OBAMA ADMINISTRATION ANNOUNCES MORE THAN $9.7 MILLION TO HELP INDIANA'S VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

JULY 13 - Senior citizens and persons with disabilities in Indiana will soon be able to find additional affordable
housing, thanks to more than $9.7 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.

"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.

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.

Section 202

Culver, IN
Non-Profit Sponsor: Garden Court, Inc.
Capital Advance: $1,445,600
Three-year rental subsidy: $144,000
Number of units: 13
The funds will be used to construct a one-story 13 one-bedroom units of affordable independent housing for low income elderly. All of the units will be handicap adaptable, two units designed for residents with disabilities, one unit designed for hearing impaired. Each unit will have a living room, dining room, kitchen, bedroom and bathroom. The community area includes a lobby, lounge, laundry room, trash room and administrative office.

Mishawaka, IN
Non-Profit Sponsor: AHEPA National Housing Corporation
Capital Advance: $5,817,300
Three-year rental subsidy: $553,500
Number of units: 50
The funds will be used to construct a two-story 50 one-bedroom units of affordable independent housing for low-income elderly. Five of the 50 will be fully accessible and the remaining 45 will be standard design with the capability of conversion to fully as needed. AHEPA's Service Coordinator program is provided to assist the residents with an array of services. The facility will contain common areas which provide exercise classes, a computer room, library, nutritional classes, etc.

Section 811

Indianapolis, IN
Non-Profit Sponsor: Fay Biccard Glick Neighborhood Center at Crooked Creek
Co-Sponsor: Light of the World Christian Church, Incorporated
Capital Advance: $1,650,600
Three-year rental subsidy: $166,200
Number of units: 15
The funds will be used to construct a one-story independent living facility consisting of 15 one-bedroom units for very-low income persons 18 years or older deemed physically disabled. This project will be located in Indianapolis, Indiana. The units will be designed to facilitate the integration of residents into the surrounding community and promote their ability to live independently. This housing will be located in close proximity to an abundance of supportive services such as shopping, recreation and medical.

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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 ad enforces the nation's
fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.