24 C.F.R. § 891.808
§ 891.808 Capital advance funds. (24 CFR Part 891)
Operative Text
(a) HUD is authorized to provide capital advance funds to expand the supply of supportive housing for the elderly and persons with disabilities in accordance with the rules and regulations of the Section 202 and Section 811 supportive housing programs. For mixed-finance projects, HUD provides a capital advance funds reservation to the sponsor, which transfers the fund reservation to the mixed-finance owner meeting the requirements of this subpart. The sponsor may transfer the fund reservation directly to the owner or to the general partner of the owner, or the sponsor may be the general partner of the mixed-finance owner if the sponsor meets the applicable statutory and regulatory requirements. (b) Developments built with mixed-finance funds may combine Section 202 or Section 811 units with other units, which may or may not benefit from federal assistance. The number of Section 202 or Section 811 supportive housing units must not be less than the number specified in the agreement letter for a capital advance. In the case of a Section 811 mixed-finance project, the additional units cannot cause the project to exceed the applicable Section 811 project size limit if they will also house persons with disabilities.
Under 24 CFR Part 891 § 891.808, HUD is empowered to issue capital advance funds to increase the availability of supportive housing for elderly individuals and people with disabilities through the Section 202 and Section 811 programs. In mixed-finance projects, a fund reservation flows from HUD to a sponsor, who may then pass it along to the project owner or the owner's general partner—or the sponsor itself may serve in that general partner role if it meets applicable requirements. Mixed-finance developments may blend federally assisted Section 202 or Section 811 units with other units, but the total number of supported units cannot fall below what the agreement letter specifies, and Section 811 projects must stay within applicable size limits when additional units also house persons with disabilities.
Plain English — not legal advice.
Operators and sponsors involved in mixed-finance supportive housing projects should understand that § 891.808 establishes how capital advance fund reservations are transferred and how units may be combined within a single development. A compliant operator generally ensures that the number of Section 202 or Section 811 units in the project meets or exceeds the minimum count stated in the HUD agreement letter, and tracks whether any additional units housing persons with disabilities could push a Section 811 project past its applicable size cap. Sponsors acting as or selecting a general partner for the mixed-finance owner typically confirm that all statutory and regulatory eligibility requirements are satisfied before the fund reservation is transferred.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents and prospective residents of supportive housing developments should know that § 891.808 sets baseline protections for the number of Section 202 or Section 811 units that must be maintained in a mixed-finance project—the count cannot drop below what HUD's agreement letter requires. If a tenant believes the number of supported units in their development has fallen below that floor, they may consider raising the issue with HUD's Office of Multifamily Housing Programs or consulting a tenant-rights organization familiar with federal supportive housing rules. Understanding this provision can also help tenants recognize whether a Section 811 project's size and unit composition align with the requirements established under 24 CFR Part 891 § 891.808.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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