Bush administration announces more than $650 million to assist very low-income elderly and people with diabilitiesMortgagePress.comBush administration, HUD, Steve Preston, non-profit developers, Section 202, Section 811
Thousands of very low-income senior citizens and persons with
disabilities will be able to find affordable housing thanks to more
than $650 million in grants announced today by the U.S. Department
of Housing and Urban Development. The funding will provide
non-profit developers interest-free capital advances to produce
accessible housing, offer rental assistance, and provide supportive
services for the elderly and persons with disabilities through
HUD's Section 202 and Section 811 grant programs.
"These grants will help thousands of our nation's very
low-income elderly and persons with disabilities find decent
housing that they can afford," said HUD Secretary Steve Preston.
"Neither group should ever have to worry about being able to find a
safe place to live."
Section 202 Capital Advance: $525.9 million nationwide
to assist very low-income elderly
HUD's Section 202 Capital Advance Program expands the supply of
affordable housing with supportive services for the elderly. It
provides very low-income persons 62-years and older with the
opportunity to live independently in an environment that provides
the services they need. In addition to funding the construction,
acquisition, and rehabilitation of multifamily developments, HUD's
Section 202 program subsidizes the rents of senior citizens so they
can limit their housing costs to only pay 30 percent of their
incomes.
Section 811 Capital Advance: $124.5 million nationwide
to assist very low-income people with disabilities
Housing constructed using interest-free capital advances under
HUD's Section 811 Program are primarily used in smaller newly
constructed buildings, typically group homes for three to four
people, or condominium units. Eligible residents pay 30 percent of
their income for rent and the federal government will pay the rest.
Households must have one or more very low-income adult with
physical or developmental disability or living with chronic mental
illness.
The term "person with disabilities" may also include two or more
people with disabilities living together, or one or more persons
with disabilities living with one or more live-in attendants. The
program provides persons with disabilities the opportunity to live
independently in their communities by increasing the supply of
rental housing with the availability of supportive services.
HUD provides the Section 202 and Section 811 funds to non-profit
organizations in two forms:
Capital Advances
This is funding that covers the cost of developing, acquiring, or
rehabilitating the development.
Project Rental Assistance Contract (PRAC)
This is funding that goes to each development to cover the
difference between the residents' contributions toward rent and the
HUD-approved cost of operating the project.
For more information, visit www.hud.gov.
