HUD posted on September 21 their Notice of Funding Opportunity (NOFO) for the Section 202 Supportive Housing for the Elderly Program in Fiscal Year 2022. The highly competitive program – HUD expects to issue only 35 awards nationwide – provides successful applicants Capital Advance Grants and Section 8 rental assistance for the development and operation of supportive rental housing for very low-income persons 62 years of age and older.
HUD anticipates that the Grants only will be a component of the capital stack and will be leveraged with other financing sources such as low-income housing tax credits and/or subordinated debt or other grants. Projects must be designed to allow senior citizens to live independently and age in place at the community; they also must provide strong support (social and health) services.
HUD has allocated approximately $184 million for this year’s funding cycle. While the demand for housing for low-and-moderate income seniors far exceeds current supply, with the gap continuing to grow, HUD’s NOFO is welcome news.
The current closing date for applications is January 25, 2023, midnight, Eastern Standard Time.