Under this federally administered program, direct loans are made to eligible, private nonprofit sponsors to finance the development of rental or cooperative housing facilities for occupancy by elderly or handicapped persons. The interest rate on such loans is determined annually. Section 8 funds are made available for all of the Section 202 units for the elderly. Rental assistance for 100 percent of the units for handicapped persons is also available.
Private, non-profit sponsors may qualify for Section 202 financing. Households of one or more persons, the head of which is at least 62 years old or is a qualified non-elderly handicapped between the ages of 18 and 62, are eligible to live in these units.
The City will encourage development of elderly and handicapped housing by eliminating governmental constraints, such as reducing fees, assisting with federal funding applications, providing density bonus incentives, and providing “gap” financing, where possible. Such “gap” financing would most likely be provided through Housing Set-Aside funds. While directed at the elderly and handicapped, this program helps to address the needs of extremely-low-income households and related problems of overpayment and overcrowding.