Congress has approved bills to reform the Section 202 and 811 supportive housing programs for the elderly.
S.118 revised the prepayment and refinancing provisions of the law for Section 202 projects and now require the project sponsor to operate a project as affordable for at least 20 years after the maturity of the original loan. The bill also provides for subordination or assumption of a 202 loan when there is new financing, meaning prepayment will no longer be the only option. When prepayment is requested, tenants must be given an opportunity to comment.
The 811 program was amended by S.1481. The bill allows for a delegated processing procedure similar to what is currently permitted for Section 202 projects.
The bills made a number of other changes relative to the two programs, and developers of 202 and 811 properties should review the bills in their entirety.