Hud-93742_sprac1

U.S. Department of Housing and
Urban Development
Office of Housing
Federal Housing Commissioner
OMB Approval Number 2502-0182
Exp. 1/31/2020

Part I
Senior Preservation Rental
Assistance Contract (SPRAC I)
HUD-93742

SPRAC Project Number:

Section 8 Project Number (if applicable):

FHA Project Number (if applicable):

Property Street Address:

Town/City/County:

State/ZIP Code:

The Senior Preservation Rental Assistance Contract (SPRAC) is between the United States of America, acting
through the U.S. Department of Housing and Urban Development (HUD), and
________________ ____ ________________ ____ ________________ ____ ____________ (Owner).
The SPRAC is subject to the SPRAC Final Notice, announced by Federal Register Notice published on July 3, 2013,
and posted on HUD’s website at
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/presrv/presmfh/sprac_contracts .
When HUD promulgates regulatory requirements for the Senior Preservation Rental Assistance program those
regulations will be applicable to the SPRAC.
1.1

Statutory Authority and Purpose.

a. Statutory Authority. The SPRAC is entered pursuant to Section 811 of the American Homeownership and
Economic Opportunity (AHEO) Act of 2000, as amended by Section 202 Supportive Housing for the Elderly
Act of 2010 Act, Public Law 111 – 372, 12 U.S.C. 1701q note; and the Department of Housing and Urban
Development Act, 42 U.S.C. 3531 et seq.

b. Purpose. The purpose of the SPRAC is to provide Senior Preservation Rental Assistance payments with a 20
year term to prevent the displacement of unassisted elderly residents living in certain projects previously
assisted under HUD’s Section 202 Supportive Housing for the Elderly Direct Loan Program. SPRAC
payments are provided in the case of refinancing or recapitalization of the Section 202 Direct Loan project
and to further preserve and maintain affordability of these projects.
1.2

Scope; Assignability of SPRAC; and HUD Requirements.

a. Scope of SPRAC. The SPRAC consists of Part I, Part II, and the exhibits identified in section 1.4(d) of the
SPRAC, which are hereby incorporated into and made a part of the SPRAC.

b. Assignability of SPRAC. HUD may assign the SPRAC at any time to a public housing agency (PHA) for the
purpose of PHA administration of the SPRAC to the extent permitted under any Annual Contributions
SPRAC (ACC) between HUD and the PHA. Unless and until HUD assigns the SPRAC to a PHA, HUD
shall be the SPRAC Administrator (CA) and, in that capacity, a party to the SPRAC. Upon any assignment
of the SPRAC by HUD to a PHA, the PHA shall assume all the SPRAC obligations of HUD (or of any PHA
to which HUD had previously assigned the SPRAC) and shall replace HUD (or any PHA to which HUD had
previously assigned the SPRAC) as the CA and as a party to the SPRAC during the ACC term.

c. HUD Requirements. The SPRAC shall be construed and administered in accordance with the SPRAC Final
Notice, announced by Federal Register notice published on July 3, 2013, and posted on HUD’s website at
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/presrv/presmfh/sprac_contracts.
When HUD promulgates regulations for the Senior Preservation Rental Assistance program, those
regulations will be applicable to SPRAC. The SPRAC shall further be construed and administered in
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accordance with all applicable statutory requirements, including the requirements under section 1.1(a).

1.3

Effective Date, Initial Term, Funding For Initial Term of SPRAC, and Renewal.

a.

Effective Date and Initial Term. The SPRAC begins on
(mm/dd/yyyy) _________ _____________________________ , and shall run for an initial term of twenty
(20) years. Accordingly, the SPRAC will expire on:
(mm/dd/yyyy)__________ ____________________________ .

b. Funding for Initial Term.
i.
ii.

1.4

Execution of the SPRAC by HUD is an obligation of HUD of $ ______________ , an amount
sufficient to provide housing assistance payments for approximately __________ _ months of the
first annual increment of the SPRAC term.
HUD will provide additional funding for any remainder of the first annual increment and for
subsequent annual increments, including any remainder of such subsequent annual increments,
subject to the availability of sufficient appropriations. When such appropriations are available,
HUD will obligate additional funding and provide the Owner written notification of (i) the amount
of such additional funding, and (ii) the approximate amount of time within the SPRAC term to
which it will be applied.

Fiscal Year, Project Description, Statement of Services, and Exhibits.
a. Fiscal Year. The ending date of each Fiscal Year shall be:
_______________________________________ .
(Insert March 31, June 30, September 30, or December 31, as approved by HUD.)
The Fiscal Year for the project shall be the 12-month period ending on this date. However, the first Fiscal
Year for the project is the period beginning with the effective date of the SPRAC and ending on the last
day of the Fiscal Year which is not less than 12 months after the effective date.
b. Project Description (Print or type the street address(es) and the number of units by bedroom size).

c. Statement of Services, Maintenance and Utilities Provided by the Owner.
i.

Services and Maintenance:

ii.

Equipment:

iii.

Utilities:
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iv.

Other:

a. Exhibits. The exhibits to the SPRAC consist of the following:
i.

Exhibit 1: Schedule of SPRAC Units and SPRAC Rents;

ii.

Exhibit 2: Daily Debt Service;

iii.

Exhibit 3: Affirmative Fair Housing Marketing Plan;

iv.

Exhibit 4: Section 202 Use Agreement (recorded); and

v.

Exhibit 5: Agreement to Enter into SPRAC.

1.5 Owner Obligation to Accept Offers to Renew. The Owner agrees that upon expiration of each annual
increment of the SPRAC, the Owner shall accept each offer of annual increment renewal during the period of
the Use Agreement. Owner agrees that renewals are subject to the availability of appropriations and further
subject to the SPRAC regulations when promulgated.
With respect to 202 Direct Loan prepayments with approved SPRAC units, Owner agrees to a 202 Use
Agreement, which will expire at either twenty years beyond the maturity date of the original 202 Direct Loan
or, the term of new financing, whichever is longer. Upon expiration of the SPRAC term under section
1.3(a), Owner agrees to renew the SPRAC through the term of the Use Agreement, subject to appropriations.
1.6 Owner Obligation to Operate Project. The Owner agrees to operate the project for the full term specified
in section 1.3(a) and for each renewal term in accordance with all statutory, regulatory and administrative
requirements of the SPRAC program.
1.7 Flood Insurance Applicability.
If the preceding box is checked, the Owner agrees that the project will be covered, during the life of the
property, regardless of transfer of ownership, by flood insurance in an amount at least equal to its
development or project cost (less estimated land cost) or to the maximum limit of coverage made available
with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is
less.

WARNING: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willfully
makes or uses any writing containing any materially false, fictitious, or fraudulent statement or entry, in
any matter within the jurisdiction of the executive branch of the Government of the United States, shall
be fined not more than $10,000 or imprisoned for not more than five years, or both.

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Signature Page
As evidenced by the signature below of their authorized representative, the Owner and HUD hereby agree to
the terms of this SPRAC, the scope of which is set forth in section 1.2(a) of the SPRAC.
Owner
Name of Owner (Print or Type)
________________________________________________________________________________________
By: ______________________________________ ________________________________________________
Signature of authorized representative
Name of Signatory (Print or Type)
__________________________________________________________________________________________
Official Title (Print or Type)
_____________________________________________________________________________________ ____

Date (mm/dd/yyyy): _________________________________________
SPRAC Administrator (HUD or a PHA)
By: ______________________________________ ________________________________________________
Signature of authorized representative
Name of Signatory (Print or Type)
__________________________________________________________________________________________
Official Title (Print or Type)
_____________________________________________________________________________________ ____
United States of America
Secretary of Housing and Urban Development
By: ______________________________________ ________________________________________________
Signature of authorized representative
Name of Signatory (Print or Type)
__________________________________________________________________________________________
Official Title (Print or Type)
__________________________________________________________________________________________

Date (mm/dd/yyyy): _________________________________________

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Exhibit 1
Schedule of SPRAC Units and SPRAC Rents

Number of SPRAC
Units

Number of
Bedrooms

SPRAC
Rent

Utility
Allowance

Gross
Rent

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Exhibit 2
Daily Debt Service
Number of Rooms

Number of Units

Daily Debt Service

0

__________

$____________

1

___________

$____________

2

___________

$____________

3

___________

$____________

4

___________

$____________

5

___________

$____________

This information is used for computing assistance payments for vacant units under section 2.8 of the SPRAC II.

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Exhibit 3
Affirmative Fair Housing Marketing Plan

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Exhibit 4
Section 202 Use Agreement (recorded)

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Exhibit 5
Agreement to Enter to Senior Preservation Rental Assistance Contract

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