BUSH ADMINISTRATION ANNOUNCES MORE THAN $2.7 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN KANSAS

KANSAS CITY, KS - Housing and Urban Development Secretary Mel Martinez announced that more than $2.7 million in housing assistance grants will be awarded to help the very low-income elderly and people with disabilities in Kansas. The announcement is part of more than $740 million awarded nationally and includes $593 million for the elderly and $146 million for people with disabilities.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities
for decent, safe and affordable places to live," Martinez said. "The money that we awarded today will go a long way toward achieving that goal."

The Evangelical Lutheran Good Samaritan in Winfield will receive a HUD Section 202 Supportive Housing for the
Elderly grant in the amount of $1,331,300. The funding will be used to provide 20 independent housing units and coordinated services for the elderly. The development will be conveniently located in an area near shopping, restaurants, pharmacies and other needed services. Residents will benefit from various supportive services provided by Good Samaritan and local service providers including meal service, transportation and social and recreational activities.

Accessible Space, Inc. in Topeka will receive a HUD Section 811 Supportive Housing for People with Disabilities grant in the amount of $1,466,400 to provide 21 units of housing for very low-income adults with physical disabilities. Integration of individuals with disabilities into the community is the primary focus of this organization. Opportunities will be given to residents that will encourage them to become active, productive members of the community. A
broad range of support services will be available to the residents.

Section 202 Grants (funding to assist very low-income elderly)

In addition to funding the construction and rehabilitation of projects to create apartments, HUD grants will subsidize rents for five 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, this means an income for a one-person household of less than $19,775 a year. HUD provides two forms of Section 202 funds to non-profit groups:

• Capital advances. This money covers the cost of developing the housing. It does not need to be repaid if
  the housing is available for occupancy by very low-income seniors for at least 40 years.
  
  
• Project rental assistance. This money covers the difference between the resident's contribution toward
  rent and the cost of operating the project.

Section 811 Grants (funding 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 $11,865.

HUD provides the 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 people
  with disabilities.
  
  
• 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.
  

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