OBAMA ADMINISTRATION ANNOUNCES $32 MILLION TO FUND HOUSING FOR VERY LOW-INCOME SENIORS AND PERSONS WITH DISABILITIES IN NEW JERSEY

NEWARK - Thousands more very low-income senior citizens and persons with disabilities in New Jersey will have access to affordable supportive housing thanks to $32,150,000 in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly and persons with disabilities.

The grant funding awarded under HUD's Sections 202 and 811 Supportive Housing programs will kick start construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico. In New Jersey, 170 elderly households and persons with disabilities will be affordably housed with access to needed services. A detailed summary of New Jersey's grants is attached to this release.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities 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 these two supportive housing programs 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."

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 and disabled 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 Rico. 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 residents.

Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

HUD's Section 811 program provides 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 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.

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 (under Section 202) or for very low-income persons with disabilities (under Section 811).
  
  
• 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 the median for that area. However, most households that receive Section 811 or 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.

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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 www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.

Section 202 - Supportive Housing for the Elderly

Project Location: Garwood, NJ
Non-Profit Sponsor: Westfield Senior Citizen Housing Corp.
Capital Advance: $11,719,100
Three-year rental subsidy: $1,588,500
Number of units: 72

Project Description: The funds will be used to construct 71 units for the elderly and one unit for a resident manager. The project is located within walking distance of amenities and services needed by the elderly. The project is located near train and bus stops. Transportation will also be provided by a County transit program. The design of the project will incorporate EPA's ENERGY STAR Qualified Homes and Indoor-Air Plus Program. The sponsor has committed $1.89 million in funding and the Village of Garwood has approved tax exemption for the project.

Project Location: Lyndhurst, NJ
Non-Profit Sponsor: The Domus Corp
Co-Sponsor: Catholic Charities of the Archdiocese of Newark
Capital Advance: $8,149,000
Three-year rental subsidy: $1,096,500
Number of units: 50

Project Description: The funds will be used to construct 49 units for the elderly and one unit for a resident manager. The project is located within walking distance of amenities and services needed by the elderly. The project is located near train and bus stops. Transportation will also be provided by a County transit program. The design of the project will comply with the ASHRAE 90.1-2007, (appendix G) plus 20% for energy efficiency guidelines. Lyndhurst Township has approved the sale of the township land for $1 and has granted property tax exemption.

Project Location: Millstone, NJ
Non-Profit Sponsor: Affordable Housing Alliance, Inc
Capital Advance: $1,622,700
Three-year rental subsidy: $223,800
Number of units: 10

Project Description: The funds will be used to construct 10 units for the elderly. The project is located within walking distance of amenities and services needed by the elderly. Transportation will also be provided by County and Township transit programs. The design of the project will incorporate EPA's Indoor-Air Plus Program. Millstone Township has approved the lease of the township land for $1 per year for 50 years.

Project Location: Absecon, NJ
Non-Profit Sponsor: CARING, Inc
Co-Sponsor: CARINGHouse Projects, Inc.
Capital Advance: $1,234,700
Three-year rental subsidy: $134,100
Number of units: 8

Project Description: The funds will be used to rehabilitate 2 houses for use as group homes, each serving 4 persons with developmental disabilities. The project is located within walking distance of amenities and services needed by the disabled. Transportation will also be provided by the County transit program and a State funded van service. The design of the project will comply with the Enterprise Green Communities Criteria standards.

Project Location: Blackwood, NJ
Non-Profit Sponsor: Collaborative Supportive Programs of NJ Inc
Capital Advance: $1,553,700
Three-year rental subsidy: $100,500
Number of units: 6

Project Description: The funds will be used to purchase and rehabilitate three group homes for six very low income disabled persons in Blackwood, Camden County, New Jersey. Each house will have two bedrooms and will blend into the surrounding community in type and style. The three sites will be close to transportation and shopping, and will feature fully accessibility throughout the houses in the bedrooms, bathrooms, kitchens, and common areas. There will be ample backyards and parking for residents, staff, and guests.

Project Location: Blackwood, NJ
Non-Profit Sponsor: Collaborative Supportive Programs of NJ Inc
Capital Advance: $1,240,800
Three-year rental subsidy: $134,100
Number of units: 8

Project Description: The funds will be used to construct one group home and to rehabilitate one group home for eight very low income disabled persons on two sites. Each house will be close to transportation and shopping, and will feature four bedrooms. The houses will be fully accessible in all common areas, kitchens, bathrooms, and will provide outside space, and ample parking for residents, staff and guests.

Project Location: Egg Harbor Township, NJ
Non-Profit Sponsor: ARC of Atlantic Co, Inc
Capital Advance: $1,771,300
Three-year rental subsidy: $167,400
Number of units: 10

Project Description: The funds will be used to construct three group homes on three sites in Egg Harbor, Atlantic County, New Jersey for ten very low income residents with disabilities. The sites are located close to transportation and shopping, and will feature accessibility, ample space to navigate a wheelchair, wide corridors and doors, accessible bathroom and showers, large living rooms, fully equipped accessible kitchens, large accessible outdoor space, a community room, laundry room, and ample parking for residents, staff and guests.

Project Location: Middletown, NJ
Non-Profit Sponsor: Allies, Inc
Co-Sponsor: Housing and United Services, Inc.
Capital Advance: $1,234,700
Three-year rental subsidy: $179,100
Number of units: 8

Project Description: The funds will be used to construct 2 group homes, each serving 4 persons with developmental disabilities. The project is located within walking distance of amenities and services needed by the disabled. Transportation will be provided by van service funded by the State. The design of the project will incorporate EPA's ENERGY STAR for new homes and ENERGY STAR Plus Indoor-Air Programs. The sponsor has secured $120,000 in funding from FHLBNY and the Township has donated the 2 sites.