Opportunity Information: Apply for FR 6700 N 52
The FY 2023 Section 202 Supportive Housing for the Elderly Program is a HUD discretionary grant opportunity (CFDA 14.157; Funding Opportunity Number FR 6700 N 52) aimed at expanding supportive, affordable rental housing for very-low-income seniors age 62 and older. The core idea is to help older adults live independently in their own apartments while having access to voluntary supportive services that make day-to-day life safer and more stable, such as nutrition programs, transportation assistance, continuing education, and health-related supportive services. A notable feature in this year’s Notice of Funding Opportunity (NOFO) is added support for intergenerational housing, specifically housing that includes units designed for elderly caregivers who are raising children, referred to in the NOFO as “intergenerational housing.”
The funding model has two main components. First, HUD provides Capital Advance funding to pay for the hard development costs of creating or upgrading housing. Capital Advance can be used for new construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. This Capital Advance carries no interest and, as long as the property is kept available for occupancy by very-low-income elderly persons for at least 40 years, the sponsor does not have to repay it. Second, HUD provides ongoing operating support through a Project Rental Assistance Contract (PRAC). The PRAC subsidy covers the gap between what tenants can afford to pay and the HUD-approved cost of operating the property. Importantly, PRAC operating support can include the cost of employing a service coordinator and other HUD-approved service expenses, which reinforces the program’s emphasis on stability, wellness, and aging in place rather than simply providing a unit.
HUD encourages applicants to combine (or “leverage”) Section 202 Capital Advance funds with other non-Section 202 financing sources to stretch federal dollars and produce more units per dollar of HUD funding. At the same time, the NOFO makes clear that Capital Advance funds can only be used in connection with units that will receive PRAC assistance. The program also allows for mixed properties: PRAC-assisted units can be developed within a building that also contains non-PRAC residential units (whether affordable or market-rate) and even non-residential space, such as ground-floor commercial uses, as long as the Section 202/PRAC requirements are met for the assisted units.
In selecting projects, HUD is looking for sponsors that treat housing as a platform for older adults to remain in their communities as needs change over time. The NOFO highlights priorities such as designing housing that supports long-term wellness and aging in place (think accessibility, safety, and practical unit/building design), offering a strong and credible package of services that support residents’ health and social well-being, and bringing in additional financing to increase the overall impact. In other words, competitive applications are expected to show not only a feasible real estate development plan, but also a thoughtful services approach that helps residents stay stable and connected.
The NOFO also spells out clear restrictions on what Capital Advance funds cannot be used for, based on 24 CFR 891.809. These funds cannot be used to acquire facilities the sponsor already owns and operates as elderly housing unless the acquisition is paired with rehabilitation as defined in HUD rules. They also cannot be used to finance or refinance units that are already federally assisted or federally insured, including projects with FHA-insured debt, Flexible Subsidy Loans, or existing Section 202 Capital Advance or Direct Loan projects. In addition, they cannot be used for units in certain Section 202 direct loan projects that were previously refinanced under provisions tied to the American Homeownership and Economic Opportunity Act of 2000. Finally, the program is not meant to create institutional care settings: funds cannot be used to construct or operate nursing homes, infirmaries, assisted living facilities, or medical facilities, nor for mobile homes. The NOFO also prohibits use for community centers or organizational headquarters for the elderly, and it does not allow residential units that lack individual kitchens and bathrooms (single room occupancy units where those facilities are not provided within the unit).
Eligibility is centered on nonprofit sponsorship. Applicants must document that they are either (1) a private nonprofit organization (referenced at 24 CFR 891.205) or (2) a mixed-finance limited partnership in which one or more private nonprofit organizations serve as the general partner (referenced at 24 CFR 891.805). The application requires organizational documentation submitted under “Tab A,” typically including Articles of Incorporation (or similar formation documents), bylaws, an organizational chart showing relationships among parties and listing officers, and a current IRS tax exemption determination letter (including for churches). HUD reviews these materials to confirm the applicant is truly an eligible private nonprofit (not a public body), has a mission and corporate authority broad enough to develop and operate the proposed housing and apply for both Capital Advance and PRAC, includes language preventing private inurement (no net earnings benefiting private individuals), and is not controlled by parties seeking profit or gain. Individuals, foreign entities, and sole proprietorships are explicitly ineligible to compete for or receive awards under this announcement.
Key administrative details included in the notice are that the opportunity is offered by the U.S. Department of Housing and Urban Development, categorized as a discretionary grant, with an original closing date of 2024-06-20. HUD anticipated making around 20 awards, with an award ceiling listed at $20,000,000.Apply for FR 6700 N 52
- The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "FY 2023 Section 202 Supportive Housing for the Elderly Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.157.
- This funding opportunity was created on 2024-02-21.
- Applicants must submit their applications by 2024-06-20. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $20,000,000.00 in funding.
- The number of recipients for this funding is limited to 20 candidate(s).
- Eligible applicants include: Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501 (c) (3) status with the IRS, other than institutions of higher education, Others.
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FY 2023 Section 202 Supportive Housing for the Elderly Program (HUD) - FAQs
1) What is this grant opportunity?
This is the FY 2023 Section 202 Supportive Housing for the Elderly Program, a HUD discretionary grant opportunity (CFDA 14.157; Funding Opportunity Number FR 6700 N 52). It is designed to expand supportive, affordable rental housing for very-low-income seniors.
2) Who is the housing intended to serve?
The program is aimed at very-low-income elderly persons age 62 and older, with the goal of helping residents live independently in their own apartments while having access to voluntary supportive services.
3) What is the program trying to accomplish beyond providing housing?
The NOFO emphasizes housing as a platform for stability, wellness, and aging in place. It focuses on enabling older adults to remain in their communities as needs change over time, supported by practical design features and a credible services approach.
4) What kinds of supportive services are included?
The NOFO references voluntary supportive services such as nutrition programs, transportation assistance, continuing education, and health-related supportive services. It also notes that PRAC operating support can include the cost of employing a service coordinator and other HUD-approved service expenses.
5) What is "intergenerational housing" in this NOFO?
A notable feature in this year’s NOFO is added support for intergenerational housing. The NOFO describes this as housing that includes units designed for elderly caregivers who are raising children, referred to as "intergenerational housing."
6) What are the two main funding components in this program?
The funding model has two main components: (1) Capital Advance funding for development-related costs, and (2) ongoing operating support through a Project Rental Assistance Contract (PRAC) to help cover operating costs not met by tenant payments.
7) What is a Section 202 Capital Advance and what can it pay for?
Capital Advance is HUD funding used to pay hard development costs of creating or upgrading housing. It can be used for new construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation.
8) Does the Capital Advance have to be repaid?
The Capital Advance carries no interest and does not have to be repaid as long as the property is kept available for occupancy by very-low-income elderly persons for at least 40 years.
9) What is a PRAC and what does it cover?
A Project Rental Assistance Contract (PRAC) is operating support that covers the gap between what tenants can afford to pay and the HUD-approved cost of operating the property.
10) Can PRAC funds support services?
Yes. The NOFO states that PRAC operating support can include the cost of employing a service coordinator and other HUD-approved service expenses.
11) Can applicants combine Section 202 funds with other financing sources?
Yes. HUD encourages applicants to leverage Section 202 Capital Advance funds with other non-Section 202 financing sources to stretch federal dollars and produce more units per dollar of HUD funding.
12) Are there limits on when Capital Advance can be used?
Yes. The NOFO makes clear that Capital Advance funds can only be used in connection with units that will receive PRAC assistance.
13) Are mixed-income or mixed-use properties allowed?
Yes. The program allows mixed properties where PRAC-assisted units can be developed within a building that also contains non-PRAC residential units (affordable or market-rate) and even non-residential space (such as ground-floor commercial uses), as long as the Section 202/PRAC requirements are met for the assisted units.
14) What types of projects are likely to be competitive?
Based on the NOFO summary provided, HUD is looking for sponsors that (a) design housing to support long-term wellness and aging in place (including accessibility, safety, and practical unit/building design), (b) offer a strong and credible supportive services package that supports health and social well-being, and (c) bring in additional financing to increase overall impact.
15) What are Capital Advance funds NOT allowed to pay for?
The NOFO lists several restrictions (24 CFR 891.809). Capital Advance funds cannot be used for certain acquisitions or financing/refinancing scenarios, and they also cannot be used for certain types of facilities and unit configurations (including institutional or medical settings and units without individual kitchens and bathrooms).
16) Can Capital Advance be used to buy a facility the sponsor already owns and operates as elderly housing?
No, not by itself. The NOFO states Capital Advance funds cannot be used to acquire facilities the sponsor already owns and operates as elderly housing unless the acquisition is paired with rehabilitation as defined in HUD rules.
17) Can Capital Advance be used for projects that are already federally assisted or federally insured?
No. The NOFO states these funds cannot be used to finance or refinance units that are already federally assisted or federally insured, including projects with FHA-insured debt, Flexible Subsidy Loans, or existing Section 202 Capital Advance or Direct Loan projects.
18) Are there restrictions tied to certain Section 202 direct loan projects that were previously refinanced?
Yes. The NOFO states Capital Advance funds cannot be used for units in certain Section 202 direct loan projects that were previously refinanced under provisions tied to the American Homeownership and Economic Opportunity Act of 2000.
19) Can funds be used for nursing homes, assisted living, or medical facilities?
No. The NOFO states funds cannot be used to construct or operate nursing homes, infirmaries, assisted living facilities, or medical facilities.
20) Are mobile homes eligible under this program?
No. The NOFO states funds cannot be used for mobile homes.
21) Can Section 202 Capital Advance funds be used to build a community center or an organizational headquarters?
No. The NOFO prohibits use for community centers or organizational headquarters for the elderly.
22) Do residential units need to have their own kitchen and bathroom?
Yes. The NOFO does not allow residential units that lack individual kitchens and bathrooms, and specifically notes that single room occupancy units are not allowed where those facilities are not provided within the unit.
23) Who is eligible to apply?
Eligibility is centered on nonprofit sponsorship. Applicants must document they are either (1) a private nonprofit organization (24 CFR 891.205) or (2) a mixed-finance limited partnership where one or more private nonprofit organizations serve as the general partner (24 CFR 891.805).
24) What kinds of entities are explicitly ineligible?
Individuals, foreign entities, and sole proprietorships are explicitly ineligible to compete for or receive awards under this announcement.
25) What is "Tab A" and what documentation is typically required?
The application requires organizational documentation submitted under "Tab A." Based on the NOFO summary provided, this typically includes Articles of Incorporation (or similar formation documents), bylaws, an organizational chart showing relationships among parties and listing officers, and a current IRS tax exemption determination letter (including for churches).
26) What is HUD looking for when reviewing nonprofit eligibility documentation?
HUD reviews the materials to confirm the applicant is an eligible private nonprofit (not a public body), has a mission and corporate authority broad enough to develop and operate the proposed housing and apply for both Capital Advance and PRAC, includes language preventing private inurement (no net earnings benefiting private individuals), and is not controlled by parties seeking profit or gain.
27) Which federal agency is offering this funding?
The opportunity is offered by the U.S. Department of Housing and Urban Development (HUD).
28) What type of funding opportunity is it?
It is categorized as a discretionary grant.
29) What is the original closing date listed in the notice?
The original closing date listed is 2024-06-20.
30) How many awards did HUD anticipate making?
HUD anticipated making around 20 awards.
31) What is the award ceiling?
The award ceiling listed is $20,000,000.
32) What is the Funding Opportunity Number and CFDA number for reference?
Funding Opportunity Number: FR 6700 N 52. CFDA: 14.157.
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| Community Development Block Grant Program for Indian Tribes and Alaska Native Villages Apply for FR 6800 N 23 Funding Number: FR 6800 N 23 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $5,000,000 |
| VA's Grant and Per Diem Program FY 2017 NOFA Apply for GPD NOFA FY2017 Funding Number: GPD NOFA FY2017 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
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| Continuum of Care Notice Apply for CPD 2021 01 Funding Number: CPD 2021 01 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: Case Dependent |
| GPD Per Diem Only Grant Program (PDO) Apply for VA GPD PDO FY2024 Funding Number: VA GPD PDO FY2024 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
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| Indian Housing Block Grant (IHBG) Competitive Grant Program Apply for FR 6800 N 48 Funding Number: FR 6800 N 48 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $7,500,000 |
| Eviction Protection Grant Program Apply for FR 6800 N 79 Funding Number: FR 6800 N 79 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $2,500,000 |
| Lead and Healthy Homes Technical Studies (LHHTS) Grant Program Apply for FR 6800 N 15 Funding Number: FR 6800 N 15 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $1,000,000 |
| Lead Hazard Reduction Grant Program Apply for FR 6800 N 13 Funding Number: FR 6800 N 13 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $7,000,000 |
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