Section 202 Funding at Risk

April 3, 2017 LeadingAge DC Executive Director

Funding for HUD affordable housing programs is at risk of being funded at 2016 levels unless Congress takes action to enact fiscal year 2017 (FY17) appropriations bills before April 28, when the Continuing Resolution (CR) currently funding HUD programs runs out.

A year-long CR would put Section 202 properties at risk of not having their rental assistance contracts renewed. For older adults living in Section 202 properties without renewal funding, this could mean the loss of their housing assistance altogether.

The CR is funding programs at fiscal year 2016 (FY 16) levels today, 6 months into FY17. Without a final FY17 bill, Congress might fund housing programs at FY16 levels until September 30, 2017. If this were to happen, HUD would not have enough funds to renew all Section 202 rental assistance contracts.

Congress has less than a month to finalize the HUD appropriations bill. Calls to Congress are needed today, as is outreach to Senate and House members during Congressional recess the weeks of April 10 and 17 when lawmakers will be back in their states and Congressional Districts.

How you can help:

Call Senate and House offices TODAY: 877-958-8024.

Key Messages:

  • Pass an FY17 HUD bill that fully funds the Section 202 Housing for the Elderly program at $505 million in FY17, a needed $72 million increase over FY16 funding.
  • Expand HUD’s Rental Assistance Demonstration (RAD) to include Section 202 Project Rental Assistance Contracts (PRACs) in the FY17 HUD bill.

What’s at Stake

  • LeadingAge understands that without a $72 million increase to the Section 202 account for FY17, compared to FY16 enacted funding, HUD will not have funding to renew Section 202 Project Rental Assistance Contracts (PRACs) that have renewal dates in October and November 2017. PRAC provides the rental subsidy for more than 128,000 Section 202 homes for very low income older adults nationwide.
  • The opportunity to authorize the expansion of HUD’s Rental Assistance Demonstration (RAD) to include PRACs will be lost for this fiscal year. Access to RAD would allow PRAC properties to access private capital to help preserve aging properties.

Call today! 877-958-8024

Steps for Making a Call

  • The Senate-passed FY17 HUD bill includes the RAD for PRAC provision, which would give PRAC properties access to private capital for preservation.
  • HUD’s RAD must be expanded to include PRAC properties.
  • Without RAD for PRAC, PRAC properties are not able to leverage new debt for repairs and improvements.

Call your Senators and Representatives TODAY: 866-685-9571.

Steps for Making a Call

  • Dial into this toll-free number: 877-958-8024. You will be prompted to enter your zip code to get connected to your lawmaker and leave a brief message. Feel free to use the key messages provided.
  • The automated system will first connect you to your Representative’s office. Leave a message with the staff person who answers the phone.
  • After leaving your message, allow the staff person to hang up and the automated system will then connect you to your Senators.

Additional information is available in LeadingAge’s Affordable Senior Housing Issue Brief.