HUD No. 11-16-11
November 16, 2011
OBAMA ADMINISTRATION ANNOUNCES OVER $800,000 TO FUND HOUSING FOR PERSONS WITH DISABILITIES IN ALABAMA
BIRMINGHAM - Thousands more persons with disabilities in Alabama will have access to affordable supportive housing thanks to $884,700 in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for persons with disabilities.
The grant funding awarded under HUD's Section 811 Supportive Housing program will kick start construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico. In Alabama, eight
elderly households will be affordably housed with access to needed services. A detailed summary of Alabama grants
is attached to this release.
"The Obama Administration is committed to helping persons with disabilities find a decent, affordable place to live
that is close to needed healthcare services and transportation," said HUD Southeast regional Administrator Ed Jennings, Jr. "Recent bipartisan changes to this supportive housing program will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."
Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act
provided needed enhancements and reforms to both programs. Nonprofit grant recipients will now receive federal assistance that is better leveraged and better connected to state and local health care investments, allowing
greater numbers of disabled individuals to access the housing they need even more quickly.
Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.
HUD's Section 811 program provides housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have a physical or developmental disability or chronic mental illness. 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 these funds to non-profit organizations in two forms:
- Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with disabilities (under Section 811).
- Project Rental Assistance Contracts. This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the cost of operating the project.
Residents must be "very low income" with household incomes less than 50 percent of their median for that area. However, most households that receive Section 811 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.
Section 811 - Supportive Housing for Persons with Disabilities
Project Location: Dothan, AL
Non-Profit Sponsor: Wiregrass Rehabilitation Center, Inc.
Capital Advance: $816,000
Three-year rental subsidy: $68,700
Number of units: 8
Project Description: Funds will be used to construct 8 one-bedroom units for very low-income persons who are physically and/or developmentally disabled. One of the 8 units will house a resident manager. The design for this complex includes green development building standards and ENERGY STAR appliances. Residents will have access to amenities such as employment opportunities, transportation, shopping, and worship.
HUD�s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook, or sign up for news alerts on HUD�s News Listserv.