• 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 seniors
  (under Section 202) or very low-income people with disabilities (under Section 811).
  
  
• 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.

Section 202 Grants ($511.9 million awarded nationwide to assist very low-income elderly)

HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation.

In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents for three 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, 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 $20,850 a year.

In Kentucky the following 202 projects were funded:

Project Location: Barbourville, KY
Non-Profit Sponsor: KY Communities Economic Opportunity Council Inc.
Capital Advance: $1,734,400
Three-year rental subsidy: $189,900
Number of units: 20

Project Description:
The funds will be used to construct 20 one-bedroom units for very low-income elderly persons. The site is located
in an area that is close to shopping, medical facilities, transportation, places of worship, recreational facilities, a
public library, and a community college. A Regional Wellness Center will be open and available for the residents' use
in Spring 2007. A Service Coordinator will be available on-site to address the needs of the residents.

Project Location: Lexington, KY
Non-Profit Sponsor: Christian Benevolent Outreach, Inc.
Capital Advance: $3,810,900
Three-year rental subsidy: $398,700
Number of units: 42

Project Description:
The funds will be used to construct 42 one-bedroom units for very low-income elderly persons. The site is located adjacent to an existing facility for very low-income elderly persons that will extend many of its supportive services
to the residents of the new facility. The property is in close proximity to shopping outlets, medical facilities, places
of worship, home health agencies, and financial institutions. A Service Coordinator will be available on site to assess the need for and assist with the procurement of needed services for the residents.

Project Location: Russellville, KY
Non-Profit Sponsor: Baptist Homes Inc
Capital Advance: $1,814,700
Three-year rental subsidy: $189,900
Number of units: 20

Project Description: The funds will be used to construct 20 one-bedroom units for very low-income elderly persons. The site is located in close proximity to shopping, medical facilities, transportation, places of worship, and
recreational facilities. The property is near a multi-purpose senior citizens' center that provides daily congregate
meals as well as a variety of social activities and supportive services including transportation, recreation, arts and crafts, health promotion, disease prevention, and senior dances.

Section 811 Grants ($121.3 million awarded nationwide 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.

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 $12,550.

In Kentucky the following 811 projects were funded:

Project Location: Louisville, KY
Non-Profit Sponsor: New Directions Housing Corporation
Co-Sponsor: Wellspring
Capital Advance: $693,700
Three-year rental subsidy: $76,200
Number of units: 8

Project Description: The funds will be used to construct eight one-bedroom units for very low-income persons with chronic mental illness. The property is located near retail outlets, medical facilities, outpatient mental health
services, public transportation, a library, a university, and several places of worship. Immediately adjacent to the
site is a facility that provides support services and daytime activities for individuals with chronic mental illness. The close proximity to supportive services allows the residents to live as independently as possible.

Project Location: Louisville, KY
Non-Profit Sponsor: Dreams With Wings Inc
Capital Advance: $693,700
Three-year rental subsidy: $76,200
Number of units: 8

Project Description: The funds will be used to acquire and rehabilitate eight units for very low-income persons with mental retardation. The project consists of two sites with four units on each site. The properties are in close proximity to resources such as medical facilities, shopping outlets, a recreational center, restaurants, places of worship, a park, various employment opportunities, and public transportation. Comprehensive support services such
as case management, vocational rehabilitation, and psychological treatment will be available to residents.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; 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.

Note: State-by-state breakdown of individual grant summaries is available on the HUD Website.

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