Section 202/PRAC

Program Status
Program Description

The Section 202 Supportive Housing for the Elderly program provides Capital Advance funding for the development of supportive rental housing for Very-Low-Income persons aged 62 years older and project rental subsidies in the form of a Project Rental Assistance Contract (PRAC) to maintain ongoing affordability.

– Capital Advance funds must be used must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation.
– Project Rental Assistance Contracts (PRACs) funds are used to cover the difference between the tenants’ contributions toward rent and the HUD approved cost to operate the project, including the cost of employing a service coordinator and HUD approved service expenses

Program Type
Type of Funding
Source of Funds
Funding Amounts/Limits

HUD provides interest-free capital advances to eligible applicants. The capital advance does not have to be repaid as long as the project serves very low-income elderly persons for 40 years

Target Population(s)

open to any very low-income household comprised of at least one person who is at least 62 years old at the time of initial occupancy

Links to Additional Resources

Eligibility

Eligible Applicants
Eligible Project Size
Other Eligibility Guidelines

Private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements contained in the General Section and the program Notice of Funding Availability (NOFA)

Application

Application Timeline
Overview of Application Process

Additional Information

Other Notes
Last Updated
June 6, 2024
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