BUSH ADMINISTRATION AWARDS MORE THAN $1 MILLION TO CONVERT EXISTING MULTIFAMILY PROJECT IN MINNESOTA INTO ASSISTED LIVING FACILITY

MINNEAPOLIS - Elderly Americans in Litchfield, Minnesota will soon find themselves living in upgraded apartments equipped to meet their physical needs thanks to a $1,748,570 Assisted Living Conversion Program (ALCP) grant from the U.S. Department of Housing and Urban Development. HUD today announced the grant to help convert Gloria Dei Manor in Litchfield from an existing multifamily project into assisted living facility for the elderly.

"The Assisted Living Conversion Program will provide an affordable option to nursing home placement for elderly persons," said Joseph P. Galvan HUD Regional Director for the Midwest (Illinois, Indiana, Michigan, Minnesota, Ohio
and Wisconsin). "This grant will allow the elderly to age in place and not have to move from their familiar
surroundings as they become older and need supportive services."

This 41 year-old Section 202 building will provide 60 units of housing with assisted living services for the frail
elderly. The funds will be used to convert ten efficiencies to five accessible one-bedroom units, and 13 previously converted units will be renovated to make a total of 18 large fully accessible one-bedroom units. Six other zero-bedroom units will be made wheelchair accessible with adaptable bathrooms and kitchens. The remaining 36 units
will receive substantial life safety and accessibility improvements such as widening door frames, putting showers in
all units, installing lever-style faucets and door handles. All units will be hard-wired for smoke detectors.

Assisted living facilities are designed to accommodate low-income elderly and persons with disabilities who can live independently but need assistance with activities of daily living, such as assistance with eating, bathing, grooming, dressing and home management activities. These affordable facilities provide support services such as personal
care, transportation, meals, and housekeeping.

Since the funds awarded under the Assisted Living Conversion Program do not cover the costs of these services,
the project owners must provide the service funds either directly or through a third party. The projects receiving funding today will be providing services through a number of sources including their State Home Health Care
programs, State Assisted Living Services funds, Congregate Housing Services Program funds, Service Coordinator funds and private grants and donations.

The grants were awarded on a competitive basis. During the review process, items taken into consideration
included: the extent to which the conversion is needed by the persons that the project is intended to serve; the quality and effectiveness of the proposal in addressing the proposed conversion including the meals and supportive services which the project intends to provide; the ability of the project owner to secure other community resources which can be combined with the grant to achieve the program's purposes; as well as the capacity of the project owner to carry out the conversion in a timely and effective manner.

The owners are responsible for ensuring that converted units meet all local standards, codes and regulations governing assisted living facilities. The projects must also be licensed and regulated by the appropriate governing body.

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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The following listing provides a breakdown by state of the total dollar amounts that were awarded to various multifamily development owners throughout the country from today's grant announcement: