Section 202 Supportive Housing for the Elderly
HUD provides capital advances and contracts for project rental assistance in accordance with 24 CFR part 89 1. Capital advances must be used for the construction or rehabilitation of a structure, or acquisition of a structure with or without rehabilitation.
(See Section IV.E.3, below, for additional information on calculating the capital advance amount.) Capital advance funds bear no interest and are based on development cost limits in Section IV.E.
3. Repayment of the capital advance is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.
PRAC funds are used to cover the difference between the tenants' contributions toward rent (30 percent of adjusted income) and the HUD-approved cost to operate the project.
PRAC funds may also be used to provide supportive services and to hire a service coordinator in those projects serving frail elderly residents.
The supportive services must be appropriate to the category or categories of frail elderly residents to be served.
(See Section IV.E.3, below, for additional information on calculating the capital advance amount.) Capital advance funds bear no interest and are based on development cost limits in Section IV.E.
3. Repayment of the capital advance is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.
PRAC funds are used to cover the difference between the tenants' contributions toward rent (30 percent of adjusted income) and the HUD-approved cost to operate the project.
PRAC funds may also be used to provide supportive services and to hire a service coordinator in those projects serving frail elderly residents.
The supportive services must be appropriate to the category or categories of frail elderly residents to be served.