All units in Section 202 assisted housing must be available for occupancy by very low-income elderly persons for not less than 40 years

s202prac.affordability.forty_year_very_low_income_use · v1.0.0

All units in housing assisted under Section 202 must be made available for occupancy by very low-income elderly persons for not less than 40 years. A capital advance bears no interest and its repayment is not required so long as the housing remains available for very low-income elderly persons in accordance with the section. In a mixed-finance development the owner must develop and continue to operate the same number of supportive housing units for elderly persons or persons with disabilities, as stated in the use agreement or other document establishing the number of assisted units, for a 40-year period, must maintain the HUD-approved percentage and the percentage distribution of bedroom sizes where the assisted units float, and any foreclosure, sale or other transfer must be subject to a covenant running with the land requiring continued adherence to the very low-income use restrictions.

Confidence

high

Effective from

1990-11-28

Last reviewed

2026-08-29