According to the leaked documents, HUD is contemplating asking Congress for a $42 million cut to the Section 202 program, whose renewal funding need in fiscal year 2017 is $412 million. Funding for Service Coordinator renewals and Senior Preservation Rental Assistance Contracts comprise the rest of the $505 million Section 202 account.
LeadingAge is enthusiastic about the future implementation of RAD for PRAC authority which will allow certain Section 202 PRAC senior housing providers a way to bring private financing to preserve their communities and pursue expansion of enriched affordable living opportunities for seniors by converting their PRAC subsidy to Section 8.
President Trump's request, which Congress will consider as it sees fit, asks for a $9.6 billion, or 16.4%, cut to HUD compared to the FY19 HUD funding.
The request would cut funding for the Section 202 account by $34 million, or 5%, from the FY19-enacted level of $678 million.
What the Administration released on March 11were its “top line” requests. The Administration will release the full details of its FY20 request during the week of March 18. In these forthcoming details, we will learn much more about the request and how it would impact older adult households.
For HUD, the bill provides $51 million for new housing under HUD’s Section 202 Housing for the Elderly program, full funding needed to renew existing rental assistance contracts, including for Section 202 Project Rental Assistance Contracts and Project-Based Rental Assistance, funds to renew Service Coordinators, and $10 million for a new HUD program to assist older adults with the modification of their homes.
In the memo regarding the resumption of multifamily asset management activities, you’ll note HUD’s first priority is work related to tenant health and safety, including contract renewals and subsidy payments.
The partial federal government shutdown ended on January 25, after 35 days of disrupting HUD’s ability to obligate funds to rental assistance contracts and paralyzing other HUD functions.
As the partial Federal government shutdown extends into its 4th week with uncertainty over when normal HUD operations will resume, an estimated 1175 project-based rental assistance (PBRA) contracts with December 2018 and January 2019 expiration dates will not be able to be renewed until after the shutdown, with Section 202/811 PRAC projects comprising the majority of impacted contracts. While some funding may be available to help the Section 8 and 811 properties for at least through January, already 440 Section 202 PRAC contracts
With HUD and its funding shutdown effective December 21, 2018, HUD was not able to renew 650 contracts for its multifamily housing partners in December. Of these 650 communities with expired contracts, MSNBC spent much of the day on January 14, 2019, broadcasting live from San Jose Manor, a LeadingAge member in Jacksonville, FL with about 100 residents.
We've leveraged some of the best trainers in affordable housing today, taped some of the most highly-rated sessions at recent annual meetings, and created additional resources we hope will be useful for you, LeadingAge subsidized senior housing providers.
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