HUD ANNOUNCES MORE THAN $8.2 MILLION TO HELP VERY LOW-INCOME ELDERLY IN MAINE

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. Two projects in Maine were awarded grants totaling $8,249,100 which will help the very low-income elderly and people with disabilities find decent, safe housing that they can afford (see attached list of grant recipients and project summaries).

"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 is awarded under the Section 202 program - funding to assist the very low-income elderly. 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.

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 Grants Awarded in Maine

Project Location: Bucksport, ME
Non-Profit Sponsor: Eastern Area Agency on Aging
Capital Advance: $3,504,900
Five-year rental subsidy: $461,500
Number of units: 26
Project Description: Eastern Area Agency on Aging will develop 26 units of elderly housing in Bucksport, Maine.
There is great support for this application as evidenced by the Town donating the property, a former junior high school, to the sponsor. In addition, the sponsor has applied for and received a $30,000 pre-development loan
(at 0%) and a Capacity Enhancement Grant of $30,000 from the Maine State Housing Authority to support activities related to this project, as well as to increase the capacity of Eastern Area Agency on Aging as an organization.

Project Location: Topsham, ME
Non-Profit Sponsor: VOANNE
Capital Advance: $3,803,700
Five-year rental subsidy: $479,000
Number of units: 28
Project Description: Volunteers of America Northern New England (VOANNE) will develop 27 units of housing for the elderly and one unit for a resident manager in Topsham, Maine. Shopping, religious institutions, and banking are all located within a mile from the site. VOANNE has a great deal of experience working with HUD. They have developed several elderly projects in Maine and were recently awarded a Section 202 grant in 2004 for a project in Loudon,
New Hampshire that is currently under development.