OBAMA ADMINISTRATION ANNOUNCES MORE THAN $12 MILLION TO HELP MISSOURI'S VERY LOW-INCOME ELDERLY AND PERSONS WITH
DISABILITIES

KANSAS CITY, KS - Senior citizens and persons with disabilities in Missouri will soon be able to find additional affordable housing, thanks to $12,293,900 in housing assistance announced earlier this week by the U.S.
Department of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to
non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities.

Nationwide, more than $550 million in grants were announced on Monday. They are provided through HUD's Section 202 and Section 811 Supportive Housing programs and will fund 169 projects in 46 states. See attachment for summaries of Missouri's grants.

"The Obama Administration is committed to making sure our senior citizens and persons with disabilities have opportunities to live in decent, affordable homes," said HUD Secretary Shaun Donovan. "Neither of these groups should ever have to worry about being able to find a safe place to live."

Section 202 Capital Advance ($454.5 million nationwide to assist very low-income elderly)

HUD's Section 202 Capital Advance Program expands the supply of affordable housing with supportive services for
the elderly. It 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.

In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section
202 program also provides Project Rental Assistance Contract (PRAC) funds to subsidize the rents so that residents only pay 30 percent of their adjusted incomes.

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, based on 50 percent of the national median family income with an applicable adjustment for household size, a one-person household would need to have an income equal to or less
than $22,400 a year.

Section 811 Capital Advance ($95.7 million nationwide to assist very low-income with disabilities)

This housing, most of which will be newly constructed, typically is small apartment buildings, group homes for three
to four people per home, or condominium units. Residents will pay 30 percent of their adjusted income for rent and
the federal government will pay the rest.

Capital advance funds are awarded under HUD's Section 811 program, providing 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 term "person with disabilities" also includes two or more people with disabilities living together, and one or more persons with disabilities living with one
or more live-in attendants. 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.

To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $13,450.

HUD provides the Section 202 and Section 811 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 Contract (PRAC). This is funding that goes to each development to cover
  the difference between the residents' contributions toward rent and the HUD-approved cost of operating
  the project.

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HUD is the nation's housing agency committed to sustaining homeownership; 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 ad enforces the nation's
fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Section 202 Supportive Housing for the Elderly - Missouri

Project Location: St. Louis, MO
Non-Profit Sponsor: Lutheran Sr Services
Capital Advance: $4,995,600
Three-year rental subsidy: $428,700
Number of units: 36
Project Description:
The funds will be used to construct a 36 one-bedroom project for very low-income elderly persons. It will be
located in the St. Louis Metro area and will be a three-story building with two units fully accessible. This will be
the start of a campus to include the Section 202 project; rehab of a historic building with 21 units (market rate);
34 units of LIHTC facility; and development of a second phase of the Section 202 housing in the future. This site
is located close to a major corridor with shopping and services.

Project Location: St. Louis, MO
Non-Profit Sponsor: Ahepa 53 Inc
Co-Sponsor: AHEPA National Housing Corporation
Capital Advance: $4,995,600
Three-year rental subsidy: $428,700
Number of units: 36
Project Description:
The funds will be used to construct 36 one-bedroom units for very low-income elderly persons. The proposed
project will consist of a two-story building with a community room with small kitchen, porch, fitness room, library
and computer room and an elevator. Three units will be fully accessible with the remaining units adaptable. The appliances will be Energy Star, landscaping will reduce water demand, rainwater storage for use in
watering/irrigation system and the building design will be in harmony with the surrounding neighborhood.

Section 811 Supportive Housing for the Disabled - Missouri

Project Location: Cape Girardeau, MO
Non-Profit Sponsor: Community Counseling Center, Inc.
Capital Advance: $1,326,200
Three-year rental subsidy: $119,100
Number of units: 10
Project Description:
The funds will be used to construct 10 one-bedroom units for very low-income persons with chronic mental illness. The project will be located in Cape Girardeau, Missouri, south of the St. Louis Metro Area. The site is surrounded
by green spaces; single family and multifamily housing; and is close to shopping, churches, and public
transportation. The residents will have the opportunity to live successfully and independently as possible and enjoy the amenities including learning basic life and vocational skills.