HUD Archives: News Releases


Edward Hinsberger
(312) 913-8152
For Release
Tuesday
July 13, 2010

OBAMA ADMINISTRATION ANNOUNCES MORE THAN $22.4 MILLION TO HELP ILLINOIS VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

JULY 13TH - Senior citizens and persons with disabilities in Illinois will soon be able to find additional affordable housing, thanks to more than $22.4 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 Supportive Housing programs and will fund 169 projects in 46 states.

"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.

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 $22,400 a year. See Illinois projects below.

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. See
Illinois projects below:

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.

Projects funded in Illinois include:

Section 202
Chicago, IL
Non-Profit Sponsor: Catholic Charities Housing Development Corporation
Capital Advance: $6,617,100
Three-year rental subsidy: $490,500
Number of units: 42
Project Description:
This is a five-story independent living building for the elderly consisting of 42 one-bedroom units in Chicago. Each
unit will have a full kitchen, dining area, living room, entry with closet, a full bathroom and a bedroom with a full closet. The building will have an elevator and each unit will be designed for wheelchair adaptability. Three units will
be set aside for wheelchair accessibility and one will be accessible for persons with hearing or vision impairment.

McHenry, IL
Non-Profit Sponsor: Luth Social Service of Illinois
Capital Advance: $9,487,100
Three-year rental subsidy: $689,100
Number of units: 60
Project Description:
This independent living elderly building consists of 59 one-bedroom units and a two-bedroom manager's unit in McHenry. There are three-stories and an elevator. Each unit has a full kitchen, dining area, living room, entry with entry closet, bathroom with shower and bedroom with a full closet. The unit is designed for wheelchair adaptability and three units will be set aside for wheelchair accessibility. An additional two units will be set aside for sight and hearing impaired. Energy Star appliances and products will be used.

Rushville, IL
Non-Profit Sponsor: West Central Illinois Area Agency on Aging
Capital Advance: $2,076,300
Three-year rental subsidy: $175,200
Number of units: 15
Project Description:
This walk-up development for the elderly consists of 15 one-bedroom independent living units. Each unit has a full kitchen, dining area, living room, entry with coat closet, bathroom with shower unit and bedroom with full closet.
Any unit can be accessibly converted to accommodate the changing needs of a resident. The structure is designed
to allow visitors with disabilities to visit the units. The building will integrate Energy Star technologies and building practices.

Section 811
McHenry, IL
Non-Profit Sponsor: Luth Social Service of Illinois
Capital Advance: $9,487,100
Three-year rental subsidy: $689,100
Number of units: 60
Project Description:
This independent living elderly building consists of 59 one-bedroom units and a two-bedroom manager's unit in McHenry. There are three-stories and an elevator. Each unit has a full kitchen, dining area, living room, entry with entry closet, bathroom with shower and bedroom with a full closet. The unit is designed for wheelchair adaptability and three units will be set aside for wheelchair accessibility. An additional two units will be set aside for sight and hearing impaired. Energy Star appliances and products will be used.

Rushville, IL
Non-Profit Sponsor: West Central Illinois Area Agency on Aging
Capital Advance: $2,076,300
Three-year rental subsidy: $175,200
Number of units: 15
Project Description:
This walk-up development for the elderly consists of 15 one-bedroom independent living units. Each unit has a full kitchen, dining area, living room, entry with coat closet, bathroom with shower unit and bedroom with full closet.
Any unit can be accessibly converted to accommodate the changing needs of a resident. The structure is designed
to allow visitors with disabilities to visit the units. The building will integrate Energy Star technologies and building practices.

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