HUD’ Office Recapitalization published for public review and comment, a draft Section IV of the Rental Assistance Demonstration (RAD) Notice. (It will revise Notice PIH-2012-32/H-2017-03 REV 3, becoming part of REV 4 of the RAD Notice.) Section IV applies to properties assisted by Section 202 Supportive Housing for the Elderly that have Project Rental Assistance Contracts (PRACs). The FY18 Appropriations Act authorized the use of RAD to convert Section 202 PRACs to either Project-Based Rental Assistance (PBRA) or to Project-Based Vouchers (PBVs). The draft is on the Office of Multifamily Housing Program’s “Drafting Table.” Comments are due to email@example.com by March 12.
The Section 202 Supportive Housing for the Elderly program provides funds to nonprofit organizations to develop and operate senior housing. Section 202 residents generally must be at least 62 years old and have incomes less than 50% of the area median income (AMI). Since 1991, the Section 202 program operated as a Capital Advance grant with a Project Rental Assistance Contract (PRAC). The Capital Advance covered expenses related to housing construction and the PRAC provides operating assistance that supports a building’s ongoing operating costs. While the Capital Advance program has not been funded since FY11, Congress has provided funds to renew the PRACs.
The draft of Section IV is at: https://bit.ly/2XrJf3D
More information about Section 202 is on page 4-29 of NLIHC’s 2018 Advocates’ Guide.
More information about RAD is on page 4-15 of NLIHC’s 2018 Advocates’ Guide.