HUD assisted multifamily housing, namely developments built with or subsidized by the following programs: Section 202, project-based Section 8, Section 236 and Section 221(d)(3) Below-Market Interest Rate are eligible for funding to cover the cost of a service coordinator. All housing must be designed or designated for occupancy by elderly persons (aged 62 and older) and/or younger people with disabilities (aged 18 to 61). Funding may be provided through:
Grants. Service coordinators can be funded through HUD’s Multifamily Housing Service Coordinator grant program. Owners of eligible properties may apply for funds through HUD’s grant process. Applicants must show that they have no other funds available to pay for a service coordinator. Service Coordinator grants are made for an initial three-year term and provide funding for the salary, fringe benefits, and related administrative costs associated with employing a Service Coordinator.
Upon the completion of the initial term, HUD offers annual extension to previously funded grants so as ensure the continuity of the Service Coordinator Program for our residents. These extension funds are to be used only to meet a critical need and in cases where no other funding source is available. Meeting a "critical need" means addressing a need that cannot be met through use of other resources. All extensions are subject to the availability of funds.
Based on information provided by a grantee's periodic reports, payment vouchers, requests for extension funds, and through remote and on-site grant reviews, on an annual basis, field staff will reevaluate a grantee's eligibility and need for continued funding.
HIGHLIGHT: If owners borrow funds from other project accounts to cover expenses while awaiting new extension funds, those other accounts must be reimbursed immediately with grant funds as the drawdown is available.
Budget-based. Service coordinators can also be funded through the property’s operating budget with HUD approval - referred to as budget-based service coordinators. For example, owners of Section 202 properties can include the service coordinator position in the development’s operating budget, where the position is supported by rental assistance under a project rental assistance contract or project-based Section 8 contract. Also, in cases where properties accrue a rental subsidy that is not needed to pay operating costs (residual receipts), the monies must be spent on activities that will benefit the property and the residents, which can include a service coordinator. In addition, property owners that prepay or refinance a direct loan and subsequently have a debt service savings can use the additional cash flow to fund a service coordinator.
Most of HUD's multifamily housing properties designed for the elderly and people with disabilities operate with some kind of rental subsidy. This subsidy is provided by HUD to the owner of the property and is tied to that development. Most sites receive either project-based Section 8 or Section 202 Project Rental Assistance Contract (PRAC) funds, which pays for a proportion of the property's operating expenses. Housing owners can include the Service Coordinator position in the development's operating budget, where the position is supported by project-based Section 8 or PRAC funds. Owners can also use residual receipts or excess income to pay for a Service Coordinator program.
The Department urges housing owners and managing agents to use these project-related funding sources to fund a Service Coordinator program, whenever possible. These funding streams are more stable and consistent over time. Please contact your local office to discuss funding your Service Coordinator program through your budget and determine next steps.
