HUD Proposes Section 202 Budget to Congress
On April 11, the administration recommended to Congress a budget of $400 million for the Section 202 program including $310 million for PRAC and Senior Preservation Rental Assistance Contract (SPRAC) renewal payments; $70 million for service coordinator renewals; and $20 million for a demonstration program for new housing and supportive services models.
The Section 202 demonstration, if approved and funded, may provide operating assistance only and may be administered by a state partnership between housing and health care agencies. The precise form of the demonstration is yet to be determined.
LeadingAge is assuming $22 million will be available in carry over funding for the Assisted Living Conversion Program (ALCP) and Service Enriched Housing grants.
In addition, the budget continues to fully fund Project Based Section 8 contracts at $10.2 billion.
On April 12, LeadingAge New York participated in a call by Ben Metcalf, HUD’s special assistant to Office of Multifamily Housing Program, who provided an overview of the HUD Section 202 budget proposal.
Mr. Metcalf noted that while the Section 202 funds in the budget are not enough for the growing need of affordable housing, the budget does provide a placeholder to develop new models of housing with services. He stated that research is being conducted of housing with services models, including LeadingAge members, and immense progress is being made in the understanding of the benefits and cost savings of these models.
A LeadingAge research project entitled “Enhancing Aging in Place for Older Adults” is slated to be released this summer.
Mr. Metcalf noted that HUD recognizes the value of service coordination and other interventions to individuals who are receiving, or at risk of being placed, on Medicaid. A supportive housing setting for these individuals may yield considerable savings.
HUD does not have a timeline on when the details of the new program, if funded, would be released by HUD in a NOFA. However, HUD is considering a national competition and moving away from HUB competition.
Contact: Ken Harris, kharris@leadingageny.org, 518-867-8383, ext. 139