PORTLAND HOUSING COMPLEX FOR ELDERLY AMONG 12 NATIONWIDE AWARDED NEARLY $14.8 MILLION BY HUD TO PRESERVE AFFORDABILITY

PORTLAND - The U.S. Department of Housing and Urban Development (HUD) today announce that Westmoreland's Union Manor at 6404 SE 23rd Avenue in Portland is among 12 complexes for the low-income elderly across the country to receive $14.8 million to preserve their affordability for low-income elderly residents living in these HUD-subsidized properties.

Today's funding award is provided through HUD's Senior Preservation Rental Assistance Contracts (SPRACs) and is targeted for properties in HUD's Section 202 "Supportive Housing for the Elderly" program where rental assistance may expire without this important preservation tool. SPRACs are an important tool for preserving the nation's affordable multifamily properties. Funding will continue to support affordable rent for seniors living in more than 1,700 units located in 12 properties in six states. See attached list of the local awardees.

"The demand for affordable housing far exceeds the supply in almost every major American city and that is certainly true in Portland," said HUD Northwest Regional Administrator Bill Block. "Portland has aggressively and effectively marshalled its resources to preserve its existing affordable stock while also looking to expand the inventory. We at HUD are proud to be partners in this effort."

The Section 202 Supportive Housing for the Elderly Act of 2010 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 in the case of financing changes.

The majority of the mortgages in this portfolio of properties will reach their respective maturity dates over the next ten years. HUD estimates that without interventions like SPRACs, maturing mortgages will signal the elimination of affordability protections for approximately 19,000 low- and very-low income seniors.

HUD staff will provide guidance for completing the funding process so the subsidy can flow to the unassisted seniors at the projects. HUD's Multifamily Hub/Program Center Staff will oversee the execution of SPRAC contract and use agreement; will close any FHA financing; and will perform ongoing contract administration and servicing/monitoring of projects.

 * Final # of units to be supported will be determined when rent contracts are executed.

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