Supportive Housing for the Elderly (Section 202)

HUD’s Supportive Housing for the Elderly program was authorized by Section 202 of the Housing Act of 1959, as amended by Section 801 of the National Affordable Housing Act of 1990 (NAHA). The program is often referred to as Section 202. Prior to the 1990 legislation, Section 202 funding was available to developers of housing for both elderly and disabled low-income households. Low-income disabled households are now served through the Supportive Housing for Persons with Disabilities (Section 811) program.

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Environmental Concerns in Choosing a Site for Rural Housing Development

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Developers of rural housing must comply with a variety of environment-related requirements and be aware of a number of environmental issues in order to protect themselves and their financing sources from potential legal liability and to protect the future occupants of their housing from health hazards. In considering a potential site for rural housing development, a prudent developer will have three objectives in selecting and developing property:

  • causing the least possible negative effect on the natural environment.
  • avoiding unwarranted expense and liability to the developer for clean-up of toxic wastes or hazardous substances caused or abandoned by others. Legal and economic liability for an environmental problem is not necessarily tied to actual causation of the problem.
  • negating as much as possible the effects of man-made and natural contamination and thereby protecting the long-term health and safety of the tenants or home purchasers.

All three of these objectives must be evaluated before becoming in any way obligated to a real estate transaction. While it may appear to be complex or expensive, or both, to investigate some of the environmental factors discussed below, the consequences of ignorance can be far worse.

HEALTH AND SAFETY ISSUES

The developer must look for at least the following man-made or naturally occurring substances:

  • Hazardous wastes include hundreds of materials ranging from petroleum hydrocarbons (such as motor oil, diesel fuel, gasoline and home heating oil), paint, and solvents to heavy metals and radioactive wastes. Dangerous wastes may be present if a site and/or neighboring properties have been used, legally or illegally, for industrial or storage purposes. (including manufacturing, mining, dry cleaning, photo processing, printing, and others); repair of automobiles or machinery; or dumping (including legal dumping), or as a landfill. A former orchard might be contaminated with arsenic or lead, once components of agricultural pesticides. Since a number of these materials can be carried by groundwater from one area to another, professional tests of water and soil samples may be advisable even if a site was not used for any of these purposes. Testing costs may be significantly less than the cost of removing waste if one unknowingly purchases a contaminated site. Mitigation generally must be done by professionals.
  • Lead poisoning has serious adverse health effects on children including nervous and reproductive disorders, slowed physical development, cognitive and behavioral changes and hypertension. Major lead sources of concern to rural housing developers are lead-based paint and lead pipes, or the lead solder used to join or repair copper pipes. Water may test positive for lead due to groundwater contamination as well. Removal of lead-based paint or the repair or replacement of a water supply system is costly and time-consuming.
  • Pesticides may leave a chemical residue in the soil of sites previously used as farmland, orchards or vineyards that can last years after the original application. In most cases, pesticide contamination can be mitigated or reduced by exposing the soil to the sun, mixing uncontaminated soil with the contaminated soil, or removing the contaminated soil. A site’s water source may also be contaminated by pesticides, particularly if the source is a local well. In such a case, it may be necessary to dig another well.
  • Asbestos was commonly used until the 1970s in thermal insulation and spray-applied fireproofing and in building materials such as floor coverings, ceiling tiles and paper pipe wrap. Professional assistance is necessary in dealing with asbestos: a qualified laboratory is needed to analyze materials samples and determine whether asbestos is present, and removal work should be done by trained asbestos contractors because removal itself is hazardous.
  • Formaldehyde is a colorless organic chemical used in manufacturing many construction materials and consumer products such as pressed wood building materials (including those used in manufactured homes), draperies, carpeting, and insulation. Materials containing formaldehyde tend to emit the chemical as a gas that can cause skin irritation, asthmatic reactions, or irritation to the eyes, nose and mucous membranes. Formaldehyde’s presence can be detected by relatively simple tests. The difficulty of removing formaldehyde depends on its source, and may range from increasing ventilation to replacing materials.
  • Polychlorinated biphenyls (PCBs) can cause reproductive problems, gastric disorders, nausea, bronchitis, chloracne, skin lesions, and cancer. They can be inhaled, ingested, or absorbed through the skin. They can build up in the body over time, and can be passed upward through the food chain while retaining their toxicity — for example, from plants to fish to humans. Any structure built before 1978 may contain PCBs in its electrical systems. including fluorescent light ballasts, as may any electrical transformer located along railroad tracks, even if built after 1978. If PCBs have leaked into the environment, removal and disposal by experts is necessary.
  • Radon is a colorless, odorless, tasteless gas that occurs naturally in the atmosphere and in soils around the world as a byproduct of the natural decay of uranium present in the earth. Radon at high levels within the home can cause lung cancer. Relatively inexpensive radon detectors are commercially available for testing indoor radon levels. It is possible to mitigate or abate the effects of radon relatively inexpensively. Various construction techniques can help mitigate its effects in a new structure, and reduction techniques can be used in existing structures with high levels of radon.
  • Underground storage tanks (USTs) in rural areas are found primarily on sites that were used as rural homesteads, gas stations, motor vehicle pools, airports, farms, marinas and at large public institutions, such as schools and hospitals. Due to corrosion in the tank or pipes an UST may leak its contents, typically substances containing petroleum hydrocarbons, into the surrounding area, ultimately contaminating groundwater. If a site has evidence of spills or stains on the ground, further investigation is called for, which may include laboratory testing to determine the type and extent of contamination. By federal law, the soil containing the contamination must be removed and disposed of in an approved landfill. State and local regulations may require additional remediation.
  • A nonprofit developer can assess the environmental health of a site informally before hiring a professional consultant. Four major steps in the informal environmental review process are inspecting the site, compiling a land use history, reviewing state environmental agency records, and determining which federal, state and local and/or lender requirements may affect the site. If, during the course of an informal assessment, there are signs of possible contamination or other environmental problems, the evaluator still has the option of hiring a professional environmental engineering firm to assess the situation thoroughly. For example, if an informal assessment finds an underground storage tank, there may be reason to hire a professional consultant to undertake a thorough environmental review and make recommendations for solutions, mitigation or cleanup and estimate the cost in dollars as well as time.Lenders often require an environmental audit prior to making a loan commitment. Generally, these required audits are limited to environmental issues covered by CERCLA (“Superfund”) legislation and petroleum products. However, a lender or a nonprofit developer can ask for a broader audit.

    There are two possible levels of professional audit. A Phase I assessment determines quickly, but to a greater depth and detail than an informal site review, whether information currently exists to evaluate clearly a property’s environmental status. The assessment involves a review of records, interviews with people knowledgeable about the property, and an inspection of the property, the buildings, its fenceline and adjoining properties. Phase II audits are often advisable (and are required by some funding sources) for many environmental conditions identified by the Phase I audit. A Phase II audit often involves soil testing and other analysis, and can be costly.

    PROTECTION OF IMPORTANT NATURAL RESOURCES

    The second set of environmental issues faced by rural housing developers concerns the potential impact of the proposed housing upon the environment itself. Developers must comply with several important federal laws and executive orders that are designed to protect our natural resources, as well as with any applicable state and local laws. Federal lending agencies, as well as the general public, must comply with these laws. Developers should be concerned with issues such as:

    • Wetlands
    • 100-year floodplains
    • Important farmlands, prime forest lands, and prime rangeland
    • Endangered species and critical habitats
    • Wild and scenic rivers
    • Barrier islands on the east and gulf coasts that are included in the Coastal Barriers Resources System
    • Approved Coastal Zone Management Areas
    • Historical and archeological properties

    Other environmental issues to be aware of include:

    • Noise sourcessuch as airports, railroads and major roadways
    • Sole source aquifer recharge areas,designated by the Environmental Protection Agency as areas important for the replenishment of the surface and underground water supplies.
    • State and local requirements and standards

    *The information presented in this fact sheet is discussed in greater detail in a technical manual entitled Environmental Concerns in Choosing a Site for Rural Housing Development, available for $4.00 from the Housing Assistance Council. Another HAC publication, Case Studies on Environmental Issues Affecting Rural Housing Development, examines ways specific developers handled environmental concerns arising during their development processes, and is also available for $4.00.

    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-5971 CA with the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. The publisher is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.

  • Electromagnetic fields occur naturally in the earth and atmosphere, and also are generated by electric power stations, transmission lines, and appliances. Some studies indicate a greater incidence of human and animal health problems, including cancer, in areas near strong electromagnetic fields. Other studies have found no direct correlation. Therefore, while electromagnetic radiation apparently cannot presently be classified as a known environmental hazard, a developer may wish to think carefully before situating housing next to an electrical generating plant or under high voltage wires.

The Effects of Housing Development on a Rural Community's Economy

Introduction

The development of decent, affordable rural housing can improve the lives of those with inadequate shelter, while at the same time benefitting the local economy. There are several different methods to improve rural housing conditions: the local government can provide public housing; the individuals in need can join a self-help program to build their own housing; or a private or nonprofit group can develop affordable housing units. While these strategies affect the economy differently, each contributes to the economic development effects discussed below.

Construction

Building or renovating homes requires the services of a diverse group of persons and the products of many different industries. Initial land development activities will usually involve architects, lawyers, financiers and other consultants. As the project enters the building process, construction workers and specialized personnel like plumbers and electricians are needed. The development of rural housing creates jobs for those already living in the rural community, and encourages others to enter the community to fill the new demand in the construction-related professions. The Citizens’ Housing and Planning Association reports that housing construction and rehabilitation have a high ratio (62.3 percent) of value-added to total gross outlays. This means that a high percentage of the gross outlays for a residential construction project are available for wages and salaries, thus stimulating job creation.1 The U.S. Department of Agriculture’s Rural Housing Service estimates that each single-family home financed by the Section 502 program generates 1.75 jobs and $50,201 in wages.2

In addition, housing production requires an increase in transportation and trade services that can benefit a local economy. Building materials must be produced for the construction project, and people must be hired to transport those goods from their source to the building site. While many of these products must come from outside the community, some like milled timber and construction tools may be supplied by local businesses..

Residents

The economic impacts of developing housing extend beyond the construction stage to the years when the new homes or rental units are occupied by rural residents. The increased pride and responsibility that the residents feel for their dwellings often results in the consumption of goods and services to complement the new home. Beginning a life in a new home is often accompanied by the purchase of new appliances, new furnishings, and moving services. Later, other improvements may be made to the home itself including the addition of decks, new rooms, and landscaping. The new residences and the later improvements can encourage others in the community to take care of their own properties and common areas, ultimately stabilizing an area socially and reducing crime rates. Finally, new construction in rural areas is often accompanied by infrastructure improvements like paved roads, electrification, and water/sewer lines which encourage further housing development. An abundance of new housing can lower the cost of living for a community, making it attractive to new residents and industries.

Ripple Effect

The National Association of Home Builders found that the economic impacts listed above create a ripple effect that moves beyond the building-related professions to the entire local economy.3 Construction workers generally live close to the construction site, and thus spend a substantial part of their wages in the local community. Area businesses benefit from this increased patronage, from the sale of building supplies for the project, and from sales to the residents of the new units. The prosperity of the owners and employees of these businesses increases, allowing them to purchase more from other local ventures, and so the ripple continues and reaches more parts of the community than those directly related to construction.

Government

The revenues of the state, local, and federal governments can increase as the result of a housing development project. There is an immediate increase in governmental income from building fees, taxes on workers’ wages, and taxes on the sale and transport of building materials. Increased sales taxes can also be expected as workers spend their wages and the residents purchase supplies and services for their new homes. In the long run, the local government will be able to generate revenue from property taxes and mortgage and deed transfer taxes. All these taxes add up so that even a small project can generate a great deal of government revenue.4 Officials in the Mississippi Delta region estimate that the construction of 20 homes worth over $50,000 each generates $1 million in tax revenue. Some of this revenue must be used to provide infrastructure and services to the homes, and in many impoverished areas some fees and taxes must be waived to make a project viable. However, the remainder of the increased government revenue may be used to encourage more housing development or improve services like education, and thus promote further economic development.

Conclusion

The impact of rural housing development on the local economy will vary by area and by project. The specifics of land values, local incomes, community culture, and tax structures will determine whether it is appropriate to build new units or rehabilitate older ones, and whether the new dwellings should be single-family homes or multifamily rental units. The exact economic impact of a project cannot be predicted without a detailed study of these individual circumstances, but it is clear that the development of rural housing has the potential not only to benefit those that receive the new dwellings, but to improve the economy of the entire community.

 

Table 1: One-Year Economic Impacts of the Development of 100 Housing Units5

Type of Units

Local Jobs Supported

Local Wages and Salaries

Local Business Owner’s Income

Local Taxes

Single Family

253

$7,388,000

$2,670,000

$854,000

Multifamily

121

$3,543,000

$1,280,000

$409,000

 

Table 2: Ongoing, Annual Economic Impacts After 100 New Units Are Occupied6

Type of Units

Local Jobs Supported

Local Wages and Salaries

Local Business Owner’s Income

Local Taxes

Single Family

76

$1,983,000

$416,000

$393,000

Multifamily

36

$945,000

$238,000

$243,000

 


Footnotes

1 Citizens’ Housing and Planning Association, Creating Jobs and Increasing Economic Development: The Economic Benefits of the 1997 Housing Bond Bill (March 1997).

2Maureen Kennedy, “Increasing Homeownership Through Partnership,” Rural Voices (Summer 1996).

3 Paul Emrath, “Local Impact of Home Building,” Housing Economics (March 1997), and Housing Policy Department, The Local Impact of Home Building in Average City, USA: A Brief Description of the Model (March 1997).

4 Sheryl Stolberg, “Moving from Shanties to a Subdivision,” Los Angeles Times (January 26, 1997).

5Adapted from the National Association of Home Builders’ The Local Impact of Home Building in Average City, USA: Income, Jobs, and Taxes Generated by Single Family Construction (March 1997) and The Local Impact of Home Building in Average City, USA: Income, Jobs, and Taxes Generated by Multifamily Construction (March 1997). The figures are based on an average metropolitan statistical area, and homes with an average construction value of $145,372.

6Ibid.

 


This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported with funding from the Ford Foundation.

The Affordable Housing Program

The Federal Home Loan Bank (FHLBank)System consists of 12 district banks that provide lending, deposit, and other services to member mortgage-lending institutions under the oversight of the Federal Housing Finance Agency. The 12 FHLBanks are instrumentalities of the federal government, but are wholly owned by their member institutions. The 12 FHLBanks reserve 10 percent of their collective net income or $100 million, whichever is greater, for use in the Affordable Housing Program (AHP). In 2004, the AHP had $229 million available.

The Affordable Housing Program

The Low Income Housing Tax Credit for Nonprofits Developing Rural Rental Housing

The Low Income Housing Tax Credit for Nonprofits Developing Rural Rental Housing

INTRODUCTION

The Low Income Housing Tax Credit (LIHTC) provides an incentive for private, profit-motivated entities to develop affordable housing. Structuring a development project to use the tax credit is complex, but may well be worthwhile. This information sheet provides only very brief introductory material about the tax credit. To evaluate potential tax credit funding for a specific project, perform detailed calculations, carry out the syndication process, develop a project and then manage it, the would-be developer will want not only to learn more about the tax credit but also to acquire the services of experts such as an accountant, an attorney and perhaps a syndicator.

PROGRAM BASICS

The LIHTC, adopted by Congress in the 1986 Tax Reform Act, is a reduction in the dollar amount of federal taxes owed by an individual or corporation, in exchange for his/her/its investment in low-income rental housing. The amount of tax reduction is tied directly to the proportion of low-income persons among the residents of the housing produced. To obtain the tax reduction, an investor provides the cash – called capital or equity in development terms – that will be used to help develop the project. The investor has no role in the development process or the management of the project after it is rented up. A for-profit or nonprofit developer does those tasks. The investor receives a tax credit paid annually over a 10-year period and cannot withdraw his/her/its investment for 15 years.

ELIGIBLE ACTIVITIES

The tax credit program provides funding for two types of rental housing development: construction of new buildings or substantial rehabilitation of existing buildings. New construction can produce single-family houses, apartment buildings, duplexes, rowhouses or townhouses. Rehabilitation can be performed on these same types of buildings, and conversion of structures like warehouses, schools and motels is also possible.

PROJECT REQUIREMENTS

The value of the tax credit depends on the type of financing used. A larger credit is provided for development that does not use federal financing (except for the HOME program in some situations). For projects with federal financing, the tax credit is approximately 4 percent of development cost, excluding land; for projects without federal financing, it is approximately 9 percent.

A tax credit project can be partly occupied by households that are not low-income. However, the incentive is structured to encourage low-income occupancy by increasing the amount of credit for a higher proportion of low-income residents or for lower incomes of the residents. The tax credit provides investment benefits only for the amount of investment attributable to the portion of the building occupied by low-income tenants.

The project must comply with the chosen income levels, and with certain rent limitations, for at least 15 years. Because the tax credit’s benefits are tied directly to the characteristics of the tenants, management of a tax credit project throughout the credit’s 15-year term is a vitally important function. Of course, if a project receives financing from a program or a lender that imposes stricter tenant income requirements or longer use restrictions, it must comply with those provisions as well as the LIHTC provisions.

While the investors’ benefits from the Low Income Housing Tax Credit are provided by the Internal Revenue Service, states bear most of the responsibility for administering the tax credit program itself. Each state must set aside at least 10 percent of its credit allocation for projects developed by nonprofits.

Syndication is the process of selling the tax credits to investors and thus raising capital for a project. The nonprofit developer that holds the tax credit allocation can solicit the market for the best price and terms to generate cash for project development. Most often, investors or investor funds will seek out the holder of the tax credit instead. A syndicator may be contacted by either party and works as a professional to bring investors and nonprofit developers together. A nonprofit – particularly one that has served as a general partner in a tax credit deal – may receive calls from syndicators or potential investors looking for general partners and tax credit projects.

BENEFITS FOR NONPROFITS

Nonprofits are exempt from paying income taxes, so the tax-related values of the tax credit are meaningless to them. However, there are other benefits for a nonprofit organization in a tax credit project, including:

  • opportunity to develop the project – the tax credit brings to the development process various players that might not otherwise come together, assisting nonprofit groups that do not have staff knowledge, capacity or seed capital to develop a project alone;
  • leverage for financing;
  • fees for the organization to cover overhead costs – once a property is developed and syndicated, the general partner (the nonprofit) should receive a developer’s fee, a property management fee (if it manages the property), a partnership management fee and an incentive management fee;
  • opportunity for project ownership – usually the nonprofit developer will have an option to purchase the project at the end of the 15-year tax credit compliance period, creating permanently affordable housing;
  • publicity to help raise funds; and
  • opportunity for property management.

RISKS FOR NONPROFITS

Like any development process, the tax credit market involves risk. For example:

  • A syndicator representing funds that are not yet sold to investors may provide a verbal commitment but not be able to carry through with the arrangement.
  • There are standard risks associated with any real estate deal. The strength of the real estate market, the financial viability of the nonprofit developer, the experience of the developer and other factors can determine the pricing a nonprofit group will receive.
  • Poor forecasting could result in inadequate revenues to carry debt service, leading to project decline or foreclosure and thus to loss of the tax credit.
  • Uninsured losses such as natural disasters could destroy the property and with it the tax credit.
  • If the rate of low-income tenancy changes, the tax credit could be lost or tax credits could be recaptured.

Some risks can be avoided by an experienced attorney and/or consultant making sure the partnership is properly set up. The partnership agreement should include provisions about title insurance, fire and casualty insurance, contractor bonding, vacancy limits, guarantees and other language that generally minimizes risk.

FOR MORE INFORMATION

A good introduction to the basics of the tax credit and its use in rural areas is Utilizing the Low Income Housing Tax Credit for Rural Rental Projects: A Guide for Nonprofit Developers, published by the Housing Assistance Council.

HAC’s publications list, all information sheets, and most full-length manuals and reports may be obtained free from HAC’s web site at www.ruralhome.org. A printed copy of the publications list is available free, and copies of manuals and reports are available for a charge to cover costs, from HAC, 1025 Vermont Avenue, N.W., Suite 606, Washington, D.C. 20005; 202-842-8600.


April 2002

This Information Sheet was prepared by the Housing Assistance Council (HAC). The work that provided the basis for this publication was supported by funding from the Ford Foundation and funding under Cooperative Agreement H-5971 CA with the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.

HAC, founded in 1971, is a nonprofit corporation that supports the development of rural low-income housing nationwide. HAC provides technical housing services, loans from a revolving fund, housing program and policy assistance, research and demonstration projects, and training and information services. HAC is an equal opportunity lender.

Rural Seniors and Their Homes: Research Note

Of the approximately 114 million occupied housing units in the United States, roughly 27 million, or 23 percent of all homes, are located in nonmetropolitan areas. Of these, 6 million, or 23 percent, are occupied by elderly-headed households.

An overwhelming majority of nonmetro senior households (89 percent) own their homes, compared to the nationwide homeownership rate of 67 percent for households of all ages. Whether seniors own or rent their homes is a significant factor affecting their housing and economic well being. Elderly rural renters generally face more challenges and greater needs associated with their housing than elderly rural homeowners.

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Housing for Persons with Disabilities in Rural Areas

Housing for Persons with Disabilities in Rural Areas

INTRODUCTION

Since the 1970s, activists with disabilities have redefined the “problem” of physical challenges as one of disabling environments rather than “disabled” people. In 1990, the passage of the Americans with Disabilities Act (ADA), Title III, put this philosophy to work by requiring that places of public accommodation, commercial facilities and certain private facilities be made accessible to persons with disabilities – including housing.

Until recently, most publicity, program initiatives and funding for housing for persons with disability have been directed at cities. Likewise, research on accessible housing has tended to focus on urban areas, leaving little systematic information about the needs of persons with disabilities in rural areas. However, through the recent research by scholars on rural disability, the beginning of a rural accessible housing agenda has been established.

The ADA defines a person with a disability as someone who: a) has a physical or mental impairment that substantially limits one or more major life activities such as walking, seeing, hearing, or speaking; b) has a record of having such an impairment, whether or not the impairment still exists; or c) is regarded as having such an impairment, whether or not the perception is accurate. The definition also includes persons 60 years of age and older who are frail (have an inability to perform at least three activities of daily living without assistance, such as bathing, dressing or using the toilet). While advanced age, in and of itself, is not an impairment, various medical conditions commonly associated with age, such as hearing loss, osteoporosis, or arthritis, constitute disabilities.

LIVING WITH A DISABILITY IN RURAL AMERICA

Persons with disabilities in rural areas, like their urban counterparts, have a wide range of housing needs. Persons with physical disabilities need accessibility features to facilitate independent living. Persons with mental illness or persons requiring regular treatment/therapy for their condition need suitable access to a treatment facility. Frail elderly persons may require modifications to their existing homes. Others may prefer group housing or assisted living situations.

One fact of rural disability is that even though there are fewer persons with disabilities in nonmetro areas, they comprise a greater percentage of the population than in metropolitan counties. As the chart below demonstrates, while persons with disabilities make up 18 percent of the metropolitan population, they make up 23 percent of nonmetro areas; consequently, the demand for accessible living and working facilities is proportionally greater in nonmetro areas.

Source: U.S. Census, 1990

However, while the demand for accessible housing is higher in nonmetro areas, meeting that demand is also more difficult for the following reasons:

  • Residents of rural areas tend to value independence, self-reliance and individualism.1 Although these are positive values, they also contribute to a reluctance to seek help from mental or physical health professionals among persons with disabilities in rural areas. This factor also makes it difficult to assess the need for accessible housing in rural areas.
  • Transportation to health-related services is particularly problematic for rural people who may live hours from the nearest service center, clinic, hospital or day program. Nearly one-third of the 91 million people in nonmetro areas eligible for government transportation funding are transportation dependent, meaning that they have no personal transportation due to poverty (12.4 million), old age (12.1 million), and/or physical disability (11.9 million).2 Service providers must either deliver services where clients live, or arrange for rides or van pools to service sites, cutting into the time and funding available for direct services provision.
  • Recruitment, training, and retention of health service providers in rural areas is hampered by professional and social isolation, lack of training opportunities and support, low wages, and high stress.
  • Lack of basic infrastructure like municipal water and sewer services in rural areas often preclude the development of accessible housing, as well as limit the number of developers willing to work in these areas.
  • Local zoning and land use restrictions often limit the siting of group homes in both urban and rural areas. These restrictions include dispersion requirements (prohibiting group homes from locating too close to one another), concentration requirements (prohibiting the location of group homes in certain areas), and occupancy requirements (limiting the number of residents).

PROGRAMS AND RESOURCES

Federal civil rights statutes protect persons with disabilities from discrimination in virtually all housing services and programs.

  • Section 504 of the Rehabilitation Act of 1973 (Section 504).

    Section 504 prohibits discrimination on the basis of disability or perceived disability in any program or activity that receives federal financial assistance, including all public and federally subsidized housing programs. Housing providers covered by Section 504 must bear the costs of making all programs accessible to and usable by persons with disabilities.

  • The Fair Housing Amendments Act of 1988 (FHAA).

    The FHAA extends protection against housing discrimination to persons with disabilities. It requires housing providers to permit, at the expense of the handicapped person, reasonable modifications of existing premises upon request. It also requires housing providers to make reasonable accommodations (adjustments to rules, policies, practices or procedures) upon request by handicapped persons. FHAA covers almost all housing activities or transactions in the public or private sector, including the discriminatory application of zoning, land use, or health and safety regulations.

  • The Americans with Disabilities Act of 1990 (ADA).

    ADA builds on the other statutes by prohibiting discrimination against persons with disabilities in private sector employment, all public services, public accommodations, transportation and telecommunications.

As in urban areas, implementation of these statutes in rural areas is fraught with difficulties such as residents’ unawareness of their rights and housing providers’ ignorance of the law, lack of affordable legal recourse, and persistence of restrictive local land use and zoning regulations.

In addition to generally-available low-income housing grant and loan programs (such as the Section 502 Direct and Guaranteed Loan Programs), there are a few programs and resources that address the housing needs of persons with disabilities in rural areas.3 The Section 811 Supportive Housing Program for Persons with Disabilities administered by the U.S. Department of Housing and Urban Development (HUD) is one example. The USDA/Rural Housing Service (RHS) also offers the Section 504 Home Repair Loan and Grant Program, which provides funds to modify homes for accessibility. The USDA/RHS also has a subsection of the Section 515 Rural Rental Housing Program that provides direct mortgage loans for the development of congregate housing or group homes for persons with disabilities.

Other federal programs, while not focused on serving the needs of persons with disabilities in rural areas, can also provide significant support. These include the McKinney-Vento Act homeless assistance programs, Community Services Block Grants allocated to states by the Department of Health and Human Services (DHHS), and housing programs administered by the Department of Agriculture’s Rural Housing Service (RHS).

Despite myriad challenges, there are several organizational resources available to assist rural persons with disabilities in securing affordable and accessible housing:

The Center for Assistive Technology (CAT/UB) 515 Kimball Tower, SUNY Buffalo Buffalo, NY 14214-3079 800-628-2281 (TTY)

National Council on the Aging, Inc. National Institute of Senior Housing 600 Maryland Ave., SW, West Wing 100 Washington, DC 20024 202-479-1200

Research and Training Center on Rural Rehabilitation Services 52 Corbin Hall, The University of Montana Missoula, MT 59812 406-243-5467 (voice/TTY) 888-268-2743 (toll free) https://ruralinstitute.umt.edu


FOOTNOTES

1Mental Health and Rural America: 1980-1993. Washington, D.C.: Federal Office of Rural Health Policy

2Spas, Diana and Tom Seekins. 1998. RURALfacts: Transportation. Missoula, MT: Research and Training Center on Rural Rehabilitation Services.

3RHS was formerly the Rural Housing and Community Development Service and before that the Farmers Home Administration. Additional information on RHS programs can be obtained from the Information Sheets on Rural Housing and Community Development Service Programs produced by the Housing Assistance Council. More information on HUD’s Section 811 program is available from the Information Sheet on Supportive Housing for Persons with Disabilities also produced by the Housing Assistance Council.


January 2001

This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported by funding from the Ford Foundation and the U. S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and the interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.