This program provides funding for the development and operation of supportive housing for very low-income persons with disabilities who are at least 18 years old. If you receive funding through this program, you must assure that supportive services are identified and available. HUD provides capital advances and contracts for project rental assistance in accordance with 24 CFR part 891. Refer to Section IV. E .3 in the NOFA for additional information on calculating the capital advance amount. Capital advances may be used for the construction or rehabilitation of a structure or acquisition of a structure with or without rehabilitation, to be developed into a variety of housing options described in Section III.C below. Capital advance funds bear no interest and are based on development cost limits in Section IV.E.3 identified in the NOFA. Repayment of the capital advance is not required as long as the housing remains available for occupancy by very low-income persons with disabilities for at least 40 years. PRAC funds are used to cover the difference between the tenants\\\' contributions toward rent and the HUD-approved cost to operate the project.