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HUD IX No. 13-63
Gene Gibson
(415) 489-6414
www.hud.gov/california
FOR RELEASE
Tuesday
December 17, 2013

HUD ANNOUNCES NEARLY $14.8 MILLION TO PRESERVE RENTAL ASSISTANCE IN SENIOR HOUSING DEVELOPMENTS
Funding to 6 California developments will help to prevent displacement of more than 700 elderly tenants

SAN FRANCISCO – 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.

"The HUD Senior Preservation Rental Assistant Contracts are an important tool for preserving the nation's subsidized affordable senior properties," said HUD Regional Administrator Ophelia Basgal. "This funding will continue to support affordable rent for seniors living in more than 700 units in six California developments.  California's 731 units is 40 percent of the total of 1,716 units in six states receiving funding."

The Section 202 Supportive Housing for the Elderly Act of 2010 authorizes 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.

See the attached list of the local awardees in more than 1,700 units located in 12 properties in six states.

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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.