HUD Logo
USA%20Flag  
Site Map         A-Z Index         Text   A   A   A
HUD   >   Press Room   >   Press Releases   >   2013   >   HUDNo.13-186
 
 
  
 
HUD No. 13-186
(202) 708-0685
http://www.hud.gov/news/index.cfm
FOR RELEASE
Tuesday
December 17, 2013

HUD ANNOUNCES NEARLY $14.8 MILLION TO PRESERVE RENTAL ASSISTANCE
IN SENIOR HOUSING DEVELOPMENTS

Funding to 12 developments will help to prevent displacement of elderly tenants

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced $14.8 million to preserve affordable rental assistance for elderly tenants living in subsidized properties.  This funding is provided through HUD’s Senior Preservation Rental Assistance Contracts (SPRACs) and is targeted for properties in HUD’s Section 202 “Supportive Housing for the Elderly” program where rental assistance may expire without this important preservation tool.  

SPRACs are an important tool for preserving the nation’s affordable multifamily properties. Funding will continue to support affordable rent for seniors living in more than 1,700 units located in 12 properties in six states.  See attached list of the local awardees.

The Section 202 Supportive Housing for the Elderly Act of 2010authorizes HUD to provide SPRACs with 20-year terms to prevent displacement of elderly residents 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.  The purpose of SPRACs is to prevent displacement of income-eligible elderly residents of Section 202 Direct Loan properties with original interest rates of 6% or less in the case of financing changes. 

The majority of the mortgages in this portfolio of properties will reach their respective maturity dates over the next ten years.   HUD estimates that without interventions like SPRACs, maturing mortgages will signal the elimination of affordability protections for approximately 19,000 low- and very-low income seniors.

HUD staff will provide guidance for completing the funding process so the subsidy can flow to the unassisted seniors at the projects.  HUD’s Multifamily Hub/Program Center Staff will oversee the execution of SPRAC contract and use agreement; will close any FHA financing; and will perform ongoing contract administration and servicing/monitoring of projects.
 

###

 

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov. You can also follow HUD on twitter @HUDgov, on facebook at  www.facebook.com/HUD, or sign up for news alerts on HUD's email list.
 

Preservation Rental Assistance Contract Awards

 

State

Senior Housing Development

Estimated # of Units*

Address

City

California

Park Towers

195

700 Laurel Avenue                              

San Mateo                  

 

Adlai E. Stevenson House

96

455 E Charleston Road                        

Palo Alto                  

 

Grace Tower

147

3955 Park Blvd.                            

San Diego                  

 

Ocean View Plaza

50

1001 Main #107-S Street                         

Half Moon Bay              

 

Garfield Park Village

75

721 Bay Street                                

Santa Cruz                 

 

Wilshire Christian Manor

168

616 S Normandie Avenue                         

Los Angeles                

Michigan

Cleveland Manor I

105

2200 Cleveland Avenue                          

Midland                    

New Jersey

Trent Center East

45

511-537 Greenwood Avenue                       

Trenton                    

Ohio

Lakewoods I & II

417

980 Wilmington Avenue                       

Dayton                     

 

Villa Serena

242

6800 Mayfield Road                          

Mayfield Heights           

Oregon

Westmorelands Union Manor

84

6404 SE 23rd Avenue                            

Portland                   

Washington

Hilltop House Apartments

92

1005 Terrace Street                         

Seattle                    

   

 

   

TOTAL

$14,773,482

1716

 

 

 

* Final # of units to be supported will be determined when rent contracts are executed.