OBAMA ADMINISTRATION ANNOUNCES MORE THAN $4.8 MILLION TO HELP IOWA's VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

JULY 12, 2010 - Senior citizens and persons with disabilities in Iowa will soon be able to find additional affordable housing, thanks to more than $4.8 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities.

Nationwide, more than $550 million in The grants were announced today. They are provided through HUD's Section 202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states.

Iowa
Section 202 - Supportive Housing for the Elderly

Project Location: Ft. Madison, IA
Non-Profit Sponsor: West Central Illinois Area Agency on Aging
Capital Advance: $2,108,100
Three-year rental subsidy: $141,600
Number of units: 14
Project Description: Funds will be used to construct one new building containing fourteen one-bedroom units for the very low-income elderly. The Sponsor has successfully completed other housing developments for the elderly, including a HUD Section 202 property, and has been involved with providing services to the elderly since 1974.

Project Location: Manning, IA
Non-Profit Sponsor: Manning Community Services, Inc.
Capital Advance: $903,500
Three-year rental subsidy: $60,900
Number of units: 6
Project Description: Funds will be used to construct one new building containing six one-bedroom units for the very low-income elderly in Manning, Iowa. The Sponsor has local community involvement and resources which have contributed to this proposal and they have also shown the capability and willingness to continue to aid the elderly population in the community.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Logan, IA
Non-Profit Sponsor: Mosaic
Capital Advance: $1,505,800
Three-year rental subsidy: $101,100
Number of units: 10
Project Description: The funds will be used to construct two new buildings on one site in Logan, Iowa.. Each
building will contain 5 one-bedroom units and provide independent living for developmentally disabled persons. Future residents will be provided with any required supportive services to aid in their independent living effort by the sponsoring entity of this project, as well as by other social service agencies within the community.

"The Obama Administration is committed to making sure our senior citizens and persons with disabilities have opportunities to live in decent, affordable homes," said HUD Secretary Shaun Donovan. "Neither of these groups should ever have to worry about being able to find a safe place to live."

Section 202 Capital Advance ($454.5 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 elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.

In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section
202 program also provides Project Rental Assistance Contract (PRAC) funds to subsidize the rents so that residents only pay 30 percent of their adjusted incomes.

Section 811 Capital Advance ($95.7 million nationwide to assist very low-income 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.

Capital advance funds are awarded under HUD's Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have 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 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.

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 $13,450.

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. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with
  disabilities (under Section 811).


• 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.

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HUD is the nation's housing agency committed to sustaining homeownership; 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.