BUSH ADMINISTRATION ANNOUNCES MORE THAN $650 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Arizona receives more than $14 million for five new developments

WASHINGTON - Thousands of very low-income senior citizens and persons with disabilities will be able to find affordable housing thanks to more than $650 million in grants announced today by the U.S. Department of Housing and Urban Development. The funding will provide non-profit developers interest-free capital advances to produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with
disabilities through HUD's Section 202 and Section 811 grant programs.

"These grants will help thousands of our nation's very low-income elderly and persons with disabilities find decent housing that they can afford," said HUD Secretary Steve Preston. "Neither group should ever have to worry about being able to find a safe place to live."

In Arizona, Phoenix grants went to Friendship Retirement Corporation ($4.8 million), National Farm Workers Service Center ($5.6 million), and Triple R Behavioral Health ($1 million). In Mesa, Marc Center of Mesa will receive $1.6
million, and in Tucson, Community Partnership will receive $1.3 million (see attachment for project descriptions).

Section 202 Capital Advance ($525.9 million nationwide to assist very low-income elderly)

HUD's Section 202 Capital Advance Program expands the supply of affordable housing with supportive services for
the elderly. It provides very low-income persons 62-years and older with the opportunity to live independently in an environment that provides the services they need. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program subsidizes the rents of senior citizens so they can limit their housing costs to only pay 30 percent of their incomes.

Section 811 Capital Advance ($124.5 million nationwide to assist very low-income people with disabilities)

Housing constructed using interest-free capital advances under HUD's Section 811 Program are primarily used in smaller newly constructed buildings, typically group homes for three to four people, or condominium units. Eligible residents pay 30 percent of their income for rent and the federal government will pay the rest. Households must
have one or more very low-income adult with physical or developmental disability or living with chronic mental illness.

The term "person with disabilities" may also include two or more people with disabilities living together, or one or
more persons with disabilities living with one or more live-in attendants. 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 the Section 202 and Section 811 funds to non-profit organizations in two forms:

• Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development.
  
  
• Project Rental Assistance Contract (PRAC). This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the HUD-approved 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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet
and espanol.hud.gov.

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Section 202 - Supportive Housing for the Elderly

Project Location: Phoenix, AZ
Non-Profit Sponsor: Friendship Retirement Corporation
Capital Advance: $4,803,200
Three-year rental subsidy: $447,900
Number of units: 46
Project Description: Colter Commons is sponsored by Friendship Retirement Corporation and will consist of 45 one-bedroom independent living units and a manager's unit. The project targets the low and moderate-income elderly seeking safe, decent, affordable housing. Residents will be offered supportive services and the site is located near
to community services. The project is funded through a Capital Advance from the Department of Housing and Urban Development (HUD) and includes rental assistance.

Project Location: Phoenix, AZ
Non-Profit Sponsor: National Farm Workers Service Center, Inc.
Capital Advance: $5,650,100
Three-year rental subsidy: $447,900
Number of units: 46
Project Description: Roeser Haciendas Senior Housing is sponsored by National Farm Workers Service Centers, Inc., and will consist of 45 one-bedroom independent living units and a manager's unit. The project targets the low and moderate-income elderly seeking affordable, safe, decent, sanitary housing. There will be supportive services and
the project will be located close to community services. The project is funded through a Capital Advance from the Department of Housing and Urban Development (HUD) and includes rental assistance.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Mesa, AZ
Non-Profit Sponsor: MARC Center of Mesa, Inc.
Capital Advance: $1,685,000
Three-year rental subsidy: $129,600
Number of units: 14
Project Description: Village at Oasis Park will serve the needs of very low-income persons with disabilities. The Sponsor is MARC Center of Mesa; the project will have 13 one-bedroom independent living units and a manager's
unit. MARC Center has been successful in providing supportive services and employment and day services to residents. The project is funded through a Capital Advance from the Department of Housing and Urban Development (HUD) and includes rental assistance.

Project Location: Phoenix, AZ
Non-Profit Sponsor: Triple R Behavioral Health, Inc.
Capital Advance: $1,002,900
Three-year rental subsidy: $79,800
Number of units: 8
Project Description: Triple R Behavioral Health Inc. has served the needs of very low-income persons with
disabilities. This project will be located on 2 scattered sites, and will consist of two bedroom two bath units. The community room will be designed to maximize visitability and be utilized for delivery of supportive services, neighborhood meetings and other residential activities. The project is funded through a Capital Advance from the Department of Housing and Urban Development (HUD) and includes rental assistance.

Project Location: Tucson, AZ
Non-Profit Sponsor: Comm. Partnership of Southern AZ, Inc.
Capital Advance: $1,337,300
Three-year rental subsidy: $99,600
Number of units: 10
Project Description: Sonrisa Apartments will have 10 one-bedroom independent living units that will serve the needs
of very low-income young adults, ages 18-24, with disabilities. The sponsor, Community Partnership of Southern Arizona, has been successful in providing supportive services and employment and life skills to residents. The project is funded through a Capital Advance from the Department of Housing and Urban Development (HUD) and includes rental assistance.