HUD Section 811

The newly reformed Section 811 program is authorized to operate in two ways: (1) the traditional way, by providing interest-free capital advances and operating subsidies to nonprofit developers of affordable housing for persons with disabilities; and (2) providing development rental assistance to state housing agencies. The assistance to the state housing agencies can be applied to new or existing multifamily housing complexes funded through different sources, such as Federal Housing Tax Credits, Federal HOME funds, and other state, federal and local programs. 

HUD Section 202

HUD provides capital advances to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve a supportive housing for very low income elderly persons, including the frail elderly, and provides rent subsidies for the developments to make them affordable. It helps expand the supply of affordable housing with supportive services for the elderly. It provides elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, transportation, etc...

Community Development Block Grant (CDBG)

The CDBG program was created by the Housing and Community Development Act of 1974. The primary objective of the program is to develop viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities. Funds are allocated through state and local authorities.


The United States Department of Agriculture funding for Section 515 rental housing is primarily for the use as a direct mortgage; however, funds may also be used to buy and improve land and provide necessary facilities such as water and waste disposal systems. Farm Labor Housing (Section 514) provides capital financing for the development of housing for domestic farm laborers. These loans and grants are provided to purchase, build, improve or repair housing for farm laborers, including persons whose income is earned in aquaculture and those in on-farm processing.

Rental Assistance may be available to both existing and newly constructed Rural Rental Section 515 and Section 514 developments. These assistance programs provide an additional source of support for households.

Federal Home Loan Bank (FHLB)

The Affordable Housing Program (AHP) was designed to help member institutions develop affordable owner occupied and rental housing for very low to moderate income families and individuals. The program provides direct grants and subsidized loans. The funds are intended for gap financing and the innovative use of other funds to leverage AHP subsidies is highly recommended. AHP funds are intended to assist members in financing the purchase, construction, and/or rehabilitation of single family, rental, transitional and single room housing in their community.

Private Activity Bonds

The Multifamily Bond program issues tax-exempt and taxable mortgage revenue bonds (MRBs) to fund loans to nonprofit and for-profit developers. The proceeds of the bonds are used to finance the construction, acquisition, or rehabilitation of multifamily properties.

Home Investment Partnership (HOME)

The HOME program is funded by the U.S. Department of Housing and Urban Development (HUD). The purpose of the program is to expand the supply of decent, safe, affordable housing and strengthen public-private housing partnerships between Federal, State and Local Governments, Public Housing Authorities, nonprofit and for-profit entities. Program funds may be used for a variety of activities including Homeowner Rehabilitation, Homebuyer Assistance, Contract for Deed Conversion, Tenant Based Rental Assistance, Single Family Housing Development, Multifamily Development, Disaster Relief and Accessibility Accommodations for Persons with Disabilities and Multifamily Rental Housing Development.

HUD FHA Rental Development

FHA insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental housing for low to moderate income families and the elderly. Single Room Occupancy (SRO) developments may also be insured under this section. Section 221(d)(3) and Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(3) is used by non-profit developers and Section 221(d)(4) is used by for-profit developers. Both programs assist private industry in the construction or rehabilitation of rental housing by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

Housing Tax Credits

The Housing Tax Credit (HTC) program was created to encourage private industry to develop and maintain affordable rental housing for lower income families and individuals. It is the largest and most successful affordable housing program. States receive allocation authority from the U.S. Treasury to issue tax credits to private entities for investing in affordable housing. The investor receives a dollar for dollar exchange to reduce their federal income tax liability and the affordable housing development receives a 65-70 percent equity contribution to build the development. Program funds may be used to finance the construction, acquisition or rehabilitation of rental development. Owners must elect to set aside at least 20 percent of the units for households at or below 50 percent of Area Median Gross Income or 40 percent of the units for households at or below 60 percent of Area Median Gross Income.