BUSH ADMINISTRATION ANNOUNCES MORE THAN $633 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Delaware receives $6+M

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

"These grants will help Delaware's very low-income elderly and persons with disabilities find decent housing that they can afford," said Diane L. Lello, HUD Wilmington Field Office Director. "Neither group should ever have to worry about being able to find a safe place to live."

Senator Tom Carper and Congressman Michael Castle joined HUD today in Dover to award $6+ million to help very
low-income elderly and persons with disabilities find housing in Delaware. Delaware awards include: $4.7+ million to
the Martin Luther Foundation of Dover for 32 newly constructed units for very-low income elderly persons; $800+ thousand to the United Cerebral Palsy of Delaware, Inc. for the construction of 7 units for very low-income persons who are physically disabled and $400+ thousand to the Krysti Bingham CP Foundation, Inc. and Carelink Community Support Service to construct 4 units for very-low income persons who are physically disabled.

Senator Carper said, "I am always grateful when I am able to play a role in securing federal funding for programs that help provide housing for those that need our help. I am encouraged by the good work HUD is doing in identifying people and agencies that will benefit the most. This money will go a long way to helping the low-income elderly and those with disabilities find affordable housing in our state and homes they can truly call their own."

"Today's announcement of more than $6 million in federal funding to help construct and subsidize housing for very low-income elderly and persons with disabilities throughout our state is extremely exciting news for Delaware. In
fact, the beautiful new Luther Village I, where we stand, is an example of the quality rental housing which will be available to those eligible once construction on these projects is finished. In addition, today is a wonderful
opportunity to recognize the extraordinary work of foundations receiving funding, including the Martin Luther Foundation of Dover, United Cerebral Palsy of Delaware, Inc., and the Krysti Bingham CP Foundation, Inc. and
Carelink Support Service," Congressman Castle said.

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.

###