HUD Issues First Senior Preservation Rental Assistance Contracts (SPRACs) Program Notice

The U.S. Department of Housing and Urban Development (HUD) published the final Senior Preservation Rental Assistance Contracts (SPRACs) Program Notice in the Federal Registrar. The Section 202 Supportive Housing for the Elderly Act of 2010 (Public Law 111-372, 124 Stat. 4077, approved Jan. 4, 2011) authorizes HUD to provide SPRACs with 20-year terms to owner-applicants of existing Section 202 properties that meet SPRAC eligibility criteria as established by this final notice. The purpose of the SPRAC Program is to prevent the displacement of existing tenants of certain projects assisted under HUD’s Section 202 Supportive Housing for the Elderly program in the case of refinancing or recapitalization and to further preserve and maintain affordability of Section 202 Direct Loan projects.

In Fiscal Year 2012, $16 million was made available for SPRAC funding.

The deadline for SPRAC applications is Sept. 3, 2013.

This final notice follows a Jan. 8, 2013 advance notice in which HUD presented and solicited public comment on the proposed eligibility and award criteria. This final notice takes into consideration the public comments received in response to the Jan. 8, 2013 solicitation.

HUD will host an industry call July 10 from 4 to 5 p.m. to provide an overview of the notice and to answer any questions. To participate, please dial (877) 873-8017 and use passcode 6722007.      

For more information about SPRACs, please visit the SPRACs Home Page and click here for the final notice.

Contact: Ken Harris, kharris@leadingageny.org, 518-867-8835