HUD Adds FY11 Section 202 Funds to Current NOFA; Application Deadline Extended

Following the recent passage of the FY11 appropriations bill (see 4/18/2011 post), HUD announced that the FY11 Section 202 Housing for the Elderly capital advance funds will be available through the existing Notice of Funding Availability (NOFA). Combining FY10 and FY11 funds bring the total now available to approximately $449 million. Of that, HUD will allocate just over $17 million for metropolitan and non-metropolitan projects in Region X, which services Oregon, Washington, Idaho, and Alaska. HUD also extended the NOFA application deadline to June 21. Click here for further information.

Nonprofit developers can use Section 202 capital advance funds for the construction, rehabilitation, or acquisition of housing for seniors, generally 62 and older, with very low income. In the past two years, HUD made a number of regulatory changes promoting refinance and preservation of Section 202 properties, such as allowing Section 202 loans to be subordinated when required to complete the preservation transaction. In addition to the capital advance funds, Congress also annually appropriates funds for Project Rental Assistance Contracts (PRACs) for Section 202 properties, allowing residents to pay 30% of their incomes for rent. HUD initially awards PRACs for three years and subsequently renews based on funding availability. Small pots of money also exist to provide Section 202 owners with predevelopment grants, service coordinators, emergency capital repair grants, and funds for converting units to assisted living.

— Posted on 5/26/2011