Eligible Properties

1. HUD 221(d)(3) or 236, including state agency insured properties
2. Section 8 project-based assistance
3. Purchased or approved for purchase under LIHPRHA home ownership provision
4. Section 515 rural rental assistance
5. Minimum 15 year affordability restriction for 1-3 above.
6. Minimum 12 month affordability restriction for 4 above

1. HUD 221(d)(3) with Sec.8 LMSA due to conversion from rent supplement, and HUD 236, including HUD-held and state agency insured properties
2. Section 8 project-based assistance
3. Purchased or approved for purchase under LIHPRHA home ownership provision
4. Affordability requirements must be extended for maximum term of existing mortgage/mortgage insurance/ Section 8 contract term/option; minimum 5 year additional affordability restriction from expiration of existing restrictions

Properties must be:

• at risk of loss as affordable housing
• primarily occupied by elderly or disabled families
• have one or more units of 3 or more bedrooms occupied by large families
• be located in rural area without adequate comparable housing
• be located in neighborhood where vouchers would be difficult to use

• Acquisition
• Rehabilitation
• Operating costs
• Capital expenditures

• Acquisition
• Preservation incentives
• Operating costs
• Capital expenditures

Not less than 5 years beyond existing maximum term of contract commitments, subject to annual appropriations

Factors for consideration, but not mandatory criteria, are;

1. use of assistance to transfer the project to a resident-endorsed nonprofit
2. extension of low-income affordability restrictions for more that 15 years
3. consistency with CHAS (ConPlan) for jurisdiction where property is located
4. accessibility to transportation, jobs, shopping
5. extent to which project meets fair housing goals
6. serving specific needs not otherwise met by the local market ( i.e. elderly, disabled, families with children)
7. amount of local government resources dedicated
8. other factors established by Secretary or State

Maximum amount is determined by how much money state certifies it has or will spend on eligible properties subject to need and appropriations.

Match levels are:

• 2 federal $ for 1 non-federal $
• 50% of proceeds from LIHTC, mortgage revenue bonds and proceeds from the sale of tax-exempt bonds are considered non-federal

Match levels are:

• 1 federal $ for every 1 non-federal $
• 1 federal $ for every 2 locally controlled federal $ (LIHTC and tax exempt bond proceeds are considered federal sources.)

• Formula grant based on number of at risk units and degree of difficulty that residents in eligible properties would have in finding comparable housing.
• State should ensure that projects in urban and rural areas receive grants

• Formula grant based on proportion of need related to the aggregate need among all States and localities approved for assistance
• Give priority in FY 2001 and beyond to: a) among applications of equal merit, States and localities without previous grant; and b) projects with binding commitments for sale or transfer to a nonprofit