BUSH ADMINISTRATION ANNOUNCES MORE THAN $789 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Anchorage, Kotzebue, Sitka gain projects

ANCHORAGE - Housing and Urban Development Secretary Alphonso Jackson announced recently that more than $789 million in housing assistance grants will be awarded this year to help the nation's very low-income elderly and people with disabilities. The grants include $643.6 million for the elderly and $145.6 million for people with disabilities.

"President Bush is committed to making sure our senior citizens and people with disabilities have opportunities to live
in decent, safe and affordable homes," Jackson said. "These grants will certainly help in achieving that goal."

Three of the projects recently awarded grant funding are in Anchorage, Kotzebue and Sitka. Two of the projects will be Section 202 projects, and one will be a Section 811 project.

"Alaska's very low-income elderly and disabled will benefit from these projects," said Alaska Field Office Director Colleen Bickford. "We're pleased to see projects from across the state receive HUD grants to add housing for these vulnerable people within our communities."

Alaska Enfranchise Facilities, Inc., was awarded a capital advance of $3,604,800 and a five-year rental subsidy of $561,500 for a 20-unit senior housing project in Anchorage. Plans for this development call for 19 one-bedroom units for very low-income elderly persons, and a two-bedroom unit for a resident manager.

Maniilaq Association, in Kotzebue, received a $928,700 capital advance and a five-year rental subsidy of $118,500
for a project that will consist of four one-bedroom units for very low-income elderly persons and a two-bedroom unit for a resident manager in Kotzebue. This new development will be built adjacent to an existing senior center.

The third project, awarded to Sitka Counseling and Prevention Services, provides $1,070,400 in capital advance
funds and a five-year rental subsidy of $148,000 for construction of six one-bedroom units, five for residents and
one for a resident manager. This project will house very low-income persons with physical disabilities, developmental disabilities or chronic mental illness.

Section 202 Grants (funding to assist very low-income elderly).

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.

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.

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.

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