Section 202 Demonstration Pre Development Grant Program | Apply Online

Opportunity Summary:

The Section 202 Demonstration Pre Development Grant Program (Funding Opportunity Number FR 5390 N 01) is a discretionary HUD grant that was created to help certain Section 202 Supportive Housing for the Elderly projects get off the ground faster by paying for key early-stage development costs. It is essentially a targeted pot of money meant to cover pre-development expenses such as architectural and engineering work, site control activities, and other eligible planning-related costs that are allowable under the broader Section 202 program. The underlying problem HUD is trying to solve is that many Section 202 developments struggle to move from a Fund Reservation award to Initial Closing within the required 18-month window, and HUD recognizes that a common barrier is the lack of cash available upfront to pay for the professional services and site-related steps needed to reach closing.

This opportunity functions as a demonstration: after awarding and distributing pre-development funds to selected applicants, HUD planned to evaluate whether having this early money available actually helps sponsors shorten timelines and reach Initial Closing more reliably within 18 months. In other words, it is not only about providing financial assistance, but also about testing whether that assistance measurably improves the speed and efficiency of Section 202 project processing. HUD explicitly frames pre-development funding as one of the missing pieces that can delay projects, given the complexity of assembling sites, completing design and engineering work, and managing planning requirements for supportive housing for older adults.

A central point in HUDs description is that this funding is not meant to duplicate or replace Section 202 Capital Advance funding. Instead, it fills a timing gap: many pre-development costs are incurred well before Initial Closing, and without a dedicated pre-development source, sponsors often have to front these expenses themselves, borrow, or secure other eligible resources outside the capital advance just to keep the project moving. This grant is meant to provide a dedicated source for those early costs that otherwise might not be reimbursed until closing or could require the sponsor to find external bridge funding.

Eligibility is narrow and tied directly to the FY 2009 Section 202 NOFA process. While the eligible applicant pool begins with private nonprofit organizations and nonprofit consumer cooperatives that submitted applications under the FY 2009 NOFA for the Section 202 Supportive Housing for the Elderly Program (CFDA 14.157), actual awards under this pre-development program are restricted to those applicants that were selected for Fund Reservation Awards under the FY 2009 Section 202 NOFA. This means the program is not a general open solicitation for new Section 202 proposals; it is a follow-on support opportunity for sponsors who already received a fund reservation and need help paying for the steps required to reach initial closing. HUD also notes that funding under this program would not be fair-shared to each HUD office, signaling that awards were not allocated by geography but instead based on the program design and selections.

From an administrative standpoint, the program was posted and created on August 27, 2010, with an application deadline of October 4, 2010, and an archive date of October 10, 2010. HUD listed an estimated total funding amount of $20,000,000 and specified that there was no cost sharing or matching requirement. The funding instrument type is a grant, and the activity category is housing.

For applicant support and technical questions, HUD directed applicants to their local HUD office for program-specific requirements, and also provided a headquarters contact: Denise Taylor Parker at (202) 402-2892. The announcement also referenced an additional information link indicating that application materials and instructions could be downloaded using the CFDA number.

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