Assisted Living Conversion Program (ALCP for Eligible Multifamily Projects | Apply Online

Opportunity Summary:

The Assisted Living Conversion Program (ALCP) is a discretionary HUD grant program designed to help certain existing, HUD-assisted multifamily housing properties convert some or all of their current residential units into housing that supports older adults and people who need help with daily living. The core purpose is to pay for the hard, physical conversion work needed to transform an eligible multifamily development into either an Assisted Living Facility (ALF) or a Service Enriched Housing (SEH) model. In plain terms, this program is meant to help owners retrofit and reconfigure buildings so residents can age in place with appropriate spaces and services, while ensuring the property meets all applicable federal, state, and accessibility requirements.

The funding is specifically aimed at physical costs tied to conversion. That includes remodeling and construction work such as reconfiguring unit layouts, modifying bathrooms and kitchens, upgrading corridors and entryways, and creating or improving the common and service areas that an ALF or SEH needs to function. The work must comply with HUD requirements and also with state statutes or regulations, and the stricter rule applies if there is a difference between HUD and state standards. On top of that, the conversion has to comply with all relevant accessibility laws, which matters because the target population often includes residents with mobility, sensory, or other functional limitations.

A major feature of the ALCP is that it does not just fund changes inside individual apartments; it also supports the shared spaces that make assisted living or service-enriched living practical. For ALF conversions, the property must have enough community space to accommodate a central kitchen or dining facility. If meals are prepared off-site, the onsite preparation area still has to be large enough to allow installation of a full kitchen, essentially ensuring the building can support meal service operations in a compliant way. For both ALF and SEH conversions, the project must include sufficient community space for resident use and for operations, such as lounges, recreation areas, multipurpose rooms, and office or staff spaces that support service coordination and day-to-day management of the assisted living or enriched service environment.

Another key point is that supportive services are not optional. The converted ALF or SEH must provide supportive services for residents either directly (through the owner/operator) or via a third-party provider arrangement. The application must include a firm commitment for those supportive services, which means HUD expects applicants to demonstrate that the service package is real, secured, and ready to deliver, not just a plan or intention. The program also recognizes that not every service will necessarily be provided by the housing operator; residents are allowed to contract directly with third-party agencies for services like nursing, therapy, or other supports that the ALF or SEH does not offer in-house.

From a resident-cost perspective, the program allows operators to charge assisted living or service-enriched residents for meals and/or service fees. That is important because it signals that ALCP funds are focused on capital conversion costs rather than ongoing operating or service delivery costs, and that a sustainable service model may include resident fees. The opportunity materials also point applicants to a specific section of the notice for deeper rules on meals and supportive services, indicating that the details of what is permitted and how it must be documented are governed by the NOFA requirements.

Eligibility is narrow. Only private nonprofit owners of certain eligible multifamily assisted housing developments, as defined in Section 683(2)(B) through (G) of the Housing and Community Development Act of 1992, may apply. This is not an open competition for all housing providers, for-profit owners, or new construction developers; it is targeted to nonprofit owners of specific HUD-assisted multifamily properties that meet the statutory eligibility categories referenced in the notice. HUD also makes clear that eligibility has to remain intact throughout the grant term. If the owner’s status or the property’s status changes in a way that makes it ineligible (for example, prepaying a mortgage, selling or transferring the property in certain ways, opting out of a Section 8 HAP contract, or shifting the grant to a single-asset entity), HUD reserves the right to terminate the grant and recover funds.

Administratively, this opportunity was issued by the U.S. Department of Housing and Urban Development under Funding Opportunity Number FR-5600-N-20 and CFDA 14.314 (Assisted Living Conversion for Eligible Multifamily Housing Projects). It had an estimated total funding amount of $25,000,000, and it did not require cost sharing or matching. The notice was posted on March 13, 2012, with an application closing date of May 15, 2012, and it was later archived on May 23, 2012. For applicant support at the time, HUD listed contacts Katina Washington and Aretha Williams at (202) 708-3000 for questions about the ALCP grant award process, and the application package was made available through the CFDA number.

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