HUD is providing Capital Advance funding and project rental subsidies for the development and ongoing operation of supportive rental housing for very low-income persons, aged 62 years or older. This funding, leveraged with other financing sources, will expand affordable housing opportunities that are physically designed and that have a robust set of services that will allow seniors to live independently and age in community.
The Section 202 Supportive Housing for the Elderly program provides Capital Advance funding for the development of supportive rental housing for Very-Low-Income persons aged 62 years or older and project rental subsidies in the form of a Project Rental Assistance Contract (PRAC) to maintain ongoing affordability. This program provides elderly persons with the opportunity to live independently, but with important voluntary support services such as nutritional, transportation, continuing education, and/or health-related services. In addition, this year’s NOFO includes funding to support the development of intergenerational housing for elderly caregivers raising children. Intergenerational dwelling units are also referred to as 'intergenerational housing' in this NOFO.
Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. Capital Advance funds bear no interest and repayment is not required provided the housing remains available for occupancy by Very-Low-Income Elderly Persons for at least 40 years.
Project Rental Assistance Contracts (PRAC) are used to cover the difference between the tenants' contributions toward rent and the HUD approved cost to operate the project, including the cost of employing a service coordinator and HUD approved service expenses (see 24 CFR 891.205).
HUD encourages applicants to use Capital Advance funds in combination with other non-Section 202 funding, but they may only be used in connection with units that will be assisted under the PRAC. PRAC units may be developed or placed within a property that also includes non-PRAC residential units (whether restricted as affordable or rented at market rates) and non-residential units (such as first floor commercial space).
HUD seeks to fund Section 202 properties that advance housing for the elderly as a platform for living independently and aging in community even as residents may require more assistance with activities of daily living over time. Through this NOFO, HUD seeks sponsors that:
Estimated Total Program Funding: