NAHMA HUD Update: Over $160 Million Awarded for the Section 202Program to Create and Preserve Affordable Housing for Low-Income Seniors

October 3, 2023

Dear NAHMA Members –

 

Please find the HUD announcement below on the new Section 202 (PRAC and Capital Advance) Recipients. Congratulations to NAHMA Members who were awarded this vital funding!

 

 

 

HUD Awards $160.1 Million in Grants to Create and Preserve Affordable Housing for Low-Income Seniors

Funding supports the creation and rehabilitation of affordable multifamily rental housing and project-based rental assistance to help provide independent living options for low-income seniors.

 

WASHINGTON – The U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs announced today that it has awarded $160.1 million in grants to non-profit organizations across the country to support the development of new or redeveloped affordable multifamily rental housing and ongoing project-based rental assistance for low-income seniors.

“HUD is committed to addressing homelessness with urgency and ensuring everyone, including our nation’s seniors, has access to quality affordable housing,” said HUD Secretary Marcia L. Fudge. “The funding announced today shows the Biden-Harris Administration is investing in Americans at every stage in life, working tirelessly to do everything we can to make sure older adults have the resources they need to stay housed and safe, especially as we witness a troubling rise in homelessness among seniors.”


The grants support the Biden-Harris Administration’s commitment to one of the nation’s most vulnerable populations and are offered under HUD’s Section 202 Supportive Housing for the Elderly program. Funds will help to facilitate the construction and operation of 1,262 new deeply rent-assisted units for low- and very low-income seniors. Several grantees will create mixed-income communities, building 526 additional affordable and market-rate units as part of these funded projects for a total of 1,788 homes.

 

“These awards increase housing affordability and stability for seniors who are cost-burdened and need supportive services to live independently and to thrive in their communities,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.

 

Section 202 grants provide low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides necessary services to meet their unique needs.

 

 

 

HUD provides these funds to non-profit organizations in two forms:

 

  • Capital Advances: This funding covers the cost of developing, acquiring, or rehabilitating the housing. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.

 

  • Project Rental Assistance Contracts (PRAC): This renewable project-based funding covers the difference between residents’ contributions toward rent and the cost of operating the project.

 

The following grantees are the recipients of the awards announced today:

 

 

Section 202 grants provide very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services, such as nutrition, transportation, continuing education, and/or health-related services, to meet their unique needs. Section 202 program eligibility requires residents to be very low-income or earn less than 50 percent of the area median income. Most households in the Section 202 program earn less than 30 percent of the median for their area.