Assisted Living Conversion for Eligible Multifamily Housing Projects

To provide private nonprofit owners of eligible developments designated primarily for occupancy by the elderly with a grant to allow the conversion of some or all of the dwelling units in the project into Assisted Living Facilities (ALFs) for the frail elderly, as defined in Section 232(B)(6) of the
National Housing Act and 202(k).

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 - Persons are encouraged to communicate with the nearest local HUD Multifamily Hubs and Program Centers listed at or at the Catalog Address Appendix IV.

Program Accomplishments

Funded 218 units in FY 2005; 64 units in FY 2006; and 197 units in FY 2007.

Uses and Use Restrictions

Assisted living facilities (ALFs) are designed to accommodate frail elderly persons and people with disabilities who can live independently but need assistance with activities of daily living (that is, assistance with eating, bathing, grooming, dressing and home management activities.) ALFs must provide support services such as personal care, transportation, meals, housekeeping, and laundry.

Typical funding will cover basic physical conversion of existing project units, as well as related common and services space.

The ALCP provides funding for the physical costs of converting some or all of the units of an eligible development into an ALF, including unit configuration, common and services space and any necessary remodeling, consistent with HUD or the State's statute/regulations (whichever is more stringent).

There must be sufficient community space to accommodate a central kitchen or dining facility, lounges, recreation and other multiple-areas available to all residents of the project, or office/staff spaces in the ALF.

Funding for the supportive services must be provided by the owners, either directly or through a third party.

Eligibility Requirements

Applicant Eligibility

Only private nonprofit owners of eligible multifamily assisted housing developments specified in Section 683(2)(B), (C), (D), (E), and (F) (Section 202 projects for the elderly, Rural Housing Section 515 projects receiving Section 8 rental assistance, projects receiving project-based rental assistance under Section 8, projects financed by a below-market interest rate loan or mortgage insured under Section 221(d)(3) of the Housing Act, or housing financed under Section 236 of the National Housing Act) that have been in occupancy for at least five years are eligible for funding.

To be eligible, owners must meet the following criteria: (1) Must be in compliance with Loan Agreement, Capital Advance Agreement, Regulatory Agreement, Housing Assistance Payment Contract, Project Rental Assistance Contract, Rent Supplement or LMSA Contract, or any other HUD grant or contract document; (2) Must be in compliance with all fair housing and civil rights laws, statutes, regulations, and executive orders as enumerated in 24 CFR 5.105(a).

Beneficiary Eligibility

Eligible residents who meet the admissions/discharge requirements as established for assisted living by State and local licensing, or HUD frailty requirements under 24 CFR 891.205 if more stringent. The residents must be able to live independently but may need assistance with activities of daily living (that is, assistance with eating, bathing, grooming, dressing and home management activities).


The assisted living facility must be licensed and regulated by the State (or if there is no State law providing such licensing and regulation, by the municipality or other subdivision in which the facility is located). The application must include a firm commitment for the supportive services to be offered at the ALF as part of the application. The Notice of Funding Availability contains all the necessary information for applicants to apply for the grant.

Aplication and Award Process

Preapplication Coordination

Applicants must have contacted the State licensing agency for such a project to determine if the proposed project will meet state licensing requirements.

A Supportive Service Plan (SSP) for the services and coordination of the supportive services which will be offered in the ALF must be developed and submitted to the appropriate State or local organization.

Applicants must comply with all applicable statutory requirements and statutory requirements under Section 232(b)(6) prior to application submission.

This program is eligible for coverage under E.O.


Application Procedures

Applications are only accepted in response to the Notice of Funding Availability which is published in the Federal Register each fiscal year. Applicants responding to the NOFA should ensure that their application is complete before submitting it to HUD. Applications must be submitted in accordance with requirements of the NOFA. All applications received by the deadline will be screened for curable deficiencies. After the completeness review, HUD reviews the application to determine whether it meets the threshold requirements. Only those applications that meet all of the threshold requirements will be eligible to receive an award. Applications submitted in response to the NOFA that are eligible, pass threshold and have a total score of 75 points (or more) are eligible for ranking and selection.

Award Procedures

Applications are reviewed and selected for funding within the funding allocation of the geographical Hub area. At the end of the technical review, all applications will be either rated or technically rejected. If an application meets all program eligibility requirements after completion of the technical review, it will be rated according to the rating selection factors. The number of points that an application receives will depend on the extent to which the application is responsive to the information requested in the selection criteria. The maximum number of points an application may receive under this program is 102.


Deadlines are specified in the NOFA. The application deadline is firm as to date and hour. In the interest of fairness to all competing applicants, the Department will treat as ineligible for consideration any application that is received after the deadline. Applicants should take this practice into account and make early submission of their materials to avoid risk of loss of eligibility brought about by any unanticipated or delivery-related problems. A FAX is not acceptable.


Section 202b of the Housing Act of 1959, as amended and the Consolidated Appropriations Act, 2008 (Public Law 110-161; approved December 26, 2007).

Range of Approval/Disapproval Time

A processing schedule is developed for each funding round. Applicants are provided with a decision by the end of the fiscal year (September 30th).


An applicant will have fourteen (14) calendar days from the date of HUD's written notice to appeal a technical rejection. HUD will make a determination on an appeal before finalizing selection recommendations.



Assistance Considerations

Formula and Matching Requirements

This program has no matching requirements. However, owners are required to find the supportive services through other funding sources.

Length and Time Phasing of Assistance


Post Assistance Requirements


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

Financial and performance reports are required every six months in accordance with instructions outlined in the Grant Agreement.


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 HUD and State requirements and regulations as outlined in the grant agreement.

Financial Information

Account Identification



Reported under program 14.157.

Range and Average of Financial Assistance

In FY 2007, funded applications range from $1,315,303 to $4,276,091 with an average of $2,777,911.

Regulations, Guidelines, and Literature

Section 202(b) of the Housing Act of 1959, Assisted Living Conversion Program Notice of Funding Availability published May 12, 2008.

Information Contacts

Regional or Local Office

Persons are encouraged to communicate with the nearest local HUD Multifamily Hubs and Program Centers listed at or at the Catalog Address Appendix IV.

Headquarters Office

Office of Grant Policy and Management, Department of Housing and Urban Development, Room 6138, 451 Seventh Street, SW., Washington, DC 204l0. Telephone: (202) 708-3000.

Criteria for Selecting Proposals

Criteria for selecting proposals are in the NOFA.

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