HUD Archives: News Releases


HUD No. 10-135F
Martha Dibella
(713) 718-3106
For Release
Monday
July 12, 2010

OBAMA ADMINISTRATION ANNOUNCES MORE THAN $2.9 MILLION TO HELP LOUISIANA'S VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

FORT WORTH - Senior citizens and persons with disabilities in Louisiana will soon be able to find additional affordable housing, thanks to more than $2.9 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 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. Awards in Louisiana include:

Recipient City Program Amount
Diocese of Lafayette Abbeville Section 202 $1,112,300
Diocese of Lafayette Kaplan Section 202 $1,103,000
Options, Inc, & The Westminster Foundation Hammond Section 811 $734,200

Please see the attachment below for a summary of the grants awarded in Louisiana.

"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)

HUDs 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, HUDs 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.

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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.

Section 202 - Supportive Housing for the Elderly

Project Location: Abbeville, LA
Non-Profit Sponsor: Diocese of Lafayette
Capital Advance: $1,019,300
Three-year rental subsidy: $93,000
Number of units: 10
Project Description: The funds will be used to construct 10 one-bedroom units for very low-income elderly
persons. This will be a single building designed to serve frail elderly in an independent living facility accompanied by supportive services. The single building will include an office, maintenance, amenity spaces and community spaces. This apartment will developed about one block west of US 197 on Alan Lane, within a convenient distance of
grocery stores, community services, churches, hospitals, parks, etc.

Project Location: Kaplan, LA
Non-Profit Sponsor: Diocese of Lafayette
Capital Advance: $1,019,300
Three-year rental subsidy: $83,700
Number of units: 10
Project Description: The funds will be used to construct nine one-bedroom units for very low-income elderly
persons and a two-bedroom unit for a resident manager. This will be a single building designed to serve frail elderly
in an independent living facility accompanied by supportive services. The single building will include an office, maintenance, amenity spaces and community spaces. This apartment will be developed within a convenient
distance of grocery stores, community services, churches, hospitals, parks, etc. and will be fully handicapped accessible.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Hammond, LA
Non-Profit Sponsor: Options, Inc.
Co-Sponsor: The Westminster Foundation
Capital Advance: $687,700
Three-year rental subsidy: $46,500
Number of units: 6
Project Description: This is a 5 unit project located in Hammond Louisiana that will house 8 developmentally
disabled residents under the Section 811 program. The project is located in Hammond, Louisiana. It also contains
a two bedroom unit for the manager. This project will provide housing in a parish that has no housing for the developmentally disabled. Supportive services will be provided to the residents through local, state and private
funds and services.

 

Content Archived: June 22, 2012