BUSH ADMINISTRATION ANNOUNCES MORE THAN $3.6 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN MISSISSIPPI

JACKSON - Very low-income senior citizens and persons with disabilities will be able to find affordable housing in Mississippi thanks to $3,607,500 in grants announced today by the U.S. Department of Housing and Urban Development. The funding will provide non-profit developers interest-free capital advances to produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities through HUD's Section 202 and Section 811 grant programs.

"These grants will help thousands of our nation" very low-income elderly and persons with disabilities find decent housing that they can afford," said HUD Secretary Steve Preston. "Neither group should ever have to worry about being able to find a safe place to live."

The VOA Southeast, Inc. will use HUD's $2,108,900 grant for the construction of 20 units in Wiggins, Mississippi, consisting of 17 one-bedroom units, 2 handicapped accessible one-bedroom units, 1 one-bedroom manager's unit,
and 1 large community room, across four buildings to house 19 elderly very low-income residents and one resident manager. The location of the site will allow residents access to shopping, medical facilities and other amenities such as churches, financial institutions, and local recreational facilities.

Another HUD grant of $1,498,600 awarded to NAMI Mississippi will be used to construct 13 one-bedroom,
independent living apartments and one two-bedroom unit for a resident manager, to serve very low-income persons who are chronically mentally ill. The single-story design of the building is intended to accommodate all visitors with physical disabilities, as well as the delivery of services to the residents in an economical fashion for the next 20-30 years. The project will encourage residents to interact with the surrounding neighborhood and to work at businesses located in Lexington community.

Section 202 Capital Advance ($525.9 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 persons 62-years and older with the opportunity to live independently in an environment that provides the services they need. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program subsidizes the rents of senior citizens so they can limit their housing costs to only pay 30 percent of their incomes.

Section 811 Capital Advance ($124.5 million nationwide to assist very low-income people with disabilities)

Housing constructed using interest-free capital advances under HUD's Section 811 Program are primarily used in smaller newly constructed buildings, typically group homes for three to four people, or condominium units. Eligible residents pay 30 percent of their income for rent and the federal government will pay the rest. Households must
have one or more very low-income adult with physical or developmental disability or living with chronic mental illness.

The term "person with disabilities" may also include two or more people with disabilities living together, or 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.

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.

• 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.

Note: State-by-state breakdown of individual funding summaries is available on HUD's website.

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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, and enforces the nation" fair housing laws. More information about HUD and its programs is available on the Internet
and espanol.hud.gov.