HUD Archives: News Releases

Joel Manske
ND Field Office Director
(701) 293-2828
For Release
November 1, 2006

Bush administration announces more than $633 million to help very low-income elderly and people with disabilities

FARGO, ND - Thousands of additional senior citizens and people with disabilities will soon be able to find affordable housing, thanks to more than $633 million in housing assistance announced today by the U.S. Department of
Housing and Urban Development. HUD Secretary Alphonso Jackson made the announcement in New Britain, Connecticut.

"These grants will help the nation's very low-income elderly and people with disabilities 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

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.

Section 811 Grants ($121.3 million nationwide to assist very low-income people with disabilities)

The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as 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 allows persons with disabilities 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 $12,550.

Bismarck, North Dakota Awarded $960,400:

Community Homes of Bismarck Inc. was awarded $892,000 Section 811 grant and $68,400 in Project Rental Assistance for very low-income people with disabilities. The funds will be used to construct an 8 unit independent living project for very low-income developmentally disabled residents. The project consists of self-contained one-bedroom apartments allowing the residents maximum independence within a supported environment. The site is located within a 3-block radius of a major shopping area, grocery stores, and public parks. A public bus stop is located 1 block from the site and services the area with handicapped accessible buses. This will allow the residents to live as independently as possible.

Section 202 Grants ($511.9 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. It provides 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.

In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents for three years so that residents will pay only 30 percent of their adjusted 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, 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.

HUD provides the Section 811 and Section 202 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
    people with disabilities (under Section 811) or very low-income seniors (under Section 202).

  • 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

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


Content Archived: July 11, 2011