SECTION 202 AND SECTION 811- DEVELOPMENT TEAM REFERENCE GUIDE
For Project Development and Preservation
Richard Silverblatt Associates, Inc.
I have been a housing consultant for over 30 years working with non-profit organizations, their development
teams and the HUD New York Office on Section 202 and 811 housing projects. I thought it was time to "put it all
together," and share what I have learned in an online Guide.
The insights into the HUD programs that I have acquired have been a result of working with very thoughtful,
dedicated and knowledgeable people -- both my colleagues in the public and private sector as well as my
clients, the non profit organizations who, with unflagging commitment and spirit, continue to create and
operate this needed housing. I have had great satisfaction working with and learning from them all--and I
continue to do so.
An important goal of the Guide is to support the efforts of Sponsors and development team members who are
working on Section 202 or Section 811 projects on a daily basis. In an attempt to achieve that end, the Guide
will strive to provide information that is up to date, accessible and relevant. I welcome your feedback and
questions. Click here to contact me.
A resident of New York City, Richard was graduated from Columbia College in New York and has received a
Master of Urban Planning degree from New York University.
The Guide is not intended as a substitute for specific requirements in Federal Regulations or applicable handbooks, notices or other official
publications. The Guide presents a general view and it is not intended to be a replacement for advice from members of the Development Team, the
Sponsor and HUD staff or other public officials on specific issues affecting specific projects. Visitors to this website who are developing projects in
other HUB offices should confirm that procedures described here are applicable in those other offices. Neither rsaguides.com nor Richard Silverblatt
Associates, Inc. accepts any liability for the use of any information provided in this Guide.
WELCOME TO THE SECTION 202 AND SECTION 811 DEVELOPMENT
TEAM REFERENCE GUIDE
FROM THE EDITOR
• July 1, 2015. See HUD Notice H-2015-04, "Methodology for Completing a Multifamily Housing Utility Analysis". A purpose
of the Notice is to provide "instruction to owners and management agents (O/As) for completing the utility analysis
required at the time of the annual or special adjustment of contract rents and when a utility rate change results in a
cumulative increase of 10 percent or more from the most recently approved utility allowance."
• June 8, 2015. Current income limits for 202 and 811 program, effective March 6, 2015.
• April 16, 2015. see HUD Notice H 2015-02, subject "Required Actions for Multifamily Housing Projects Receiving Failing
Scores from HUD’s Real Estate Assessment Center (REAC)".
• March 12, 2015. The Section 811 program has new project rental assistance funding. The funding provides Project Rental
Assistance grants to a number of approved state housing agencies that have partnered with state health and Medicaid
agencies to assist extremely low income persons with disabilities in existing or new housing that is funded by tax credits,
HOME funds and other sources. Unlike the 811 Capital Advance program, HUD is not providing funds for development,
only rental assistance. Follow the link above for more details and the list of participating states.
• January 21, 2015. See attached Federal Register of October 7, 2014, which sets forth proposed statutory changes to the
Section 202 and Section 811 program. The period for public comments has closed.
• January 12, 2015. HUD is converting its Line of Credit Control System, known as LOCCS to eLOCCS starting March 31,
2015. Click here for the HUD publication regarding registering for eLOCCS and the eLOCCS Registration Guide.
• December 6, 2014. See HUD Notice H 2014-16, Subject Waiting List Administration.
• December 6, 2014. See HUD Notice H 2014-10: Updated Processing Guidance for the Section 202 Supportive Housing for
the Elderly and Section 811 Supportive Housing for Persons with Disabilities Programs. Click on HUD Notices on the
menu above left of your screen and scroll down to the Notice cited above.
• November 25, 2013. For general information and HUD updates, click on the link to the HUD Portal on the Section 202
• November 25, 2013. For general information and HUD updates, click on the link to the HUD Portal on the Section 811
© 2015 Richard Silverblatt Associates, Inc. All Rights Reserved.
The Development Team Reference Guide is intended to assist non profit sponsor
organizations who have received a fund reservation from the New York office of the U.S.
Department of Housing and Urban Development to develop and preserve housing with
supportive services for very low income elderly under the HUD Section 202 program or for
very low income persons with disabilities under the HUD Section 811 program.
Challenges to be Met:
To Develop an Economically Feasible Project within the Required HUD Timeframe
HUD has promulgated a very specific timeframe for the expenditure of awarded Section 202 and
Section 811 Capital Advance and PRAC funds. A project that does not achieve the HUD
requirement within the mandated timeframe stated in each fund resevation letter will be subject
to the recapture of unexpended funds. Successful sponsors who have received a fund reservation
letter from HUD to develop a project must immediately turn to the next task: to prepare a complete
application for a firm commitment.
As shown in the flow chart above, there are a number of critical milestones that must be reached
to conclude the final closing. After the award of the fund reservation, sponsors cannot go it alone,
but should work with a development team of professionals, to include an architect, general
contractor, housing consultant, attorney and management agent, who will assist the sponsor to
develop an economically feasible housing project, obtain all approvals necessary to start
construction, complete the construction process, achieve full occupancy and stable operations,
and conclude a final closing.
To Identify Secondary Funding Sources.
The dollar amount of the awarded Section 202 and Section 811 Capital Advance has typically not
been sufficient to cover the required development and acquisition costs of a project. Given recent
government funding cutbacks, HUD amendment funds, which in the past have been sought to
increase the initial fund reservation dollar amount, are no longer available. More often than not,
secondary funding sources, such as Section 202 Demonstration Planning Grants (DPGs from HUD)
and grants from other public sources and or Low Income Housing Tax Credits, are needed to
supplement Capital Advance funding.
To Impement Effective Strategies to Preserve Existing Housing
For many years, HUD had made available on a competitive basis annually, Section 202 and
Section 811 dollars to acquire property and develop and operate housing by new construction or
substantial rehabilitation of existing structures. New funding dollars have not been made
available in the past several years and it appears that HUD is looking more to providing assistance
to the preservation of exisitng projects. There are proposed rule changes as published in the
October 7, 2014 edition of the Federal Register and provided in the Guide which may indicate the
direction of the Section 202 and 811 programs in the future and opportunities for more limited new
development. See below, What's New in the Guide.
How the Guide Can Help
The Guide makes use of the editor's over 30 years of experience as a housing consultant to
provide you with an explanation of the major development milestones from fund reservation
through final closing, and the Guide leads you through the process. The greatest portion of the
economic life of a Section 202 or Section 811 project occurs after the completion of construction.
So, on an ongoing basis, the implementation of a comprehensive management plan is key to long
term preservation of the project. The Guide provides strategies relating to the preservation of the
project's physical and financial "good health". In light of the tighter timeframe required by HUD to
get projects up and running, it is particularly important for sponsors and development team
members to have HUD information at hand. The Guide assembles and/or has links to key HUD 202
and 811 handbooks, notices, handouts and forms from both the NY Multifamily HUB office and from
HUDCLIPS (www.hud.gov), all on one web site. Moreover, the Guide is organized so that the
sponsor and development team members learn what is required of them at each step of the
process. Links to forms and other documents that are to be submitted to HUD are provided in the
text. Most forms can be filled in directly on the computer, and wherever applicable, the Guide
provides comments to complete the forms.
Who Can be Assisted by the Guide?
Sponsors and Owner Corporations
Housing Consultants Project
Others who are involved in the Section 202 and Section 811 process