HUD Offers $20 Million To Convert Multifamily Apartment Buildings Into Assisted Living Facilities

The U.S. Department of Housing and Urban Development announced last week the availability of $20 million to help convert multifamily apartment complexes into assisted living facilities for low-income senior citizens in addition to “HUD Offers $420 Million In Capital Advances For Housing Very Low-Income Elderly”. The funding is offered through HUD’s Assisted Living Conversion Program will provide grants for the physical conversion of eligible multifamily assisted housing projects or portions of projects to assisted living facilities.  The developments receiving funding will be providing services through a number of sources including their State Home Health Care programs, State Assisted Living Services funds, Congregate Housing Services Program funds, Service Coordinator funds and private grants and donations. Since the funds awarded under the Assisted Living Conversion Program do not cover the costs of these services, the project owners must provide the service funds either directly or through a third party.

"These grants offer a lifeline that will allow low-income seniors and people with disabilities an opportunity to stay in their homes and not have to move from their familiar surroundings as they become older and need supportive services," said HUD Secretary Shaun Donovan.


The grants are awarded on a competitive basis. During the review process, HUD assesses several ranking factors including: the extent to which the conversion is needed by the persons that the project is intended to serve; the quality and effectiveness of the proposal in addressing the proposed conversion including the meals and supportive services which the project intends to provide; the ability of the project owner to secure other community resources which can be combined with the grant to achieve the program’s purposes; as well as the capacity of the project owner to carry out the conversion in a timely and effective manner.

The owners are responsible for ensuring that converted units meet all local standards, codes and regulations governing assisted living facilities. The projects must also be licensed and regulated by the appropriate governing body.

Applications may be downloaded from HUD’s website. Applications are due on or before November 5, 2009.