HUD Archives: News Releases

HUD No. 11-ND-202-002
Joel Manske, ND Field Office Director
(701) 293-2828
For Release
November 16, 2011


FARGO - Low-income senior citizens in North Dakota will have access to affordable supportive housing thanks to $3,303,800 in housing assistance announced today by the U.S. Department of Housing and Urban Development
(HUD). The grant will help a non-profit organization produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly.

The grant funding awarded under HUD's Sections 202 Supportive Housing programs will kick start construction or
major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico. In North Dakota, more than 30 elderly households will be affordably housed with access to needed services.

"The Obama Administration is committed to helping our senior citizens find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "Recent bipartisan changes to the supportive housing program will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."

HUD Regional Administrator Rick M. Garcia said, "Today's vital funding will provide affordable housing to low-income seniors with access to needed services in Grand Forks, ND."

Regional Administrator Garcia said, "Valley Homes and Services will receive $3,014,600 for Capital Advance and $289,200 for a three-year rental subsidy."  Valley Homes Services will construct 30 one-bedroom units for very low-income seniors. The project will be constructed using Enterprise Green Communities standards and built near services, such as medical offices, shopping areas, and public transportation.

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to both programs. Nonprofit grant recipients will now receive federal assistance that is better leveraged and better connected to state and local health care investments, allowing greater numbers of vulnerable elderly individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program
will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes. Section 202 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.

HUD provides these 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 Contracts. This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the cost of operating the project.

    Residents must be "very low income" with household incomes less than 50 percent of their median for that
    area. However, most households that receive Section 202 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.


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 and You can also follow HUD on twitter @HUDnews, on facebook at, or sign up for news alerts on HUD's News Listserv.


Content Archived: January 25, 2012