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Content provided by the Catalog of Federal Domestic Assistance
14.157 Supportive Housing for the Elderly




Housing Act of 1959, as amended; Section 801 of the National Affordable Housing Act, Public Law 101-625, 42 U.S.C. 12701; Housing Community Development Act of 1992, Public Law 102-550; Rescissions Act, Public Law 104-19, and American Homeownership and Economic Opportunity Act of 2000, Public Law 106-569.
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To expand the supply of housing with supportive services for the elderly, including the frail elderly.


Direct Payments for Specified Use.
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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.


Applicant Eligibility:   Eligible Sponsors include private nonprofit organizations and nonprofit consumer cooperatives. Eligible Owner entities include private nonprofit corporations, nonprofit consumer cooperatives, and 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.

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

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Pre-application 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 (or a Funding Notification issued by the local HUD Field Office). 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, total development cost, and financial feasibility.

Deadlines:   Applications must be submitted within the time period specified in the Notice of Fund Availability (or Funding Notification), 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:   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.

Renewals:   Not applicable to Section 202 capital advances. However, Project Rental Assistance Contracts may be renewed after the initial 5-year term subject to the availability of funds.


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 (50 percent of area median family income) 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. 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.


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.


Account Identification:   86-0320-0-3-371.

Obligations:   FY 01 $917,256,129; FY 02 est $1,024,151,000; and FY 03 est $1,024,151,000.

Range and Average of Financial Assistance:  
No Data Available.

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In fiscal year 2001, HUD funded 6,041 units under this program. HUD anticipates a similar level of funding in fiscal year 2002.


24 CFR 891; HUD Handbooks 4571.3, REV-1 and 4571.5.


Regional or Local Office:   See Regional Agency Offices. The HUD Multifamily Hub structure consists of 18 Multifamily Hub Offices. Each Hub administers multifamliy housing programs based on its geographical jurisdiction. For a listing of all Multifamily Hub Offices and their associated local Multifamily Program Center(s) (local HUD Office) please visit

Headquarters Office:   Alicia Anderson, 451 7th St SW Room 6152, Washington, District of Columbia 20410 Email: Phone: (202) 708-3000.

Web Site Address:


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