HUD Makes $25 Million Available for Multifamily-to-Assisted Living Conversions

The Department of Housing and Urban Development (HUD) is making $25 million available to help convert multifamily apartment buildings into assisted living communities or service-enriched housing for low-income senior citizens.

The funding comes from HUD’s Assisted Living Conversion Program and will provide grants for the physical conversion of eligible multifamily assisted housing projects (or parts of projects) to assisted living.

“These grants offer an opportunity for low-income seniors to remain living independently in their homes while still receiving the services they need on a day-to-day basis.  Most importantly, they will not have to move from their familiar surroundings as they become older and need supportive services,” said HUD Secretary Shaun Donovan in a statement.


The Assisted Living Conversion Program stems from HUD’s Section 202 Supportive Housing for the Elderly program, and gives building owners the option to convert housing into assisted living or service-enriched housing, which is designed to accommodate the frail elderly or those with service needs who wish to age in place. The supportive services must be available through licensed or third-party service providers.

While HUD’s grants will help fund conversions, other funding sources for these projects could include Medicaid home and community-based waiver sources, State Home Health Care programs, State Assisted Living Services funds, the Medicare/Medicaid programs, Money Follows the Person funds, Congregate Housing Services Program funds, Service Coordinator funds, or other similar programs.

The conversion program funds don’t cover services themselves, so project owners must be able to facilitate the delivery of services to residents.


These grants will be awarded on a competitive basis, with the maximum amount of each award set at $5 million. When reviewing proposals, HUD will assess several factors including the extent to which the conversion is needed, the quality and effectiveness of the proposal, the ability of the project owner to secure other community resources, and the capacity of the project owner to carry out the conversion.

View the Assisted Living Conversion Program funding notice here.

Written by Alyssa Gerace

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