HUD ANNOUNCES $7.6 MILLION TO FUND HOUSING FOR VERY LOW-INCOME SENIORS AND PERSONS WITH DISABILITIES IN ARKANSAS
Hamburg, Harrison, Little Rock, McGehee, and Paragould Receive Grants

LITTLE ROCK - More very low-income senior citizens and persons with disabilities in Arkansas will have access to affordable supportive housing thanks to $7,672,100 in housing assistance announced today by the U.S. Department
of Housing and Urban Development (HUD). These grants will help eight non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly and persons with disabilities.

The grant funding awarded under HUD's Sections 202 and 811 Supportive Housing programs will kick start
construction or major rehabilitation nationally for more than 170 housing developments in 42 different states and Puerto Rico. A detailed summary of the Arkansas grants follows.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "Recent bipartisan changes to these two supportive housing programs 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."

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.

Section 202 provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident. Nationally, today's Section 202 Capital Advances will provide $545 million to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes.

HUD's Section 811 program provides housing for households with one or more very low-income individuals with a disability. Nationally, today's Section 811 Capital Advances will provide $137 million 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.

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.

Residents for both programs 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 or Section 202 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.

Arkansas projects receiving grants:

Section 202 - Supportive Housing for the Elderly

Project Location: Hamburg, AR
Non-Profit Sponsor: Community Directions, Inc.
Capital Advance: $837,000
Three-year rental subsidy: $64,500
Number of units: 8
Project Description: The funds will be used to construct 7 one-bedroom units for very low income elderly persons and 1 two-bedroom manager's unit 2 blocks east of the Central Business District in Hamburg, Ashley County, Arkansas. The project will include an office, a maintenance room, amenity spaces and community space. The project will attain Enterprise Green Communities and ENERGY STAR certifications. The project's location and design will integrate the residents into the community. Transportation will be provided by the Council on Aging.

Project Location: McGehee, AR
Non-Profit Sponsor: Community Directions, Inc.
Capital Advance: $1,245,100
Three-year rental subsidy: $101,100
Number of units: 12
Project Description: The funds will be used to construct 11 one-bedroom units for very low income elderly persons
and 1 two-bedroom manager's unit in McGehee, Arkansas. This facility will include an office, a maintenance room, amenity spaces, and community spaces. The project will attain Enterprise Green Communities and ENERGY STAR certifications. The project's location and design will integrate the residents into the community. Transportation will
be provided by the Community Action Agency.

Project Location: Paragould, AR
Non-Profit Sponsor: Paragould Housing Development Corporation
Capital Advance: $1,224,100
Three-year rental subsidy: $110,400
Number of units: 12
Project Description: The funds will be used to construct 12 one-bedroom units for very low income elderly persons. Residents will have easy access to the city-owned park where they can enjoy fishing, a walking trail, volleyball courts, and a pavilion. The project's design encourages independent living and complements aging in place. In addition, it will meet Green standards and it will include ENERGY STAR products. Transportation to the Senior Center, medical services, and shopping will be provided.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Hamburg, AR
Non-Profit Sponsor: Community Directions, Inc.
Capital Advance: $1,245,100
Three-year rental subsidy: $101,100
Number of units: 12
Project Description: The funds will be used to construct 11 one-bedroom units for very low income persons with disabilities and 1 two-bedroom manager's unit in Hamburg, Ashley County, Arkansas. This project will include an
office, a maintenance room, amenity spaces, and community spaces. All units will meet visitability standards and will have universal design features. All of the units will meet Enterprise Green Communities criteria and they will include ENERGY STAR products. Transportation will be provided by the Council on Aging.

Project Location: Harrison, AR
Non-Profit Sponsor: Boone County Special Services
Capital Advance: $1,041,100
Three-year rental subsidy: $82,800
Number of units: 10
Project Description: The funds will be used to construct 9 one-bedroom units for very low income persons with disabilities and 1 two-bedroom manager's unit in Harrison, Boone County, Arkansas. This facility will include an office, a maintenance room, and amenity and community spaces. All units will meet visitability standards and will have universal design features. This complex will meet Enterprise Green Communities criteria and will be adaptable and/or accessible. Transportation and supportive services will be provided by the Owner.

Project Location: Little Rock, AR
Non-Profit Sponsor: Easter Seals Arkansas
Capital Advance: $1,491,100
Three-year rental subsidy: $128,700
Number of units: 14
Project Description: The funds will be used to construct 11 one-bedroom units and 3 two-bedroom units for the physically and/or developmentally disabled persons. The complex is close to shopping, churches, a major university and it is within 2 blocks of a city bus line. It will include a community room, laundry room and an office. Outside common spaces will also include an outdoor activity patio and attractive landscaping. This housing will be developed using green and ENERGY STAR products. Supportive services and transportation will be provided by the Owner.

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