FY 2023 Section 202 Supportive Housing for the Elderly

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 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 nutrition, transportation, continuing education, education and outreach regarding telemarketing fraud, and/or health-related services. In addition, this 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" or “intergenerational units” in this NOFO.

Through this NOFO, HUD seeks to fund innovative Section 202 supportive housing models that will be at the forefront of design, service delivery, and efficient use of federal resources. These properties will advance housing for the elderly as a platform for living independently and aging in the community even as residents may require more assistance with activities of daily living over time. Through this NOFO, HUD seeks sponsors that:

· Will produce housing that is physically designed to promote the long-term wellness of Elderly Persons and allow them to age in place;

· Can provide a robust package of services that support the health and social well-being of Elderly Persons; and

· Leverage Capital Advance funds with other financing sources to maximize the number of units created per dollar of HUD funding.

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. The amount of the Capital Advance funds requested may not exceed the Total Development Cost as published by HUD (see 2023 UNIT TOTAL DEVELOPMENT COST (TDC) LIMITS. The Total Development Cost limit is determined by identifying the appropriate building type (e.g., elevator) and unit size(s) in the development proposal.

Project Rental Assistance Contracts (PRACs) funds 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.

Partnerships. Sponsors/Owners are encouraged to establish formal partnerships with health and human service agencies or other organizations with a demonstrated capacity to coordinate voluntary services and support to enable individuals to live independently in the community.

In addition to local service providers, HUD encourages applicants to partner with one or more of the following State service agencies that offer tenant support:

· State Medicaid Agency · State Developmental Disability Services Agency

· State Mental Health Authority

· Centers for Independent Living

Such partnerships cannot result in conditions that may violate non-discrimination requirements under any applicable Federal civil rights statutes and requirements, including Section 504 of the Rehabilitation Act (Section 504), titles II or III of the Americans with Disabilities Act (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR part 8; 28 CFR parts 35 and 36; 24 CFR part 100.

In addition, compliance with HUD’s Equal Access Rule requires that eligibility determinations are made regardless of actual or perceived sexual orientation, gender identity, or marital status.

Funding of approximately $115,000,000 is available through this NOFO. Subject to appropriations, HUD reserves the right to award fiscal year 2024 funds based on this NOFO competition.

Program Office: Office of Multi-Family Housing

Funding Opportunity Title:  Section 202 Supportive Housing for the Elderly

Funding Opportunity Number: FR-6700-N-52

Assistance Listing Number: 14.157

OMB Approval Number(s): 2502-0267

Estimated Opening Date for Applications: February 21, 2024

Original Estimated Due Date for Applications: 11:59:59 PM Eastern time on June 20, 2024

Agency Contact: Questions regarding specific program requirements for this NOFO should be directed to: 202CapitalAdvanceNOFO@hud.gov

Program NOFO