24 C.F.R. § 891.500
§ 891.500 Purpose and policy. (24 CFR Part 891)
Operative Text
(a) Purpose. The program under subpart E of this part provides direct Federal loans under section 202 of the Housing Act of 1959 (42 U.S.C. 1701q) for housing projects serving elderly or handicapped families and individuals. The housing projects shall provide the necessary services for the occupants which may include, but are not limited to: Health, continuing education, welfare, informational, recreational, homemaking, meal and nutritional services, counseling, and referral services, as well as transportation where necessary to facilitate access to these services. (b) General policy. A loan made under subpart E of this part shall be used to finance the construction or the substantial rehabilitation of projects for elderly or handicapped families, or for the acquisition with or without moderate rehabilitation of existing housing and related facilities for group homes for nonelderly handicapped individuals. (c) Applicability. Subpart E of this part applies to all fund reservations made before October 1, 1990, except for loans not initially closed that were converted to capital advances. Specifically, § 891.520 through 891.650 of subpart E apply to projects for elderly or handicapped families that received reservations under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) and housing assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq). Sections 891.655 through 891.790 of subpart E apply to projects for nonelderly handicapped families receiving reservations under section 202 and project assistance payments under section 202(h) of the Housing Act of 1959.
Section 891.500 establishes the purpose and scope of the federal direct-loan program under 24 CFR Part 891, Subpart E, which finances housing projects for elderly or handicapped families and individuals. These loans may fund new construction, substantial rehabilitation, or in some cases acquisition of existing facilities, including group homes for nonelderly handicapped individuals. The provision also defines which projects fall under Subpart E based on when fund reservations were made — specifically, those reserved before October 1, 1990, with certain exceptions for loans converted to capital advances.
Plain English — not legal advice.
Operators and sponsors of housing projects covered by § 891.500 generally ensure that their properties were financed under a qualifying Section 202 direct loan and that the project continues to serve the eligible population — elderly or handicapped families and individuals — as originally designated. Compliant operators typically maintain the supportive services contemplated at the time of the loan, which may include health, nutritional, transportation, and counseling services. Because § 891.500 ties regulatory applicability to the date of fund reservation, project owners often verify whether their reservation predates October 1, 1990, to confirm which sections of Subpart E govern their obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in housing covered by § 891.500 are in projects specifically designed to serve elderly or handicapped families and individuals, and the provision contemplates that a range of supportive services — such as health, meal, and transportation services — may be made available to occupants. If a tenant believes their project is not being operated in accordance with its Section 202 loan obligations, they may raise concerns with HUD's local field office or a tenant-rights organization familiar with federally assisted housing. Understanding whether a project falls under § 891.500 and the applicable sections of Subpart E can help tenants identify the regulatory framework that governs their housing.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 8, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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