HUD Archives: News Releases

HUD No. 10-15
Alan Gelfand
(973) 776-7205
For Release
July 12, 2010


NEWARK - Senior citizens and persons with disabilities in New Jersey will soon be able to find additional affordable housing, thanks to more than $28 million in housing assistance 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 and persons with disabilities.

Nationwide, more than $550 million in grants were announced today. They are provided through HUD's Section 202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states. See attachment for a detailed summary of each New Jersey grant.

"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 residents.

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.

Section 811 Capital Advance ($95.7 million nationwide to assist very low-income 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.

Capital advance funds are awarded under HUD's Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have 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 on
e or more live-in attendants. The program provides persons with disabilities the opportunity 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 $13,450.

HUD provides the Section 202 and Section 811 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) or very low-income persons with disabilities (under Section 811).

  • 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.


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; andtransform the way HUD does business. More information
about HUD and its programs is available on the Internet at and


New Jersey

Section 202 - Supportive Housing for the Elderly

Project Location: Basking Ridge, NJ
Non-Profit Sponsor: Ridge Oak Management Inc
Capital Advance: $3,151,000
Three-year rental subsidy: $ 423,900
Number of units: 20
Project Description:
The project involves the new construction of 2 two-story elevator structures consisting of 20 one-bedroom units
for the elderly with each structure having 10 units each. A major sustainable feature of the design is the use of modular construction. The design provides for a lounge area, laundry room, and a patio in each structure. The
project will have an on-site service coordinator. The project will comply with the standards for Energy Star for New Homes and will utilize all Energy Star qualified appliances.

Project Location: Rahway, NJ
Non-Profit Sponsor: The Domus Corp
Co-Sponsor: Cath Char of the Archdiocese of Newark
Capital Advance: $8,069,100
Three-year rental subsidy: $1,059,300
Number of units: 51
Project Description:
The Jack and Margaret Meyers Senior Residence is a Section 202 project for very low-income elderly. It involves
the new construction of a four story, one elevator building for 50 elderly persons, and a two-bedroom unit for a manager. The community spaces will consist of a community room, warming kitchen, lobby, patio, and laundry area.

Project Location: Teaneck, NJ
Non-Profit Sponsor: Geriatric Ser, Inc
Capital Advance: $9,782,100
Three-year rental subsidy: $1,292,100
Number of units: 62
Project Description:
The project involves the new construction of a three-story elevator structure consisting of 60 one-bedroom apartments, one efficiency apartment, and one two-bedroom apartment for the maintenance superintendent. The common areas will include an entry lobby, multipurpose room, common laundry facilities, commercial kitchen and common dining room, computer area, and property management/social services offices. The design will
accommodate the elderly's changing physical needs as they age in place.


New Jersey

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Delaware Twp, NJ
Non-Profit Sponsor: Allies, Inc
Capital Advance: $1,189,600
Three-year rental subsidy: $169,500
Number of units: 8
Project Description:
The project involves the acquisition and rehabilitation of two single family homes in Delaware Township. Each home will be rehabilitated to create a group home serving four developmentally disabled adults. Both sites are located in residential neighborhoods and the existing homes will be compatible with the surrounding uses. The Sponsor will provide transportation for the residents and will also work with local providers of transportation for persons with disabilities.

Project Location: Hopewell Borough, NJ
Non-Profit Sponsor: Community Options, Inc
Capital Advance: $599,400
Three-year rental subsidy: $62,700
Number of units: 4
Project Description:
Community Options Hopewell Residence 2009 is a group home for four persons with developmentally disabilities.
This project will be newly constructed in Hopewell Borough, Mercer County, NJ. The home will be of a one-story design and will provide supportive services to assist the residents in living independently.

Project Location: Lafayette, NJ
Non-Profit Sponsor: Advance Housing, Inc
Capital Advance: $1,488,400
Three-year rental subsidy: $211,800
Number of units: 10
Project Description:
Advance Housing 2009 is a Section 811 project in Lafayette, Sussex County, New Jersey. It will be new
construction, for 10 persons with chronic mental illness and provide an ideal environment for independent living. Various supportive services will be available and the project is located within close proximity to local amenities and transportation.

Project Location: Plainfield, NJ
Non-Profit Sponsor: Cerebral Palsy of New Jersey, Inc
Capital Advance: $599,400
Three-year rental subsidy: $84,900
Number of units: 4
Project Description:
The project involves the acquisition and rehabilitation of a group home for four adult residents who are developmentally disabled. The project will be fully handicapped accessible, use universal design, and help the residents to develop and maintain a healthy, stable quality of life. The project is in a neighborhood of single family homes close to shopping and transportation.


Content Archived: January 25, 2012