OBAMA ADMINISTRATION ANNOUNCES MORE THAN $31.6 MILLION TO FUND HOUSING FOR VERY LOW-INCOME SENIORS IN MINNESOTA

CHICAGO - Thousands more very low-income senior citizens and persons with disabilities throughout the country, including seniors in Minnesota 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 Minnesota, more elderly households will be affordably housed with access to needed services. A detailed summary of Minnesota 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, Minnesota will have 204 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.

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.

Minnesota's Section 202 Grants

Section 202 - Supportive Housing for the Elderly

Project Location: Chaska, MN
Non-Profit Sponsor: Aeon
Capital Advance: $7,860,100
Three-year rental subsidy: $670,800
Number of units: 54

Project Description: The funds will be used to construct a 54 unit apartment building for very low income elderly persons in Chaska, Minnesota. The Landings will be five stories and includes a parking garage. There will be a community room, fitness room and other amenities available to the residents at the project. The site is conveniently located to the numerous amenities of downtown Chaska.

Project Location: Minneapolis, MN
Non-Profit Sponsor: CommonBond Communities
Co-Sponsor: Seward Redesign, Inc.
Capital Advance: $8,733,400
Three-year rental subsidy: $745,200
Number of units: 60

Project Description: The funds will be used to construct a 60 unit building for very low income elderly persons on Snelling Avenue in Minneapolis. The project will include an Advantage Center, a community facility that provides services to help elderly residents to live independently. The design for the Apartments will facilitate the integration of its residents into the surrounding community and encourage interaction among residents of the proposed housing. The site is a short distance from the Hiawatha Light Rail Transit Station.

Project Location: Rochester, MN
Non-Profit Sponsor: CommonBond Communities
Capital Advance: $5,225,700
Three-year rental subsidy: $496,800
Number of units: 40

Project Description: The funds will be used to construct a 40 unit apartment building for very low income elderly persons in Rochester, Minnesota. The project will include an Advantage Center, a community facility that provides services to help elderly residents live independently. The project will also include a community room designed for multiple uses and large enough to accommodate all residents and a computer lab for the residents.

Project Location: St. Paul, MN
Non-Profit Sponsor: Episcopal Corporation for the Elderly
Capital Advance: $7,307,800
Three-year rental subsidy: $608,700
Number of units: 50

Project Description: The funds will be used to construct a 50 unit apartment building for very low income elderly persons in St. Paul Minnesota. The new apartments will be close to the existing Episcopal Homes campus, amenities that are in short walking distance from the project and those that are easily accessible through the light rail transit system located near the front of the building. Some of the amenities include a multipurpose community room, computer room and a library.

###

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 www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.