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WASHINGTON, DC – March 14, 2012 – (RealEstateRama) — The U.S. Department of Housing and Urban Development today announced the availability of up to $25 million to help convert multifamily apartment complexes into assisted living facilities or service-enriched housing for low-income senior citizens.  The funding offered through HUD’s Assisted Living Conversion Program will provide grants for the physical conversion of eligible multifamily assisted housing projects (or portions of projects) to assisted living facilities or service-enriched housing.  Read the funding notice published today.

“These grants offer an opportunity for low-income seniors to remain living independently in their homes while still receiving the services they need on a day-to-day basis.  Most importantly, they will not have to move from their familiar surroundings as they become older and need supportive services,” said HUD Secretary Shaun Donovan.

Assisted living facilities are designed to accommodate low-income frail elderly persons and persons with disabilities who can live independently but need assistance with the activities of daily living such as help with eating, bathing, dressing and home management activities.  These affordable facilities directly provide or facilitate the delivery of support services such as personal care, transportation, meals, and housekeeping.

The Section 202 Supportive Housing for the Elderly of 2010 act expanded the Assisted Living Conversion Program to give the owners the option to convert housing to an assisted living facility or service-enriched housing.  Service-enriched housing is housing that is designed to accommodate frail elderly persons or elderly persons with service needs who are aging in place.  Generally these are elderly persons are able to live independently but need assistance with activities of daily living comparable to services typically provided in a licensed assisted living facility.  These supportive services must be available through a licensed or certified third party service provider.

The developments receiving this funding will rely on a variety of programs to support elderly resident’s service needs, including Medicaid home and community-based waiver services, State Home Health Care programs, State Assisted Living Services funds, Medicare/Medicaid Programs, Money Follows the Person funds, Congregate Housing Services Program funds, Service Coordinator funds or similar programs.  Since the funds awarded under the Assisted Living Conversion Program do not cover services, project owners must be able to facilitate the delivery of services to residents.

The grants are awarded on a competitive basis.  The maximum amount of each award is $5 million.  During the review process, HUD assesses several factors including: the extent to which the conversion is needed; the quality and effectiveness of the proposal; the ability of the project owner to secure other community resources; as well as the capacity of the project owner to carry out the conversion.



HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to
strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at and
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HUD Public Affairs
(202) 708-0685