HUD Archives: News Releases

HUD Region V No. 12-006
Laura J. Feldman
(312) 913-8332
Follow us on Twitter (!/HUDMidwest)
For Release
February 3, 2012


WASHINGTON - More very low-income senior citizens in Michigan will have access to affordable supportive housing thanks to $11.7 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding announced today will help non-profit organizations produce additional accessible housing, offer rental assistance, and facilitate supportive services for the elderly.

The capital advances and rental subsidies are provided through HUD's Section 202 Supportive Housing for the Elderly Program. Last November, HUD announced $545 million in Section 202 grants nationwide to 97 grantees in 31 States and Puerto Rico. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program also provides million of dollars in rental assistance so that residents in selected developments only pay 30 percent of their adjusted income.

"The Obama Administration is committed to helping our senior citizens find an affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "These grants and continued rental subsidies will help provide critically needed housing to some of our most vulnerable citizens."

"Thanks to this grant, Michigan will have 77 more units of safe, affordable and supportive housing for senior citizens, with the added benefit of creating jobs to help the local economy," said Antonio R. Riley, HUD's Midwest Regional Administrator.

Michigan Grant Summary:

Section 202 - Supportive Housing for the Elderly

Project Location: Taylor, MI
Non-Profit Sponsor: Volunteers of America National 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 76 one bedroom units of supportive housing for very low income elderly persons and one 2 bedroom managers unit. The project includes a community room, library, computer room, TV/game room. The basic principles of universal design and visitability have been applied to the design of the project as well as green development and energy efficient features.

Section 202 grants provide 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 meet their unique needs. 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.

  • 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 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.


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 at and You can also follow HUD on Twitter at @HUDnews or on Facebook at, or sign up for news alerts on HUD's News Listserv.


Content Archived: July 1, 2014