The HUD 202 Program: Affordable Housing for the Elderly
The HUD 202 program was designed to increase the supply of supportive housing for low-income elderly individuals. To do this, it provided construction, acquisition, and refinancing loans, as well as capital advances to nonprofit groups. Section 202 housing was designed to provide seniors a way to live independently, while supporting them with daily functions like cooking and cleaning. The Section 202 program is no longer offering funds to borrowers (the last funds were issued in 2012), though many Section 202-funded properties are still fully operational.
For former Section 202 borrowers who wish to refinance their property, options available to include HUD/FHA multifamily loans (in certain cases, in particular the HUD 232/223(a)(7) loan program). Other options may include Low Income Housing Tax Credits (LIHTCs).
Today, for-profit and nonprofit developers wishing to build new housing for low-income elderly residents may be interested in the HUD 221(d)(4) loan program, which can fund independent living communities with an affordability component. Or, if a developer wishes to build seniors housing with resident services (i.e. an assisted living component), the HUD 232 loan program may be a better fit.
To learn more about HUD multifamily loans, simply fill out the form below and a HUD lending expert will get in touch.