HUD AWARDS NEW JERSEY OVER $20 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES

NEWARK - As part of its continuing effort to assist the most vulnerable in our society obtain decent, safe and affordable housing, Housing and Urban Development Secretary Alphonso Jackson announced more than $633 million
in housing assistance grants to help the nation's very low-income elderly and people with disabilities. New Jersey will receive over $20 million in grants. (A list of all New Jersey grantees is attached.)

"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 live."

Section 202 Grants

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.

Section 811 Grants

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 $12,550.

HUD provides the Section 202 and 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 seniors
  (under Section 202) or very low-income people with disabilities (under Section 811).
  
  
• 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 at www.hud.gov and espanol.hud.gov.

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New Jersey

Section 202 - Supportive Housing for the Elderly

Project Location: Leonia, NJ
Non-Profit Sponsor: Leonia Retirement Housing Corp.
Capital Advance: $3,774,600
Three-year rental subsidy: $505,200
Number of units: 28
Project Description:
The project involves the new construction of 28 one-bedroom units for the very low-income elderly. The project has also proposed mixed financing, which could add 5 one-bedroom units for the elderly. Every unit will have Energy Star appliances. Transportation will be available for shopping, recreation, and medical appointments.

Project Location: Midland Park, NJ
Non-Profit Sponsor: Catholic Charities of Archdiocese of Newark
Co-Sponsor: Domus Corp
Capital Advance: $10,813,700
Three-year rental subsidy:$1,425,300
Number of units: 80
Project Description:
The project involves the new construction of 79 one-bedroom units for the very low-income elderly and a two-bedroom unit for a resident manager. The project will include a community room with warming kitchen, a multi-
purpose room, lounge and patio. The design of the building is being planned with the service needs of the residents
as they age in place. The site is located near shopping, recreational and medical facilities. The County provides transportation services for the elderly who no longer drive.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Roosevelt, NJ
Non-Profit Sponsor: Community Options, Inc.
Capital Advance: $444,600
Three-year rental subsidy: $54,300
Number of units: 3
Project Description:
The project involves the construction of a group home serving three (3) very low-income adult residents who are developmentally disabled. The project will provide a common laundry facility, parking, a community room with
kitchen, and a garden area with outdoor seating. The New Jersey Division of Developmental Disabilities will provide residential services for persons with developmental disabilities. The project is located near churches, libraries, hospitals, food banks, and recreation.

Project Location: Roosevelt, NJ
Non-Profit Sponsor: Community Options, Inc.
Capital Advance: $444,600
Three-year rental subsidy: $54,300
Number of units: 3
Project Description:
The project involves the new construction of a group home serving three (3) very low-income adult residents who
are developmentally disabled. The project will provide a common laundry facility, parking, a community room with kitchen, and a garden area with outdoor seating. The New Jersey Division of Developmental Disabilities will provide residential services for persons with developmental disabilities. The project is located near churches, libraries, hospitals, food banks, and recreation.

Project Location: Stillwater, NJ
Non-Profit Sponsor: SCARC, Inc
Capital Advance: $1,014,000
Three-year rental subsidy: $180,600
Number of units: 10
Project Description:
The project involves the new construction of 2 group homes, each serving 5 very low-income persons who are developmentally disabled. The Townships will donate the two sites for each group home. Both homes will be
designed to be fully accessible for the physically disabled. The Sponsor will provide supportive services at the site.

Project Location: Whippany, NJ
Non-Profit Sponsor: Jewish Services for Dev.Disabled of MetroWest Inc.
Capital Advance: $538,100
Three-year rental subsidy: $108,300
Number of units: 6
Project Description:
The project involves the new construction of a group home serving six (6) very low-income adult residents who
are developmentally disabled. The project will provide a common laundry facility, parking, a community room with kitchen, and a garden area with outdoor seating. The New Jersey Division of Developmental Disabilities will provide residential services for persons with developmental disabilities. The project is located near banks, grocery stores, medical offices, and places of worship.

Project Location: Woodstown, NJ
Non-Profit Sponsor: Collaborative Support Program of NJ
Capital Advance: $1,172,500
Three-year rental subsidy: $84,600
Number of units: 6
Project Description:
The project involves the acquisition and rehabilitation of 3 group homes, each serving two very low-income
disabled residents. The project will serve persons with chronic mental illness. The scope of work will include rehabilitation to make the properties accessible to the physically disabled.The sites were selected to insure
access to transportation, shopping, recreation, medical facilities, and places of worship.