HUD AWARDS NEARLY $400,000 TO HELP DEVELOP HOUSING FOR VERY
LOW-INCOME ELDERLY IN CARBONDALE AND DURANGO

DENVER - Senior housing developments in 30 states will receive critically needed funding to get their projects off
the ground thanks to more than $17 million in "pre-development" grants announced recently by U.S. Housing and Urban Development Secretary Steve Preston. Advance funds for two non-profits sponsors in Colorado received
nearly $400,000. The Carbondale Senior Housing Corporation in Carbondale, Colo., and Volunteers of America (VOA)
in Durango, Colo. were announced as recipients. The grants are awarded to 63 project sponsors under HUD's
Section 202 Supportive Housing for the Elderly Program.

"The funding will help these organizations cope with the complexities of developing vitally important elderly housing projects in their communities," said Preston. "These funds can make all the difference between these senior housing developments getting built or not. In many respects, it's our way of investing in our elderly just as they devoted so much of themselves to us."

Section 202 Demonstration Planning Grants (DPG) provide upfront funds for such predevelopment activities as architectural and engineering work, site control, and other expenses related to the development of the projects
prior to initial closing. Without the grant funding, such costs would not be reimbursable until closing or would have
to come from other funding sources.

To be eligible for the grants, the activities must otherwise be eligible for funding under the Section 202 Supportive Housing for the Elderly Program. The maximum individual grant amount is $400,000 while no more than $800,000 can be awarded to a single sponsor or its affiliated organizations.

Project sponsors awarded "pre-development" grants are required to complete the processing of their elderly housing developments within 18 months. Subsequent to awarding these grants, HUD will assess the impact of the availability of such funding on the ability of sponsors to expedite the development processing of Section 202 projects.

Carbondale Senior Housing Corporation will be awarded $217,529 while in Durango, Colo., VOA will receive $179,572
in pre-development funds for their Section 202 projects.

The Section 202 Supportive Housing for the Elderly 15-unit project in Carbondale will house 14 low-income elderly residents and 1 resident manager. The Non-profit Sponsor Carbondale Senior Housing Corp. will build their fifth
project for $2,046,300 with a planned three-year rental subsidy of $155,700 The common area laundry room will include individual mail boxes and a TV to encourage the residents to interact and socialize with each other while tending to their laundry. The site is located within walking distance of grocers, banks, restaurants, churches and public transportation.

VOA National Services will build a 25-unit housing project for $3,438,600. Their three-year rental subsidy will be $249,000 for 24 low-income elderly residents and one manager. The project features a reading lounge with two computer terminals for the residents' use. All appliances in the project will be Energy Star rated. Nearby amenities
are a Senior Center, Medical Center, shopping, restaurants and public transportation.

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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.