Affordable Senior Housing News 2026Feb26

HUD Confirms LeadingAge-Requested GRRP Timeline Update

The Department of Housing and Urban Development (HUD), in response to a request by LeadingAge, has clarified the timeline for GRRP awardees to spend down their project funding. Comprehensive awards made through the GRRP, formerly known as the Green and Resilient Retrofit Program, were stalled for more than nine months while HUD redesigned the program to align with new Presidential priorities. The recently reissued guidance from the agency described a tight spenddown deadline for projects that have been on hold for most of 2025, but the agency has now clarified that projects will have until 2033 to complete construction and drawn down the final funds through the program. LeadingAge applauds HUD for their clarification on this point and will work with members to ensure continued program access. The GRRP funds major rehabilitation at projects located in climate-vulnerable areas, a strong priority for LeadingAge. More information about the new guidance is forthcoming from LeadingAge; keep up with our updates here.

Technical Assistance for Rural Service Coordinators

The Housing Assistance Council (HAC) has once again opened applications for the second cohort of its Service Coordination Technical Assistance Program, supporting affordable housing in rural America. The program assists US Department of Agriculture (USDA) Section 515 property owners and managers address critical needs, housing in which 30% of residents are above the age of 62. In 2024, LeadingAge was instrumental in working with USDA's Rural Housing Service for the program's establishment. All interested Section 515 owners and managers are invited to apply by March 15, 2026. For questions about the program, contact HAC's Seth Leonard. 

HUD Streamlines Budget Approvals for Section 202 PRACs

In a January 13, 2026, memo to the Multifamily Housing staff, the U.S. Department of Housing and Urban Development (HUD) describes a LeadingAge-supported streamlining approach to budget approvals for Section 202 Project Rental Assistance Contract (PRAC) properties requesting a less than 5% increase. The memo describes more than 20 workflow alignment measures that will help the Multifamily Housing regional offices adjust to reduced capacity following significant reductions in 2025. On average, the Multifamily Housing offices lost roughly 30% of their staff through reductions and early retirements actions. The PRAC budget streamlining directive is listed as #12 in the document and applies to overall increases of less than 5%, as opposed to individual line items. In the case of streamlined approvals, the Account Executive is directed to automatically approve the request without review. More information is here.

HUD FY26 Analysis

On February 3, President Trump signed into the Consolidated Appropriations Act of 2026 into law, funding the Department of Housing and Urban Development (HUD) through fiscal year (FY) 2026 after months of funding uncertainty for critical senior housing programs. The FY26 bill, which funds HUD through September 30, 2026, is the first funding package under the second Trump administration that doesn’t simply continue previous the previous year’s funding levels. Lawmakers faced significant pressure from the administration to drastically cut HUD’s budget. Yet, in a bipartisan agreement, they recognized the essential role of these programs in providing stable, affordable housing for older adults and protected key accounts from harmful cuts. LeadingAge strongly supports the enacted funding levels and policy language for Section 202 housing programs, HUD’s flagship senior housing program, which included $4 million is set aside specifically to support property preservation transactions under the Rental Assistance Demonstration (RAD), a major LeadingAge priority for FY26. In addition to fully funding contract renewals, the bill also increases the Service Coordination program funding by $10 million to $122 million for FY26, and the Department is now authorized to enter into 2-year agreements with service coordinators, streamlining the current annual renewal process. This language and funding are the direct result of LeadingAge’s advocacy with HUD and Congress on the inclusion of this language, alongside the American Association of Service Coordinators (AASC). Overall, LeadingAge is pleased with the result of our advocacy to prevent steep cuts to HUD programs and to protect critical affordable housing programs for older adults. Read our analysis of the FY26 bill here.

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