BUSH ADMINISTRATION ANNOUNCES MORE THAN $740 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
New Jersey Awarded $30.3 Million in Funding

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced that more than $740
million in housing assistance grants will be awarded this year to help the nation's very low-income elderly and people with disabilities. The grants include $593 million for the elderly and $146 million for people with disabilities.

In New Jersey, eleven (11) non-profits will receive grants totaling $30,303,200 -- $24,801,700 to assist the elderly and $5,501,500 to assist people with disabilities.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities
for decent, safe and affordable places to live," Martinez said. "The money that we awarded today will go a long way toward achieving that goal."

Section 202 Grants (funding to assist very low-income elderly)

In addition to funding the construction and rehabilitation of projects to create apartments, HUD 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, this means an income for a one-person household of less than $19,775 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.

Section 811 Grants (funding to assist very low-income people with disabilities)

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.

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 $11,865.

HUD provides the Section 811 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.
  
  
• 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, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as
enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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New Jersey

Section 202 - Supportive Housing for the Elderly

Project Location: East Brunswick, NJ
Non-Profit Sponsor: National Church Residences
Capital Advance: $4,541,500
Five-year rental subsidy: $985,000
Number of units: 40
Project Description:
The funds will be used to construct 39 one-bedroom units for very low-income elderly persons and a two-bedroom unit for a resident manager. Part of the site has been donated by a Developer in accordance with the Township's requirements in order to meet the Township's goal for affordable housing. The Township has also approved Tax Abatement for the project and committed $200,000 for the project. The site is in a residential area and accessible
to shopping, transportation, and medical facilities.

Project Location: Pennsauken, NJ
Non-Profit Sponsor: Diocesan Housing Service Corp of the D
Co-Sponsor: St. Stephen's R.C. Church
Capital Advance: $7,962,300
Five-year rental subsidy: $1,513,500
Number of units: 76
Project Description:
The funds will be used to construct 75 one-bedroom units for very low-income elderly persons and a two- bedroom unit for a resident manager. The site is currently owned by the Sponsor. It is located in a residential neighborhood
and is in close proximity to shopping, medical and other services. The Township operates a shuttle bus service for
the elderly and there is a bus stop currently at the site. Property tax exemption has been granted for the project. Local social service agencies have agreed to provide services to the residents.

Project Location: Pleasantville, NJ
Non-Profit Sponsor: Caring Inc.
Co-Sponsor: CARINGHouse Projects, Inc.
Capital Advance: $1,118,900
Five-year rental subsidy: $202,000
Number of units: 11
Project Description:
The funds will be used to construct 10 one-bedroom units for very low-income elderly persons and a two- bedroom unit for a resident manager. The site is currently owned by the Sponsor. The site is located within a residential
area and is within close proximity to shopping. The Sponsor also operates an adult day care center near the
proposed site.

Project Location: Princeton, NJ
Non-Profit Sponsor: PCH Development Corporation
Capital Advance: $7,126,500
Five-year rental subsidy: $1,352,000
Number of units: 68
Project Description:
The funds will be used to construct 67 one-bedroom units for very low-income elderly persons and a two- bedroom unit for a resident manager. The Township has executed a tax abatement agreement, is leasing the land for a
nominal fee, and has committed $30,000 for the project. The site is located in a residential area. Several local
social service agencies provide transportation services to the elderly to shopping, medical and recreational services, and the local senior resource center.


Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Brick, NJ
Non-Profit Sponsor: Allies, Inc
Capital Advance: $756,500
Five-year rental subsidy: $161,500
Number of units: 8
Project Description:
The funds will be used for the acquisition and rehabilitation of 2 group homes. Each home will serve 4 persons with developmental disabilities and will be fully wheelchair accessible upon completion of the rehabilitation. The proposed locations are in residential neighborhoods and within close proximity to shopping, transportation, medical facilities,
and other service needs. The NJ Department of Human Services has indicated that funding for services can be made available.

Project Location: Elmwood Park, NJ
Non-Profit Sponsor: Advance Housing Inc.
Capital Advance: $718,400
Five-year rental subsidy: $126,500
Number of units: 5
Project Description:
The funds will be used for acquisition and rehabilitation of two group homes, serving 2 and 3 persons with disabilities, respectively. One of the group homes will be fully wheelchair accessible after rehabilitation. The group homes are located in residential neighborhoods and are accessible to shopping, recreation, transportation and medical facilities. The NJ Division of Mental Health Services has committed $5,000 for start up expenses for the project.

Project Location: Franklin Township, NJ
Non-Profit Sponsor: Alternatives Inc.
Capital Advance: $372,200
Five-year rental subsidy: $76,000
Number of units: 3
Project Description:
The funds will be used for the acquisition and rehabilitation of a group home for persons with chronic mental illness. The home will be fully wheelchair accessible. The proposed site is located in a residential neighborhood with easy access to shopping, transportation, medical facilities and recreation. The NJ Division of Mental Health Services has committed $5,000 for start-up expenses.

Project Location: Mount Holly, NJ
Non-Profit Sponsor: Family Svc of Burlington County
Capital Advance: $682,400
Five-year rental subsidy: $121,500
Number of units: 6
Project Description:
The funds will be used for the acquisition and rehabilitation of 2 group homes for persons with chronic mental illness. Each home will serve 3 persons and will be fully wheelchair accessible after rehabilitation. The proposed sites are located in residential neighborhoods and are accessible to shopping, transportation, and other necessary services. The NJ Department of Human Services has committed $5,000 for start up expenses.