|HUD No. 10-07-13
July 13, 2010
OBAMA ADMINISTRATION ANNOUNCES MORE THAN $13.5 MILLION TO HELP MASSACHUSETTS VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES
BOSTON - Senior citizens and persons with disabilities in Massachusetts will soon be able to find additional
affordable housing, thanks to more than $13.5 million in housing assistance announced today by the U.S.
Department of Housing and Urban Development (HUD). The funding is part of $550 million awarded nationwide that
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.
"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 New England Regional Administrator Richard A. Walega. "Neither of these groups should ever have to worry about being able to find a safe place to live."
In Massachusetts two grants were awarded under the Section 202 program and two grants were awarded under
the Section 811 program:
MA Section 202 grants:
- Rogerson Communities, Inc. was awarded $6,261,900 to create 37 units in Boston.
- HAP, Inc. was awarded $4,825,400 to create 28 units in Ludlow.
MA Section 811 grants:
- Work, Inc. was awarded $716,300 to create five units in Hingham.
- Bridgewell, Inc. was awarded $1,715,000 to create 10 units of housing in Lynn.
To read a detailed summary of each grant, visit HUD's website.
Section 202 Capital Advance
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. In Boston, based on 50 percent of the area 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 $31,550 a year, in Ludlow, Mass. that figure would be $27,150.
Section 811 Capital Advance
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 $17,200.
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.
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 espanol.hud.gov.