CRS report discussing proposed Section 8 housing issues for seniors and persons with disabilities

RL34728
Section 811 and Other HUD Housing Programs for Persons with Disabilities
November 03, 2008

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Summary:

Theability of persons with disabilities to live independently inaffordable, accessible housing became a prominent issue starting in1999 as the result of a Supreme Court decision, Olmstead v. L.C. Thecourt held that institutionalization of persons with mentaldisabilities in lieu of community-based care may constitutediscrimination. Shortly after the Olmstead decision, on February 1,2001, the President announced the New Freedom Initiative, an effortthrough multiple federal agencies to ensure full participation insociety of persons with disabilities. Part of the New FreedomInitiative was Executive Order 13217, which implemented the Olmsteaddecision by ensuring (among other things) that all people withdisabilities, not just those with mental illness, benefit fromcommunity-based treatment. In order to ensure that persons withdisabilities may live in community settings rather than ininstitutions, affordable and accessible housing is necessary. TheDepartment of Housing and Urban Development (HUD) operates a number ofprograms that provide housing for persons with disabilities in variousways. The Section 811 Supportive Housing for Persons with Disabilitiesprogram provides capital grants and project rental assistance tononprofit developers of housing targeted specifically to persons withdisabilities. Prior to creation of Section 811, persons withdisabilities lived together with elderly residents (defined by HUD ashouseholds with one or more adults age 62 or older) in developmentsfunded through the Section 202 Supportive Housing for the Elderlyprogram. The project-based Section 8 and Public Housing programs giveproject owners the option of dedicating facilities to elderlyresidents, residents with disabilities, or both populations together.Both the Section 811 and Section 8 programs set aside housing vouchersfor persons with disabilities. And two HUD block grant programs — HOMEand the Community Development Block Grant — may be used by states andcommunities to construct or rehabilitate housing for persons withdisabilities. In addition to these HUD programs, the Low Income HousingTax Credit (LIHTC), administered by the Internal Revenue Service, maybe used by states to target housing to special needs populations,including persons with disabilities. The LIHTC may be used inconjunction with HUD grants, including capital grants through theSection 811 program. The Housing and Economic Recovery Act of 2008(P.L. 110-289) made it possible for developers of Section 811 housingto qualify for a higher tax credit rate, which could potentially makethese mixed financing developments more feasible. In the 110thCongress, the Frank Melville Supportive Housing Investment Act (H.R. 5772),a bill that would make changes to the Section 811 program, was approvedby the House on September 17, 2008. Among its changes, the bill wouldturn over funding of Section 811 vouchers to the Section 8 program andwould create a demonstration program for Section 811 rental assistanceto be used in conjunction with other funding streams, including theLIHTC and HOME program. A version of the bill was also introduced inthe Senate (S. 3593). This report will be updated as events warrant.