HUD Reg. VI No. 06-04
January 11, 2006
BUSH ADMINISTRATION ANNOUNCES MORE THAN $10 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN
Bastrop, Eunice, Shreveport, Jonesboro and St. Martinville Receive Grants
FORT WORTH - It will soon be easier for senior citizens and people with disabilities nationwide to find affordable housing, thanks to more than $710 million in housing assistance announced today by Housing and Urban
Development Secretary Alphonso Jackson. In Louisiana, Bastrop, Eunice, Shreveport, Jonesboro and St. Martinville received grants totaling $10,647,800 to help very low-income elderly and people with disabilities find decent, safe housing that they can afford. A list of grantees and amounts follows.
"Our senior citizens have given us so much, and Americans with disabilities make remarkable contributions to our society every day. Neither group should ever have to worry about being able to afford a decent place to live," said Jackson. "The grants we are announcing today will go a long way toward achieving that goal."
Section 202 Grants ($574.8 million nationally to assist very low-income elderly)
HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation.
In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents for five years so that residents will pay only 30 percent of their adjusted incomes as rent.
To be eligible for the assistance a household must be classified as "very low-income," which means an income less than 50 percent of the area median. Nationally, based on 50 percent of the national median family income with an applicable adjustment for household size, a one-person household would need to have an income equal to or less
than $20,300 a year.
HUD provides two forms of Section 202 funds to non-profit groups:
- Capital advances. This money covers the cost of developing the housing. It does not need to be
repaid if the housing is available for occupancy by very low-income seniors for at least 40 years.
- Project rental assistance. This money covers the difference between the resident's contribution
toward rent and the cost of operating the project.
Section 811 Grants ($135.8 million nationally to assist very low-income people with disabilities)
This housing, most of which will be newly constructed, typically is small apartment buildings, group homes for three
to four people per home, or condominium units. Residents will pay 30 percent of their adjusted income for rent and
the federal government will pay the rest.
The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness. The term "person with disabilities" also includes two or more people with disabilities living together, and one or more persons with disabilities living with one or more live-in attendants. The program allows persons with disabilities to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.
To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $12,180.
HUD provides the Section 811 funds to non-profits in two forms:
- Capital advances. This is money that covers the cost of developing the housing. It does not need
to be repaid as long as the housing is available for at least 40 years for occupancy by very low-income
people with disabilities.
- Project rental assistance. This is money that goes to each non-profit group to cover the difference
between the residents' contributions toward rent and the cost of operating the project.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.
Section 202 - Supportive Housing for the Elderly
Project Location: Bastrop, LA
Non-Profit Sponsor: Morehouse Council on Aging, Inc
Capital Advance: $988,200
5-year rental subsidy: $168,500
Number of units: 13
The funds will be used to construct a one-story building with 13 units for low-income elderly persons. The building
will include an office, maintenance, amenity spaces and community spaces. The site is within convenient distance
of shopping centers, hospitals, recreational opportunities, churches, schools, and restaurants. The sponsor is providing supportive services to residents.
Project Location: Eunice, LA
Non-Profit Sponsor: Community Development Inc
Capital Advance: $1,126,400
5-year rental subsidy: $176,500
Number of units: 14
Project Description :
This project is a one-story, 42 unit project of which 13 units are Section 202 Housing for Low Income elderly, with
1 two-bedroom unit for a manager. It is a mixed financed project with HUD funds and Low Income Tax Credits. The project is being constructed to house elderly persons of mixed income. The project is located two blocks north of a major commercial district that features a variety of businesses, including retail and restaurants. It is adjacent to
the Eunice Community Medical Center, which also features several doctors' offices.
Project Location: Shreveport, LA
Non-Profit Sponsor: National Ch Residences Inc
Capital Advance: $4,538,800
5-year rental subsidy: $784,500
Number of units: 57
The funds will be used to construct 56 one-bedroom units in a three-story building with one two-bedroom resident manager unit. The building is organized with adjacent parking for the residents' convenience, safety and
accessibility. The building is intended to be fully functional for all aspects and will include the following spaces: community room with kitchen, porte cochere, entry lobby, lounge, TV lounge, laundry facilities and management
area. The site is adjacent to public transportation, shopping facilities and recreational activities.
Project Location: Jonesboro, LA
Non-Profit Sponsor: Macon Ridge Comm Dev Corp
Capital Advance: $1,137,800
5-year rental subsidy: $196,500
Number of units: 15
This project is a one-story, 14 one-bedroom units to serve the very low-income physically disabled persons in an independent living facility accompanied by supportive services. There will be one two-bedroom unit for the on-site manager. This will be a single building that will include an office, maintenance, amenity spaces and community
spaces. The building will be fully wheel chair accessible. The location and design will facilitate the integration of
the residents into the surrounding community.
Project Location: St. Martinville, LA
Non-Profit Sponsor: Arc of St. Martin
Capital Advance: $1,313,100
5-year rental subsidy: $217,500
Number of units: 17
The Arc of St. Martin will be constructing 16 units for the developmentally disabled and one one-bedroom resident manager's unit on two different sites. This project will meet the underserved needs of the developmentally disabled population and will provide supportive services for individuals residing in their apartments. Both buildings will be fully accessible for persons with physical disabilities.