January 16, 2015

Enterprise Comments on HUD’s Proposed Rule for Section 202 and Section 811 Programs

On January 15, Enterprise submitted comments to the US Department of Housing and Urban Development (HUD) regarding its proposed rule for the Section 202 and Section 811 Programs. These programs are designed to provide affordable housing with supportive services for lower-income elderly adults and persons with disabilities.

Among its many provisions, this rule proposes the creation of Enhanced Project Rental Assistance Contracts (ePRACs), regulatory language for Senior Preservation Rental Assistance Contracts (SPRACs), and service coordinator regulations for multifamily housing and Assisted Living Conversion Programs. In addition, HUD plans to set aside units of Section 202 housing for the frail elderly and also provide predevelopment grant assistance to applicants without sufficient capital to compete for funding under the Section 202 and 811 Programs.

At a time when the elderly population is growing fast and the supply of affordable housing is not keeping pace with demand, it is critical that HUD use tools, such as ePRACs and SPRACs, to encourage preservation, supportive services and long-term affordability. However, it is equally important that new initiatives and regulations are flexible enough to be successful within existing 202 properties and compatible with the Low Income Housing Tax Credit Program. In the last decade, federal funding for housing programs has fallen significantly, particularly for programs that target the elderly. Our comment letter urges HUD to implement necessary programmatic changes with these concerns in mind.

The Enterprise Public Policy team works to safeguard, expand and improve programs that end housing insecurity. Learn more about our public policy efforts.

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