Which department makes direct loans for the construction or rehabilitation of housing projects elderly handicapped?

The department that makes direct loans for the construction or rehabilitation of housing projects for the elderly and handicapped is the U.S. Department of Housing and Urban Development (HUD).

Specifically, within HUD, the Office of Public and Indian Housing provides a variety of programs that support housing for these populations, including:

* Section 202 Supportive Housing for the Elderly: Provides direct loans and rental subsidies to develop and operate housing for low-income elderly individuals.

* Section 811 Supportive Housing for Persons with Disabilities: Provides direct loans and rental subsidies to develop and operate housing for people with disabilities.

These programs are designed to address the unique needs of elderly and disabled individuals by providing affordable and accessible housing with supportive services.