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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.
Elgible
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.
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