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FY 2018 HUD's Section 202 Supportive Housing for the Elderly Program (Section 202)

The Section 202 Supportive Housing for the Elderly program provides Capital Advance funding for the development and operation of supportive rental housing for very-low-income persons aged 62 years or older and project rental subsidies in the form of a Project Rental Assistance Contract (“PRAC”) to maintain ongoing affordability. This program provides very-low-income elderly persons with the opportunity to live independently, but with important voluntary support services such as nutritional, transportation, continuing education, and/or health-related services.

Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. (See Section II.C. for additional information). Section 202 program funds cannot be used to construct or operate assisted living facilities. Capital Advance funds bear no interest and repayment is not required when the housing remains available for occupancy by very-low-income elderly persons for at least 40 years.

PRACs are used to cover the difference between the tenants' contributions toward rent and the HUD-approved cost to operate the project.  PRAC funds may also be used to provide supportive services and to hire a service coordinator.

The Department of Housing and Urban Development ("HUD") seeks to fund Section 202 properties that advance housing for the elderly as a platform for living independently and aging in community even as residents may require more assistance with activities of daily living over time. HUD seeks to fund properties that will be at the forefront of design, service delivery and efficient use of federal resources that will provide models for replication by other providers of supportive housing for very-low-income elderly persons. To meet this outcome, HUD expects successful applicants to demonstrate best practices or innovation in both physical design and supportive services. Proposals must promote the long-term physical and mental health and wellness of very-low-income elderly persons and the efficient delivery of government assistance. Finally, HUD aims to provide Capital Advance funding to those applicants who leverage Capital Advance funds with other financing sources to meet the goal of building supportive housing for very-low-income elderly persons and to demonstrate ways to maximize the number of units created per dollar of HUD funding.  For more information about specific Review Criteria see Section V.A.

Funding for this program was last provided in 2010.  Since that time there have been major changes to the program delivery systems in several areas including emphasis on the following:

  • Physical design standards that will facilitate aging in place; and
  • Mixed-finance development that leverages Capital Advance funding with other sources.                                                                                                                                                                                       

Please be sure to carefully review updated program requirements and regulations referred to in this NOFA.  In addition, HUD encourages applicants to demonstrate best practices and innovation in physical design and supportive services based on the evolution in private sector service delivery since the program was last funded.

Funding of up to $50,000,000 is available through this NOFA.

Funding Opportunity Number: FR-6200-N-52
Opportunity Title: Section 202 Supportive Housing for the Elderly Program
Competition ID: FR-6200-N-52
CFDA No: 14.157
OMB Approval Numbers: 2501-0017
Opening Date: April 04, 2019
Deadline Date: August 28, 2019