HUD Archives: News Releases

HUD No. 06-145
Jane Goin
(303) 672-5440
For Release
October 31, 2006

Secretary Jackson announces four grants for Colorado totaling more than
$15 million

DENVER - Thousands of additional senior citizens and people with disabilities will soon be able to find affordable housing, thanks to more than $633 million in housing assistance announced today by the U.S. Department of
Housing and Urban Development.

The four grants announced for Colorado total more than $15 million. HUD selected housing projects for very low-income elderly and persons with disabilities in Greeley, Longmont, Montrose, and Pagosa Springs. The funding for
each community includes constructing affordable housing near a senior center, shopping, restaurants, churches and public transportation.

"These grants will help the nation's very low-income elderly and people with disabilities find decent housing that
they can afford," said Jackson. "Neither group should ever have to worry about being able to find a safe place to

In Longmont, the non-profit sponsor Longmont Housing Development Corporation will receive $5,884,200 capital advance and $492,300 as a three-year rental subsidy to construct a 50 unit, 3-story building. The Section 202
grant will house 49 very low-income elderly residents and a resident manager.

The Volunteers of America in Montrose will receive $3,358,400 capital advance and $261,300 as a three-year rental subsidy. The Section 202-grant funds construction of a 31 unit, 3-story building for 30 very low-income elderly residents and a resident manager.

In Pagosa Springs, Housing Sol for the SW will construct a 2-story building for 19 very low-income elderly and a resident manager. The Section 202-grant funding includes $2,515,600 capital advance funds and $190,800 for
three-year rental subsidy for very low-income elderly.

Greeley received a Section 811 grant supporting housing for persons with disabilities. ASI, Inc., will receive $2,945,500 capital advance funds to construct a 23-unit, two story independent living facility for low-income developmentally disabled residents. The project will receive a 3-year subsidy of $221,100.

HUD provides the Section 202 and Section 811 funds to non-profits in two forms:

  • 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
    seniors (under Section 202) or very low-income people with disabilities (under Section 811).

  • 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.

Section 202 Grants ($511.9 million nationwide to assist very low-income elderly)

HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for
the elderly. It provides very low-income elderly with options that allow them to live independently but in an
environment that provides support activities such as cleaning, cooking, and transportation.

In addition to funding the construction and rehabilitation to create apartments, HUD Section 202 grants will
subsidize rents for three years so residents will 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 $20,850 a year.

Section 811 Grants ($121.3 million nationwide to assist very low-income people with disabilities)

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

The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness. The term "person with disabilities" also includes two or more people with disabilities living together, and one or more persons with disabilities living with one or more live-in attendants. 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.

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 $12,550.

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


For more information and an interview with Regional Director John Carson, contact (303) 672-5440. Grant summaries are available.


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