HUD ANNOUNCES MORE THAN $14.7 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN NEW HAMPSHIRE

It will soon be easier for thousands of senior citizens and people with disabilities to find affordable housing, thanks
to more than $710 million in housing assistance announced today by the US Department of Housing and Urban Development. Two projects in Maine were awarded grants totaling $8,249,100 which will help the very low-income elderly and people with disabilities find decent, safe housing that they can afford (See attached list of grant recipients and project summaries).

"Our senior citizens have given us so much, and Americans with disabilities make remarkable contributions to our society every day. Neither group should ever have to worry about being able to afford a decent place to live," said Taylor Caswell, HUD's New England Regional Director. "The grants we are announcing today will go a long way
toward achieving that goal."

The funding awarded under the Section 202 program - funding to assist the 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 five 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 $20,300 a year.

HUD provides two forms of Section 202 funds to non-profit groups:

• Capital advances. This money covers the cost of developing the housing. It does not need to be repaid if
  the housing is available for occupancy by very low-income seniors for at least 40 years.



• Project rental assistance. This money covers the difference between the resident's contribution toward
  rent and the cost of operating the project.

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Project Location : Ashland, NH
Non-Profit Sponsor : Southern New Hampshire Services, Inc.
Capital Advance : $3,774,600
Five-year rental subsidy: $482,500
Number of units : 28
Project Description : The sponsor, Southern New Hampshire Services, will develop 28 elderly housing units within a
3-story wood frame structure to be located in Ashland, New Hampshire. The site is approximately a half-mile from
the village center and is within walking distance of various shopping opportunities. Southern New Hampshire Services currently has three projects in various stages of construction, which are located in Manchester, Nashua and Northwood, New Hampshire.

Project Location : Littleton, NH
Non-Profit Sponsor : AHEAD
Capital Advance : $808,800
Five-year rental subsidy: $103,500
Number of units : 6
Project Description : The funds will be used to complete the rehabilitate of the former Littleton Regional Hospital.
The sponsor was awarded a 2004 Section 202 grant for Phase 1 of the rehabilitation, currently in development,
which includes 16 units of elderly housing. Phase 2 will complete the project with 6 additional units for a total of 22 units. Small shops and restaurants are a short distance away in the downtown area. Varied businesses are located within the original section of the hospital and others are interested in the remaining available space.

Project Location : Nashua, NH
Non-Profit Sponsor : AHEPA Nat'l Hsg. Corp.
Capital Advance : $5,122,600
Five-year rental subsidy: $655,000
Number of units : 38
Project Description : Chapter 35 of the American Hellenic Educational Progressive Association (AHEPA) will develop
38 units of elderly housing in Nashua, New Hampshire. The site is conveniently located approximately a mile from a major shopping mall with a large grocery store chain across the street from the mall. The property is also
conveniently located right off the highway. Chapter 35 has a long history of community involvement and
participation, and award scholarships to those high school seniors who have demonstrated high academic achievements.

Project Location : Newport, NH
Non-Profit Sponsor : Southwestern Community Services, Inc.
Capital Advance : $3,370,100
Five-year rental subsidy: $414,000
Number of units : 25
Project Description : Southwestern Community Services plans to develop 24 units of elderly housing in the town of Newport, New Hampshire. The town strongly supports this project by committing up to $350,000 in CDBG monies towards its development. The town is also planning to expand the Meadow Sugar River park abutting the proposed site which will include street repairs, pavement and infra structure improvements and upgrades. The sponsor has previously developed a Section 202 elderly project in Charlestown, New Hampshire.