Proposed Section 202 Reform

I'd like to let everyone know that HUD has released a draft Section 202 reform bill, available here.  The proposal represents a pretty significant rethinking of the program, including: converting capital grants to gap financing; converting PRACs to project-based rental assistance; and, of interest to researchers, allocating $1.5 million to investigate the program's ability to reduce costs associated with emergency and long-term care.

HUD is asking for feedback on this proposal.  The website gives November 15 as the deadline for comments, but in an email, comments were requested by November 1.

If you have any strong opinions on this proposal, please share them here on the Forum, as well.  I'm very interested in how nonprofit housing developers view these proposed changes.