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.
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.
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.
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.
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.
Uses of 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.
Uses of Funds:
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.
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.