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Content provided by the Catalog of Federal Domestic Assistance
14.314 Assisted Living Conversion for Eligible Multifamily Housing Projects




HUD Reform Act of 1989, Public Law 101-235, 42 U.S.C. 3545.
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To provide private nonprofit owners of eligible developments designed for the elderly with a grant to allow the conversion of some or all of the dwelling units in the project into Assisted Living Facilities (ALF's) serving frail elderly, as defined in Section 232(B)(6) of the National Housing Act.


Project Grants.
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Assisted living facilities (ALFs) are designed to accommodate frail elderly and people with disabilities who can live independently but need assistance with activities of daily living (e.g., 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, 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 the 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.


Applicant Eligibility:   Only private nonprofit owners of eligible multifamily assisted housing developments specified in Section 683(2) (B), (C), (D), (E), and (F) (that is, Section 202 projects, Section 202 projects receiving rental assistance under Section 8, and Section 202 projects receiving project rental assistance under Section 202(C)(2). Rural housing projects under Section 515 of the Housing Act of 1949 receiving Section 8 rental assistance are included. Projects receiving project-based rental assistance under Section 8 among others, housing constructed, substantially rehabilitated or receiving moderate rehabilitation assistance under Section 8. Also included are housing financed by a below-market interest rate loan or mortgage insured under Section 221(d)(3) of the Housing Act or housing with financing insured, assisted or held by HUD or a State or State Agency 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 your 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 a 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 CFR891.205 if more stringent. The residents must be able to live independently but can need assistance with activities of daily living (e.g., assistance with eating, bathing, grooming, dressing and home management activities).

Credentials/Documentation:   ALF 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 with the ALF as part of the application. Applicants are provided all other necessary information to apply for the grants in the Notice of Funding Availability (NOFA).

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Pre-application 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 Services 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 excluded from coverage under E.O. 12372.

Application Procedure:   Applicants should ensure that their application is complete before submitting it to HUD. Applications must be submitted in accordance with requirements of the (NOFA) published in the Federal Register. All applications received by the deadline will be screened for curable deficiencies. After the completeness review, HUD Hub staff will review the applications to determine whether the application meets the threshold requirements. Only if your application meets all of the threshold requirements is it eligible to be rated and ranked. Applications submitted in response to the NOFA that are eligible, pass threshold and have a total score of 70 points (or more) are eligible for ranking and selection. Except for applications for commercial properties with a score of 70 points will not be ranked but will be submitted to Headquarters for selection on a first-come, first-served basis.

Award Procedure:   HUD Hub staff teams, in each of the 18 Hub Offices, will review each application that it determines meets the requirements of the NOFA. 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 100. After all application ratings have been finalized, they will be placed in rank order within that Hub. From this rank order, Hub staff teams in each of the 18 Hubs will select the highest ranking applications that can be funded from the dollars available within that Hub. After making the initial selections, however, the Hub may use any residual funds to select the next rank-ordered application by reducing the dollars requested by no more than 10 percent and reducing the number of units proposed, but in no case reducing the number of units below the financial threshold feasibility of five ALF units. Funds remaining after these processes are completed will be returned to HUD Headquarters. HUD will use these funds to restore units to any project reduced as a result of using the residual grant funds in a Hub. Secondly, HUD will use these funds for selecting additional applications based on the Hub ratings and rankings, beginning with the highest rated application within the 18 Hubs. Only one application will be selected per Hub from the national residual amount. If there are no approvable applications in other Hubs, the process will begin again with the selection of the next highest rated application within the remaining Hubs. This process will continue until all approvable applications are selected using the available remaining funds. If there is a tie between two or more applications, and there are insufficient residual funds to cover all tied applications, HUD Headquarters staff will choose the winning application(s) by lottery and/or reduction of grant request consistent with the reduction method described above.

Deadlines:   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.

Range of Approval/Disapproval Time:   A processing schedule is developed for each funding round.

Appeals:   An applicant will have fourteen (14) calendar days from the date of HUD's written notice to appeal a technical rejection to the Multifamily Hub where the applications were sent originally. HUD will make a determination on an appeal before finalizing selection recommendations.

Renewals:   None.


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:   None.


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 or annual report 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 HUD and State requirements and regulations.


Account Identification:   86-0320-0-1-604.

Obligations:   (Grants) Reported under program 14.157.

Range and Average of Financial Assistance:  
$2-6 million; average $4 million.

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Funded 508 units in FY 2000 and 424 units in 2001.


Section 202(b) of the Housing Act of 1959, Assisted Living Conversion Program Notice of Funding Availability published February 26, 2001.


Regional or Local Office:   See Regional Agency Offices. 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:   Katina Washington 451 7th St SW Room 6152, Washington, District of Columbia 20410 Email: Phone: (202) 708-3000

Web Site Address:




Criteria for selecting proposals are in the NOFA.

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