Summary:
HUD provides capital advances to finance
the construction, rehabilitation or acquisition with or without
rehabilitation of structures that will serve as supportive housing
for very low-income elderly persons, including the frail elderly,
and provides rent subsidies for the projects to help make them affordable.
Purpose:
The Section 202 program helps expand the
supply of affordable housing with supportive services for the elderly.
It provides very low-income elderly with options that allow them
to live independently but in an environment that provides support
activities such as cleaning, cooking, transportation, etc. The program
is similar to Supportive Housing for Persons with Disabilities (Section
811).
Type
of Assistance:
HUD provides interest-free
capital advances to private, nonprofit sponsors to finance the development
of supportive housing for the elderly. The capital advance does
not have to be repaid as long as the project serves very low-income
elderly persons for 40 years.
Project rental assistance funds are provided to cover the difference
between the HUD-approved operating cost for the project and the
tenants' contribution towards rent. Project rental assistance contracts
are approved initially for 3 years and are renewable based on the
availability of funds.
The available program funds for a fiscal year are allocated to HUD�s
local offices according to factors established by the Department.
Eligible
Grantees:
Private nonprofit organizations
can apply to develop a Section 202 project if they can, among other
requirements, submit a resolution that they will provide a minimum
capital investment equal to 0.5 percent of the HUD-approved capital
advance, up to a maximum of $25,000 for national sponsors or $10,000
for other sponsors. Public entities are not eligible for funding
under this program.
Eligible
Customers:
Occupancy in Section 202 housing
is open to any very low-income household comprised of at least one
person who is at least 62 years old at the time of initial occupancy.
Application:
Applicants must submit an application
for a capital advance, including a Request for Fund Reservation
(HUD Form 92015-CA) and other information in response to the Notice
of Funding Availability (NOFA) published in the Federal Register
each fiscal year. Applications must be submitted to the local HUD
field office with jurisdiction over the area where the proposed
project will be located. Those selected for funding must meet basic
program requirements, including private nonprofit status, financial
commitment and acceptable control of an approvable site. Awards
are usually announced in September.
Technical
Guidance:
The program is authorized under
the Housing Act of 1959; Section 210 of the Housing and Community
Development Act of 1974 P. L. 86-372 (12 U.S.C. 1701q, 73 Stat.
654, 667); the National Affordable Housing Act, P. L. 101-625 (42
U.S.C. 12701); the Housing and Community Development Act of 1992
(P.L. 102-550); the Rescissions Act (P.L. 104-19); and the American
Homeownership and Economic Opportunity Act of 2000 (P.L. 106-569).
Program regulations are in 24 CFR Part 891.
To
learn more about the Section 202 program, see Supportive Housing
for the Elderly (HUD Handbook 4571.3) and Supportive Housing for
the Elderly--Conditional Commitment--Final (HUD Handbook 4571.5)
which are available on the Internet at HUDclips
or from the HUD Multifamily Clearinghouse at 1-800-685-8470. Also
see notice H96-102 REV 00-23 (HUD).
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