Section 202: Supportive Housing for the Elderly
Type
Capital, Operating, Pre-development/Acquisition
Source
Federal
Procurement Agency
U.S. Department of Housing and Urban Development (HUD)
Total Annual Award
In New York State, the estimated funding allocation for FY 2010 is as follows: $40,399,682 for an estimated 247 units in the HUD New York City region and $10,632,967 for an estimated 76 units in the HUD Buffalo Region ($7.95 million in metropolitan Buffalo, $2.69 million in nonmetropolitan Buffalo).
Eligible Populations
Low-income, elderly individuals (62 years and over) with an area median income (AMI) below 50%.
Eligible Projects
Section 202 can be used for new construction, rehabilitation and/or acquisition in permanent supportive housing projects. This funding is only available to nonprofits.
Funding Award Details
The program provides capital financing and three years of project rental assistance contracts (PRAC). After three years, the rental assistance is renewed noncompetitively directly from the Section 8 budget.
Rate Details
The reservation of capital funds is based on a tiered base rate according to type of building (elevator or non-elevator) and the size and number of units, multiplied by the 'high cost factor' for the area. The base rates for FY 2010 ranged from $51,739 for a studio apartment in a non-elevator building to $75,897 per two-bedroom apartment in an elevator building. HUD may increase these development cost limits by up to 140% in high cost areas and up to 160% on a project-by-project basis.
Term of Service/Length of Grant
40 years. Repayment of the capital advance is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.
Limitations
Must be between 5 and 125 units.
Network Notes
Only some HUD 202 buildings meet the common definition of supportive housing; onsite services are not required, nor is there a mandate to serve homeless and/or disabled seniors. However, HUD will fund a service coordinator position for residents if 25% or more of the seniors are frail or at risk of institutionalization. HUD will also allow providers to use their 202 funding for up to $15 per unit per month in services. Also of note, the proposals must include a service plan for residents but the services must be optional.
For More Information
Proposals are reviewed and rated by HUD Multifamily Hubs. There are two in New York, located in New York City and Buffalo.
For the Notice of Funding Availability (NOFA), visit here.
For more information on the program, visit HUD's website.
To submit your grant application electronically, visit here.
Contact
The contact person on the FY 2010 Notice of Funding Availability is:
Alicia Anderson
alicia.anderson@hud.gov
Last updated: 09/15/2011
Did you know…
In Minnesota, child welfare cases dropped by nearly 90% for homeless families in supportive housing.