretionary HUD grant opportunity (CFDA 14.181) with funding made available through a Notice of Funding Opportunity (NOFO) identified as FR 6700 N 49. Eligible applicants include qualifying nonprofit organizations with 501(c)(3) status (with additional eligibility details referenced in the full notice). The opportunity listed an award ceiling of $5,000,000, anticipated about 21 awards, and carried an application deadline of February 12, 2024 at 11:59:59 PM Eastern. The overall purpose is to finance and sustain high-quality, integrated permanent supportive housing that expands community living options for very-low-income adults with disabilities for decades, while pairing housing with accessible, voluntary supports that help tenants stay stably housed.

• The US 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 (Capital Advance)" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.181.
• This funding opportunity was created on Oct 12, 2023.
• Applicants must submit their applications by Feb 12, 2024 The application deadline is 115959 PM Eastern time on. (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 $5,000,000.00 in funding.
• The number of recipients for this funding is limited to 21 candidate(s).
• Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Others (see text field entitled Additional Information on Eligibility for clarification).

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