Description of Multifamily Programs

Summary:
Section 207 Program insures mortgage loans to finance the construction or rehabilitation of a broad range of rental housing. Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation. It is however, the primary insurance vehicle for the Section 223(f) refinancing program. Multifamily new construction and substantial rehabilitation projects are currently insured Section 221(d)(4) programs.

Purpose:
Section 207 insures lenders against loss on mortgage defaults. The intent of the program is to increase the supply of quality and reasonably priced rental housing for middle-income families.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Section 207 mortgage insurance may be used to finance the construction or substantial rehabilitation of detached, semidetached, row, walk-up, or elevator type structures with 5 or more units. A project is eligible for mortgage insurance if the sponsor can demonstrate that there is a definite market demand, that the project is economically self-sufficient, and that financing is secure. The program has statutory per unit mortgage limits, which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-value and debt service limitations. The mortgage is limited to 90 percent of HUD appraised value.

Eligible Borrowers:
Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors.

Eligible Customers:
All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selections.

Application:
The sponsor has a pre-application conference with the local HUD Multifamily Region to determine preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis application (SAMA) (for new construction projects), or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the proposed project meets program requirements, the local Multifamily Regional Centers or Office issues a commitment to the lender for mortgage insurance.

Technical Guidance:
Section 207 was authorized by the National Housing Act. Regulations are found at 24 CFR, Section 200 and Section 207. The basic program instructions are in HUD Handbook 4400.1 - Project Mortgage Insurance - Basic Section 207 Instructions available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department did not insure any mortgages. Developers and lenders prefer Section 221 (d)(4) where terms are more advantageous.

If you have any questions, please contact Juan E. Seneca

Summary:
Section 207 Program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured home parks.

Purpose:
Section 207 promotes the creation of manufactured home communities by increasing the availability of affordable financing and mortgages.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
The program insures lenders against loss on mortgage defaults. Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks. Home parks must consist of 5 or more spaces. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Eligible Borrowers:
Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors.

Eligible Customers:
Families, individuals, or elderly persons owning manufactured homes or desiring to lease spaces in a manufactured park.

Application:
The sponsor has a pre-application conference with the local HUD Multifamily Region to determine the preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis (SAMA) (for new construction projects) or a feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
The program is authorized under Section 207 of the National Housing Act
(12 U.S.C. 1713), Public Law 84-345. Program regulations are in 24 CFR Part 207.33. The basic program instructions are in HUD Handbook 4545.1, Mobile Home Park Program available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments:
In FY2024, the Department did not insure any mortgages.

Summary:
Section 213 insures mortgage loans to facilitate the construction, substantial rehabilitation, and purchase of cooperative housing projects. Each member shares in the ownership of the whole project with the exclusive right to occupy a specific unit and to participate in project operations through the purchase of stock.

Purpose:
Section 213 insures lenders against loss on mortgage defaults. Section 213 enables nonprofit cooperative housing corporations or trusts to develop or sponsor the development of housing projects to be operated as cooperatives. Section 213 also allows investors to provide good quality multifamily housing to be sold to non-profit corporations or trusts upon completion of construction or rehabilitation.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may be used to finance construction, acquisition of existing or rehabilitated detached, semidetached, row, walk-up, or elevator type housing projects consisting of five or more units. The program has statutory per unit mortgage limits which may vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost limitations. Contractors for new construction and substantial rehabilitation housing projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Eligible Borrowers:
Non-profit cooperative ownership housing corporations or trusts are eligible to use Section 213. They may sponsor projects directly, sell individual units to cooperative members, or purchase projects from investor-sponsors.

Eligible Customers:
HUD imposes no restrictions on the income or characteristics of individual shareholders/residents in an insured cooperative.

Application:
The sponsor has a pre-application conference with the local HUD Multifamily Region to provide general application guidance and to determine the feasibility of the project. The sponsor must then submit a site appraisal and market analysis (SAMA) application (for new construction projects) or feasibility application (for substantial rehabilitation projects), arranges for an environmental assessment, and check with the State to determine its requirements. Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include, market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local HUD Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
This program is authorized by Section 213 of the National Housing Act
(12 U.S.C. 1715e). Program regulations are found in 24 CFR 213. The basic program instructions are in HUD Handbook 4550.1 - Basic Cooperative Housing Insurance available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 2 projects with 146 units, totaling $40.1 million.

If you have questions, please contact Juan E. Seneca

Summary:
Section 220 insures loans for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities.

Purpose:
Section 220 insures lenders against loss on mortgage defaults. Section 220 provides good quality rental housing in urban areas that have been targeted for overall revitalization. Section 220 insures mortgages on new or rehabilitated housing located in designated urban renewal areas, and in areas with concentrated programs of code enforcement, and neighborhood development.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may be used to finance construction or rehabilitation of detached, semi-detached, row, walk-up, or elevator type rental housing or to finance the purchase of properties which have been rehabilitated by a local public agency. Properties must consist of two or more units and must be located in an urban renewal area, in an urban development project, code enforcement program area, urban area receiving rehabilitation assistance as a result of natural disaster, or area where concentrated housing, physical development, or public service activities are being carried out in a coordinated manner.

The program has statutory mortgage limits, which may vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and debt service limitations. The maximum amount of the mortgage loan may not exceed 90 percent of the estimated replacement cost for new construction. For substantial rehabilitation projects, the maximum mortgage amount is 90 percent of the estimated cost of repair and rehabilitation and the estimated value of the property before the repair and rehabilitation project. The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life of the project, whichever is less. Contractors for new construction or substantial rehabilitation projects must comply with prevailing wage standards under the Davis-Bacon Act.

Eligible Borrowers:
Eligible mortgagors include private profit motivated entities, public bodies, and others who meet HUD requirements for mortgagors.

Eligible Customers:
All families are eligible to occupy a dwelling in a structure where the mortgage is insured under the program, subject to normal tenant selection.

Application:
Section 220 is eligible for Multifamily Accelerated Processing (MAP). For new construction and substantial rehabilitation loans, the sponsor works with the MAP-approved lender who submits required exhibits for the pre-application stage. HUD reviews the lender's exhibits and will either invite the lender to apply for a Firm Commitment for mortgage insurance, or decline to consider the application further. If HUD determines that the exhibits are acceptable, the lender then submits the Firm Commitment application, including a full underwriting package, to the local Multifamily Region for review. The application is reviewed to determine whether the proposed loan is an acceptable risk. Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the project meets program requirements, the Multifamily Region issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP). The sponsor has a pre-application conference with the local HUD Multifamily Region to determine preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis application (SAMA) (for new construction projects), or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a Firm Commitment application through a HUD-approved lender for processing. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
This program is authorized by Section 220(a) and (h), National Housing Act (12 U.S.C. 1715k. Regulations are in 24 CFR 200 et seq., 24 CFR 220.1 et seq. The basic program instructions are in HUD Handbook 4555.1. - Rental Housing in Urban Renewal Areas for Project available on HUDclips. Refer to the MAP web site for guidelines, instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishment: In FY2024, the Department insured mortgages for 1 projects with 272 units, totaling $70 million.

If you have questions, please contact Juan E. Seneca

Summary:
Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

Purpose:
Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(4) assists private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may be used to finance the construction or rehabilitation of detached, semidetached, row, walkup, or elevator-type rental or cooperative housing containing 5 or more units. The program has statutory mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project.

Eligible Borrowers:
Eligible mortgagors include public, profit-motivated sponsors, limited distribution, nonprofit cooperatives, builder-seller, investor-sponsor, and general mortgagors.

Eligible Customers:
All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selection. There are no income limits. Projects may be designed specifically for the elderly or handicapped.

Application:
Section 221(d)(4) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for the pre-application stage. HUD reviews the lender's exhibits and will either invite the lender to apply for a Firm Commitment for mortgage insurance, or decline to consider the application further. If HUD determines that the exhibits are acceptable, the lender then submits the Firm Commitment application, including a full underwriting package, to the local Multifamily Region for review. The application is reviewed to determine whether the proposed loan is an acceptable risk. Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP). The sponsor has a preapplication conference with the local HUD Multifamily Region to determine preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis (SAMA) application (for new construction projects), or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
The 221(d)(4) program is authorized by the National Housing Act (12 U.S.C. 17151 (d)(4). Program regulations are found at 24 CFR 221, subparts C and D. Basic TAP program instructions are in HUD handbook 4560.01 - Mortgage Insurance for Multifamily Moderate Income Housing Projects available on HUDclips. Refer to the MAP web-site for guidelines and instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 105 projects with 17434 units, totaling $2.5 billion.

If you have questions, please contact Juan E. Seneca

Summary:
Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages. Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. HUD requires completion of critical repairs before endorsement of the mortgage and permits the completion of non-critical repairs after the endorsement for mortgage insurance.

Purpose:
Section 223(f) insures lenders against loss on mortgage defaults. The program allows for long- term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage-Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non-critical repairs that must be completed within 12 months of loan closing. Projects requiring substantial rehabilitation are not acceptable under this section and may not involve the replacement of more than one major system. The remaining economic life of the project must be long enough to permit a ten-year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less. Davis Bacon prevailing wage requirements do not apply to this program.

Refinance and Acquisition Processing:

The Amount Based on Value. The applicable percentage of the estimated value of the property after completion of repairs and improvements.

90% - for Section 202 & 202/8 Direct Loans
87% - for projects with 90% or greater rental assistance
85% - for projects that meet the definition of Affordable Housing
83.3% – for market rate projects

Eligible Borrowers:
Both for profit and non-profit borrowers are eligible to apply.

Eligible Customers:
All persons are eligible to occupy such projects subject to normal occupancy restrictions.

Application:
Section 223(f) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for Firm Commitment application, including a full underwriting package to the local Multifamily Region for review. The Multifamily Region reviews the application to determine whether the proposed loan is an acceptable risk. Considerations include market need and the capabilities of the borrower. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP). Under TAP, there are only two processing stages: the conditional commitment stage and the firm commitment stage. The sponsor is required to have a pre-application conference during the conditional commitment stage to determine the appraised value and maximum mortgage amount. At the firm commitment stage the local HUD Multifamily Regio determines the amount of the mortgage available to the purchaser or refinancing borrower in the proposed transaction. If the proposal meets FHA program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
Section 223(f) of the National Housing Act was added by Section 311(a) of the Housing and Community Development Act of 1974. Regulations are found at 24 CFR, Part 200. For processing and underwriting instructions refer to HUD Handbook 4565.1- Mortgage Insurance for the Purchase of Existing Multifamily Housing Projects available on HUDclips. Refer to the MAP web site for guidelines and instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 161 projects with 21343 units, totaling $2.8 billion.

If you have questions, please contact Juan E. Seneca

Summary:
Section 223(a)(7) insures mortgage loans to facilitate the refinancing of certain mortgages currently insured by FHA and to HUD-held loans on projects subject to the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). A mortgage refinanced pursuant to Section 223(a)(7) is insured under the same section of the National Housing Act (NHA) as was the mortgage originally insured under that section of the act, for example, Section 221(d)(4) or Section 223(f).

Purpose:
Section 223(a)(7) insures lenders against loss on mortgage defaults. The term of a new mortgage insured pursuant to Section 223(a)(7) may be extended up to 12 years beyond the maturity date of the existing, originally insured mortgage. The term cannot be extended beyond 75% of the remaining useful life of the project or the maximum term permitted in the section of the act under which the existing mortgage is insured. If the existing mortgage is the result of a previous refinancing through Section 223(a)(7), the longest allowable maturity date of the new mortgage is 12 years beyond the maturity date of the mortgage originally insured under the FHA insurance program but not to exceed 75% of remaining useful life. Section 223(a)(7) refinances typically reduce project debt service and increase cash flow by lowering the interest rate of the mortgage and/or by extending the amortization period. The increased project cash flow benefits properties and owners and reduces risk to the FHA Insurance Fund.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
The refinancing is limited to existing properties in residential use, and cannot include new construction or expansion of the height or footprint of an existing building, or any repairs, which involve ground disturbance. Proceeds may be used to fund (a) the payoff of existing FHA-recognized indebtedness (b) the cost of refinancing, (c) the cost of critical and non-critical repairs (as described in the required Capital Needs Assessment, subject to the cost limits as described in the 2016 Map Guide), and (d) deposits to reserve for replacement accounts. By statute, equity take-outs are not permitted under Section 223(a)(7).

Mortgages excluded from the Eligible Activities:
Risk Share mortgages

Co-insured mortgages

Section 202 loans and other HUD-held mortgages (other than those subject to a debt restructuring under the Multifamily Assisted Housing Reform and Affordability Act (MAHRA)

Refinance Processing:
For Maximum mortgage calculations refer to Chapter 18.3.B of the 2016 Map Guide and HUD Form- 92264-A Criteria 1,2,5 &10. The mortgage amount may not exceed the lowest applied criteria.

Eligible Borrowers:
Both for profit and non-profit borrowers are eligible to apply.

Eligible Customers:
All persons are eligible to occupy such projects subject to normal occupancy restrictions.

Applications:
Section 223(a)(7) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for a Firm Commitment application, including an underwriting package to the local Multifamily Region for review. The Multifamily Regional or Office reviews the application to determine whether the proposed loan is an acceptable risk. Considerations include the capabilities of the borrower and the benefits to the project. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses. If the proposed refinance meets program requirements, the Regional Center issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD Multifamily field staff under Traditional Application Processing (TAP). Under TAP, there is only one processing stage for Section 223(a)(7) applications: the firm commitment stage. At firm commitment stage the local Regional Office determines the amount of the mortgage available to the refinancing borrower in the proposed transaction. If the proposal meets FHA program requirements, the local Multifamily Regional Office issues a commitment to the lender for mortgage insurance.

Technical Guidance:
For processing and underwriting instructions refer to the 2016 MAP Guide, Chapter 18. Refer to the MAP website for guidelines and instructions, lender approval requirements, and MAP coordinators. The Office of Multifamily Production, Program Administration Division, administers the program.

Program Accomplishments: In FY2024, the Department did not insure any mortgages.

If you have questions, please contact Juan E. Seneca

Summary:
The Section 231 insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities.

Purpose:
Section 231 insures lenders against loss on mortgages. Section 231 was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons, and/or persons with disabilities. However, few projects have been insured under Section 231 in recent years; developers have opted to use Section 221(d)(4).

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may be used to finance the construction and substantial rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed specifically for elderly or handicapped individuals consisting of eight or more dwelling units. For nonprofit sponsors, the maximum loan amount is 100 percent of the estimated replacement cost of the building (or 100 percent of project value for rehabilitation projects). For all other sponsors, the maximum loan is 90 percent of the replacement cost (or 90 percent of project value for rehabilitation projects). Contractors for new construction or substantial rehabilitation projects are required to comply with prevailing wage standards under the Davis-Bacon Act.

Eligible Borrowers:
Mortgagors include private profit-motivated developers, and non-profit sponsors.

Eligible Customers:
All elderly or persons with disabilities are eligible to occupy apartments in a project whose mortgage is insured under the program.

Application:
The sponsor has a preapplication conference with the local HUD Multifamily Region to determine the feasibility of the project. The sponsor must then submit a site appraisal and market analysis (SAMA) application (new construction projects), or a feasibility application (substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
This program is authorized by Section 231 of the National Housing Act, as amended, Public Law 86-372 (73 U.S.C. 654 and 12 U.S.C. 1715 (V))). Program regulations are found in 24 CFR 231. The basic program instructions are in HUD Handbook 4570.1 - Housing for the Elderly for Project Mortgage on available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 1 projects with 200 units, totaling $48.3 million.

If you have questions, please contact Juan E. Seneca

Summary:

Section 234(d) insures blanket mortgages for the construction or substantial rehabilitation of multifamily projects to be sold upon completion as individual condominium units.

Purposes:

Section 234(d) insures lenders against the loss on mortgage defaults. The program enables sponsors to develop condominium projects in which individual units will be sold to home buyers.

Type of Assistance:

FHA mortgage insurance for HUD-approved lenders.

Eligible Borrowers:

Private profit-motivated developers and other sponsors who meet FHA requirements for mortgagors.

Eligible Customers:

Families or individuals who are eligible to purchase condominium units. Mortgages for individual units may be insured under Section 234(c).

Eligible Activities:

Insured mortgages may be used to finance construction and substantial rehabilitation of multifamily housing structures where the individual units will be sold as condominiums under Section 234(c). The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and pre-sale limitations. Contractors for new construction or substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Application:

The sponsor has a preapplication conference with the local HUD Multifamily Hub or Program Center to provide general application guidance and to determine the feasibility of the project before submitting a site appraisal and market analysis (SAMA) application (for new construction projects) or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include, market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meet program requirements, the local HUD Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:

The 234(d) program is authorized by the National Housing Act (12 U.S.C. 1715y), as amended; Housing Act of 1964, as amended, Section 234(d). Regulations are found in 24 CFR 234. The basic program instructions are in HUD Handbook 4580.1- Mortgage Insurance for Condominium Housing Insured under Section 234(d) available on HUDclips. The program is administered by the Office of Multifamily Housing Development.

Program Accomplishments:

No loans have been insured under this program for several years. Condominium developers typically obtain their own construction financing and use FHA insurance under Section 234(c) to finance the sales of the individual units.

Summary:
Section 241(a) insures mortgage loans to finance repairs, additions, and improvements to multifamily rental housing and health care facilities with FHA insured first mortgages or HUD-held mortgages.

Purpose:
Section 241(a) insures lenders against loss on mortgage defaults. The program is intended to keep the project competitive, extend its economic life, and to finance the replacement of obsolete equipment. Insured mortgages finance repairs, additions, and improvements to multifamily projects, group practice facilities, hospitals, or nursing homes already insured by HUD or held by HUD. Major movable equipment for insured nursing homes, group practice facilities, or hospitals may be covered by a mortgage under this program.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may finance either: (1) additions and improvements of multifamily housing projects, nursing homes, hospitals, and assisted living facilities already subject to HUD/FHA insured mortgages or mortgages held by HUD; (2) finance energy conservation improvements. The maximum insurable loan is 90 percent of the value of the addition or improvement, or an amount which, when added to the outstanding balance of the existing insured mortgage, does not exceed the amount insurable under the program pursuant to the mortgage covering such project of facility that is insured. Where the project is covered by a mortgage held by HUD the principal amount of the loan shall be in an amount acceptable to the Secretary. Contractors must comply with prevailing wage requirements under the Davis-Bacon Act. 241(a) for apartments requires appropriated credit subsidy, which is limited.

Eligible Borrowers:
Owners of a multifamily project or facility already subject to a mortgage insured
or held by HUD.

Eligible Customers:
Individuals, families, and owners of multifamily projects.

Application:
The sponsor will have a pre-application conference with the local HUD Multifamily Region to determine the feasibility of the proposed improvements before submitting a firm commitment application. The sponsor must then submit a firm commitment application to the local Multifamily Region through a HUD-approved lender for processing. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Technical Guidance:
This program is authorized under the National Housing Act, as amended,
Section 241, Public Law 90-448 (12 U.S.C. 1715) and Public Law 94-375
(12 U.S.C. 1715Z-6). The program regulations are found in 24 CFR 241. The basic program instructions are in HUD Handbook 4585.1-Supplemental Loans for Project Mortgage Insurance available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 4 projects with 1113 units, totaling $67.1 million.

If you have questions, please contact Juan E. Seneca

Summary:The Department of Housing and Urban Development (HUD) provides reinsurance on multifamily housing projects whose mortgage loans are originated, underwritten, serviced, and disposed of by Qualified Participating Entities (QPEs) and/or their approved lenders. Section 542(b) encourages the development and preservation of affordable housing. The program was developed as a demonstration program to test innovative mortgage insurance and reinsurance products to provide affordable multifamily housing through a partnership between the QPEs and HUD. HUD's mortgage credit enhancements are used to support the underwriting and production strengths of Fannie Mae, Freddie Mac, and other qualified Federal, State, and local public financial and housing institutions. Currently Fannie Mae and Freddie Mac are participants in the Section 542(b) Risk-Sharing program.

A related program is the Housing Finance Agency Risk-Sharing Program (Section 542(c)).

Purpose:
The program provides a new insurance authority independent of the National Housing Act. The purpose of the program is to support and encourage the production and preservation of affordable Housing. The program provides insurance and reinsurance for multifamily housing projects whose loans are originated, underwritten, serviced, and disposed of by a QPE and/or its approved lenders.

Type of Assistance:
Guaranteed/Insured Loans. A QPE and/or its approved lenders may originate and underwrite affordable housing loans. If there is a default, the QPE will pay all costs associated with loan disposition and will seek reimbursement from HUD. The HUD risk share will be 50 percent pro rata. The program enables HUD to provide alternative forms of Federal credit enhancement to increase affordable multifamily housing lending.

Eligible Activities:
HUD selectively invites QPEs to participate in a variety of mortgage options to assess the effectiveness of the various credit enhancements. The QPE and HUD enter into Risk-Sharing agreements to implement the program. A QPE or its lender, in turn, makes loans to investors, builders, developers, public entities, and private nonprofit corporations or associations.

Eligible Borrowers:
Eligible mortgagors include investors, builders, developers, public entities, and private non-profit corporations or associations may apply to a qualified QPE and/or its lender.

Eligible Customers:
Individuals, families, and property owners are eligible.

Application:
To obtain mortgage insurance, a potential lender should consult with a HUD-approved QPE to obtain mortgage insurance. The potential lender then submits an application directly to the QPE. If the QPE refuses the application, the applicant may modify the application and reapply.

Technical Guidance:
The program is authorized by the Housing and Community Development Act of 1992, Section 542(b), Public Law 102-550, 12 U.S.C. 1707. There are no program regulations; requirements are set forth in risk-sharing agreements with the QPEs. Section 235 of HUD's FY 2001 Appropriations Act, Public Law 106-377, amended Section 542, which changed the Risk Sharing Pilot Program to a permanent multifamily insurance program. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 1 projects with 168 units, totaling $17 million.

If you have questions, please contact Juan E. Seneca

Summary:
Section 542(c) enables the U.S. Department of Housing and Urban Development (HUD) and State and local housing finance agencies (HFAs) to provide new risk-sharing arrangements to help those agencies provide more insurance and credit for multifamily loans.

A related program is the Qualified Participating Entities (QPE) Risk Sharing Program: Section 542(b).

Purpose:
The Program provides new insurance authority independent of the National Housing Act. Section 542(c) provides credit enhancement for mortgages of multifamily housing projects whose loans are underwritten, processed, serviced, and disposed of by HFAs. HUD and HFAs share in the risk of the mortgage. The program was originally designed as a pilot to assess the feasibility of risk-sharing partnerships between HUD and qualified State and local HFAs in providing affordable housing.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Participating qualified State and local Housing Finance Agencies may originate and underwrite affordable housing loans including new construction, substantial rehabilitation, refinancing, and housing for the elderly. The program provides full FHA mortgage insurance to enhance HFA bonds to investment grade. HFAs may elect to share from 10 to 90 percent of the loss on a loan with HUD. The HFA reimburses HUD in the event of a claim pursuant to terms of the risk sharing agreement.

An HFA must be approved by HUD to participate in this program. To be eligible the HFA must: (1) carry the designation of "top tier" or its equivalent as evaluated by Standard & Poor's or another nationally recognized rating agency; or (2) receive an overall rating of "A" for the HFA for its general obligation bonds from a nationally recognized rating agency; and (3) otherwise demonstrate its capacity as a sound, well-managed agency that is experienced in financing multifamily housing; and (4) have at least 5 years experience in multifamily underwriting; and (5) be a HUD-approved multifamily mortgagee in good standing.

Eligible Borrowers:
Eligible mortgagors include investors, builders, developers, public entities, and private Non-profit corporations or associations may apply to a qualified HFA.

Eligible Customers:
Individuals, families, and property owners may be eligible for affordable housing.

Application:
To obtain mortgage insurance, a potential borrower should consult a HUD-approved HFA as the single point of contact for additional information regarding the process. The lender on behalf of the borrower then submits an application directly to the HFA. The HFA obtains specific approvals from the local HUD Multifamily Region on previous participation and environmental assessments.

Technical Guidance:
This program is authorized by Section 542(c) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707). Section 235 of HUD's FY2001 Appropriation Act, Public Law 106-377, amended Section 542, which changed the Risk Sharing Pilot Program to a permanent multifamily insurance program. Regulations are in 24 CFR Part 266. The basic program instructions are in HUD Handbook 4590.01 - Housing Finance Agency Risk Sharing Pilot Program available on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 81 projects with 10480 units, totaling $1.7 billion.

If you have question, please contact Juan E. Seneca

Approved Housing Finance Agencies

Program Description

The Section 202 Supportive Housing for the Elderly program helps expand the supply of affordable housing with supportive services for the elderly. The program provides funding, called a capital advance, to construct, acquire, or rehabilitate multifamily properties that serve very-low-income individuals 62 years of age or older. In addition to the capital advance, properties receive a renewable Project Rental Assistance Contract (PRAC) which covers reasonable and necessary operating expenses beyond the tenant’s portion of the rent. This usually includes a service coordinator who links residents at Section 202 properties to supportive services in the community to allow them to live independently in an environment that provides supports such as cleaning, cooking and transportation. Additionally, owners can utilize up to $15 per unit per month for providing supportive services.

For information about existing 202 projects, contact your local HUD Multifamily Office (click on the state regional center that you are interested in contacting).

Information for 202 NOFO Applicants

The Section 202 program is open to nonprofit organizations with a 501(c)3 or a 501(c)4 designation or a nonprofit consumer cooperative. See the HUD Notice of Funding Opportunity (NOFO) page for the latest Section 202 NOFO with details on program requirements and how to apply.

NOFO Changes: In the Consolidated Appropriations Acts of 2021 and 2022, Congress appropriated funds to support the creation of intergenerational dwelling units for elderly caregivers raising children. Funding to build intergenerational units is available as part of the Section 202 NOFO.

To be notified of the release of the next Section 202 NOFO, make sure to be added to our mailing list. For more information on Section 202 funding availability, statutes and regulations, visit:

• HUD Funding Opportunities (scroll to the bottom to see current and prior year NOFOs)
• Section 202 statute in U.S. Code
• Section 202 Regulations
• RAD for existing Section 202 Project Rental Assistance Contracts

For Questions about the 202 NOFO, email 202CapitalAdvanceNOFO@hud.gov

Information for Tenants

• To qualify to live in a Section 202 property, at least one adult member of the household applying must be at least 62 years old.
• The household must make less than 50% of the Area Median Income (AMI) of the location of the property. You can find what 50% AMI is in your area here.
• Residents at Section 202 properties are typically charged 30% of their adjusted income for rent, with the remaining costs covered by the federal government.
• If you are interested in applying to live at a 202 property, you should contact the property owner or manager directly. HUD does not manage the leasing of 202 properties. You can find 202 properties in your area by visiting the HUD Resource Locator and selecting the “Find Affordable Elderly and Special Needs Housing” option.

Resources

• Section 202 Trainings on HUD Exchange
• LeadingAge Center for Housing Plus Services’ Housing and Health Partnerships Toolkit
• In FY2022 HUD announced $160 million in Section 202 awards. The list of the awardees for FY2022 is now available.

If you have questions, please contact Juan E. Seneca

Summary:
Through the Section 811 Supportive Housing for Persons with Disabilities program, HUD provides funding to develop and subsidize rental housing with the availability of supportive services for very low- and extremely low-income adults with disabilities.

Purpose:
The Section 811 program allows persons with disabilities to live as independently as possible in the community by subsidizing rental housing opportunities which provide access to appropriate supportive services.

Type of Assistance:

The newly reformed Section 811 program is authorized to operate in two ways: (1) the traditional way, by providing interest-free capital advances and operating subsidies to nonprofit developers of affordable housing for persons with disabilities; and (2) providing project rental assistance to state housing agencies. The assistance to the state housing agencies can be applied to new or existing multifamily housing complexes funded through different sources, such as Federal Low-Income Housing Tax Credits, Federal HOME funds, and other state, Federal, and local programs. The last appropriation was appropriated for traditional 811 capital advances was made in FY 2011.

Capital Advances

HUD has traditionally provided interest-free capital advances to nonprofit sponsors to help them finance the development of rental housing such as independent living projects, condominium units and small group homes with the availability of supportive services for persons with disabilities. The capital advance can finance the construction, rehabilitation, or acquisition with or without rehabilitation of supportive housing. The advance does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years.

HUD also provides project rental assistance contracts for properties developed using Section 811 capital advances; this covers the difference between the HUD-approved operating cost of the project and the amount the residents pay--usually 30 percent of adjusted income. The initial term of the project rental assistance contract is 3 years and can be renewed if funds are available.

Each project must have a supportive services plan. The appropriate State or local agency reviews a potential sponsor's application to determine if the plan is well designed to meet the needs of persons with disabilities and must certify to the same. Services may vary with the target population but could include case management, training in independent living skills and assistance in obtaining employment. However, residents cannot be required to accept any supportive service as a condition of occupancy.

Nonprofit organizations with a Section 501(c)(3) tax exemption from the Internal Revenue Service can apply for a capital advance to develop a Section 811 project.

Project Rental Assistance

A new Project Rental Assistance program was authorized by the Frank Melville Supportive Housing Investment Act of 2010, and was first implemented through a demonstration program in FY 2012.

Under this program, state housing agencies that have entered into partnerships with state health and human services and Medicaid agencies can apply for Section 811 Project Rental Assistance for new or existing affordable housing developments funded by LIHTC, HOME, or other sources of funds. Under the state health care/housing agency partnership, the health care agency must develop a policy for referrals, tenant selection, and service delivery to ensure that this housing is targeted to a population most in need of deeply affordable supportive housing. This Section 811 assistance comes in the form of project rental assistance alone. No funds are available for construction or rehabilitation.

Eligible grantees are state housing agencies that have entered into partnerships with state health and human services and Medicaid agencies who then allocate rental assistance to projects funded by tax credits, HOME funds, or other sources.

Eligible Customers:
For projects funded by capital advances and supported by project rental assistance contracts (PRACs), households must be very low-income (within 50 percent of the median income for the area) with at least one adult member with a disability (such as a physical or developmental disability or chronic mental illness).

For projects funded with Project Rental Assistance, residents must be extremely low-income (within 30 percent of the median income for the area) with at least one adult member with a disability. States may establish additional eligibility requirements for this program.

Application:
Applicants must submit an application in response to a Notice of Funding Availability (NOFA) posted on Grants.gov.

Technical Guidance:
This program is authorized by Section 811 of the National Affordable Housing Act of 1990 (P.L. 101-625) as amended by the Housing and Community Development Act of 1992 (P.L. 102-550), the Rescission Act (P.L. 104-19) the American Homeownership and Opportunity Act of 2000 (P.L. 106-569), and the Frank Melville Supportive Housing Act of 2010 (P.L. 111–374). Program regulations are in 24 CFR Part 891. To learn more about the Section 811 program, see Section 811 Supportive Housing for Persons with Disabilities (HUD Handbook 4571.2) and Supportive Housing for Persons with Disabilities, Conditional Commitment to Final Closing (HUD Handbook 4571.4) which are available on HUDclips.

More information concerning Section 811 Supportive Housing for Persons with Disabilities Program

Summary:
To provide private, nonprofit owners of eligible developments with a grant to convert some or all of the dwelling units in the project into an Assisted Living Facility (ALF) or Service-Enriched Housing (SEH) for elderly residents aging in place. An ALF must be licensed and regulated by the State (or if there is no State law providing such licensing and regulation, by the municipality or other subdivision in which the facility is located). Service-Enriched Housing is housing that accommodates the provision of services to elderly residents who need assistance with activities of daily living in order to live independently.

Purpose:
Assisted Living Facilities (ALFs) are designed to accommodate frail elderly and people with disabilities who can live independently but need assistance with activities of daily living (e.g., assistance with eating, bathing, grooming, dressing and home management activities) ALFs must provide support services such as personal care, transportation, meals, housekeeping, and laundry.

Service-Enriched Housing (SEH) is housing that is designed to accommodate frail elderly persons or elderly persons with service needs who are aging in place. Residents are able to live independently but need assistance with activities of daily living comparable to services typically provided in a licensed assisted living facility, such as healthcare-related services. These supportive services must be available through a licensed or certified third party service provider.

Type of Assistance:
Typical funding will cover basic physical conversion of existing project units, common and services space. The ALCP provides funding for the physical costs of converting some or all of the units of an eligible development into an ALF or SEH, including the unit configuration, common and services space and any necessary remodeling, consistent with HUD or the State's statute/regulations (whichever is more stringent). ALFs or SEH must have sufficient community space to accommodate provisions of meals and supportive services, as well as other requirements described in the NOFA.

Funding for the supportive services does not come from HUD but must be coordinated by the owners or residents, either directly or through a third party. Supportive services may include Medicaid services and programs provided by the State, an Area Agency on Aging, Money Follows the Person funds, State Home Health Care programs, State Assisted Living Services funds, Congregate Housing Services Program funds, Service Coordinator funds or similar programs.

Eligible Grantees:
Eligible projects must be owned by a private, nonprofit entity, and designated primarily for occupancy by elderly persons. Projects must have completed final closing and must have been in occupancy for at least five years from the date of the HUD approved form HUD-92485 (Permission to Occupy Project Mortgage). Eligible projects may only receive one grant award per fiscal year.

Eligible projects must also qualify as one of the following:

• 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;
• Other projects receiving Section 8 project-based rental assistance;
• Projects subsidized with Section 221(d)(3) below-market interest mortgage; or
• Projects assisted under Section 236 of the National Housing Act.

Eligible Residents:
For ALF, eligible residents who meet the admissions/discharge requirements as established for assisted living by State and local licensing, or HUD frailty requirements under 24 CFR891.205 if more stringent. The residents must be able to live independently but need assistance with activities of daily living (e.g., assistance with eating, bathing, grooming, dressing and home management activities).

Service-Enriched Housing is designed to accommodate elderly persons and people with disabilities with a functional limitation, meaning residents who unable to perform at least one activity of daily living.

Application:
Applicants must submit an application for funding, in response to the Notice of Funding Availability (NOFA) published on www.grants.gov each fiscal year that funds are available.

Technical Guidance:
The Program is authorized under Section 202b of the Housing Act of 1959, as amended by the Section 202 Supportive Housing for the Elderly Act of 2010. HUD's Office of Multifamily Housing is responsible for administering the Assisted Living Conversion Program. For more information, please contact your local HUD office.

• The Assisted Living Federation of America has information about your state’s regulations and licensing.
• ALCP Grantees:   FY 2012   FY 2010   FY 2009   FY 2008   FY 2007   FY 2006   FY 2005   FY 2004   FY 2003   FY 2002   FY 2001   FY 2000

Summary:
This funding opportunity is available to private nonprofit owners of Section 202 Supportive Housing for the Elderly properties to provide assistance for intergenerational dwelling units for intergenerational families.

Purpose:
The purpose of the program is to expand the supply of intergenerational dwelling units for very low-income grandparent(s) or relative(s) heads of household 62 years of age or older raising a child.

Type of Assistance:
Capital Advance funding is available under this NOFA to cover the cost of expanding the supply of intergenerational housing. In addition, Project Rental Assistance Contract (PRAC) funds are available for Section 202 Capital Advance projects that are funded under this program to cover the difference between the HUD approved operating costs of the project and the tenants' contribution toward rent (30 percent of their adjusted monthly income).

Eligible Applicants:
All private nonprofit owners of Section 202 Supportive Housing for the Elderly properties.

Eligible Customers:
Eligible residents who meet the occupancy requirements as established for very low-income grandparent(s) or relative(s) heads of household 62 years of age or older raising a child raising a child who is not more than 18 years of age or not more than19 years of age and also attending school. The family must meet the age requirements to be eligible for an intergenerational dwelling unit.

Application:
Applicants must submit an application for funding, in response to the Notice of Funding Availability (NOFA) published in the Federal Register in the 2008 fiscal year. Applicants that apply for the Demonstration Program for Elderly Housing for Intergenerational Families compete for $3.96 million. The application deadline is July 2, 2008. At least two awards will be announced in the early fall.

Technical Guidance:
The Program is authorized in connection with the supportive housing program under Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q). HUD's Office of Multifamily Housing is responsible for administering the Demonstration Program for Elderly Housing for Intergenerational Families. The Demonstration Program for Elderly Housing for Intergenerational Families is authorized by Living Equitably: Grandparents Aiding Children and Youth Act of 2003 or the LEGACY Act of 2003 (Pub. L. 108-186, Title II, Dec. 16, 2003; 117 Stat. 2688). The Department of Housing and Urban Development Appropriations Act, 2006 (Pub. L. 109-115, approved Nov. 30, 2005) provided $3.96 million for a Section 202 Demonstration Program for Elderly Housing for Intergenerational Families pursuant to section 203 of Public Law 108-186

Want More Information?

University of North Texas Project COPE - Helping Grandparent Caregivers

For more information prospective applicants should contact the HQ Program Contact person in the Office of Housing Assistance and Grant Administration. (202) 708-3000

Involvement of Faith Based Organizations in HUD Programs.

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.

The Service Coordinator Program provides funding for the employment of Service Coordinators in insured and assisted Multifamily Housing designed for the elderly and persons with disabilities. A Service Coordinator is a social service staff person hired or contracted by the Owner or management company. The Service Coordinator plays a critical role to support HUD assisted housing as a platform for financial security, physical security, social connections, and the delivery of long-term community based supportive services.

There are two main funding sources for the Service Coordinators in Multifamily Housing Program: operating funding (funding the program through the property’s operating budget or other eligible project resources) and grants provided by HUD through the Service Coordinators in Multifamily Housing grant program. Regardless of whether the source of funding is operating funding or grants provided by HUD, all Service Coordinator Programs in Multifamily Housing are expected to adhere to the same requirements as outlined in the SCMF Program Resource Guide.

To learn more about the program requirements for the Service Coordinator in Multifamily Housing program, please visit the HUD Exchange Service Coordinator in Multifamily Housing Program webpage to access the SCMF Program Resource Guide and other resources.

Catalog of Federal Domestic Assistance (CFDA). The CFDA number for the Service Coordinator Program is 14.191.

For more information, contact your local HUD Office.

External Resources and Tools

• Locate your ADRC. ADRCs serve as single points of entry into the long-term supports and services system for older adults and people with disabilities. Sometimes referred to as a “one-stop shops” or "no wrong door" systems. ADRCs address many of the frustrations consumers and their families experience when trying to find needed information, services, and supports. Through integration or coordination of existing aging and disability service systems, ADRC programs raise visibility about the full range of options that are available, provide objective information, advice, counseling and assistance, empower people to make informed decisions about their long term supports, and help people more easily access public and private long term supports and services programs. The Aging and Disability Resource Center Program (ADRC) is a collaborative effort of the U.S. Administration on Community Living and the Centers for Medicare & Medicaid Services (CMS).
• American Association of Service Coordinators
• NERSC, Inc. (New England Resident Service Coordinators)
• Housing America’s Older Adults: Meeting the Needs of An Aging Population This Harvard Joint Center for Housing Studies (JCHS) report provides in-depth analysis of the trends shaping America’s older adult population.

The Office of Public and Indian Housing also has a Service Coordinator Grant Program.

What's New

• Service Coordinators in Multifamily Housing Online Learning Tool
• Submission of Funding Requests. Request for FY 2017 extensions must be submitted through GrantsSolutions. Emails and faxes will no longer be accepted.
• Uniform Performance Period Across Portfolio. All grants will now have performance start date of January 1 and a performance end date of December 31. This uniformity will allow for confident budget forecasting as well as better field office management of awards.
• Latest GAO Report

Summary:
The Congregate Housing Services Program offers grants to States, units of general local government, public housing authorities (PHAs), tribally designated housing entities (TDHES), and local nonprofit housing sponsors to provide meals and other supportive services needed by frail elderly residents and residents with disabilities in federally subsidized housing. It is a project-based-rather than a tenant-based-program.

Purpose:
This program prevents premature and unnecessary institutionalization of frail elderly, nonelderly disabled, and temporarily disabled persons; provides a variety of innovative approaches for the delivery of meals and nonmedical supportive services while making use of existing service programs; fills gaps in existing service systems; and ensures availability of funding for meals and other programs necessary for independent living. An earlier CHSP program, created by the Congregate Housing Services Act of 1978, continues to receive funding on the same basis as the current program.

Type of Assistance:
Assistance is in the form of grants to provide at least one hot meal per day in a group setting, 7 days per week, plus other supportive services necessary for independent living. Projects may not duplicate services that are already available at affordable rates. HUD administers this program in coordination with the Rural Housing Service of the U.S. Department of Agriculture.

Eligible Grantees:
Grants may go to States, units of general local government, PHAs, IHAs, TDHEs; and projects funded under Section 202, Section 8 project-based assistance, Section 221(d)(3), Section 236, and Section 515 of the Rural Housing Service (RHS). A State agency or unit of local government may apply on behalf of a nonprofit or for-profit owner of eligible housing. Applicants must have an accessible dining facility, a need for the program, a demonstrated record of satisfactory management in housing or services for elderly or nonelderly persons with disabilities, and a satisfactory record of equal opportunity.

Eligible Customers:
Services may be used by frail elderly (62 years or older), disabled, and temporarily disabled persons who are residents of federally subsidized housing and are unable to perform at least three activities of daily living. An independent professional assessment committee works with a service coordinator appointed by the grantee to determine individual eligibility for services and to recommend a service package to the housing management.

Eligible Activities:
Recipient projects must provide at least one hot meal per day in a group setting, 7 days a week. Other services offered must be necessary for independent living and not duplicative of other available and affordable services. Semiannual financial reports and annual performance reports are required.

Application:
Applications are submitted in accordance with a HUD Notice of Funding Availability (NOFA).

Cost Sharing:
Under CHSP, HUD provides funds of up to 40 percent of the cost of supportive services, grantees pay at least 50 percent of the costs, and program participants pay fees amounting to at least 10 percent of the program costs. Fees may be up to 20 percent of a participant's adjusted income.

Funding Status:
HUD has neither solicited nor funded applications for new grants under CHSP since 1995. Congress, however, has provided funds to extend expiring grants on an annual basis.

Technical Guidance:
Authorization first was under the CHSA of 1978; the Housing and Community Development Amendments of 1978, Title IV, as amended, Public Law 95-557, 42 U.S.C. 8001. The revised Congregate Housing Services Program is authorized by Section 802 of the Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C. 8011, with regulations at 24 CFR 700 for HUD and 7 CFR 1944 for RHS. At HUD headquarters, the program is administered by the Office of Housing Assistance and Grant Administration at (202) 708-2866. In the Field Offices, contact the Director of Multifamily Housing or Public Housing. Program regulations can be found in HUD's "Monitoring and Technical Assistance Handbook for the CHSP," item # 0395, stock # 4640.01 R001.

For More Information:
Evaluation reports of both old and the new CHSP programs are available from HUD USER (1-800-245-2691 or 1-800-483-2209 TDD). Both the Baseline Comparison Report: Congregate Housing Services Program (CHSP) and HOPE for Elderly Independence Demonstration Program (HOPE IV) and the Evaluation of the New Congregate Housing Services Program: Second Interim Report about the new program were issued by HUD in 1996. Credit card orders may be placed online at https://www.huduser.gov/portal/home.html.

Prospective applicants should contact the local HUD Multifamily Hub or Program Center with jurisdiction for the property.

The MF FSS page on HUD Exchange is a key resource for MF FSS program information. It contains news updates and training resources for MF FSS. Among the resources are webinars and other training materials designed to introduce MF FSS to owners and staff of HUD-assisted multifamily properties. You can access the MF FSS HUD Exchange Page here.

Contacts

You may also submit inquiries to: MF_FSS@hud.gov.