The U.S. Department of Housing and Urban Development (HUD) [1] announced that there is $112 million available to expand the supply of permanent affordable housing for low-income people with disabilities.
“Very simply, we need more permanent supportive housing to assist persons living with disabilities,” said HUD Secretary Dr. Benjamin Carson. “The funding we offer today will support existing developments and, for the first time in nearly a decade, help to produce new affordable housing at a time we need it the most.”
HUD says funding is available for the two components of the Section 811 Program—traditional Section 811 Supportive Housing for People with Disabilities and Section 811 Project Rental Assistance.
Available funding includes $75 million in capital advances for the development of new supportive housing for this “vulnerable population.”
HUD says this is the first time it is offering funding for both programs in nine years.
“We’re seeking to fund innovative and efficient housing models that combine form and function-a pleasant and safe place to live, with the appropriate supportive services,” said Brian Montgomery, Commissioner of the Federal Housing Agency. “Our goal is to support affordable housing developments that allow persons with disabilities to live as independently as possible in their own communities.”
Section 811 Capital Advances
HUD is offering up to $75 million in funds for eligible non-profit organizations to fund innovative permanent supportive housing models.
Section 811 Project Rental Assistance
HUD is also making up to $37 million in rental assistance available to eligible housing agencies working with State Health and Human Service/Medicaid Agencies.
Housing affordability has been a concern for the housing market for most of 2019, but Black Knight’s September Mortgage Monitor Report [2]revealed that it now takes 20.7% of the national median income to make monthly principal and interest payment on an average-priced home—the second-lowest payment-to-income ratio in 20 months.
According to the report, the $1,122 in monthly P&I required to purchase an average-priced home is 10% lower than in November when interest rates closed in on 5%. Home prices, however, have risen more than 4% since that point.