Summary: 

To provide private nonprofit owners of eligible developments designated for occupancy by elderly tenants with grants to make emergency capital repairs. The capital repair needs must relate to items that present an immediate threat to the health, safety, and quality of life of the tenants. 

Purpose: 

The intent of these grants is to provide one-time assistance for emergency items that could not be absorbed within the project's operating budget and other project resources, and where the tenants' continued occupancy in the immediate near future would be jeopardized by a delay in initiating the proposed cure.

Eligibility Requirements: 

Only private, nonprofit owners of Section 202 direct loan projects with or without Section 8 rental assistance; Section 202 capital advance projects receiving rental assistance under their Project Rental Assistance contract (PRAC); Section 515 rural housing projects receiving Section 8 rental assistance; projects subsidized with Section 221(d)(3) below-market interest mortgage; projects assisted under Section 236 of the National Housing Act; and other projects receiving Section 8 project-based rental assistance that are designated primarily for occupancy by the elderly are eligible. These projects must have had closing on or before January 1, 1999.

Application: 

Applicants must submit an application for funding after the appropriate Federal Register notice announcing the availability of grant funding is published. Applicants should submit emergency capital repair applications as soon as they have prepared an application that complies with the procedures and requirements contained in the notice. Applications must be submitted to the local HUD Field Office for the project covered by the application.

Funding:

The maximum grant amount an individual project owner may apply for is $500,000. All grant requests that are submitted by the Hub Directors will be funded based on the date and time of receipt in the Field Offices.

Eligible Uses of Funds:

Funds may be used to repair or replace systems including, but not limited to: (1) Existing major building and structural components that are in critical condition; and (2) Repairs or replacements to existing mechanical equipment to the extent that they are necessary for health and safety reasons. The purchase of high efficiency heating and cooling systems (Energy Star) for the approved replacement equipment is encouraged to promote energy conservation.

Ineligible Uses of Funds:

Emergency capital repair grants may not be used for the following costs: deferred maintenance items, lead-based paint abatement, demolition and reconstruction activities, e.g., conversion of bedroom units, security systems, improvements, i.e., installation of sprinkler systems, air conditioning, additional lighting in parking lots, etc.

Technical Guidance: 

Section 202b of Title II of the Housing Act of 1959 (12 U.S.C. 17k01q-2) was amended to provide grants for "substantial capital repairs to eligible multifamily projects with elderly tenants that are needed to rehabilitate, modernize, or retrofit aging structures, common areas or individual dwelling units." HUD's Office of Multifamily Housing is responsible for administering the Emergency Capital Repair Program.