Download
section 202 811 capital advance programs n.
Skip this Video
Loading SlideShow in 5 Seconds..
Section 202/811 Capital Advance Programs PowerPoint Presentation
Download Presentation
Section 202/811 Capital Advance Programs

Section 202/811 Capital Advance Programs

193 Views Download Presentation
Download Presentation

Section 202/811 Capital Advance Programs

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Section 202/811Capital Advance Programs Basic Program Requirements 1

  2. Basic Program Requirements Purposeof Programs 2

  3. Basic Program Requirement To expand the supply of supportive housing for the elderly and for persons with disabilities. 3

  4. Basic Program Requirements What Funding Does HUD Provide? 4

  5. FY 2003 APPROPRIATIONS • Section 202 • $783,286,000 • $683,036,000 for new units, amendments and PRAC renewals • $50 million for service coordinator & CHSP 5

  6. FY 2003 APPROPRIATIONS • Section 202 (cont’d) • $783,286,000 • $25 million for ALCP • $250,000 transferred to Working Capital Fund • $25 million for Section 202 Predevelopment Grant

  7. FY 2003 Appropriations • Section 811 • $250,515,000 • 196,665,000 for new units, amendments, PRAC and tenant-based assistance renewals • 53.6 million for tenant-based assistance • $250,000 transferred to Working Capital Fund 6

  8. Section 202/811 Allocations • 202 • $473.8 million/5,689 units • 811 • $116.8 million/1,478 units 7

  9. HUD Funding Types of funds • Capital Advance • Project Rental Assistance Funds reserved by formula 8

  10. Capital Advance Funds • Covers the cost of developing the housing. • Must be repaid if units are not made available to very low income elderly (202 projects) or very low income persons with disabilities (811 projects) for 40 years. 9

  11. Capital Advance Fund Reservation Formula • 202 projects and 811 projects (other than group homes) • multiply approp develop cost limit (est based on unit size and elev or non-elev structure) by the no. of units of each size. 10

  12. Capital Advance Fund Reservation Formula • 202 projects and 811 projects (other than group homes) • Ex. 20 unit elev. proj. (5 0BRs and 15 1 BRs) • 5 x $43,398 = $216,990 • 15 x $49,748 = $746,220 $963,210

  13. Capital Advance Fund Reservation Formula • 202 and 811 projects (other than group homes) (cont’d) • Multiply result ($963,210) by the high cost factor for the area in which project will be located. • Ex. $963,210 x 156% (HCP) for Any City, USA = $1,502,600 fund reservation (rounded down to nearest $100) 11

  14. Capital Advance Fund Reservation Formula • 811 group homes by no. of BRs and the development cost limit for the population of project • (i.e., physically/developmentally disabled or chronically mentally ill).

  15. Project Rental Assistance • The difference between approved operating expenses and tenant payments (30% of adjusted income) • The initial term is 5 years.

  16. Project Rental Assistance Restricted up to first year of occupancy by formula - OCS x no. of revenue producing units or, if GH, # of residents with disabilities

  17. Project Rental Assistance Operating expenses can include: • Service coordinator in 202 projects serving frail elderly • Up to $15 per unit per month for services for frail elderly (202) 16

  18. Basic Program Requirements Sponsor’s Financial Requirements 17

  19. Sponsor’s Financial Requirements Other costs not covered by capital advance • Minimum capital investment • 1/2 of 1% of the Capital Advance up to maximum of $10,000($25,000 if 202 national sponsor) Development costs exceeding original reservation 18

  20. Basic Program Requirements Who Can Apply? 19

  21. Section 202 Private nonprofit Nonprofit Consumer Cooperative IRS tax exemption Public entity or instrumentality ineligible Sponsor (Applicant) Eligibility - Type of Organization 20

  22. Sponsor (Applicant) Eligibility - Type of Organization • Section 811 • Nonprofit with IRS tax exemption under 501(c)(3) • Public entity eligible if it has • 501(c)(3) 21

  23. Sponsor Eligibility -Prohibited Relationships • Individual Board members & officers cannot: • Provide services to sponsor/owner for a fee • Hire certain family members as development team members 22

  24. Sponsor Eligibility -Prohibited Relationships • Individual Board members & officers also cannot: • Have Identity or Conflict of Interest with other development team members, e. g. Gen. Contractor Attorney Consultant Land Seller Architect Management Agent 23

  25. Sponsor Eligibility-Prohibited Relationships • Development team members • Identities of Interest are prohibited between development team members e.g., Seller of Land cannot have Identity of Interest with the General Contractor 24

  26. Sponsor Eligibility-Permissible Relationship • Sponsor or its Nonprofit Affiliate can be: • Management Agent • Consultant; or • Service Provider Note: No more than 2 paid officers/ directors from the Sponsor’s/Affiliate’s Board can be on the Owner’s Board & they must be non-voting 25

  27. Sponsor Eligibility-Religious Bodies • Religious bodies are eligible • Provided they submit required documentation including current IRS ruling 26

  28. Sponsor Eligibility-Religious Bodies • If the project is selected • Sponsor will form single asset Owner • Owner cannot have any religious purposes

  29. Owner Eligibility -Type of OrganizationSection 202 • Single-purpose private nonprofit with IRS tax exemption under 501(c)(3) or 501(c)(4) • Nonprofit Consumer Cooperative 27

  30. Owner Eligibility -Type of OrganizationSection 202(cont’d) • For-profit limited partnership with a nonprofit as sole general partner • - Only permitted to develop a • mixed-finance project for • additional units 28

  31. Owner Eligibility -Type of OrganizationSection 811 • Single-purpose nonprofit with 501(c)(3) tax exemption • For-profit limited partnership with a nonprofit as sole general partner • - Only permitted to develop a mixed- • finance project for additional units 29

  32. Basic Program Requirements Who are Eligible Residents? 30

  33. Section 202 Very low income 50% of median income for applicable County & household size One family member must be 62 or older Eligible Residents 31

  34. Section 811 Very low income 50% median income for applicable County & household size Eligible Residents 32

  35. Individual/family where one member is: -18 years or older & has one or more of the following disabilities: Chronic Mental Illness Physical Disability Developmental Disability Eligible Residents 33

  36. Requests for Restricted Occupancy (Section 811) • Sponsors may request approval to restrict occupancy to: • a subcategory of the three main disability categories • Submit detailed justification in Exhibit 5(b) of Application 34

  37. Basic Program Requirements What Methods of Development Are Eligible? 35

  38. Sections 202 and 811 New Construction Rehabilitation Acquisition with/without Rehabilitation Development Methods 36

  39. Basic Program Requirements What types of Structures are Eligible? 37

  40. Section 202 Independent Apartment units Eligible Structure Types 38

  41. Eligible Structure Types • Section 811 • Independent Living Projects(ILPs) containing individual apartment units • Condominium units • Group Homes 39

  42. Section 202 Efficiencies & 1 Bedroom only Eligible Structure Types- Apartment Units-Tenant Unit Sizes 40

  43. Eligible Structure Types- Apartment Units-Tenant Unit Sizes • Section 811 • Any size, however • 3 Bedroom & larger units must be occupied by families not unrelated individuals 41

  44. Eligible Structure Types- Apartment Units (Sec. 202 & 811) • Maximum number of people per Section 811 ILP is 14 persons with disabilities (an exception may be requested) • One unit for resident manager • Sec. 202-one or two bedroom unit • Sec. 811-ILP: one or two bedroom unit 42

  45. Eligible Structure Types- Condominium (Sec. 811 Only) • Same as ILP units • Cannot purchase separate unit for Resident Manager 43

  46. Eligible Structure Types-Group Home (Sec. 811 Only) • Each Group Home • Minimum of 2 & maximum of 6 persons with disabilities • Single or double occupancy • Residents cannot be required to share a bedroom 44

  47. Eligible Structure Types- Group Home (Sec. 811 Only) • One bedroom unit(apt.) for resident manager is permitted • Two group homes cannot be located next to each other 45