Section 202

Section 202 is a Government supported program that assists the very low-income elderly to live independently with supportive services if needed which may include: health services, continuing education, welfare, cleaning, meal and nutritional services, and transportation. HUD funds private owners to establish dwellings for elderly low-income individuals. Those eligible are individuals or families with at least 1 person in their household who is 62 years or older.

Most Section 202 properties have the presence of an on-site Senior Service Coordinator. They are paid by the property owner and assist the senior tenants in the community. They can refer residents to appropriate services and coordinate said services. At some communities services such as assistance with ADL’s can be coordinated by the Senior Service Coordinator. For Seniors who are considered Frail elderly, an elderly person who can not perform at least 3 activities of daily living, may be denied due to the lack of supportive services provided. These individuals would be better suited for a Skilled Nursing Community that can accommodate their assistance needs.

Payment is calculated based on the highest number of the following

• 30% of the person’s monthly adjusted income
• 10% of the person’s monthly income
• Welfare rent or welfare payment from agency

The application process goes directly through the property the senior is interested in. Potential tenants must submit an application to the community, meet the disclosure and verification of Social Security number, sign and submit consent forms for obtaining wage information, and must be of very low income as defined by HUD. Applicants need to provide previous residency data on the application form. Reexamination of the income of households will occur annually to determine continued eligibility for the program. As a general rule low income is considered someone who has income that is 50% or less of the area median family income. The owner of the community is allowed to inspect the property upon proper notice. The tenant is to provide notification to the owner prior to vacating the property. The tenant may not concurrently receive any additional benefits other than that of Section 202 regarding affordable housing including Section 8 vouchers. After an initial lease term of 1 year if the tenant does not resign a lease the lease will convert to a month-to-month lease. Termination of the lease is accepted with 30 days’ notice.