The Department of Housing and Urban Development (HUD) operates a number of programs that provide both housing and supportive services for elderly households. HUD defines "elderly person" as a household composed of one or more persons in which at least one person is age 62 or older at the time of initial occupancy. The Section 236 and Section 221(d)(3) programs insured loans to private developers during the 1960s and early 1970s so that they could build low-income housing, some of which included buildings dedicated to elderly residents (neither program makes new loans, although some buildings still have active mortgages). In addition to housing, HUD funds four supportive services programs for elderly residents in its subsidized properties. This report provides a summary of the HUD programs that provide multi-family rental housing for low-income elderly households and their related supportive services programs. It also discusses funding and current issues in the area of assisted housing for low-income elderly persons. HUD Housing Programs

		The Section 202 Supportive Housing for the Elderly Program

The Section 202 Supportive Housing for the Elderly program is the only HUD program that currently provides housing exclusively for elderly households. Congress has not funded new units of Section 202 housing since FY2011, though funds sufficient to pay rental assistance on existing units continues to be appropriated. Phases of the Section 202 Program

				History of the Section 202 Program: 1959 to 1974

When the Section 202 program was established in 1959, its purpose was to provide housing for moderate-income elderly tenants—those with too much income for Public Housing but insufficient income for market-rate housing. Through this model, developers are to fund the capital costs of new housing units with other available funds such as Low Income Housing Tax Credits and the HOME Investment Partnerships program funds. Section 202 would then provide rental assistance for units dedicated to elderly residents. HUD makes available on its website data on the number of PHAs with approved designated housing plans that set aside projects, or portions of projects, for elderly residents or developments for elderly residents and residents with disabilities together. The programs are the Congregate Housing program, the Service Coordinator program, the Resident Opportunity and Self Sufficiency (ROSS) Service Coordinator program, and the Assisted Living Conversion/Service Enriched Housing Program. 106-74 ) created the Assisted Living Conversion Program (ALCP) to allow HUD-subsidized facilities for elderly residents to modify their apartments and common areas to accommodate elderly persons and persons with disabilities who need additional assistance in order to remain in their units. Initiatives and Issues

		Supportive Services Demonstration for Elderly Households in HUD-Assisted Multifamily Housing

In the FY2014 appropriations law ( P.L. In its FY2016 congressional budget justifications, HUD had set aside $20 million for this purpose. Nonprofit owners will be able to realize sale proceeds if each of the following requirements are met: (1) the property is sold to another owner that will enter into a use agreement to maintain affordability for at least 20 years beyond the original mortgage maturity date under the same terms as the original mortgage, (2) if there is a Section 8 Housing Assistance Payment (HAP) contract in place, it must be renewed for at least 20 years, (3) rent increases must be implemented in conformance with guidance in the notice, (4) the purchaser must submit a capital needs assessment, and significant repairs must be undertaken after the transaction closes, (5) the purchaser should have a feasible financing plan for the duration of the use agreement or HAP contract (whichever is longer), and (6) the purchaser must be experienced in the operation of affordable rental housing.
The population of persons age 65 and older in the United States is expected to grow both in numbers and as a percentage of the total population over the coming years, through 2030. In 2002, a bipartisan commission created by Congress issued a report, A Quiet Crisis in America, that detailed the need for affordable assisted housing and supportive services for elderly persons and the shortage the country will likely face as the population ages. The Department of Housing and Urban Development (HUD) operates a number of programs that provide assisted housing and supportive services for low-income elderly persons (defined by HUD as households where one or more persons are age 62 or older) to ensure that elderly residents in HUD-assisted housing can remain in their apartments as they age. This report describes those programs, along with current developments in the area of housing for elderly households.
HUD operates five programs that designate assisted housing developments for either low-income elderly residents alone, or low-income elderly residents and residents with disabilities. The primary HUD program that provides housing for low-income elderly households is the Section 202 Supportive Housing for the Elderly program. Established in 1959, it is the only HUD program that provides housing exclusively for elderly residents. The Section 221(d)(3) Below Market Interest Rate and Section 236 programs are mortgage subsidy programs that provide housing for all age levels, but have properties specifically dedicated to elderly households. The Public Housing and project-based Section 8 housing programs also have projects dedicated to elderly households.
In addition to providing housing, HUD operates four supportive services programs for elderly persons residing in HUD-assisted properties. The Congregate Housing program, Service Coordinator program, and Resident Opportunity and Self-Sufficiency (ROSS) Service Coordinator program each provide services such as meals and assistance with activities of daily living. The Assisted Living Conversion Program makes grants to HUD-assisted developments so that they can convert units or entire buildings into assisted living facilities or service enriched housing.
Congress has not funded new units of Section 202 housing since FY2011, though funds sufficient to pay rental assistance on existing units continue to be appropriated. In budget requests, the Administration has proposed to change the way in which new units of Section 202 housing are financed. The FY2013 and FY2014 budgets proposed that rental assistance through the Section 202 program be combined with other forms of capital financing (such as Low Income Housing Tax Credits) to fund new units. The Section 811 Supportive Housing for Persons with Disabilities program has already adopted this structure.
In the FY2014 Consolidated Appropriations Act (P.L. 113-76), Congress provided that excess amounts in residual receipts accounts could, upon Section 202 contract termination, be used to fund a housing and services demonstration project to analyze effects on delay or avoidance of nursing home entry. According to congressional budget justifications, HUD set aside $20 million for this purpose and, in January 2016, announced the availability of $15 million to owners of assisted multifamily properties serving elderly residents.