HUD has released updated processing guidance for the Section 202 Supportive Housing for the Elderly and Section 811 Supportive Housing for Persons with Disabilities programs. Some revisions include:
- The old maximum nonprofit developer’s fee of $400,000 (plus 2 percent of any replacement cost amount over $5,000,000) found in Notice H96-102 no longer applies.
- A housing consultant with outstanding delinquent Federal debt and without satisfactory repayment arrangements is automatically disqualified.
- If the developer wishes to include “excess amenities”, a tiered pricing structure based on the financial ability of the tenants may be used.
- The Single Asset Entity Requirement dictates that the project must be the only asset of the Owner. However, this requirement does not apply to the general partner. The general partner may be involved in other business ventures.
- A Lump Sum Construction Contract; a complete master set of drawings and specifications plus two duplicate sets; the Agreement and Certification (Form HUD 93566.1-CA) executed by the mixed-financing Owner, general contractor, and HUD; and Parts 1 and II of the Agreement to Enter Into a Project Rental Assistance Contract (Forms HUD-90172-A-CA and 90172-B-CA) must be submitted and filed with HUD before the start of construction.
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