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Catalog of Federal Domestic Assistance

Program Descriptions

14.157:  Supportive Housing for the Elderly

Popular Name:  202

Objectives:  To expand the supply of housing with supportive services for the elderly.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

14.157 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Private nonprofit corporations and consumer cooperatives. Public bodies and their instrumentalities are not eligible Section 202 applicants.

Beneficiary Eligibility:  Beneficiaries of housing developed under this program must be elderly (62 years of age or older) and have very low-incomes.

Credentials/Documentation:  The nonprofit sponsor/owner must receive certification of eligibility from HUD. The owner must submit financial statements to support its ability to provide a capital investment of 1/2 of 1 percent of the HUD-approved capital advance amount, up to a maximum of $25,000 for national sponsors or $10,000 if not a national sponsor. This program is excluded from coverage under OMB Circular No. A-87.

14.157 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  This program is excluded from coverage under OMB Circular No. A-102. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure:  A Notice of Fund Availability is published in the Federal Register each fiscal year announcing the availability of funds to HUD Field Offices. Applicants must submit a Request for Fund Reservation, using HUD Form 92015-CA, in response to the Notice of Fund Availability. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:  Applications are reviewed and selected for funding within the funding allocation of the particular HUD Field Office. Those selected for funding must meet basic program requirements including, but not limited to: eligibility as a private nonprofit organization, commitment to provide the minimum capital investment and prior experience in housing or related supportive service activities. The Request for Capital Advance Financing, using HUD Form 92013, is reviewed to determine acceptability of project site and market, correctness of zoning, effect on environment, value of site and financial feasibility.

Deadlines:  Applications must be submitted within the time period specified in the Notice of Fund Availability, usually 60 to 90 days.

Range of Approval/Disapproval Time:  At the fund reservation stage, the sponsor usually is advised of the decision within 4 to 5 months from the end of the application period, but in any event, usually by the end of the same fiscal year (September 30).

Appeals:  None.

Renewals:  None.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  In FY 1999, the smallest award was $663,700, the largest award was $10,179,600, and the average award was $3,884,900.

14.157 RELATED PROGRAMS:

• 14.181 Supportive Housing for Persons with Disabilities;
• 14.195 Section 8 Housing Assistance Payments.

14.157 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, HUD funded 7,142 units under this program. HUD anticipates a similar level of funding in fiscal year 2000 and fiscal year 2001.

14.157 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Direct Payments for Specified Use.

Obligations:  FY 99 $763,592,247; FY 00 est $1,280,000,000; and FY 01 est $1,355,000,000.

Budget Account Number:  86-0164-0-3-371; 86-4588-0-3-371; 86-0320-0-3-371.

Authorization:  Housing Act of 1959, as amended; Housing and Community Development Act of 1974, as amended, Title II; Public Law 86-372, 12 U.S.C. 1701q, 73 Stat. 654, 667; National Affordable Housing Act, Public Law 101-507, 42 U.S.C. 12701.

Regulations, Guidelines, and Literature:  24 CFR 891; HUD Handbooks 4571.3, REV-1 and 4571.5.

14.157 INFO CONTACTS:

Regional or Local Office:  Contact the appropriate HUD office listed in the Catalog Address Appendix IV.

Headquarters Office:  Office of Business Products, Department of Housing and Urban Development, Washington, DC 20410. Phone: (202) 708-2866. Use the same number for FTS.

(See Appendix IV for more contact info.)

14.157 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  This program has maintenance of effort (MOE) requirements, see funding agency for further details. Statistical factors used for allocating funds measure the number of one-and two-person elderly renter households with incomes at or below HUD's very low income limit with housing deficiencies.

Length and Time Phasing of Assistance:  The capital advance is not repayable so long as the project is available to very low income elderly for 40 years. Initial project rental assistance contract payments may not exceed 5 years. However, contracts are renewable based on availability of funds. Projects are expected to start construction within 18 months of the date of the fund reservation, with limited provision for extensions. Funds will be advanced on a monthly basis during construction for work in place.

Uses and Use Restrictions:  Capital advances shall be used to finance the construction or rehabilitation of a structure or portion thereof, or the acquisition of a structure from the Federal Deposit Insurance Corporation (formerly held by the Resolution Trust Corporation) to provide supportive housing for the elderly, which may include the cost of real property acquisition, site improvement, conversion, demolition, relocation and other supportive housing expenses. Project rental assistance is used to cover the difference between the HUD-approved operating costs and the amount the tenants pay.

14.157 POST ASSISTANCE REQUIREMENTS:

Reports:  Any change in the owner during the period of the capital advance must be approved by HUD. All owners will be required to submit an annual financial statement to HUD.

Audits:  HUD reserves the right to audit the accounts of the owner in order to determine compliance and conformance with HUD regulations and standards.

Records:  Regular financial reports are required. Owners must service and maintain records in accordance with acceptable mortgage practices and HUD regulations. Owners also must supply those records necessary to indicate compliance with the project rental assistance contract.