Opportunity Information: Apply for FR 5200 N 10

  • The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Assisted Living Conversion Program (ALCP) for Eligible Multifamily Housing Projects" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.314 Assisted Living Conversion for Eligible Multifamily Housing Projects.
  • This funding opportunity was created on May 4, 2008 and posted on May 4, 2008.
  • Applicants must submit their applications by Jul 3, 2008. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $24,750,000.00 in funding.
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
  • Only private nonprofit owners of eligible multifamily assisted housing developments specified in section 683(2) (B), (C), (D), (E), (F), and (G) of the Housing and Community Development Act of 1992 (Pub. L.102 550, approved October 28, 1992) may apply for an ALCP grant. NOTE If your eligibility status changes during the course of the grant term, making you ineligible to receive the grant (e.g., prepayment of mortgage, sale/TPA of property, opting out of a Section 8 Housing Assistance Payment (HAP) contract, or the transfer of the grant to a single asset entity), HUD retains the right to terminate the grant and recover funds made available through this NOFA.
Apply for FR 5200 N 10

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Opportunity Summary:

The Assisted Living Conversion Program (ALCP) is a U.S. Department of Housing and Urban Development (HUD) discretionary grant program that helps eligible owners of certain HUD-assisted multifamily housing convert existing apartments into assisted living facilities (ALFs). The basic idea is to let an existing, eligible property be remodeled so it can better serve frail older adults and people with disabilities who need help with everyday activities, while keeping the housing rooted in the assisted-housing inventory rather than requiring entirely new construction. Funding is aimed specifically at the physical conversion work needed to create an assisted living setting within a current multifamily development, including changes to unit layouts and the creation or remodeling of common areas that support assisted living operations.

In this program, an assisted living facility is understood as housing that supports residents who need assistance with activities such as eating, bathing, grooming, dressing, and managing daily household tasks. The notice emphasizes that ALFs must provide supportive services, including personal care, transportation, meals, housekeeping, and laundry. It also defines "frail elderly person" in a very specific way: an individual who is 62 years or older and unable to perform at least three activities of daily living (ADLs), using the definition and framework tied to HUD's Section 202 regulations at 24 CFR 891.205. The program also references the statutory definition of assisted living in section 232(b)(6) of the National Housing Act (12 U.S.C. 1715w), which signals that HUD is anchoring eligibility and compliance expectations to established federal law and program rules.

ALCP funds are limited to covering the physical costs of conversion. That includes reconfiguring units (for example, making them more suitable for residents with functional limitations), remodeling as needed, and creating or upgrading related common and service space that is appropriate for an assisted living model. The description makes clear that the converted project must have enough community space for core assisted-living functions, such as a central kitchen or dining facility, resident lounges, recreation areas, other multipurpose spaces available to residents, and/or office and staff spaces needed to operate the ALF. Even if meals are prepared off site, the facility still needs a preparation area large enough that a full kitchen could be installed if necessary. All construction and remodeling must meet HUD requirements or state statute/regulations, whichever standard is more stringent, meaning applicants should plan for the higher bar where state and federal standards differ.

Supportive services are a required component, but the grant itself is for the physical conversion rather than ongoing services funding. Applicants must show that residents will receive supportive services either directly from the owner/operator or through a third-party provider. A key application requirement is a firm commitment for the supportive services to be offered within the ALF, which is meant to prevent conversions that produce renovated space without a reliable services delivery plan. The program also allows the ALF to charge residents for meals and/or service fees, and it notes that residents may separately contract with third-party agencies for additional services such as nursing, therapy, or other supports that the ALF does not provide.

Eligibility is narrow. Only private nonprofit owners of certain eligible multifamily assisted housing developments listed in section 683(2)(B), (C), (D), (E), (F), and (G) of the Housing and Community Development Act of 1992 (Public Law 102-550) may apply. HUD also flags an important compliance risk: if an owner's eligibility status changes during the grant term in a way that makes the property ineligible (examples given include prepayment of the mortgage, sale or transfer of the property, opting out of a Section 8 Housing Assistance Payments contract, or transferring the grant to a single-asset entity), HUD reserves the right to terminate the grant and recover funds. In other words, applicants have to maintain the underlying assisted-housing status and ownership structure that makes them eligible for the program throughout the grant period.

The opportunity information provided indicates this is a grant (not a loan) with no cost sharing or matching requirement. The CFDA number is 14.314, titled "Assisted Living Conversion for Eligible Multifamily Housing Projects." The opportunity was posted May 4, 2008, with an application deadline of July 3, 2008, and it was archived July 4, 2008. The listed award ceiling is $24,750,000. The sponsoring agency is HUD, and a contact for access issues is Aretha Williams at (202) 708-3000, extension 2480, Director of the Grant Policy and Management Division.

Assisted Living Conversion Program (ALCP) FAQs

What is the Assisted Living Conversion Program (ALCP)?

The Assisted Living Conversion Program (ALCP) is a U.S. Department of Housing and Urban Development (HUD) discretionary grant program that helps eligible owners of certain HUD-assisted multifamily housing convert existing apartments into assisted living facilities (ALFs) through physical remodeling.

What is the main purpose of ALCP funding?

The program is designed to keep housing within the existing assisted-housing inventory by funding physical conversion work so an eligible, already-assisted multifamily property can better serve frail older adults and people with disabilities who need help with everyday activities.

Is ALCP funding meant for new construction?

No. The described purpose is conversion of existing apartments within an eligible multifamily development into an assisted living setting, rather than building an entirely new facility from the ground up.

What does HUD mean by an "assisted living facility" (ALF) in this program?

In this opportunity, an assisted living facility is housing that supports residents who need help with activities such as eating, bathing, grooming, dressing, and managing daily household tasks. The notice also emphasizes that ALFs must provide supportive services, including personal care, transportation, meals, housekeeping, and laundry.

How does the program define a "frail elderly person"?

A "frail elderly person" is defined as an individual who is 62 years or older and unable to perform at least three activities of daily living (ADLs), using the definition and framework tied to HUD's Section 202 regulations at 24 CFR 891.205.

Does ALCP reference any federal legal definitions for assisted living?

Yes. The program references the statutory definition of assisted living in section 232(b)(6) of the National Housing Act (12 U.S.C. 1715w), indicating that eligibility and compliance expectations are anchored to established federal law and program rules.

What types of costs can ALCP grant funds cover?

ALCP funds are limited to physical conversion costs. This includes reconfiguring and remodeling units and creating or upgrading common and service spaces appropriate for an assisted living model within the existing multifamily development.

What costs are not the focus of ALCP funding?

The opportunity description indicates the grant is for the physical conversion rather than ongoing supportive services funding. Applicants must still show supportive services will be provided, but the grant itself is aimed at the construction/remodeling side of the conversion.

What kinds of building changes are included in "physical conversion"?

The description includes changes such as reconfiguring units to make them more suitable for residents with functional limitations, remodeling as needed, and creating or remodeling common and service areas that support assisted living operations.

What common spaces does the converted assisted living facility need to have?

The converted project must have enough community space for core assisted-living functions. Examples given include a central kitchen or dining facility, resident lounges, recreation areas, other multipurpose spaces available to residents, and/or office and staff spaces needed to operate the ALF.

If meals are prepared off-site, is a kitchen still required?

Yes. Even if meals are prepared off site, the facility must still include a preparation area large enough that a full kitchen could be installed if necessary.

Which construction and remodeling standards apply?

All construction and remodeling must meet HUD requirements or state statute/regulations, whichever standard is more stringent. Applicants should plan to meet the higher standard when state and federal requirements differ.

Are supportive services required as part of the assisted living model?

Yes. Supportive services are described as a required component of an ALF in this program, and the notice emphasizes services such as personal care, transportation, meals, housekeeping, and laundry.

Who can provide the supportive services in an ALCP-assisted ALF?

The supportive services may be provided directly by the owner/operator or through a third-party provider.

What is the supportive services commitment requirement for the application?

A key application requirement is a firm commitment that supportive services will be offered within the ALF. This is intended to prevent conversions that produce renovated space without a reliable plan for service delivery.

Can the assisted living facility charge residents for meals or services?

Yes. The program notes that the ALF may charge residents for meals and/or service fees.

Can residents obtain additional services from outside providers?

Yes. Residents may separately contract with third-party agencies for additional services such as nursing, therapy, or other supports that the ALF does not provide.

Who is eligible to apply for this grant opportunity?

Eligibility is limited to private nonprofit owners of certain eligible multifamily assisted housing developments listed in section 683(2)(B), (C), (D), (E), (F), and (G) of the Housing and Community Development Act of 1992 (Public Law 102-550).

What eligibility and compliance risks could cause HUD to terminate the grant?

HUD notes that if an owner's eligibility status changes during the grant term in a way that makes the property ineligible, HUD reserves the right to terminate the grant and recover funds. Examples include prepayment of the mortgage, sale or transfer of the property, opting out of a Section 8 Housing Assistance Payments (HAP) contract, or transferring the grant to a single-asset entity.

What does the program require regarding maintaining eligibility during the grant term?

Applicants must maintain the underlying assisted-housing status and ownership structure that makes them eligible throughout the grant period, because a change that affects eligibility may lead to termination and recovery of funds by HUD.

Is this opportunity a grant or a loan?

This opportunity is described as a grant (not a loan).

Is there a cost sharing or matching requirement?

No. The provided opportunity information indicates there is no cost sharing or matching requirement.

What is the CFDA number for this program?

The CFDA number is 14.314, titled "Assisted Living Conversion for Eligible Multifamily Housing Projects."

What is the award ceiling listed for this opportunity?

The listed award ceiling is $24,750,000.

Who is the sponsoring agency for this opportunity?

The sponsoring agency is the U.S. Department of Housing and Urban Development (HUD).

When was this opportunity posted and when was the deadline?

The opportunity was posted May 4, 2008, with an application deadline of July 3, 2008.

Is this opportunity still open?

No. The opportunity information states it was archived on July 4, 2008.

Who is listed as the contact for access issues?

The contact for access issues is Aretha Williams, Director of the Grant Policy and Management Division, at (202) 708-3000, extension 2480.

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