HUD Section 202
HUD provides capital advances through the Section 202 program to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low-income elderly persons, including the frail elderly, and provides rent subsidies for the projects to help make them affordable. The Section 202 program, available to private, non-profit organizations, helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly households with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, transportation, etc. The program is similar to Supportive Housing for Persons with Disabilities (Section 811).
Occupancy in Section 202 housing is open to any very low-income (less than 50% Area Median Household Income) household comprised of at least one person who is at least 62 years old at the time of initial occupancy.
Kinetic Valuation Group provides the market analysis that is required for a Section 202 application. The analysis includes:
- Identification of a market area for a project
- Profile of existing subsidized housing alternatives for older adults
- Identification of the number of age-/income-/tenure-qualified households
- Reconciliation of the number of supportable units for Section 202 housing.