HUD created a resource webpage for the Senior Preservation Rental Assistance Contract (SPRACs) program. This webpage houses HUDs January 8 Federal Register Notice on the SPRAC program and a list of properties that are potentially eligible for SPRACs. 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, when the property is refinanced and the owner does not anticipate debt service savings from the refinance. SPRAC is an important preservation tool for affordable multifamily properties.
SPRAC program information, and the potentially eligible property list, may be accessed through the following pages:
HUDs Multifamily Preservation web page, under the section entitled Tools for Preservation of Section 202 Properties:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/presrv/presmfh ; or
These links are available on NAHMAs HUD webpage under the Section 202 / 811 heading: Please click here to view.