HUD Archives: News Releases

HUD No. KY10-020
Deborah Knight
(502) 618-8129
For Release
July 12, 2010


LOUISVILLE - Senior citizens and persons with disabilities in Kentucky will soon be able to find additional affordable housing, thanks to $5,964,600 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 three 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 today. They are provided through HUD's Section 202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states. See attachment for
Kentucky's grantees. To read a detailed summary of the grants, visit HUD's website.

"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."

"These programs are critical in ensuring that our senior citizens and persons with disabilities are cared for with
decent affordable and accessible places to live," said HUD Southeast Region Regional Administrator Edward Jennings, Jr. "HUD and the Obama Administration are committed to these programs as they help those that most definitely
need it."

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´┐Ż contributions toward rent and the HUD-approved cost of operating the project.


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


Kentucky Section 202 Grantees

Project Location Louisville, KY
Non-Profit Sponsor: Catholic Charities of Louisville
Capital Advance: $2,763,200
Three-year rental subsidy : $249,600
Number of units: 24
Project Description: The funds will provide for the substantial rehabilitation of the former St. Bartholomew Parochial School building into 24 units of affordable housing for the elderly. The site is located in close proximity to medical facilities, transportation, several grocery stores, banks, and recreational facilities. Social activities and supportive services such as transportation, recreation, arts and crafts, health promotion, disease prevention, and senior dance are available to all residents.

Kentucky Section 811 Grantees

Project Location Bardstown, KY
Non-Profit Sponsor: Communicare Inc
Capital Advance: $1,334,100
Three-year rental subsidy: $104,100
Number of units: 10
Project Description: The funds will be used to rehab existing apartments into 10 units for very low-income persons with developmental and intellectual disabilities. The project will consist of ten 2-bedroom units on 2 scattered sites. Residents will be provided with comprehensive supportive services to encourage self-sufficiency, increase current levels of functioning, improve daily living skills, and ensure successful community living.

Project Location Louisville, KY
Non-Profit Sponsor: Schizophrenia Foundation
Co-Sponsor: New Directions Housing Corporation
Capital Advance: $1,388,800
Three-year rental subsidy : $124,800
Number of units: 12
Project Description: The funds will be used to rehab 12 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. The site is located near 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.


Content Archived: April 26, 2012