Beginning in 1991, HUD replaced the Section 202/8 and Section 202 PAC programs with a capital grant program under which HUD provided rental assistance through a Project Rental Assistance Contract (PRAC) for projects developed with Section 202 or Section 811 Capital Advances. The PRAC provides a rental subsidy that covers the difference between the HUD-approved operating costs of the project and the tenant’s contribution toward the rent.