OBAMA ADMINISTRATION ANNOUNCES MORE THAN $3.1 MILLION TO HELP NORTH DAKOTA's VERY LOW-INCOME ELDERLY

FARGO - Senior citizens in Jamestown will soon be able to find additional affordable housing, thanks to $3,137,900 million in Section 202 housing assistance grant announced today 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 persons.

Nationwide, more than $550 million in grants were announced today - provided through HUD's Section 202 and
Section 811 Supportive Housing programs that will fund 169 projects in 46 states.

In Jamestown, a Section 202 Supportive Housing grant for the Elderly is awarded to Lutheran Social Services
Housing. The capital advance funds total $2,951,000 to develop 20 one-bedroom units for very low-income
residents. In addition, a three-year rental subsidy of $186,900 was awarded. The project will be a partial
rehabilitation of the soon to be vacated historic Jamestown Hospital.

"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.

HUD provides the Section 202 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.
  
  
• 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's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also
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