|HUD No. 10-33
July 14, 2010
OBAMA ADMINISTRATION ANNOUNCES $7.4 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES IN KANSAS
KANSAS CITY, KS - Senior citizens and persons with disabilities in Kansas will soon be able to find additional
affordable housing, thanks to $7,435,500 in housing assistance announced earlier this week 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 grants were announced on Monday. They are provided through HUD's Section 202 and Section 811 Supportive Housing programs and will fund 169 projects in 46 states. See below for summaries
of the grants in Kansas.
"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 - Supportive Housing for the Elderly - Kansas
Project Location: Kansas City, KS
Non-Profit Sponsor: Roswell Church of Christ
Capital Advance: $5,158,700
Three-year rental subsidy: $463,200
Number of units: 41
Project Description: The 202 Capital Advance Funds will be used to construct a three-story apartment complex,
with 41 one-bedroom units for very low-income elderly persons. The building design will incorporate space for a Service Coordinator to work onsite in creating and implementing supportive services that enhance the residents'
ability to live independently. A computer lab will also be established onsite to expand learning opportunities for the tenants and provide open accessibility to online social interactions.
Section 811 - Supportive Housing for the Disabled - Kansas
Project Location: Wichita, KS
Non-Profit Sponsor: Mental Health Assn of South Central Kansas, Inc.
Capital Advance: $1,674,100
Three-year rental subsidy: $139,500
Number of units: 14
Project Description: The funds will be used to construct 14 supportive housing apartment units for persons with severe mental illness. The proposed project design features 3 one-story cottage-style buildings with a community center situated around a central courtyard. The buildings and courtyard setting are intended to provide the
residents increased opportunities for social interaction and recreation. The project site is in close proximity to services, shopping and transportation.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet and espanol.hud.gov.