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HUD: FY12 Funds Sufficient for Renewal of PRAC Contracts and Senior Programs

by Published On: Dec 20, 2011

According to a U.S. Department of Housing and Urban Development announcements sent out to various HUD field offices (see full text below), there will still be funds available to renew all Project Rental Assistance Contract (PRAC) agreements as well as for implementation of new authorities. 

Also covered in the listserv announcement (full text below): 

  • Expectation of FY12 funding competitions of $25 million for new Assisted Living Conversion Program (ALCP).
  • $11 million for service coordination.
  • Declared priorities for use of limited funding available for Capital Advance and PRAC Amendments.
  • Coming availability of new Section 8 HAP contracts authorized as part of the new Section 202 Senior Preservation Rental Assistance Contracts which was part of LeadingAge's successful signature preservation proposals. 

HUDs field office and program center directors have been circulating the following information broadly using their regional listservs. Should you desire more information on any of the issues, please don't hesitate to contact me.

ListServ Announcement Text

Update on Funding for Fiscal Year 2012

Congress passed a full year spending bill for HUD for Fiscal Year (FY) 2012 requiring significant spending cuts across the Department’s budget. Section 202 and Section 811 appropriations unfortunately do not provide for any new Capital Advance funds to support NOFAs for new construction activities. However, there will still be funds available to renew all PRAC contracts and for implementation of new authorities. The following details how FY 2012 funds will be used:

  • Existing PRAC Renewal Obligations: Funding will be available to support all PRAC renewal costs for existing Section 202 and Section 811 properties.
     
     
  • Assisted Living Conversion Program: HUD will be issuing a NOFA for approximately $25 million in FY 2012. Under the Section 202 Supportive Housing for the Elderly Act of 2010, funds provided under this program can now be used also for conversion of properties to “Service-Enriched Housing” in addition to licensed residential care facilities. Service-Enriched Housing does not require facility licensure.
     
     
  • Section 811 Project Rental Assistance Demonstration: Under a new authority created by the Frank Melville Supportive Housing for the Elderly Act of 2010, HUD will be issuing a NOFA for approximately $75 million in FY 2012. Eligible applicants will only be state housing or other appropriate governmental agencies. Funds can be used to layer operating assistance into buildings for supportive housing set-asides for persons with disabilities. More information on this new authority can be found on the Section 811 webpage on hud.gov.
     
     
  • Section 202 Senior Preservation Rental Assistance Contracts: Under a new authority created by the Section 202 Supportive Housing for the Elderly Act of 2010, new Section 8 HAP contracts will be made available starting in FY 2012 for Section 202 Direct Loan properties with units not currently covered by a rental assistance contract. 
     
     
  •  Service Coordinator Program: A NOFA will be issued for approximately $11 million for new Service Coordinator funding. 

  • Capital Advance New Construction: No funds will be available for this purpose in FY 2012 for either Section 202 or Section 811.
     
     
  • Emergency Capital Repair Program: No funds will be available for this purpose in FY 2012.
     
     
     
  • Predevelopment Grants: No funds will be available for this purpose in FY 2012.
     
     
  • Capital Advance and PRAC Amendments: Extremely limited funds will be available for this purpose for the balance of FY 2012. The priority for amendment money will be those projects that require PRAC-only amendments. While funds remain available, capital advance amendment funds can also be requested to support those projects that have already gone through initial closing and require additional funding to get to final closing. 
 



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