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FY 2018 Section 202 Supportive Housing for the Elderly Program

Grants to USA Nonprofits for Capital Support and Rental
Subsidies for Low-Income Elderly Housing

Agency Type:


Funding Source:

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U.S. Department of Housing and Urban Development (HUD)

Deadline Date:

08/28/19 11:59 PM ET Receipt


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Grants starting at $50,000 to USA nonprofit organizations and consumer cooperatives to provide capital funding and rental subsidies to develop and operate supportive housing for low-income elderly populations (ages 62 and older). Applicants are advised that required registrations may take several weeks to complete.

The Section 202 Supportive Housing for the Elderly program provides Capital Advance funding for the development and operation of supportive rental housing for very-low-income persons aged 62 years or older and project rental subsidies in the form of a Project Rental Assistance Contract (“PRAC”) to maintain ongoing affordability. This program provides very-low-income 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.

Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. (See Section II.C. for additional information). Section 202 program funds cannot be used to construct or operate assisted living facilities. Capital Advance funds bear no interest and repayment is not required when the housing remains available for occupancy by very-low-income elderly persons for at least 40 years.

PRACs are used to cover the difference between the tenants' contributions toward rent and the HUD-approved cost to operate the project. PRAC funds may also be used to provide supportive services and to hire a service coordinator.

The Department of Housing and Urban Development ("HUD") seeks to fund Section 202 properties that advance housing for the elderly as a platform for living independently and aging in community even as residents may require more assistance with activities of daily living over time. HUD seeks to fund properties that will be at the forefront of design, service delivery and efficient use of federal resources that will provide models for replication by other providers of supportive housing for very-low-income elderly persons. To meet this outcome, HUD expects successful applicants to demonstrate best practices or innovation in both physical design and supportive services.

Proposals must promote the long-term physical and mental health and wellness of very-low-income elderly persons and the efficient delivery of government assistance. Finally, HUD aims to provide Capital Advance funding to those applicants who leverage Capital Advance funds with other financing sources to meet the goal of building supportive housing for very-low-income elderly persons and to demonstrate ways to maximize the number of units created per dollar of HUD funding. For more information about specific Review Criteria see Section V.A.

Funding for this program was last provided in 2010. Since that time there have been major changes to the program delivery systems in several areas including emphasis on the following:

- Physical design standards that will facilitate aging in place; and
- Mixed-finance development that leverages Capital Advance funding with other sources.

For details on the Program Specific Requirements, see the NOFA document:

GrantWatch ID#:

GrantWatch ID#: 185759

Estimated Total Program Funding:


Number of Grants:

Approximately 30

Estimated Size of Grant:

Minimum Award Amount: $50,000 Per Project Period
Maximum Award Amount: $5,000,000 Per Project Period

Term of Contract:

Estimated Project Start Date: 01/22/2021
Estimated Project End Date: 05/21/2024

The project period consists of the time from award to construction completion, with an additional 12-months of operations under a PRAC.

Initial closing of the Capital Advance and start of construction of the project are expected to be accomplished within 6-18 months after the obligation of funds. HUD expects Sponsors to have commitments for all funds and required permits no later than 12 months following the acceptance of the Agreement Letter and to begin construction (if applicable) within 18 months of the Agreement Letter.


Additional Eligibility Criteria:

Private non-profit organizations that have tax-exempt status under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code of 1986, and non-profit consumer cooperatives 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. Non-profit entities associated with public bodies or tribes must establish their eligibility by providing an attorney's opinion stating that under state or tribal law the associated entity is not an instrumentality or agency of the public body confirming that such entity 1) meets the definition of "private non-profit organization" under 24 CFR part 891; 2) has Articles of Incorporation which provide no more than minority control by the public body or tribe; and 3) is not receiving a majority of its operational funding from the public body or tribe.

The Owner corporation, when later formed by the Sponsor, must be (1) a single-purpose and single-asset private non-profit organization that has tax-exempt status under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code of 1986, (2) non-profit 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, as amended, a for-profit limited partnership of which one or more private non-profit organizations hold all general partner interests, a corporation wholly owned and controlled by one or more private non-profit organization(s) as the sole general partner, or a limited liability company wholly owned and controlled by one or more private non-profit organizations.

For funding restrictions, see the NOFA document:

Pre-Application Information:

The application deadline is 11:59:59 p.m. Eastern time on 08/28/2019. Applications must be received no later than the deadline.

1. SAM Registration Requirement. Applicants must be registered with SAM before submitting their application. In addition, applicants must maintain an active SAM registration with current information while they have an active Federal award or an application or plan under consideration by HUD.
2. DUNS Number Requirement. Applicants must provide a valid DUNS number, registered and active at SAM, in the application. DUNS numbers may be obtained for free from Dun & Bradstreet.
3. Requirement to Register with Anyone planning to submit applications on behalf of an organization must register at and be approved by the EBiz Point of Contact in SAM to submit applications for the organization.

Registration for SAM and is a multi-step process and can take four (4) weeks or longer to complete if data issues arise. Applicants without a valid registration cannot submit an application through

HUD strongly recommends applications be submitted at least 48 hours before the deadline and during regular business hours to allow enough time to correct errors or overcome other problems.

This Program requires cost sharing, matching or leveraging as described below. Owner Deposit (Minimum Capital Investment): In accordance with 24 CFR part 891.145, the Owner must deposit in a special escrow account one-half of one percent (0.5%) of the HUD approved capital advance, not to exceed $10,000, to ensure the Owner's commitment to the housing. If an Owner has a National Sponsor or a National Co-Sponsor, the Minimum Capital Investment shall be one-half of one percent (0.5%) of the HUD approved capital advance, not to exceed $25,000.

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Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Questions regarding specific program requirements for this NOFA should be directed to:

Persons with hearing or speech impairments may access this number via TTY by calling the toll-free Federal Relay Service at 800-877-8339.

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Geographic Focus:

USA: Alabama;   Alaska;   Arizona;   Arkansas;   California;   Colorado;   Connecticut;   Delaware;   Florida;   Georgia;   Hawaii;   Idaho;   Illinois;   Indiana;   Iowa;   Kansas;   Kentucky;   Louisiana;   Maine;   Maryland;   Massachusetts;   Michigan;   Minnesota;   Mississippi;   Missouri;   Montana;   Nebraska;   Nevada;   New Hampshire;   New Jersey;   New Mexico;   New York City;   New York;   North Carolina;   North Dakota;   Ohio;   Oklahoma;   Oregon;   Pennsylvania;   Rhode Island;   South Carolina;   South Dakota;   Tennessee;   Texas;   Utah;   Vermont;   Virginia;   Washington, DC;   Washington;   West Virginia;   Wisconsin;   Wyoming

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