HOUSING ASSISTANCE FOR LOW-INCOME ELDERLY
HUD Awards more than $604 Million in Housing Assistance for Low-Income Elderly

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced more than $604 million in housing assistance for the nation's low-income elderly. This means it will be easier for almost 7,600 low-income
senior citizens to find affordable, decent and safe places to live.

The assistance is going to non-profit groups in 43 states and Puerto Rico to create more than 6,000 federally subsidized apartments under HUD's Section 202 Program for senior citizens.

"Our senior citizens should never have to worry about being able to afford a safe and decent place to live," Martinez said. "The money that we awarded today is one way we can give back to a generation of Americans who have
given us so much."

In addition to funding construction and rehabilitation projects to create the apartments, the HUD grants will
subsidize rents on the apartments for five years so that residents will pay only 30 percent of their 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, this means an income of less than $18,375 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.
  

Of the 21.4 million households headed by older persons in 1999, the most recent data available, 19.7 percent were renters, according to The American Housing Survey for the United States: 1999. The median family income of older renters was $12,566.

The Survey also notes that 6.8 million elderly households paid more than they can afford - defined as more than 30 percent of their income - for housing. Others live in housing that is either substandard or fails to accommodate their physical limitations or needs for assistance.

The HUD report, Housing Our Elders: A Report Card on the Housing Conditions and Needs of Older Americans,
identified four serious challenges to elderly housing conditions in the U.S.: adequacy, affordability, accessibility and appropriateness.

Some 384 groups applied for the Section 202 assistance and 157 received grants.

###

Eastern Missouri Approvals

Project Location: St. Louis, MO
Non-Profit Sponsor: Kossuth Church of God in Christ
Co-Sponsor: St. Andrew's Resources for Seniors
Capital Advance: $3,648,500
Five-year rental subsidy: $573,000
Number of units: 38
Project Description:
Funds will be used to construct 37 one-bedroom units for very-low income elderly persons and 1 one-bedroom unit
for a resident manager. The site for the project is located adjacent to the sponsor's church campus facility, which
will give residents easy access to the sponsor's elderly help programs such as education, day care, financial assistance, food program and transportation programs. A part-time Service Coordinator along with a full time on-site manager is being provided to help residents access services.

Project Location: St. Louis, MO
Non-Profit Sponsor: Cardinal Ritter Institute
Capital Advance: $5,472,700
Five-year rental subsidy: $867,000
Number of units: 57
Project Description:
The funds will be used to construct 56 one-bedroom units for very-low income elderly persons and 1 one-bedroom unit for a resident manager. The site is located in an area of North St. Louis County that has ready access to religious, recreational, social, medical and shopping opportunities. The site location will also help mitigate the
massive displacement currently taking place in this area due to the Lambert airport expansion. A Service Coordinator along with a full time on-site manager is being provided to help residents access services.

Project Location: Warrenton, MO
Non-Profit Sponsor: Sts. Joachim & Ann Care Service
Capital Advance: $1,535,800
Five-year rental subsidy: $279,000
Number of units: 19
Project Description:
Funds will be used to construct 18 one-bedroom units for very-low income elderly persons and 1 one-bedroom unit
for a resident manager. This project will help meet the needs for very-low income affordable elderly housing in an underserved area. The site is located approximately 1-3/4 miles from shopping and services and the sponsor
proposes a full service program that includes transportation to shopping and services. A Service Coordinator is
being provided on site to help residents access services.