Senior Preservation Rental Assistance Contract (SPRAC)

HUD has created a webpage for the Senior Preservation Rental Assistance Contract (SPRAC) program.

The SPRAC program was detailed in the January 8, 2013 Federal Register Notice.  Highlights:

“The Section 202 Supportive Housing for the Elderly Act of 2010, signed into law in January 2011, authorizes HUD to provide SPRACs with 20-year terms to prevent displacement of elderly residents of certain projects assisted under HUD’s Section 202 Supportive Housing for the Elderly program in the case of refinancing or recapitalization and to further preserve and maintain affordability of Section 202 Direct Loan projects.  The purpose of SPRACs is to prevent displacement of income-eligible elderly residents of Section 202 Direct Loan properties with original interest rates of 6% or less, when the property is refinanced and the Owner does not anticipate debt service savings from the refinance.  SPRAC is an important preservation tool for affordable multifamily properties.”

View the Section 202 Direct Loan / Elderly / Pre-1974 Potentially Eligible for the SPRAC Program pdf.