Affordable senior housing providers have a shot at $150 million in funding for projects for low-income older adults that also provide access to critical support services.
LeadingAge hosted a call with the Department of Housing and Urban Development on Tuesday to discuss the 2021 competition for Section 202 Supportive Housing for the Elderly funds. The program provides capital advance funding for the development of supportive rental housing for very low income older adults, as well as project rental subsidies in the form of project rental assistance contracts, or PRACs, to maintain ongoing affordability.
“This program provides elderly persons with the opportunity to live independently, but with important voluntary support services, such as nutritional, transportation, continuing education, and / or health-related services,” according to HUD.
The funding amount is significantly more than the $51.6 million in funding for 575 units in 18 nonprofit communities, announced in February 2020.
Capital advance funds, which HUD Director of Recapitalization Tom Davis called “upfront dollars,” must be used for new construction or rehabilitation to create Section 202 senior housing units. PRACs are used to cover the costs of operating the community.
The competition specifically seeks projects that will produce housing that is “physically designed to promote the long-term wellness of elderly persons” and allow them to age in place,” provides a “robust package” of services to support older adult health and social well-being, and leverages capital advance funds with other financing sources to maximize the number of units created.
HUD anticipates awarding 45 projects with a maximum $20 million per project. The application deadline is May 26, with award announcements anticipated within three to four months afterward. Find more information on the HUD website. HUD also provides a FAQ section and a toolkit to help providers fill out the application.