HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
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.
To
expand the supply of housing with supportive services for the elderly,
including the frail elderly.
TYPES
OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
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 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.
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.
ASSISTANCE
CONSIDERATIONS:
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.
POST
ASSISTANCE REQUIREMENTS:
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.
FINANCIAL
INFORMATION:
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:
In fiscal year 2001, the smallest award was $409,000, the largest
award was $12,495,200, and the average award was $3,847,399.
In fiscal year 2001, HUD funded 6,041 units under this program.
HUD anticipates a similar level of funding in fiscal year 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
24 CFR 891; HUD Handbooks 4571.3, REV-1 and 4571.5.
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) 708-2866. Use the same number for FTS.
Web
Site Address: http://www.hud.gov/cfda/2001/14157.cfm
