BUSH ADMINISTRATION ANNOUNCES MORE THAN $740 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Alabama receives more than $3.4 million

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced that more than $740
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 $593 million for the elderly and $146 million for people with disabilities.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities
for decent, safe and affordable places to live," Martinez said. "The money that we awarded today will go a long way toward achieving that goal."

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

In addition to funding the construction and rehabilitation of projects to create apartments, HUD 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, this means an income for a one-person household of less than
$19,775 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 (funding 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 $11,865.

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, 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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Note to editors: A description of the Alabama grant is attached.

Alabama

Section 202 - Supportive Housing for the Elderly

Project Location: Mobile, AL
Non-Profit Sponsor: Mercy Housing Southeast, Inc
Co-Sponsor: Mercy Housing, Inc.
Capital Advance: $3,461,400
Five-year rental subsidy: $665,500
Number of units: 50
Project Description:
The design includes 13 buildings with a total of 49 one-bedroom units for elderly residents, a two-bedroom manager's unit, and a community center with appropriate spaces. This development is master planned to maximize density potential for this site. The facility is designed to support a social atmosphere that fosters self-sufficiency and aid in the provision of services to support the changing needs of an aging population. Courtyards will include grassed areas, durable landscaping, resident gardens, sidewalks and decorative pavers.