House, Senate Pass Section 202 Housing Reform For Low Income Seniors

This week, the House and Senate passed the Section 202 Supportive Housing for the Elderly Reform Act (S. 118) that makes improvements in the Department of Housing and Urban Development’s (HUD) Section 202 Supportive Housing for the Elderly Program.  The legislation, with broad support of aging advocacy groups throughout the country, will help expand the program that provides capital grants to non-profit community organizations for the development of supportive housing and provision of rental assistance exclusively for low-income seniors.

The bill will provide mechanisms to allow owners to refinance Section 202 developments, which may be in need of rehabilitation and provide a means to transform studio apartments into one-bedroom units.  The bill also establishes a new project-based rental assistance program in the event rent increases force seniors to pay higher costs after refinancing and allows owners to make health and supportive services available to residents through service-enriched housing.

“Not only will this law help aging Americans stay right where they want to be – in their own homes – but it will also help those who want to stay in the business of providing this crucial housing to low-income seniors. And by reducing the need for costly nursing home stays, we are saving the residents and the government money,” U.S. Senator Herb Kohl after the passage Tuesday in the House.


For the full text of the bill, visit