BUSH ADMINISTRATION ANNOUNCES MORE THAN $7 MILLION FOR
HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH
DISABILITIES IN ARKANSAS
Bono, Rogers, Conway, Searcy and Stuttgart Receive Grants

FORT WORTH - Housing and Urban Development Secretary Alphonso Jackson has announced that more than $789 million in housing assistance grants will be awarded nationally this year to help the nation's very low-income elderly and people with disabilities. In Arkansas, Bono, Rogers, Conway, Searcy and Stuttgart received grants totaling $7,038,400. A list of the projects follows.

"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. "The grants that we awarded today will certainly help in achieving that goal."

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

Section 202 grants fund the construction of projects and rehabilitation of units to create apartments. In addition,
HUD subsidizes rents for five years so that residents 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, $20,125 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)

HUD's Section 811 program, provides housing for households with one or more very low-income individuals, at least one of whom must be at least 18 years old and have a disability, such as a physical or developmental disability or chronic mental illness. 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.

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 pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

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 $12,075.

• 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: Bono, AR
Non-Profit Sponsor: White River Regional Housing Authority
Capital Advance: $1,522,300
Five-year rental subsidy: $303,500
Number of units: 24
Project Description: The funds will be used for the construction of an apartment complex consisting of 24 one-bedroom units designed especially for the elderly. The facilities will enable the elderly to maintain their independence and have the ability to receive the supportive services they might need. This location and design will facilitate the integration of the residents into the surrounding community.

Project Location: Rogers, AR
Non-Profit Sponsor: Area Agency on Aging of Northwest AR
Capital Advance: $2,029,800
Five-year rental subsidy: $405,000
Number of units: 32
Project Description: The funds will be used for the construction of an apartment complex consisting of 32 one-bedroom units designed especially for the elderly. The housing will enable the elderly to maintain their independence and have the ability to receive the supportive services they might need. The location and design will facilitate the integration of the residents into the surrounding community.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Conway, AR
Non-Profit Sponsor: Independent Living Services, Inc.
Capital Advance: $951,400
Five-year rental subsidy: $177,500
Number of units: 15
Project Description: The funds will be used for the construction of an apartment complex for persons with developmental disabilities and will consist of 14 one-bedroom units and a unit for a resident manager. The site is located on Andrews Drive, which is part of the Conway Human Development Center Campus. The community space
will be utilized for educational training, activities, socialization and the provision of supportive services that will
assist the residents with daily living activities and add to their quality of life.

Project Location: Searcy, AR
Non-Profit Sponsor: Pathfinder, Inc.
Capital Advance: $444,000
Five-year rental subsidy: $76,000
Number of units: 7
Project Description: The funds will be used for the construction of an apartment complex for persons with developmental disabilities and will consist of six one-bedroom units and a unit for a resident manager. The site is located in a residential area adjacent to shopping. The common space will be large enough for socialization, a computer network center and washers and dryers. Supportive services will assist with daily living activities and
add to the quality of life for the residents.

Project Location: Stuttgart, AR
Non-Profit Sponsor: Grand Prairie Job Center
Capital Advance: $951,400
Five-year rental subsidy: $177,500
Number of units: 15
Project Description: The funds will be used for the construction of an apartment complex for persons with developmental disabilities and will consist of 14 one-bedroom units and a unit for a resident manager. The site is located within one block of the library, shopping and a training center. The common area will be the focal point of
the development where the delivery of supportive service will be provided as well as activities, socialization, and educational services and training.

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