usc 12 § 1701q–2
Grants for conversion of elderly housing to assisted living facilities and other purposes (BANKS AND BANKING (12 U.S.C.))
Operative Text
The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for one or both of the following activities: Substantial capital repairs to projects that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons. Activities designed to convert dwelling units in the eligible project to service-enriched housing for elderly persons. An eligible project described in this subsection is a multifamily housing project that is— described in subparagraph (B), (C), (D), (E), (F), or (G) of , or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under ; owned by a private nonprofit organization (as such term is defined in ); and designated primarily for occupancy by elderly persons. Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain— a description of the substantial capital repairs or the proposed conversion activities for either an assisted living facility or service-enriched housing for which a grant under this section is requested; the amount of the grant requested to complete the substantial capital repairs or conversion activities; a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and such other information or certifications that the Secretary determines to be necessary or appropriate. The Secretary may not make a grant under this section for conversion activities unless an application for a grant submitted pursuant to subsection (c) contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility or service-enriched housing, which may be provided by third parties. The Secretary shall require evidence that each recipient of a grant for service-enriched housing under this section provides relevant and timely disclosure of information to residents or potential residents of such housing relating to— the services that will be available at the property to each resident, including— the right to accept, decline, or choose such services and to have the choice of provider; the services made available by or contracted through the grantee; the identity of, and relevant information for, all agencies or organizations providing any services to residents, which agencies or organizations shall provide information regarding all procedures and requirements to obtain services, any charges or rates for the services, and the rights and responsibilities of the residents related to those services; the availability, identity, contact information, and role of the service coordinator; and such other information as the Secretary determines to be appropriate to ensure that residents are adequately informed of the services options available to promote resident independence and quality of life. The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include— in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities or service-enriched housing that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility service-enriched housing is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant’s financial records, including assets in the applicant’s residual receipts account and reserves for replacement account; the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility or service-enriched housing is intended to serve; in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility or service-enriched housing intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. Notwithstanding any other provision of law, a multifamily project which includes one or more dwelling units that have been converted to assisted living facilities or service-enriched housing using grants made under this section shall be eligible for project-based assistance under section 8 of the United States Housing Act of 1937 [], in the same manner in which the project would be eligible for such assistance but for the assisted living facilities or service-enriched housing in the project. For assistance pursuant to this subsection, the maximum monthly rent of a dwelling unit that is an assisted living facility or service-enriched housing with respect to which assistance payments are made shall not include charges attributable to services relating to assisted living. For purposes of this section— the term “assisted living facility” has the meaning given such term in ; the term “service-enriched housing” means housing that— makes available through licensed or certified third party service providers supportive services to assist the residents in carrying out activities of daily living, such as bathing, dressing, eating, getting in and out of bed or chairs, walking, going outdoors, using the toilet, laundry, home management, preparing meals, shopping for personal items, obtaining and taking medication, managing money, using the telephone, or performing light or heavy housework, and which may make available to residents home health care services, such as nursing and therapy; includes the position of service coordinator, which may be funded as an operating expense of the property; provides separate dwelling units for residents, each of which contains a full kitchen and bathroom and which includes common rooms and other facilities appropriate for the provision of supportive services to the residents of the housing; and provides residents with control over health care and supportive services decisions, including the right to accept, decline, or choose such services, and to have the choice of provider; and the definitions in section 1701(q)(k) of this title shall apply. There is authorized to be appropriated for providing grants under this section such sums as may be necessary for fiscal year 2000.
Under 12 U.S.C. § 1701q–2, the Secretary of Housing and Urban Development is authorized to award grants to qualifying nonprofit owners of federally connected multifamily housing projects designated primarily for elderly residents. These grants can fund substantial capital repairs to aging structures or the conversion of dwelling units into assisted living facilities or service-enriched housing for elderly persons. Projects that receive such grants remain eligible for Section 8 project-based assistance, and any rent calculations for converted units may not include charges tied to assisted living services.
Plain English — not legal advice.
Owners and managers of eligible nonprofit-owned elderly housing projects should understand that 12 U.S.C. § 1701q–2 establishes a competitive grant program requiring a formal application to HUD that details the scope of repairs or conversion activities, the funding amount sought, and evidence of additional committed resources. For conversion grants specifically, applicants must demonstrate firm funding commitments for resident services and, in the case of service-enriched housing, must be prepared to provide residents with clear, timely disclosures about available services, their right to accept or decline those services, and the identity of all service providers. Selection criteria favor projects with demonstrated need, community support, financial inability to self-fund, and a strong commitment to resident autonomy and independence.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Elderly residents living in multifamily housing covered by 12 U.S.C. § 1701q–2 have a right to receive relevant and timely information about any supportive services offered at their property, including the right to accept, decline, or choose services and to select their own provider. If a property undergoes conversion to service-enriched housing using these grants, residents are entitled to know the identity and contact information of all service providers and the service coordinator on-site. Tenants who believe required disclosures are not being made or that their rights regarding service choices are being ignored may consider contacting HUD directly, reaching out to a local tenant-rights organization, or consulting with a housing counselor familiar with federally assisted elderly housing.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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