Families whose incomes are less than 50 percent of the median family income for the area in which the project is located may benefit from Project Rental Assistance Payments. Projects financed with Section 811 funds must remain accessible to very low-income persons with disabilities for 40 years or any Section 811 funds used to capitalize the project must be repaid. They may be renewed. The payment amount is based on 75 percent of the project's estimated operating costs, the remaining 25 percent to be paid by tenant rents. Projects are expected to start construction within 18 months of the date of fund reservation, with limited provision for extensions.
Funds are advanced on a monthly basis during construction.
The program does not provide funding for supportive services. Therefore, the project sponsor must demonstrate that necessary supportive services will be funded on a long-term basis. Selections are usually announced in September. This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported by funding under Cooperative Agreement H-5925 CA with the U.S. Department of Housing and Urban Development.