House Seeks Big Gains for Section 202 Program

Legislation | July 12, 2021 | by Linda Couch

HUD’s Section 202 Supportive Housing for the Elderly program would see its biggest expansion since fiscal year 2010 if the House HUD Appropriations Subcommittee’s fiscal year 2022 bill, set for a vote in full Committee on July 16, is enacted into law. The Subcommitee approved the bill by voice vote on July 12.

HUD’s Section 202 Supportive Housing for the Elderly program would see its biggest expansion since fiscal year 2010 if the House HUD Appropriations Subcommittee’s fiscal year 2022 bill, set for a vote in full Committee on July 16, is enacted into law. The Subcommitee approved the bill by voice vote on July 12.

The House Subcommittee bill would provide a total of $1.033 billion for HUD’s Section 202 program, including about $195 million for new Section 202 homes. Congress provided $52 million for new Section 202 homes.

In addition, the Subcommittee’s FY22 bill would provide $125 million for grant-funded Service Coordinators within the Section 202 account, matching the White House’s request to expand this program to more affordable senior housing communities without a Service Coordinator and following on about $25 million for new grant-funded Service Coordinators in the FY21 appropriations bill.

Also within the Section 202 account, the Subcommittee bill would provide $10 million for LEGACY Act intergenerational housing, which follows on the $5 million provided for such units in the FY21-enacted appropriations bill.

Overall, the Subcommittee’s bill would provide $56.5 billion for HUD, an 11% increase over FY21-enacted funding. The large and needed increase is due in part to the end of 10 years’ of federal spending caps after FY21. The Section 202 account would see an overall increase of almost 21% if the subcommittee’s bill is enacted, compared to FY21 funding for this account.

The bill would also fully fund Section 202 Project Rental Assistance Contracts, Senior Preservation Rental Assistance Contracts (SPRACS), and Section 8 Project-Based Rental Assistance.

The Subcommittee bill would also provide funding for 125,000 new Housing Choice Vouchers. The bill would greatly expand funding for HUD’s Office of Fair Housing and Equal Opportunity and HUD’s Office of Policy Development and Research.

The bill would increase funding for Section 811 mainstream non-elderly vouchers for persons with disabilities as well as a total of $300 million for the Section 811 Housing for Persons with Disabilities account, including funds to fully renew 811/PRAC contracts as well as resources for new 811 PRAC or Project Rental Assistance.

The bill would increase funding for the HOME program, from $1.35 billion to $1.85 billion, and also greatly increase funding for HUD’s homeless assistance programs, from $3 billion to $3.42 billion.

LeadingAge is very pleased with the Subcommittee’s bill. LeadingAge’s top affordable senior housing policy priority is to expand the supply of affordable housing, followed by expanding the number of Service Coordinators in federally-assisted senior housing. Read our policy priorities here.

The full House Appropriations Committee is expected to mark up the subcommittee’s bill on July 16. Senate appropriations counterparts have yet to schedule subcommittee or full committee markups of any of their FY22 appropriations bills.