HUD ANNOUNCES MORE THAN $20.1 MILLION TO CREATE HOUSING FOR
VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN MASSACHUSETTS

It will soon be easier for low-income senior citizens and people with disabilities to find affordable housing in Massachusetts thanks to $20.1 million in federal funding announced today by the U.S. Department of Housing and Urban Development. The funding is part of $650 million awarded nationwide that will provide non-profit developers interest-free capital advances to produce accessible housing, offer rental assistance, and provide supportive
services for the elderly and persons with disabilities through HUD's Section 202 and Section 811 grant programs.

"These grants will help thousands of our nation's very low-income elderly and persons with disabilities find decent housing that they can afford," said HUD Secretary Steve Preston. "Neither group should ever have to worry about being able to find a safe place to live."

In Massachusetts, three grants were awarded under the Section 202 program:

• Montachuseet Home Care Corporation was awarded $6.2 million to create 40 units in Berlin
• Nuestra Communidad was awarded $5.8 million to create 35 units in Roxbury
• The Community Builders was awarded $6.6 million to create 40 units in West Roxbury

Also in Massachusetts, two grants were awarded under the Section 811 program:

• The Association for Community Living was awarded $690,300 to create 5 units in Clarksburg
• Bridgewell, Inc. was awarded $690,300 to create 5 units in Danvers

HUD's Section 202 Program expands the supply of affordable housing with supportive services for the elderly. It provides very low-income persons 62-years and older with the opportunity to live independently in an environment that provides the services they need. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program subsidizes the rents of senior citizens so they can limit their housing costs to only pay 30 percent of their incomes.

HUD's Section 811 Program allows funding for the construction of smaller buildings, typically group homes for three
to four people, or condominium units. Eligible residents pay 30 percent of their income for rent and the federal government will pay the rest. Households must have one or more very low-income adult with physical or developmental disability or living with chronic mental illness.

The term "person with disabilities" may also include two or more people with disabilities living together, or 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.

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.
  
  
• 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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Note to reporters: For specific information on a project, please contact the grantee. For information on HUD's Section 202/811 program, or other HUD services and programs, please contact Kristine Foye at (617) 994-8218
or via email.

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.