Opportunity Information: Apply for FR 5415 N 38
Apply for FR 5415 N 38
- The Department of Housing and Urban Development in the community development housing sector is offering a public funding opportunity titled "Section 202 Supportive Housing for the Elderly" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.157 Supportive Housing for the Elderly.
- This funding opportunity was created on May 26, 2011 and posted on Mar 4, 2011.
- Applicants must submit their applications by Jun 21, 2011. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $371,000,000.00 to eligible and selected applicants.
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
- Private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements contained in the General Section and Section III.C. 2, are the only eligible applicants under this Section 202 program. Neither a public body or tribe nor an instrumentality or agency of a public body or tribe is eligible to participate in the program. Nonprofit entities associated with public bodies or tribes must establish their eligibility by providing an attorneys opinion stating that under state or tribal law the associated entity is not an instrumentality or agency of the public body or tribe and confirming that such entity Meets the definition of private nonprofit organization or nonprofit organization under part 891 Has Articles of Incorporation which provide no more than minority control by the public body or tribe and Is not receiving a majority of its operational funding from the public body or tribe. Applicant eligibility for purposes of applying for a Section 202 fund reservation under this NOFA has not changed i.e., all Section 202 Sponsors and Co Sponsors must be private nonprofit organizations and nonprofit consumer cooperatives. However, the Owner corporation, when later formed by the Sponsor, must be (1) a single purpose and single asset private nonprofit organization that has tax exempt status under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code of 1986, (2) nonprofit consumer cooperative, or (3) for purposes of developing a mixed finance project pursuant to the statutory provision under Title VIII of the American Homeownership and Economic Opportunity Act of 2000, a for profit limited partnership with a private nonprofit organization or a corporation wholly owned and controlled by a private nonprofit organization as the sole general partner.
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Opportunity Summary:
The Section 202 Supportive Housing for the Elderly opportunity is a discretionary HUD grant program (CFDA 14.157) designed to expand and preserve affordable, service-enriched housing for very low income older adults. Under this program, HUD funds eligible nonprofit sponsors to develop housing that remains dedicated to very low income elderly residents for the long term. The program pairs two core forms of assistance: (1) a capital advance to cover eligible development costs and (2) Project Rental Assistance Contracts (PRAC) to keep ongoing rents affordable once the property is operating. The underlying rules for the program are implemented through 24 CFR part 891.
The capital advance portion functions like a development grant rather than a traditional loan. Funds must be used for one of three purposes: new construction, rehabilitation of an existing structure, or acquisition of a structure with or without rehabilitation. The capital advance is interest-free and is calculated subject to HUD development cost limits referenced in the notice (the NOFA points applicants to Section IV.E.3 for the specifics of how the amount is determined). Importantly, repayment is not required as long as the assisted housing continues to be available for occupancy by very low income elderly persons for at least 40 years. In practice, that means the award is conditioned on a long-term affordability and use restriction: the property must remain in service to the target population for four decades to avoid repayment obligations.
The PRAC component is the operating subsidy that makes the housing workable for residents with limited incomes. Tenants generally contribute 30 percent of their adjusted income toward rent, and PRAC pays the gap between that tenant payment and the HUD-approved cost to operate the project. This structure is meant to stabilize project finances while ensuring that rent remains tied to what residents can reasonably afford. PRAC funds may also support services in certain settings, including paying for supportive services and a service coordinator for projects serving frail elderly residents. Any supportive services funded through PRAC must match the needs of the frail elderly categories the project proposes to serve, which reinforces that services are not one-size-fits-all but should be appropriate to the resident population (for example, service coordination, linkages to health and community-based supports, and other assistance aligned with frailty-related needs).
Eligibility is narrowly limited and centers on private nonprofit capacity. The only eligible applicants are private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements described in the broader General Section of the NOFA and in Section III.C.2. Public bodies, tribes, and any instrumentality or agency of a public body or tribe are not eligible to apply. For nonprofits that have some relationship with a public body or tribe, HUD requires a clear demonstration that the applicant is not effectively a governmental instrumentality. That demonstration must include an attorney opinion, grounded in state or tribal law, confirming that the entity is not an agency or instrumentality and that it meets HUDs definition of an eligible private nonprofit under part 891. The attorney opinion also must confirm that the organizations governing documents (Articles of Incorporation) provide the public body or tribe no more than minority control, and that the nonprofit is not receiving a majority of its operational funding from the public body or tribe.
The notice also clarifies a common structural point: while the Sponsor and any Co-Sponsor applying for the Section 202 fund reservation must be eligible private nonprofits or nonprofit consumer cooperatives, the ownership entity that will ultimately own the property is typically formed later and must meet specific criteria. The eventual Owner corporation must be a single-purpose, single-asset private nonprofit with tax-exempt status under IRS 501(c)(3) or 501(c)(4), or it may be a nonprofit consumer cooperative. For mixed-finance development authorized under Title VIII of the American Homeownership and Economic Opportunity Act of 2000, the ownership structure can instead be a for-profit limited partnership, as long as a private nonprofit organization (or a wholly owned and controlled corporation of a private nonprofit) serves as the sole general partner. This flexibility is intended to allow additional financing sources in certain projects while keeping nonprofit control and mission alignment at the core.
From an administrative standpoint, the opportunity was issued by the Department of Housing and Urban Development under Funding Opportunity Number FR 5415 N 38. The program was posted March 4, 2011, with an original closing date of June 1, 2011, later extended to June 21, 2011. The estimated total funding level for the round was $371,000,000, and the funding instrument type is a grant. There is no cost sharing or matching requirement stated for this opportunity, which means applicants were not required to provide a formal match as a condition of eligibility (though projects often still layer multiple sources of financing depending on scope and local conditions). Application materials were made available through an application package and instructions referenced by the CFDA number, and HUD provided a headquarters contact for access issues: Alicia Anderson at 202-708-3000.
Overall, this Section 202 opportunity is best understood as a long-term affordability and supportive housing production program: HUD helps nonprofits create or preserve elderly housing through an up-front capital advance, then keeps it financially viable and affordable through PRAC operating subsidies, with added emphasis on service coordination and supportive services for frail elderly residents where appropriate. The central public benefit requirement is durable: housing assisted under this mechanism must remain available to very low income elderly households for at least 40 years to maintain the no-repayment condition on the capital advance.
Section 202 Supportive Housing for the Elderly (CFDA 14.157) - FAQs
What is the Section 202 Supportive Housing for the Elderly program?
Section 202 Supportive Housing for the Elderly is a discretionary HUD grant program (CFDA 14.157) intended to expand and preserve affordable, service-enriched housing for very low income older adults. HUD funds eligible nonprofit sponsors to develop housing that stays dedicated to very low income elderly residents over the long term.
What forms of assistance does Section 202 provide?
The program combines two main types of assistance: (1) a capital advance to cover eligible development costs and (2) Project Rental Assistance Contracts (PRAC) to keep rents affordable once the property is operating.
What is the capital advance and how does it work?
The capital advance functions like a development grant rather than a traditional loan. It is interest-free and supports eligible development costs for specific project types. Repayment is not required as long as the assisted housing remains available for occupancy by very low income elderly persons for at least 40 years.
What can the capital advance funds be used for?
Capital advance funds must be used for one of three purposes: new construction, rehabilitation of an existing structure, or acquisition of a structure (with or without rehabilitation).
How is the capital advance amount determined?
The capital advance is calculated subject to HUD development cost limits referenced in the notice. The NOFA points applicants to Section IV.E.3 for the specifics of how the amount is determined.
When does the capital advance have to be repaid?
Repayment is not required if the housing continues to be available for very low income elderly persons for at least 40 years. If that long-term affordability and use requirement is not met, repayment obligations may be triggered.
What is PRAC?
PRAC stands for Project Rental Assistance Contracts. PRAC is the operating subsidy that helps make the housing affordable for residents and financially viable for the project once it is operating.
How is resident rent calculated under PRAC?
Tenants generally contribute 30 percent of their adjusted income toward rent. PRAC pays the difference between the tenant payment and the HUD-approved cost to operate the project.
Can PRAC funds be used for supportive services?
In certain settings, PRAC funds may support services, including paying for supportive services and a service coordinator for projects serving frail elderly residents.
Are there limits on what supportive services PRAC can support?
Supportive services funded through PRAC must match the needs of the frail elderly categories the project proposes to serve. The services are expected to be appropriate to the resident population rather than one-size-fits-all.
What regulations govern this program?
The program rules are implemented through 24 CFR part 891.
Who is eligible to apply for this opportunity?
Only private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements described in the General Section of the NOFA and in Section III.C.2 are eligible applicants.
Are public bodies, tribes, or government agencies eligible applicants?
No. Public bodies, tribes, and any instrumentality or agency of a public body or tribe are not eligible to apply.
What if a nonprofit has a relationship with a public body or tribe?
If a nonprofit has a relationship with a public body or tribe, HUD requires a clear demonstration that the applicant is not effectively a governmental instrumentality.
What documentation is required to show an applicant is not a governmental instrumentality?
The demonstration must include an attorney opinion grounded in state or tribal law confirming that the entity is not an agency or instrumentality and that it meets HUD's definition of an eligible private nonprofit under 24 CFR part 891.
What must the attorney opinion say about governance and funding?
The attorney opinion must confirm that the organization's governing documents (Articles of Incorporation) give the public body or tribe no more than minority control, and that the nonprofit is not receiving a majority of its operational funding from the public body or tribe.
Do the Sponsor and Co-Sponsor have to be eligible nonprofits?
Yes. The Sponsor and any Co-Sponsor applying for the Section 202 fund reservation must be eligible private nonprofits or nonprofit consumer cooperatives.
Is the entity that owns the property the same as the Sponsor?
Not necessarily. The notice explains that the ownership entity that will ultimately own the property is typically formed later and must meet specific criteria.
What are the requirements for the eventual Owner entity?
The eventual Owner corporation must be a single-purpose, single-asset private nonprofit with IRS tax-exempt status under 501(c)(3) or 501(c)(4), or it may be a nonprofit consumer cooperative.
Are mixed-finance ownership structures allowed?
Yes. For mixed-finance development authorized under Title VIII of the American Homeownership and Economic Opportunity Act of 2000, the ownership structure may be a for-profit limited partnership as long as a private nonprofit organization (or a wholly owned and controlled corporation of a private nonprofit) is the sole general partner.
Why does the program emphasize long-term affordability?
The award is conditioned on a long-term affordability and use restriction: the property must remain dedicated to very low income elderly residents for at least 40 years to maintain the no-repayment condition on the capital advance.
What is the Funding Opportunity Number for this grant?
The Funding Opportunity Number listed is FR 5415 N 38.
When was this opportunity posted and when did it close?
The opportunity was posted on March 4, 2011. The original closing date was June 1, 2011, and it was later extended to June 21, 2011.
How much total funding was estimated for this round?
The estimated total funding level for the round was $371,000,000.
What type of funding instrument is this?
The funding instrument type is a grant.
Is cost sharing or matching required?
No cost sharing or matching requirement is stated for this opportunity.
How were application materials provided?
Application materials were made available through an application package and instructions referenced by the CFDA number.
Who can be contacted for application package access issues?
HUD provided a headquarters contact for access issues: Alicia Anderson at 202-708-3000.
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