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.
Service coordination (SC) is a desirable program, proven to be a useful, cost-saving role in affordable housing platforms, and is supported conceptually by HUD as something that should be expanded into as many senior housing communities as possible. However, funding the position has become more challenging in recent years.
On May 6, 2019, the Office of Multifamily Housing Programs issued a joint Notice, Notice H-2019-06, with the Office of Public and Indian Housing that provides guidance regarding the federally mandated exclusion of ABLE accounts from the calculation of income and assets under the Achieving a Better Life Experience Act of 2014 (ABLE Act). Amounts held in ABLE Act accounts are excluded from asset calculations, and any distributions from ABLE accounts are excluded from income calculations.
The weather was perfect as LeadingAge staff welcomed more than 1,100 to the rally to ask Congress to preserve and expand affordable housing for older adults with very low incomes. The rally brought together affordable housing supporters from the District and neighboring states MD and VA, as well as from PA, NJ, FL, OH, CT, MA and CA. The rally’s co-hosts helped promote the event and were instrumental in its success.
In early April, HUD sent out over TRACS a message to all multifamily housing providers stating that “If your property employs or contracts a social service staff person to support the needs of elderly or disabled residents, you MUST report.”
HUD’s Standards for Success is the new performance reporting framework for ALL properties that receive funding for either grant funded or budget-based Service Coordinators. Noncompliance may jeopardize your funding.
On April 4, 2019, HUD released the Notice of Funding Availability for the new Section 202 funds appropriated by Congress in FY17 and a portion of those appropriated in fiscal year 2018. In total, the NOFA announces the competition for $50 million in Section 202 funds for the construction and ongoing rental subsidy of Section 202 homes. From the funds made available through this NOFA, HUD expects to make approximately 30 awards. The deadline to apply for the funds under FR-6200-N-52 is August 28, 2019.
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.