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federalUnited StatesSection 202 Supportive Housing for the Elderly - Capital Advance / PRACtenant_payment

Section 202 PRAC rent is total tenant payment: the highest of 30% of adjusted monthly income, 10% of monthly income, or the designated welfare housing portion

s202prac.tenant_payment.total_tenant_payment · v1.0.0

A very low-income person occupying an assisted unit in a Section 202 capital advance project pays as rent the highest of 30 percent of the person's adjusted monthly income, 10 percent of the person's monthly income, or, where the person receives welfare assistance a part of which is specifically designated to meet housing costs, that designated portion, rounded to the nearest dollar. Tenant rent equals that total tenant payment less any utility allowance, and the project rental assistance payment HUD makes is the difference between the total tenant payment and the HUD-approved per unit operating expenses. A PRAC therefore has no contract rent: nothing in the program sets a dollar ceiling on what an assisted household pays, because the payment is a function of the household's own income.

HOTMA sections 102 and 104 reach this program: HUD administratively extended section 102 to 202/162, 202/811 PRAC, 811 PRA and SPRAC, and made conforming changes to 24 CFR part 891 at 88 FR 9668-9669 (Feb. 14, 2023). Notice H 2023-10/PIH 2023-27 Rev. 3 section 6.2 makes full compliance mandatory 1 January 2027 and tells contract administrators to issue observations rather than findings on HOTMA-related tenant file errors at MORs before that date.
Confidence
high
Effective from
1990-11-28
Last reviewed
2026-08-29

Evidence required

  • HUD-50059 Owner's Certification of Compliance(exactly_one)
  • Utility allowance documentation(one_per_unit)

Citations

All sources verified within 1 day
  • Supportive housing for the elderly (Section 202 of the Housing Act of 1959)
    12 U.S.C. 1701q(c)(3)
    statuteSource ↗verified 1d ago
  • Supportive Housing for the Elderly and Persons with Disabilities
    24 CFR 891.105 (definitions of 'Total tenant payment', 'Tenant rent' and 'Project rental assistance payment')
    regulationSource ↗verified 1d ago
  • Supportive Housing for the Elderly and Persons with Disabilities
    24 CFR 891.105 (definition of 'Project rental assistance payment')
    regulationSource ↗verified 1d ago
  • Section 8 and Public Housing - Occupancy Requirements, Income and Family Payment
    24 CFR 5.628(a)
    regulationSource ↗verified 1d ago