HUD Announces SPRAC Awards
HUD recently announced selections for the $14.8 million in HUD's Senior Preservation Rental Assistance Contracts (SPRACs) for properties in HUD’s Section 202 “Supportive Housing for the Elderly” program where rental assistance may expire without this important preservation tool. The awards will continue to support affordable rent for seniors living in more than 1,700 units located in 12 properties in six states.
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 percent or less in the case of financing changes.