LeadingAge Members Receive $32.8 Million in Section 202 Funding

Legislation | February 07, 2020 | by Linda Couch

On February 7, HUD announced $51.5 million in awards to 18 organizations to build and operate affordable housing for very low income older adults. LeadingAge is thrilled to share that HUD has awarded 11 LeadingAge members a total of $32.8 million of funding for Section 202 Housing for the Elderly. LeadingAge has been tirelessly advocating for new Section 202 funding, and our efforts are paying off. We thank Congress for their leadership on senior housing.

On February 7, HUD announced $51.5 million in awards to 18 organizations to build and operate affordable housing for very low income older adults. LeadingAge is thrilled to share that HUD has awarded 11 LeadingAge members a total of $32.8 million of funding for Section 202 Housing for the Elderly. LeadingAge has been tirelessly advocating for new Section 202 funding, and our efforts are paying off. We thank Congress for their leadership on senior housing.The need for affordable housing for older adults with very low incomes has increased steadily since the 202 program’s last funding for new construction in 2011. LeadingAge led the advocacy charge to re-start funding of the Section 202 program and preserve existing 202 homes. Together with state partners, members, and residents, we held two Senior Housing NOW rallies on Capitol Hill, urged Congress to restart the Section 202 program, offered innovative solutions such as RAD for PRAC, and made thousands of contacts with Congress to push for support.

We celebrate this success and will continue to fight for more affordable housing. Today, only one in three older adults eligible for housing assistance receive it. Waiting lists for Section 202 housing can be years long, a wait that cannot even begin until someone is 62 years old. Meanwhile, homelessness among older adults is rising rapidly.

Thankfully, programs like HUD’s Section 202 program exist to provide affordable, quality housing with on-site Service Coordinators to help residents age in community. Since the program’s revival in the fiscal year 2017 HUD appropriations bill, Congress has provided a total of $251 million for new Section 202 homes (FY17, $5 million; FY18, $105 million; FY19, $51 million; FY20, $90 million). This first $51.5 million tranche is expected to result in 575 new homes with Project Rental Assistance Contracts as their operating subsidy. Because the communities also use other funding sources, these 575 Section 202 homes will be in developments that comprise a total of 1,100 homes. HUD expects to announce the competition for the remaining Section 202 dollars in Spring 2020.

Before the zeroing out of new funding for Section 202 homes after 2011, Congress annually provided $450 million to $750 million for new Section 202 homes. LeadingAge will continue to urge Congress to get fully back on track to helping older adults with very low incomes afford their housing. For fiscal year 2021, LeadingAge is pushing for Congress to appropriate $600 million for new Section 202 homes in addition to resources needed to fully renew Project Rental Assistance Contracts, Section 8 Project-Based Rental Assistance, fund new and existing Service Coordinators, and extend HUD’s 40-site Integrated Wellness in Supportive Housing demonstration for two years.

Member advocacy is working. Congratulations again to all the recipients in announced today:

  • Connecticut: New Samaritan Corporation
  • Georgia: National Church Residences
  • Maryland: Comprehensive Housing Assistance, Inc.
  • Maryland: CSI Support & Development Services
  • Massachusetts: 2Life Communities
  • Minnesota: Volunteers of America
  • New Mexico: Elderly Housing Development and Operations Corporation
  • Ohio: The McGregor Foundation
  • Ohio: National Church Residences
  • Pennsylvania: Catholic Housing and Community Services
  • Washington: HumanGood Affordable Housing