HUD Announces New Sec. 202 Housing Funds
On April 10, 2019 by Bobbie Guidry
The U.S. Housing & Urban Development Department (HUD) released a Notice of Funding Availability (NOFA) for new Section 202 funds. There is $50 million for the construction and ongoing rental subsidy of Section 202 homes. HUD expects to make approximately 30 awards. The deadline to apply is Aug. 28.
These funds are the first funds for new construction under the Section 202 program since 2010. LeadingAge led the advocacy charge to re-start the Section 202 program, showcasing the significant and growing need for affordable housing for older adults with very low incomes as well as the unique qualities of the Section 202 program to meet these needs.
In addition to this funding, HUD will release a second NOFA that includes the balance of the FY18 funds and all the FY19 funds in 2020.
Preferences are provided for applications that leverage outside resources and focus on aging in place; HUD believes that releasing the second round of new Section 202 funds in 2020 will allow eligible applicants the lead time they need to secure these leveraged sources, particularly to pay for the construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation of the new homes, and therefore allow more of the limited funds’ use for the ongoing operating subsidy of units in the form of Project Rental Assistance Contracts.