OBAMA ADMINISTRATION ANNOUNCES MORE THAN $26 MILLION TO FUND HOUSING FOR VERY LOW-INCOME SENIORS AND PERSONS WITH DISABILITIES IN MICHIGAN

CHICAGO - Thousands more very low-income senior citizens and persons with disabilities throughout the country, including those in Michigan will have access to affordable supportive housing thanks to more than $47 million in housing assistance announced today by the U.S. Department of Housing and Urban Development. These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly and persons with disabilities.

The grant funding awarded under HUD's Sections 202 and 811 Supportive Housing programs will kick start  construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico. In Michigan, more elderly households and persons with disabilities will be affordably housed with access to needed services. A detailed summary of Michigan grants is attached to this release.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "Recent bipartisan changes to these two supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."

Thanks to these grants, Michigan will have 178 more units of safe, affordable and supportive housing for senior citizens and persons living with a disability, with the added benefit of creating jobs to help the local economy.

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to both programs. Nonprofit grant recipients will now receive federal assistance that is better leveraged and better connected to state and local health care investments, allowing greater numbers of vulnerable elderly and disabled individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes. Section 202 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.

Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

HUD's Section 811 program provides 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 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 these 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 Contracts. This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the cost of operating the project.

Residents must be "very low income" with household incomes less than 50 percent of their median for that area. However, most households that receive Section 811 or Section 202 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.

Michigan Section 202 and 811 Grants

Section 202 - Supportive Housing for the Elderly

Project Location: Detroit, MI
Non-Profit Sponsor: Presbyterian Villages of Michigan
Capital Advance: $6,990,400
Three-year rental subsidy: $639,900
Number of units: 50

Project Description: The funds will be used to construct 50 one bedroom units of supportive housing for very low income elderly persons. The project includes a community room, library, computer room as well as a fitness lounge suitable for individual exercise to meet wellness standards.  A service coordinator will be provided to assist residents as they age in place, particularly the frail elderly. The basic principles of universal design and visitability have been applied to the design of the project.

Project Location: East Jordan, MI
Non-Profit Sponsor: Northern Homes Community Development Corporation
Capital Advance: $972,300
Three-year rental subsidy: $106,500
Number of units: 10

Project Description: The funds will be used to construct 10 units of supportive housing for elderly persons. The project will include a community room for residents to meet. As well as a part time service coordinator to assist residents with aging in place needs. The project is in close proximity to transportation, shopping and medical facilities. The project is designed to meet LEED certification requirements for green building and will use low flow plumbing as well as ENERGY STAR appliances.

Project Location: Pontiac, MI
Non-Profit Sponsor: CSI Support & Development Services
Capital Advance: $10,795,500
Three-year rental subsidy: $972,900
Number of units: 77

Project Description: The funds will be used to construct 77 units of supportive housing for very low income elderly persons. All units are one-bedroom.  A service coordinator is being provided on site to help particularly frail residents to access necessary supportive services. The project will be designed and constructed to be environmentally friendly, healthy materials have been selected for high recyclability and high sustainable and low energy content, including ENERGY STAR labeled appliances. The project is in close proximity to bus service, shopping etc.

Project Description: The funds will be used to construct 14 one-bedroom units for very low income elderly persons. The units are designed for full accessibility and visitability, including a community room which will consist of a kitchenette, computer workstation and adequate space for residents to meet and interact. The residents will have easy access to shopping, medical facilities, public transportation and other amenities. All of the appliances will be ENERGY STAR compliant including the lighting fixtures.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Auburn Hills, MI
Non-Profit Sponsor: Community Housing Network
Capital Advance: $2,596,300
Three-year rental subsidy: $192,000
Number of units: 15

Project Description: The funds will be used to construct 15 units for very low income persons with disabilities. The project consists of 3 one bedroom units scattered on five different sites throughout Oakland County. The locations are in close proximity to services such as medical, shopping, and public transportation, etc. This integrated model allows residents to blend into the surrounding community yet provides the accessibility features and the availability of supportive services that allow them to live as independently as possible.

Project Location: Port Huron, MI
Non-Profit Sponsor: Innovative Housing Development Corporation
Capital Advance: $1,223,267
Three-year rental subsidy: $153,600
Number of units: 12

Project Description: The funds will be used to construct 12 units for very low income persons with disabilities. The project will be located on 2 different sites. This integrated model allows residents to blend into the surrounding communities yet provides the accessibility features and the availability of supportive services that allow them to live independently. The locations are in close proximity to public transportation, medical administrators, recreational activities and shopping.

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