BUSH ADMINISTRATION ANNOUNCES MORE THAN $643 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES

HELENA - It will soon be easier for senior citizens and people with disabilities to find affordable housing in Montana, thanks to more than $643 million in housing assistance grants announced today by U.S. Housing and Urban Development Secretary Alphonso Jackson.

A Section 202 Supportive Housing for the Elderly Project is being built in Billings, MT by the non-profit sponsor Volunteers of America (VOA) National Services with a capital advance from HUD of $6,911,100 and a three-year
rental subsidy of $613,800.

This project is a 65 unit project for low-income elderly residents. It is located within a 2 mile radius of several amenities such as grocery stores, Wal-Mart, churches, restaurants and various medical specialty stores. In
addition, the project will be located in a safe, crime-free neighborhood that will make the residents feel secure.
The site is served by the Billings MET bus line as well as the MET Plus line that will take eligible disabled persons
door-to-door which offers reduced rates for seniors and persons with disabilities.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities
to find decent housing that they can afford," said Jackson. "Neither group should ever have to worry about being
able to find a safe place to live."

Section 202 Grants ($518.9 million nationwide to assist very low-income elderly)

HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly by funding the construction and/or rehabilitation of projects to create apartments. In addition, these grants will subsidize rents for three years so that residents will pay only 30 percent of their adjusted incomes as rent. Section 202 grants provide very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation.

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 $20,850 a year.

Section 811 Grants ($124.8 million nationwide to assist very low-income people with disabilities)

HUD's Section 811 program allows persons with disabilities to live independently in their communities by increasing
the supply of rental housing with the availability of supportive services by funding the construction and/or rehabilitation of projects to create apartments. In addition, these grants will subsidize rents for three years so
that residents will pay only 30 percent of their adjusted incomes as rent.

Under the 811 program, at least one person in the household must be at least 18 years old and have a disability,
such as a physical or developmental disability or chronic mental illness. The term "person with disability" 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.

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 $12,550.

HUD provides the Section 202 and Section 811 funds to non-profits in two forms:

• Capital advances. This is money that covers the cost of developing the housing. It does not need to
  be repaid as long as the housing is available for at least 40 years for occupancy by very low-income
  seniors (under Section 202) or very low-income people with disabilities (under Section 811).
  
  
• Project rental assistance. This is money that goes to each non-profit group to cover the difference
  between the residents' contributions toward rent and the cost of operating the project.

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's fair housing laws. More information about HUD and its programs is available on the
Internet and espanol.hud.gov.

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