FY 2020 Section 202 Supportive Housing for the Elderly Program

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 or 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 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. 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.

PRACs 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 costs (see 24 CFR 891.205).

Capital Advance funds are encouraged to be used in combination with other non-Section 202 funding (see Rating Factor 3), but they may only be used in connection with units that will be assisted under the PRAC. PRAC units may be developed or placed within a property that also includes non-PRAC residential units (whether restricted as affordable or rented at market rates) and non-residential units (such as first floor commercial space).

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. Through this NOFA, 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.

Per 24 CFR 891.809, Capital Advance Funds can NOT be used:                                                                                          

  • For acquisition of facilities currently owned and operated by the Sponsor as housing for the elderly, except with rehabilitation as defined in 24 CFR 891.105;
  • For the financing or refinancing of Federally assisted units or properties servicing or encumbered by Federally insured debt;
  • For units in Section 202 direct loan projects previously refinanced under the provisions of Section 811 of the American Homeownership and Economic Opportunity Act of 2000, 12 U.S.C. 1701q note; and
  • To construct or operate assisted living facilities, nursing homes, infirmaries, medical facilities, mobile homes, community centers, headquarters for organizations for the elderly, or residential units without individual kitchens and/or bathrooms (also known as "single room occupancy units" or SROs) that are not shared.


Funding of approximately $ 150,000,000 is available through this NOFO. HUD expects to make approximately 45 awards from the funds available under this NOFA.

Preference Points: This NOFA offer  preference points for Opportunity Zones.  The maximum number of points available under this NOFA is 100 points,

Program Office: Office of Housing

Funding Opportunity Title: Section 202 Supportive Housing for the Elderly

FAIN: FR-6400-N-52

Assistance Listing  Number: 14.157

OMB Approval Numbers: 2502-0267

Opening Date: January 11, 2021

Deadline Date: May 26, 2021

Program NOFO (attached) Technical Corrections removes remove language from page 50 of 60 Section V.B.4. Application deadline date remains the same.

Updated S202 FAQs (4/15/2021)

S202 NOFA Toolkit

S202 NOFA Toolkit Training

S202 NOFA Webinar PowerPoint Slides

S202 NOFA Webinar Recording