Section 202 Supportive Housing for the Elderly is the U.S. Department of Housing and Urban Development’s (HUD) primary program for developing new housing for elderly residents with very low incomes. Currently more than 250,000 elderly residents reside in Section 202 developments. In response to significant delays in bringing new Section 202 units to market, HUD created a demonstration program to provide awarded Section 202 grantees access to pre-development funding early in the development cycle. In 2009, HUD’s Office of Policy Development contracted with Abt Associates to evaluate the 202 Demonstration Pre-development Grant (DPG) Program. Through analysis of project data and from interviews with Section 202 grantees and HUD field office staff, Abt arrived at this finding: While the grant provided a much-needed infusion of funding and allowed grantees to leverage the grant into additional funding opportunities, the DPG did not reduce development delays or increase the number of elderly rental units made available each year. This finding led Abt to recommend that HUD explore a formula funding approach that will allow grantees to access a percentage of their Section 202 award for pre-development activities soon after grant award.