> **U.S. Department of Housing and Urban Development**
>
> H O U S I N G

**Special Attention of: Notice** H 99-12 (HUD)

All Secretary\'s Representatives

Area Coordinators, Community Builders. Issued: May 17, 1999

Multifamily HUB Directors, Director Expires: May 31, 2000

of Multifamily Program Centers,

Supervisory Project Managers, All Cross References: 4381.5 REV 2, HBK

insured and assisted non-profit 4350.1 REV, HBK 4350.3,

Owners and Management Agents REV, Notice H 98-12

**Subject: Use of Assisted Housing Projects (other than Section 202,
202/8 and 202/PRAC) to Support Assisted Living Activities (ALAS) for
Frail Elderly and People with Disabilities**

**I.** **PURPOSE:**

The purpose of this Notice is to expand the use of Notice H 98-12, \"Use
of Section 202 Projects to Support Assisted Living Activities for Frail
Elderly and People with Disabilities\" to cover other non-profit owners
of projects for the elderly and disabled in the current assisted housing
inventory.

This expansion of eligibility from Section 202 to other assisted housing
projects completes basic coverage for management (through existing
policies), to extend a higher level of supportive and other services to
very frail elderly residents (or people with disabilities) who may need
them to remain independently in their own home. Notice H 98-12 clearly
describes the policies encouraging such higher level of supportive
services through ALAs than may be available in a typical assisted
housing project, but such may not be necessarily sufficient to qualify
as an \"Assisted Living Facility\" (ALF). An ALF is characterized by
24-hour oversight, a more regular and consistent pattern of meals and
services than normally found in supportive housing, and licensing.

Readers of Notice H 98-12 who see references to Section 202, 202/8 or
202/PRAC, should substitute the eligible programs listed in Section III,
herein, where appropriate.

H: **Distribution:** W-3-1

2

As a reminder, owners of existing assisted housing projects (which are
not Section 202s) are already required to provide applicants and
residents with disabilities with reasonable accommodations that are
needed to enable those individuals to make effective use of the
programs. Such accommodations may include, but are not limited to,
supportive services or other modifications described in Notice H 98-12.

As a further reminder to owners covered by this Notice **(See Section**
**III, below):**

> 1\. residents must accept services on a [voluntary]{.underline} basis;
>
> 2\. any charges in services must be separate from rent;
>
> 3\. residents choosing [not]{.underline} to accept any services should
> not be affected financially by their availability to other residents.

**II. AUTHORITY:**

There is no specific authority for insured and assisted housing projects
to provide ALAs for their residents. However, there is similar and
related authority for \"congregate housing\" in all assisted housing
programs. Congregate housing is a facility which has a common dining
facility and/or other common space in which meals and supportive
services may be made available to residents who need them.

**III. ELIGIBILITY:**

This notice covers owners of non-profit projects for the elderly and
people with disabilities insured and assisted under section 8 new
construction and substantial rehabilitation, LIHPRA and sections
221(d)(3) and (4), 231 and 236.

A nonprofit owner/general partner is one in which no part of the net
earnings of the organization inures, or may lawfully inure, to the
benefit of any board member, private shareholder or individual.

**IV. FURTHER INFORMATION:**

For additional information, HUD field office staff should refer to
Notice H 98-12 or may call the Office of Portfolio Management, ATTN:
Jerry Nachison at 202 708-0614, x2485, for 90 days after publication of
this Notice. After this initial 90 day period, they should contact their
assigned desk officer.

3

Project owner/managers should contact the housing project manager in the
multifamily HUB/program center with whom they normally work.

William C. Apgar

Assistant Secretary for Housing-

> Federal Housing Commissioner