What are HUD Section 202/8 and Section 202/ Project Rental Assistance Contracts (PRAC) and what they
The HUD Section 202 program historically developed housing for the elderly and persons with disabilities. The program began in the 1960s. Over the past 40 years it has evolved from a loan program to a capital advance program combined with other forms of assistance. The Section 202/8 program began in 1976 and ended in 1991. Funding was a long-term, direct loan to finance housing for the elderly or persons with disabilities. In 1983Plano Community Homes East Campus was developed under the Section 202/8 program. These loans carry an interest rate based on the average yield on 30 year marketable obligations of the United States and properties were developed with 100% Section 8 assistance to help keep units affordable to low-income families. The result was a debt obligation on the property in the form of a 30 year mortgage.