FHA Supportive Housing for the Elderly - HUD Section 202 Mortgages
HUD provides capital advances to finance structures that serve as supportive housing for low-income, elderly people. Types of financing include construction, rehabilitation, or aquisition with or without rehabilitation.
The Section 202 program increases the supply of affordable housing with supportive services for the elderly. It provides elderly with low income options that gives them the ability to live independently but in an environment that provides support activities.
HUD provides interest-free capital advances to private, nonprofit sponsors to finance the development of supportive housing for the elderly. The capital advance does not have to be repaid as long as the project serves very low-income elderly persons for 40 years. Project rental assistance funds are provided to cover the difference between the HUDapproved operating cost for the project and the tenants' contribution towards rent. Project rental assistance contracts are approved initially for 3 years and are renewable based on the availability of funds.
Private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements contained in the General Section and the program Notice of Funding Availability (NOFA) are the only eligible applicants under this Section 202 program.