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12 Loa~s for Housing for the Elderly or 5'andicaDDed. The program or ozrec~ loans for nouslng for Lne e±oer!y and handicaDoed is authorized bv Section 202 of the Housing Act of !959, as amended (P.L. 86-372). The purpose of this program is ~o provide direct Federal loans for a maximum term of 40 years to assist private, nonprofit corporations and consumer cooperatives in the development of newly constructed or substantional!y rehabilitated housing or related facilities which serve elderly, pkysi- cally handicapped, or developmentally disabled adults. By statute, 20 to 25 percent of the assistance under this program is allocated to nonmetropo!itan areas, which are defined in _Practice as areas outside SMSA's. Participation in the Section 8 Lower Income Rental Assistance Program is required-for a minimum of 20 percent of the units in any Section 202 project. At present 100 percent of the Section 202 projects participate in Section 8. Other housing assistance programs. SMSA definitions affect these programs in ~hree ways: allocation, e!igi- bility, and determination of fair market rents. 1. Allocation of housinq assistance.. Section 213(d) of the Housing and Commun~_~y Developmen~ Act of 1974, as amended, which governs a!l o.f MUD's housing assistance programs, provides that "kh.e amount of assistance allo- cated to nonmetropolitan areas pursuant to this Section in any fiscal year shall not be less than 20 nor more than 25 percentum of the tokai amount of such assistance." In current practice, nonmetropo!itan areas are'defined as areas outside SMSA's. ~. E!i~ibilitv for housing assistance oro~rams. PFJD's assistance (Section 8) ,' hom-~ ownership assistanc~ for low and moderate income families (Section 235), rental and cooperative housing assistance for low income families (Section 236),. low income pub!it housing~ and rent supplements. All of these programs have income limits for eligibility to participate. By either statute or ~egulation income limits for these programs are based on the median income calculated for an area. By practice, median incomes are established for SMSA's. Changes in SMSA definitions could result ~n significant changes ~n median income estimates and hence in income limits for HUD housing assistance programs. For example, the Section 8 program, which derives its authority from Section 8 of the Housing and Core, reunify Development Act of 1974, Title II, 42 U.S.C. 1437(f), orovides rental assistance for low income families "to ~elp them afford decent housing in the private market.~ To be eligible for this program, tenants are required by statute to be lower-income households with incomes less