HUD ANNOUNCES MORE THAN $17.7 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN MASSACHUSETTS

It will soon be easier for thousands of senior citizens and people with disabilities to find affordable housing, thanks
to more than $710 million in housing assistance announced today by the U.S. Department of Housing and Urban Development. Seven projects in Massachusetts were awarded grants totaling $17,750,800 which will help the very low-income elderly and people with disabilities find decent, safe housing that they can afford.

"Our senior citizens have given us so much, and Americans with disabilities make remarkable contributions to our society every day. Neither group should ever have to worry about being able to afford a decent place to live," said Taylor Caswell, HUD's New England Regional Director. "The grants we are announcing today will go a long way
toward achieving that goal."

The funding awarded under the Section 202 program - funding to assist the very low-income elderly, and the
Section 811 program - funding to assist people with disabilities.

Section 202 Grants

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 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, 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 $20,300 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

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 $12,180.

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.

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 as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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Section 202 - Supportive Housing for the Elderly

Project Location: Framingham, MA
Non-Profit Sponsor: Jewish Community Housing for the Elderly
Capital Advance: $6,740,300
Five-year rental subsidy: $1,133,000
Number of units: 50
Project Description: The funds will be used for the new construction of fifty (50) units of housing for the elderly
on a highly desirable site in the town of Framingham, MA and will be known as Shillman House. The site is close to public transportation and is also near numerous restaurants, banks, a pharmacy, and other community services. Shillman House is well suited for an elderly population.

Project Location: Spencer, MA
Non-Profit Sponsor: Mental Health Programs Inc
Capital Advance: $4,211,500
Five-year rental subsidy: $793,500
Number of units: 36
Project Description: The funds will be used to rehabilitate an existing structure that was formerly a school into
35 units for very-low income elderly persons and a two-bedroom unit for a resident manager. This beautiful and historic building is located in the heart of the town of Spencer, and allows for the residents to have easy access
to all the local shops and medical facilities. The design of the building accommodates several needs of elderly
persons, including common rooms and function rooms.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Framingham, MA
Non-Profit Sponsor: Advocates Inc
Capital Advance: $1,125,400
Five-year rental subsidy: $181,500
Number of units: 9
Project Description:
The funds will be used to renovate an existing large historic mansion located in Framingham, Ma. to house 8 units
of housing for developmentally disabled individuals and one unit for a resident manager. This site will provide
access
to the residents to a number of community services.

Project Location: Lanesborough, MA
Non-Profit Sponsor: Berkshire County Acre
Capital Advance: $455,900
Five-year rental subsidy: $91,000
Number of units: 4
Project Description:
The funds will be used for the new construction of a 4-bedroom ranch style barrier free home which will offer a
high degree of self-sufficiency and dignity to four (4) developmentally disabled adults. The home will allow full accessibility for the physically disabled and services will be delivered efficiently for the residents.

Project Location: Lexington, MA
Non-Profit Sponsor: Supportive Living Inc
Capital Advance: $1,070,400
Five-year rental subsidy: $204,000
Number of units: 9
Project Description: The funds for this proposed project in Lexington, MA, will provide supportive housing for
nine (9) residents who are survivors of brain injuries and who require staff support and supervision to live in
dignity as independently as possible in the community near family and friends.

Project Location: North Andover, MA
Non-Profit Sponsor: American Training Inc
Capital Advance: $493,900
Five-year rental subsidy: $91,000
Number of units: 4
Project Description: The funds will be used for the acquisition and rehabilitation of an existing structure to develop
4 units of supportive housing for the developmentally disabled. There will be a unit for a resident manager. The Sponsor, American Training, Inc., has a considerable amount of experience with supportive housing. The home is
in a residential neighborhood close to the center of town, where shops and transportation is easily accessible.

Project Location: Southbridge, MA
Non-Profit Sponsor: Southern Worcester County Association for Retarde
Capital Advance: $1,000,400
Five-year rental subsidy: $159,000
Number of units: 8
Project Description: The funds will be used to rehabilitate an existing structure to accommodate disabled citizens
in an independent living style. There are six one-bedroom units and two two-bedroom units, one of which will house
a resident manager. Located in a rural area, the facility will allow for the residents to live in spacious and peaceful environment. A van service provided by the sponsor will shuttle residents to their necessary destinations.