This funding is targeted for properties in HUD’s Section 202 “Supportive Housing for the Elderly” program.
HUD’s Section 202 funds ensure continued affordability in the case of refinancing or recapitalization, as well as other property updates, by offering loans with interest rates of 6% or less.
HUD can provide Senior Preservation Rental Assistance Contracts with 10-year and 20-year terms to prevent displacement of elderly residents.
This round of funding will help preserve more than 1,700 units located in 12 properties in six states, HUD said.
Most of the multifamily property mortgages will mature over the next ten years when their rental affordability can expire unless they receive HUD’s funding.
HUD’s multifamily program center staff will provide guidance for completing the funding process so the subsidy can flow to the unassisted seniors at the projects, and oversee the execution of the terms of the agreements and perform ongoing contract administration monitoring.