BUSH ADMINISTRATION ANNOUNCES MORE THAN $633 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Secretary Jackson and Congresswoman Johnson announce $11.1 million for Connecticut

WASHINGTON, DC - 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. HUD Secretary Alphonso Jackson today joined Congresswoman Nancy Johnson (CT-5) to make the announcement in New Britain, Connecticut.

"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
live."

Connecticut grants include more than $9.6 million in Section 202 grants for very low-income elderly, and $1.5 million
in Section 811 grants for very low-income people with disabilities. (See attached grant recipients/project descriptions.)

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 of projects to create apartments, HUD Section 202 grants will subsidize rents for three years so that 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 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.

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.

###

Connecticut 202/811 Grants

Section 202 - Supportive Housing for the Elderly

Project Location: Hartford, CT
Non-Profit Sponsor: Volunteers of America National Services
Capital Advance: $3,129,600
Three-year rental subsidy: $282,000
Number of units: 23
Project Description: The design proposes a 4-story, single structure, housing 22 one-bedroom living units for the
very low-income elderly and 1 two-bedroom living unit for the on-site superintendent. The facility will contain a
multi-purpose room, hobby and computer room, laundry rooms and administrative offices. Each one-bedroom unit is composed of a living/dining room combination, kitchen, bedroom and bathroom. Emergency call systems will be
located in all bedrooms and bathrooms. The site is in close proximity to all necessary services.

Project Location: New Britain, CT
Non-Profit Sponsor: Mercy Housing, Inc.
Co-Sponsor: Daughters of Mary of the Immaculate Conception
Capital Advance: $5,661,900
Three-year rental subsidy: $538,200
Number of units: 42
Project Description: The existing structure of brick and stone masonry will be substantially renovated to
accommodate 42 one-bedroom units of housing for the very low-income elderly with common facilities including a community room w/party kitchen, TV lounges, laundry facilities and management office area. Each unit will be designed to provide ample space for living, eating, sleeping and cooking. The site is on 147 acres and close to grocery, retail shopping, churches, the town's main street and public transportation. The site plan will also provide
42 spaces of parking.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: New Haven, CT
Non-Profit Sponsor: Continuum of Care, Inc.
Capital Advance: $1,394,600
Three-year rental subsidy: $128,100
Number of units: 10
Project Description: The existing building is a mid-twentieth century masonry structure with two floors and a basement. The unit mix will be six (6) one-bedroom units and four (4) two-bedroom units that will house
approximately 14 very low-income individuals with developmental disabilities. Each unit is composed of a living/dining room combination, kitchen, one or two bedrooms and a bathroom. Common facilities will include a common room with kitchenette and computer station, meeting room, laundry room, office and lounge.