Section 202 Supportive Housing for the Elderly | Apply Online

Section 202 Supportive Housing for the Elderly (HUD) - FAQs

What is this funding opportunity?

This is the HUD Section 202 Supportive Housing for the Elderly discretionary grant opportunity (Funding Opportunity Number FR 5300 N 21, CFDA 14.157). It is designed to expand and operate affordable, service-enriched housing for very low income seniors age 62 and older.

What is the main purpose of the Section 202 program?

The core purpose is to support the development of housing that helps older adults live independently, while ensuring supportive services are available when needed. The program particularly emphasizes serving seniors who may be considered frail elderly, and it is structured to keep properties affordable and financially viable over multiple decades.

Who is the intended resident population?

The housing must be available for very low income elderly persons. The opportunity describes elderly as seniors age 62 and older, and it highlights supportive services for residents who are considered frail elderly.

Who can apply for this grant?

Eligibility is limited to mission-driven entities, not individuals or for-profit developers. Eligible applicants include private nonprofit organizations and nonprofit consumer cooperatives. The NOFA includes additional details related to formation and ownership requirements (including information related to forming the Owner Corporation).

Are individuals or for-profit developers eligible to apply?

No. Based on the opportunity description, eligible applicants are private nonprofit organizations and nonprofit consumer cooperatives, rather than individuals or for-profit entities.

How much funding was estimated to be available?

The total estimated funding available under this NOFA was approximately $420,900,000.

What types of HUD assistance are provided under this opportunity?

The funding structure has two primary components: (1) a capital advance for eligible development activities and (2) Project Rental Assistance Contracts (PRAC) that provide ongoing rental assistance tied to the project.

What is a capital advance under Section 202?

The capital advance is a development subsidy that bears no interest and can be used only for eligible development activities under the program. It is subject to HUD development cost limits, and the NOFA points applicants to Section IV.E.3 for how to calculate the allowable capital advance amount.

What can the capital advance be used for?

It can be used only for eligible development activities, including: construction of new supportive housing, rehabilitation of an existing structure, or acquisition of a structure with or without rehabilitation.

Does the capital advance need to be repaid?

Repayment is not required as long as the property continues to serve the program purpose for the required affordability period. Under this opportunity, repayment is not required if the housing remains available for occupancy by very low income elderly persons for at least 40 years.

What is the affordability/use restriction period tied to the capital advance?

The opportunity specifies a long-term requirement: the housing must remain available for occupancy by very low income elderly persons for at least 40 years. This functions like a long-term use restriction to ensure the federal investment produces lasting affordable housing.

What is PRAC?

PRAC stands for Project Rental Assistance Contracts. PRAC provides ongoing rental assistance tied to the project and is intended to cover the gap between what residents can afford to pay and the HUD-approved operating costs of running the property.

How is PRAC generally calculated for residents?

The notice describes the standard approach: residents generally contribute 30 percent of adjusted income toward rent, and PRAC pays the difference up to the HUD-approved operating cost of the project.

Can PRAC be used to support services, or only rent operations?

PRAC is meant to support ongoing operations, and the notice emphasizes that for projects serving frail elderly residents, PRAC funds may be used to provide supportive services and to hire a service coordinator. Supportive services must be appropriate to the needs and categories of frail elderly residents the project proposes to serve.

What supportive services are expected under this program?

The opportunity frames services as service-enriched and available when needed, especially for residents who are frail elderly. It also states that supportive services (when supported through PRAC for frail elderly projects) must be appropriate to the needs and categories of frail elderly residents proposed to be served, meaning they should be aligned with resident needs rather than generic.

Is cost sharing or a match required?

No. The opportunity states that cost sharing or matching funds are not required as a condition of award.

Why was this notice issued as a correction/clarification?

This notice was issued as a set of technical and policy clarifications to the original FY2009 NOFA first posted on September 1, 2009. HUD determined that multiple sections required revisions, including corrections (such as email addresses) and updates to tables and exhibits, and it added clarifying guidance related to Energy Star and Green Development requirements.

What topics did HUD clarify or revise in the corrected materials?

Based on the description provided, HUD revised multiple sections and made corrections to items such as email addresses, updated tables and exhibits, and added clarifying guidance related to Energy Star and Green Development requirements to provide clearer direction on energy efficiency and green building expectations.

Was the application deadline extended?

Yes. Because the changes were significant enough to affect application preparation, HUD extended the deadline from the original closing date of November 13, 2009 to a new closing date of December 14, 2009.

Where were the corrected materials made available?

HUD indicated that the corrected materials would be posted through Grants.gov so the full applicant pool would have access to the updated guidance.

If an applicant already submitted an application before the corrections, could they resubmit?

Yes. HUD noted that applicants who already submitted before the corrections were published could choose to resubmit an updated application reflecting the changes and clarifications.

If multiple applications were submitted, which version would HUD review?

HUD clarified that if multiple submissions were made, the last application received by Grants.gov by the December 14, 2009 deadline (and consistent with HUD's FY2009 Grace Period Policy) would be the version reviewed and rated.

Did HUD adjust any downstream review dates due to the extension?

Yes. HUD moved the Phase II Environmental Assessment date to January 14, 2010 to align environmental processing with the extended application window.

What is the administering agency for this opportunity?

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

Where can applicants get help or ask questions?

The notice points applicants to local HUD offices for programmatic guidance and also lists a headquarters contact phone number. It also provides a TTY option through the Federal Relay Service for applicants with hearing or speech impairments.

How does this program support long-term project viability?

The opportunity describes a structure built around long-term affordability and ongoing operating support. The capital advance supports development and is effectively forgiven if the property serves very low income elderly persons for at least 40 years, while PRAC provides ongoing rental assistance to help cover operating costs beyond what residents can afford to pay.