U.S. Department of Housing and Urban Development (HUD)
08/28/19 11:59 PM ET Receipt
Grants starting at $50,000 to USA nonprofit organizations and consumer cooperatives to provide capital funding and rental subsidies to develop and operate supportive housing for low-income elderly populations (ages 62 and older). Applicants are advised that required registrations may take several weeks to complete.
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.
For details on the Program Specific Requirements, see the NOFA document: https://www.hud.gov/sites/dfiles/SPM/documents/FY2018-Section202-NOFA.pdf#page=14
GrantWatch ID#: 185759
Minimum Award Amount: $50,000 Per Project Period
Maximum Award Amount: $5,000,000 Per Project Period
Estimated Project Start Date: 01/22/2021
Estimated Project End Date: 05/21/2024
The project period consists of the time from award to construction completion, with an additional 12-months of operations under a PRAC.
Initial closing of the Capital Advance and start of construction of the project are expected to be accomplished within 6-18 months after the obligation of funds. HUD expects Sponsors to have commitments for all funds and required permits no later than 12 months following the acceptance of the Agreement Letter and to begin construction (if applicable) within 18 months of the Agreement Letter.
Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.
Questions regarding specific program requirements for this NOFA should be directed to: 202CapitalAdvanceNOFA@hud.gov
Persons with hearing or speech impairments may access this number via TTY by calling the toll-free Federal Relay Service at 800-877-8339.
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