BUSH ADMINISTRATION ANNOUNCES MORE THAN $650 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Five California communities share more than $46 million

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."

Grants were awarded for new housing in Bakersfield ($7.4 million), Clovis ($8.4 million), Fremont ($13.3 million),
Rialto ($11.4 million) and Santa Rosa ($5.7 million). (See below 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.

Note: State-by-state breakdown of individual funding summaries is available on the HUD's website.

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Project Descriptions:

Section 202 - Supportive Housing for the Elderly

Project Location: Bakersfield, CA
Non-Profit Sponsor: National Farm Workers Service Center Inc.
Capital Advance: $7,460,100
Three-year rental subsidy: $809,400
Number of units: 49
Project Description:
The funds will be used to construct 48 one-bedroom units for very-low income elderly persons and a two-bedroom unit for a resident manager. The project will be efficiently planned with one three-story building rectangular in
shape. The site will accommodate parking spaces sufficient for tenants, their guest, and management staff. In addition to parking, the grounds will accommodate exterior gathering, shaded patio, and BBQ areas, and manicured landscaping.

Project Location: Clovis, CA
Non-Profit Sponsor: Southern California Presbyterian Homes
Capital Advance: $8,425,400
Three-year rental subsidy: $1,056,600
Number of units: 60
Project Description:
The proposed project will provide 60 units of Section 202 housing on a City-owned site that is directly adjacent to
an existing Section 202 project of 75 units that was first approved for this same sponsor in 2002. The earlier project was completed in March of 2006, and it has been fully occupied since then. The addition of these 60 new units will enable the Sponsor to achieve important economies of scale in operating their two HUD-assisted properties, by
having a significant number of seniors living in such close proximity to one another.

Project Location: Fremont, CA
Non-Profit Sponsor: Eden Housing, Inc.
Capital Advance: $13,371,700
Three-year rental subsidy: $1,557,900
Number of units: 88
Project Description:
In addition to the 88 units of Section 202 housing proposed, the project will also provide 8 units of non-Section
202, non-PRAC housing by using non-HUD financing resources from LIHTCs. Peralta Senior Housing will primarily be
an independent living facility. However, the Sponsor also proposes to provide a wide range of supportive services in order to accommodate those project residents who are either frail or are at-risk of becoming frail when they enter
the completed project.

Project Location: Rialto, CA
Non-Profit Sponsor: TELACU
Capital Advance: $11,401,200
Three-year rental subsidy: $1,247,700
Number of units: 75
Project Description:
The funds will be used to construct 74 one-bedroom units for very-low income elderly persons and a two-bedroom unit for a resident manager. The project will be built in a two and three-story configuration. The design of the
building is intended to facilitate accessibility issues of universality and visitability as well as the delivery of services
to the residents in an economical fashion for the next 20-30 years. The project will have convenient first floor
laundry room, raised vegetable gardens to encourage use and sharing by all residents.

Project Location: Santa Rosa, CA
Non-Profit Sponsor: Petaluma Ecumenical Properties
Capital Advance: $5,792,700
Three-year rental subsidy: $662,700
Number of units: 38
Project Description:
In addition to the 38 units of Section 202 housing proposed, the project will also provide 6 units of non-Section 202 housing, without rental assistance, by using non-HUD financing resources from LIHTCs. Acacia Lane Senior Housing will be developed in a way that will provide the physical accommodations that will be necessary in order to meet the ever-changing aging and accessibility needs of its anticipated residents. There will also be on-site programs and amenities that will serve to maximize the quality of life for all of the residents.