An 811 project converts only on the owner's request, to a use directly benefiting very low-income persons with disabilities, and only if HUD finds it no longer needed as supportive housing

s811prac.disposition_and_transfer.conversion_requires_a_secretarial_determination · v1.0.0

The 40-year use restriction on a Section 811 capital advance project has exactly one statutory release valve and it is narrow. Where the OWNER REQUESTS the use of the project for the direct benefit of very low-income persons with disabilities, and PURSUANT TO THAT REQUEST the Secretary determines that the project is no longer needed for use as supportive housing for persons with disabilities, the Secretary may approve the request and authorise the owner to convert the project to such use. Three limits are on the face of the provision and are routinely overstated in the other direction. The conversion must still be for the direct benefit of very low-income persons with disabilities, so it is not a route to unrestricted or market use. It runs on the OWNER'S request; HUD does not initiate it. And it requires an affirmative Secretarial determination that the project is no longer needed as supportive housing, which is a finding about the market, not about the owner's preference. Section 202 has no equivalent provision: 12 U.S.C. 1701q(d)(1) states the 40-year availability requirement with no conversion authority attached.

Confidence

high

Effective from

1990-11-28

Consequence model

contract remedy

Last reviewed

2026-08-22