HUD Notice 2018-02: Refinancing of Pre-1974 Section 202 Direct Loans and Subsequent Issuance of Tenant Protection Vouchers (TPVs) or Senior Preservation Rental Assistance Contracts (SPRACs).
The SPRAC program awards rental assistance to Section 202 Direct Loan projects financed prior to 1974.
HUD Notice 2018-02 offers Project Based Vouchers (PBVs) administered by a local Public Housing Agency (PHA) and/or Project Based Rental Assistance (PRBA) in the form of Senior Preservation Rental Assistance Contracts (SPRACs). These contracts are intended to prevent the displacement of unassisted, low-income elderly tenants following the refinancing of a pre-1974 Section 202 Direct Loan.
This rental assistance is awarded in conjunction with a refinance of the property. Owners are to apply for rental assistance at the time the property’s pre-payment application is submitted.
This is an exciting opportunity, as the SPRAC program was only previously funded in FY2012. Hampden Park Capital & Consulting assisted three (3) of the twelve (12) properties in the country who received SPRAC awards under the first SPRAC Notice.
Source: HUD Notice H 2018-02 issued February 2018.