HUD Archives: News Releases

HUD No. 09-007
Tom Friesen
(406) 449-5050
For Release
January 13, 2009

Kalispell, Montana to Receive $3,519,000

WASHINGTON - Thousands of very low-income senior citizens and persons with disabilities will be able to find affordable housing thanks to more than $650 million 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's 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."

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

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

  • 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.

Section 202 - Supportive Housing for the Elderly

Project Location: Kalispell, MT
Non-Profit Sponsor: Accessible Space, Inc.
Capital Advance: $3,519,000
Three-year rental subsidy: $219,000
Number of units: 23

Project Description: This project will be located in Kalispell, Montana and consists of 22 one bedroom units for
low-income elderly residents with one 2-bedroom unit for a resident manager. Four of the units will be fully
accessible with roll-in showers and fully accessible kitchens for those residents with disabilities. Special amenities include a community room, laundry room and patio area to encourage socializing for the residents and their families and friends. The project will employ Energy Star rated furnaces, thermostats and appliances.

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


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


Content Archived: June 27, 2011