Housing 202 Ltd. is one of the country’s premiere consulting firms in assisting nonprofit clients with the development of housing for seniors and for persons with disabilities under HUD’s Section 202 and Section 811 programs. Since its founding, the company has expanded its focus from one of assisting nonprofit housing organizations with the development of housing for the elderly under a specialized federal program to one of providing a comprehensive package of services to address the needs of housing providers who must compete in an increasingly more complex environment. Today Housing 202 Ltd. provides both development and financial services to a wide-ranging clientele including for profit companies and non-profit organizations.
Housing 202 Ltd. is versed in favorable financing available a the local, state and federal levels of government, as well as private resources. Brief descriptions of some of our financing sources are as follows:
Section 202 Supporting Housing for the Elderly.
Under the Section 202 Supporting Housing for the Elderly program of the United States Department of Housing and Urban Development (HUD), private, nonprofit sponsors can receive grants for the development of affordable senior housing, as well as rental assistance for the senior residents. this multifamily rental housing program serves persons aged 62 and older with incomes at or below 50% of median. Sponsors must commit to a 40 year period of affordability.
Section 811 Housing for Persons with Disabilities.
Under HUD’s Section 811 Housing Program, nonprofit sponsors can receive grants for the development of affordable rental housing for persons with disabilities. This includes persons with physical, mental or developmental disabilities with incomes at or below50% of median. Sponsors must commit to a 40 year period of affordability.
Section 42 Low Income Housing Tax Credit Program.
Under Section 42 of the Internal Revenue Code, tax credits can be earned for investing in affordable housing. Credits are used by investors in these affordable housing projects to reduce – dollar for dollar – their federal income tax obligations. Credits are allocated to developers by state housing finance agencies. The amount of credit awarded to a housing development is based on both the cost of the development and the percentage of low-income units in the development. Program criteria are governed by a state’s Qualified Allocation Plan.
Housing Investment Program
The HOME program is intended to foster partnerships among federal, state, and local governments and the private sector, including both for-profit and nonprofit developers of affordable housing. Funds are allocated annually to states and local governments on a needs-based formula. Larger cities (called Participating Jurisdictions) receive allocations directly from HUD, whereas smaller cities and rural communities must apply through a state agency.
Community Development Block Grant (CDBG)
The CDBG Program provides a flexible source of annual grant funds for local governments to address their own particular development priorities. Funds are allocated annually to states and local governments on a needs-based formula.
Affordable Housing Program (AHP), Federal Home Loan Bank
The AHP is administered by the Federal Home Loan Bank system and provides direct subsidies or low interest loans for he purpose of developing affordable housing. AHP funds may be used to 1) finance the purchase, construction, and/or rehabilitation of owner-occupied housing for families with incomes at or below 80% of median income, or 2) finance the purchase, construction, or rehabilitation of rental housing in which at least 20% of the unites are occupied by and affordable to households with incomes at or below 50% of the median income. Applicants apply through member banks.
HUD Mortgages Insurance Programs
Sections 221(d)(3) and 221(d)(4) of the Housing Act provide insurance for the construction or rehabilitation of housing for low-income and moderate-income families and seniors. Section 232 provides insurance for nursing homes, intermediate care facilities, board and care homes, assisted living facilities, and projects combining two or more of those types. the regulations governing all three of the programs are quite similar.