Lenders interested in helping to provide affordable housing
opportunities to low-to-moderate income (LMI) individuals with disabilities
should take note of a new initiative recently announced by the U.S. Department
of Housing and Urban Development’s (HUD) Office of Multifamily Housing.
The announcement comes as Mark Jones, the newly elected
president and CEO of the mortgage
industry’s top advocacy organization, the Mortgage Bankers Association, revealed
his top
priority is supporting the expansion of affordable housing opportunities.
Also of note to financial institutions, programs aimed at
expanding affordable housing to LMI individuals often qualify for Community
Reinvestment Act (CRA) credits. To access an illustrative list of lending
opportunities qualifying for CRA credits, visit the Office of the Comptroller
of the Currency (OCC) or follow this
link.
HUD has made $212 million in funding available to
participants in the Section 811 Supportive Housing for Persons with
Disabilities program, which aids in the development, subsidization and the providing
of supportive services for rental housing to meet the needs of this vulnerable
population.
“Every American should have the ability to live in
affordable housing that caters to their needs,” HUD Secretary Marcia Fudge
said in a press release. “Unfortunately, today, far too many housing
options are inaccessible to those with disabilities – and those with the
appropriate accommodations are often too expensive. This announcement delivers
serious progress, making $212 million available to expand housing supply and
supportive services for low-income folks with disabilities.”
The aim of the initiative, which will provide funds to two
programs, is to expand the supply of affordable housing and supportive services
for low-income individuals with disabilities.
Through the Section 811 Capital Advance/Project Rental
Assistance Contract (PRAC) program, $106 million in capital advances can be
used for the development of new or rehabilitation of existing supportive
housing, along with project rental subsidies to keep homes affordable.
The other $106 million is being provided to state housing
and other agencies through the Section 811 Project Rental Assistance, which
offers project rental assistance to cover the difference between a tenant’s
contributions toward rental payments and the HUD-approved rent for a property available
to eligible tenants with disabilities.
“The goal is to provide people with disabilities the
opportunity to live with dignity and independently within an integrated
community that provides them with access to appropriate supportive services
that they choose,” HUD Multifamily Housing Programs Deputy Assistant
Secretary Ethan Handelman. “This funding is a small but important part of HUD’s
overall commitment to meeting the housing needs of all communities.”
Applications are due no later than Feb. 8, 2024, and more
information is available online via funding notices for the Section 811
Capital Advance Program and Section 811 Project Rental Assistance.