Assisted Living Conversion for Eligible Multifamily Housing Projects

To preserve the current elderly housing stock by converting units with a grant into Assisted Living Facilities (ALFs) or Service-Enriched Housing (SEH) for the frail elderly aging in place, as defined in Section 232(B)(6) of the National Housing Act and 202(k). The program is expected to promote aging in place and prevent premature institutionalization of the target population.

Only private nonprofit owners of eligible multifamily assisted housing developments specified in Section 683(2)(B), (C), (D), (E), and (F) (Section 202 projects for the elderly, Rural Housing Section 515 projects receiving Section 8 rental assistance, projects receiving project-based rental assistance under Section 8, projects financed by a below-market interest rate loan or mortgage insured under Section 221(d)(3) of the Housing Act, or housing financed under Section 236 of the National Housing Act) that have been in occupancy for at least five years are eligible for funding. To be eligible, owners must meet the following criteria: (1) Must be in compliance with Loan Agreement, Capital Advance Agreement, Regulatory Agreement, Housing Assistance Payment Contract, Project Rental Assistance Contract, Rent Supplement or LMSA Contract, or any other HUD grant or contract document; (2) Must be in compliance with all fair housing and civil rights laws, statutes, regulations, and executive orders as enumerated in 24 CFR 5.105(a).

Eligible residents who meet the admissions/discharge requirements as established for assisted living by State and local licensing, or HUD frailty requirements under 24 CFR 891.205 if more stringent. The residents must be able to live independently but may need assistance with activities of daily living (that is, assistance with eating, bathing, grooming, dressing and home management activities). Service-Enriched Housing is designed to accommodate elderly persons and people with disabilities with a functional limitation, meaning residents who are unable to perform at least one activity of daily living.

Assisted Living Facilities must be licensed and regulated by the State (or if there is no State law providing such licensing and regulation, by the municipality or other subdivision in which the facility is located). For Service-Enriched Housing, supportive services must be available through a licensed or certified third party service provider. For both ALF and SEH, the application must include a firm commitment for the supportive services to be offered at the ALF or SEH as part of the application. The Notice of Funding Availability contains all the necessary information for applicants to apply for the grant.

Assisted living facilities (ALFs) are designed to accommodate frail elderly persons and people with disabilities who can live independently but need assistance with activities of daily living (that is, assistance with eating, bathing, grooming, dressing and home management activities.) ALFs must provide support services such as personal care, transportation, meals, housekeeping, and laundry. Service-Enriched Housing (SEH) is housing that is designed to accommodate frail elderly persons or elderly persons with service needs who are aging in place. Residents are able to live independently but need assistance with activities of daily living comparable to services tyically provided in a licensed assisted living facility, such as healthcare-related services. These supportive services must be available through a licensed or certified third party service provider. Typical funding will cover basic physical conversion of existing project units, as well as related common and services space. The ALCP provides funding for the physical costs of converting some or all of the units of an eligible development into an ALF or SEH, including unit configuration, common and services space and any necessary remodeling, consistent with HUD or the State's statute/regulations (whichever is more stringent). There must be sufficient community space to accommodate a central kitchen or dining facility, lounges, recreation and other multiple-areas available to all residents of the project, or office/staff spaces in the ALF or SEH. Funding for the supportive services must be provided by the owners, either directly or through a third party.

This program has no matching requirements. However, owners are required to find the supportive services through other funding sources.

Applicants applying to convert to an ALF must have contacted the State licensing agency for such a project to determine if the proposed project will meet state licensing requirements. The Supportive Service Plan (SSP) is required for the ALF and SEH, the plan should include services and coordnation of the supportive services which will be offered in the ALF or SEH must be developed and submitted to the appropriate State or local organization. Applicants must comply with all applicable statutory requirements and statutory requirements under Section 232(b)(6) prior to application submission.

Applications are only accepted in response to the Notice of Funding Availability which is published in the Federal Register each fiscal year. Applicants responding to the NOFA should ensure that their application is complete before submitting it to HUD. Applications must be submitted in accordance with requirements of the NOFA. All applications received by the deadline will be screened for curable deficiencies. After the completeness review, HUD reviews the application to determine whether it meets the threshold requirements. Only those applications that meet all of the threshold requirements will be eligible to receive an award. Applications submitted in response to the NOFA that are eligible, pass threshold and have a total score of 75 points (or more) are eligible for ranking and selection.

Criteria for selecting proposals are in the NOFA.

Applications are reviewed and selected for funding within the funding allocation of the geographical Hub area. At the end of the technical review, all applications will be either rated or technically rejected. If an application meets all program eligibility requirements after completion of the technical review, it will be rated according to the rating selection factors. The number of points that an application receives will depend on the extent to which the application is responsive to the information requested in the selection criteria. The maximum number of points an application may receive under this program is 102.

A processing schedule is developed for each funding round. Applicants are provided with a decision by the end of the schedule , after approximately 4-6 months from processing start date.

An applicant will have fourteen (14) calendar days from the date of HUD's written notice to appeal a technical rejection. HUD will make a determination on an appeal before finalizing selection recommendations.