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Assisted Living Conversion Program (ALCP)

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. 

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.

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.