Supportive Housing for the Elderly

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - Contact the appropriate HUD office listed in the Catalog Address Appendix IV.

Program Accomplishments

In fiscal year 2007, HUD funded 3,857 units under this program. HUD anticipates a similar level of funding in fiscal year 2008.

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 to provide supportive housing for the elderly, which may include the cost of real property acquisition, site improvement, conversion, demolition, relocation and other expenses of supportive housing for the elderly.

Project rental assistance is used to cover the difference between the HUD-approved operating cost per unit and the amount the tenant pays.

Eligibility Requirements

Applicant Eligibility

Eligible Sponsors include private nonprofit organizations and nonprofit consumer cooperatives.

Eligible Owner entities include private nonprofit corporations, nonprofit consumer cooperatives, and if the proposed project involves mixed-financing, for-profit limited partnerships with a nonprofit entity as the sole general partner.

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.


The Sponsor/Owner must receive certification of eligibility from HUD. The Owner must submit financial documents to support its ability to provide a minimum 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 up to $10,000 if not a national Sponsor. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

This program is excluded from coverage under OMB Circular No.


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 Procedures

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 a Fund Reservation, using Form HUD-92015-CA, Section 202 application for capital advance, in response to the Notice of Fund Availability (or a Funding Notification issued by the local HUD Field Office). The application for capital advance is used to determine the eligibility of the applicant and proposed project as well as the acceptability of the site and market, correctness of zoning and the effect on environment. This program is excluded from coverage under OMB Circular No. A-110. All applications must be submitted via

Award Procedures

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 Form HUD-92013, is reviewed to update the determination of acceptability of project site and market, correctness of zoning, and effect on environment, as well as to determine the value of site, total development cost, and financial feasibility.


Applications must be submitted within the time period specified in the Notice of Fund Availability (or Funding Notification), usually 60 to 90 days.


Housing Act of 1959 (12 U.S.C. 1701q) as amended by section 801 of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625 approved November 28, 1990); The Housing and Community Development Act of 1992 (Public Law 102-550 approved October 28, 1992); The Rescissions Act (Public Law 104-19 enacted on July 27, 1995); The American Homeownership and Economic Opportunity Act of 2000 (Public Law 106-569 approved December 27, 2000); and The Consolidate Appropriations Act of 2008 (Public Law 110-161 approved December 26, 2007).

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).


During the period of competition, Sponsors whose applications are rejected by the HUD Field Office due to noncompliance with program requirements, have the right to appeal the rejection within 14 calendar days from the date of HUD's written notice of rejection. Also, HUD Field Offices may issue Notices of Intent to Cancel a Fund Reservation to Sponsors/Owners who have been approved for a fund reservation, but whose projects are not progressing towards a construction start in a satisfactory manner and within the term of the fund reservation, including any approved extensions of time. Under these circumstances, Sponsors/Owners have the right to appeal HUD's Notice of Intent to Cancel a Fund Reservation within 30 days of HUD's written notice.


Not applicable to Section 202 capital advances. However, Project Rental Assistance Contracts may be renewed for up to a one-year term after the initial 3-year term subject to the availability of funds.

Assistance Considerations

Formula and Matching Requirements

This program has maintenance of effort (MOE) requirements, see funding agency for further details. Theformula used for allocating funds Consists of one data element from the 2000 Census: Number of one-person elderly renter households (householder age 62 and over) with income at or below the applicable Section 8 very low-income limit, and with housing condition. No match required.

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. Project Rental Assistance Contract payments may not exceed 3 years. However, contracts are renewable for up to a one-year term 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.

Post Assistance Requirements


Any change in the Owner during the period of the capital advance must be approved by HUD.

All Owners will be required to submit a financial statement and form HUD-96010 Program Outcome Logic Model to HUD on an annual basis.


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


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.

Financial Information

Account Identification

86-0164-0-3-371; 86-4588-0-3-371;


(Obligations) FY 07 $750,264,401; FY 08 est $795,262,000; and FY 09 est $791,303,000.

Range and Average of Financial Assistance

$717,700 to $12,560,400.

Regulations, Guidelines, and Literature

24 CFR 891; HUD Handbooks 4571.3 REV-1 and 4571.5; and Notice H 96-102, as extended.

Information Contacts

Regional or Local Office

Contact the appropriate HUD office listed in the Catalog Address Appendix IV.

Headquarters Office

Office Housing Assistance and Grants Administration, Department of Housing and Urban Development, Washington, DC 20410. Telephone: (202) 708-3000.

Criteria for Selecting Proposals

Not applicable.

The Social Incubator North, a £2 million incubator fund spearheaded by Sheffield-based Key Fund in collaboration with the four Northern Social Enterprise Partnerships and Locality, is providing 0% interest loans to North of England’s social entrepreneurs.

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