HUD Archives: News Releases

Kristine Foye
(617) 994-8218
For Release
October 31, 2006

Funding part of $633 million awarded nationwide

Today, the U.S. Department of Housing and Urban Development announced that six non-profit organizations in Massachusetts are receiving funding to produce affordable housing units for low-income seniors and people with disabilities. This funding is part of $633 million in housing assistance announced nationwide. (A list of grant
recipients in Massachusetts and descriptions of the projects is attached.)

"At HUD, we are committed to making sure senior citizens and people with disabilities have opportunities to live in decent, safe and affordable homes," said Taylor Caswell, HUD regional director. "The grants that we awarded today will certainly help in achieving that goal."

The grants are awarded under HUD's Section 202 program, which provides affordable housing for low-income elders, and the Section 811 program, which provides affordable housing for low-income persons with disabilities. Residents
will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

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 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.

Section 811 grants provide 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.

HUD provides the Section 202 and 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
    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.

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


Section 202 and 811 Grants in Massachusetts

Section 202 - Supportive Housing for the Elderly

Project Location: Ayer
Non-Profit Sponsor: Montachusetts Home Care Corporation
Capital Advance: $2,801,900
Three-year rental subsidy: $297,000
Number of units: 22
Project Description: This project will create 22 units of affordable housing for very low-income elderly persons.
The development is the adaptive re-use of the historic Pleasant Street School, and the site is adjacent to a park being developed by the Town of Ayer, that will enhance the life of the residents. This project is the result of a partnership between the Ayer Housing Authority and the Montachusett Home Care Corporation, the non-profit
through which all state funding for elderly services is provided.

Project Location: Franklin
Non-Profit Sponsor: The Community Builders, Inc.
Co-Sponsor: Franklin Federated Church
Capital Advance: $6,662,500
Three-year rental subsidy: $707,100
Number of units: 50
Project Description: This proposal provides for the new construction of 50-unit development for very low-income elderly. The units will be fully accessible and designed to allow frail elderly persons to age in place. The site
combines an attractive setting while simultaneously providing elderly persons with access to services,
transportation and shopping.

Project Location: Roxbury
Non-Profit Sponsor: Action for Boston Community Development
Capital Advance: $5,330,000
Three-year rental subsidy: $565,800
Number of units: 40
Project Description: The funds will be used to construct a 40-unit development for the very low-income elderly in
the Roxbury area of Boston. The development will be in an area comprised of a mix of residential, retail and
commercial uses. The site is located close to public transportation and is also within the boundaries of the Boston Empowerment Zone.

Project Location: Somerville
Non-Profit Sponsor: Visiting Nurse Foundation, Inc.
Capital Advance: $4,130,800
Three-year rental subsidy: $438,600
Number of units: 31
Project Description: This proposal will create 31 units of fully accessible supportive housing for the very low-income elderly in Somerville, MA. This project will assist the frail elderly and help all to age in place. The Section 202 units
will be part of a larger development that will contain an assisted living facility. The 202 units will be on the top floor
of the building, housing the assisted living facility.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Pittsfield
Non-Profit Sponsor: Berkshire County Arc
Capital Advance: $576,200
Three-year rental subsidy: $84,900
Number of units: 6
Project Description: The funds will provide for new construction of housing for six very low-income individuals with traumatic brain injuries in a group home setting. The home will be fully accessible and will provide an affordable supportive option for residents.

Project Location: Topsfield
Non-Profit Sponsor: North Shore Arc, Inc.
Capital Advance: $509,500
Three-year rental subsidy: $56,700
Number of units: 4
Project Description: The funds will provide for new construction of housing for four very low-income persons with developmental disabilities in a group home setting. The housing is near public transportation and town services
and is designed to improve each resident's ability to live as independently as possible.


Content Archived: June 27, 2011