The Department of Housing and Urban Development announced on Tuesday a nearly $14.8 million commitment to preserving affordable rental assistance for senior residents of subsidized properties.
The funding is provided through HUD’s Senior Preservation Rental Assistance Contracts (SPRACs) and is targeted for properties in the department’s Section 202 Supportive Housing for the Elderly program. Without the funding commitment, rental assistance can expire and leave elderly residents unable to afford rental housing.
Seniors living in more than 1,700 units in 12 properties in six states will benefit from the funding, which will go toward making rents affordable.
Six California properties, including Park Towers in San Mateo and Grace Tower in San Diego, are receiving Preservation Rental Assistance Contract Awards, along with properties in Michigan, New Jersey, Oregon, Washington, and two in Ohio. The total funding commitment is $14,773,482.
HUD provides Senior Preservation Rental Assistance Contracts with 20-year terms to prevent displacing senior residents in certain Section 202-assisted projects in the case of refinancing or recapitalization. The contracts are also intended to help preserve and maintain affordability of Section 202 Direct Loan projects.
The majority of the mortgages in the Section 202 portfolio of properties will reach their maturity dates in the next 10 years, and HUD estimates that without interventions like SPRACs, maturing mortgages would signal the elimination of affordability protections for approximately 19,000 low-income seniors.
View the rental assistance contract awards by senior housing development.
Written by Alyssa Gerace