Assisted Living Property

FHA Assisted Living Conversion Program

The Assisted Living Conversion Program provides private, nonprofit owners of eligible developments with a grant to convert dwelling units into an Assisted Living Facility or Service-Enriched Housing for elderly residents.


Assisted Living Facilities accommodate elderly and people with disabilities who can live independently but require assistance with activities of daily living (e.g., assistance with eating, bathing, grooming, dressing and home management activities).

Service-Enriched Housing is designed to accommodate elderly persons or elderly persons with service needs. Residents are able to live independently but need assistance with activities of daily living comparable to services typically provided in a licensed assisted living facility, such as health care related services.

Eligible Uses

Typical funding will cover basic physical conversion of existing project units, 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 or SEH, including the unit configuration, common and services space and any necessary remodeling, consistent with HUD or the State's statute/regulations (whichever is more stringent). ALFs or SEH must have sufficient community space to accommodate provisions of meals and supportive services, as well as other requirements described in the NOFA. Funding for the supportive services does not come from HUD but must be coordinated by the owners or residents, either directly or through a third party. Supportive services may include Medicaid services and programs provided by the State, an Area Agency on Aging, Money Follows the Person funds, State Home Health Care programs, State Assisted Living Services funds, Congregate Housing Services Program funds, Service Coordinator funds or similar programs.

Eligible Grantees

Eligible projects must be owned by a private, nonprofit entity, and designated primarily for occupancy by elderly persons. Projects must have completed final closing and must have been in occupancy for at least five years from the date of the HUD approved form HUD-92485 (Permission to Occupy Project Mortgage). Eligible projects may only receive one grant award per fiscal year.

FHA Special Needs Housing Loans