BUSH ADMINISTRATION ANNOUNCES MORE THAN $3 MILLION FOR
HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH
DISABILITIES IN NEW MEXICO
Artesia, Albuquerque and Clovis Receive Grants

ALBUQUERQUE - Housing and Urban DevelopmentSecretary Alphonso Jackson has announced that more than $789 million in housing assistance grants will be awarded nationally this year to help the nation's very low-income elderly and people with disabilities. In New Mexico, Artesia, Albuquerque and Clovis received grants totaling $3,850,500.
A list of the projects follows.

"President Bush is committed to making sure our senior citizens and people with disabilities have opportunities to
live in decent, safe and affordable homes," Jackson said. "The grants that we awarded today will certainly help in achieving that goal."

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

Section 202 grants fund the construction of projects and rehabilitation of units to create apartments low-income elderly persons. In addition, HUD subsidizes rents for five years so that residents 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, $20,125 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)

HUD's Section 811 program provides housing for households with one or more very low-income individuals, at least
one of whom must be at least 18 years old and have a disability, such as a physical or developmental disability or chronic mental illness. 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.

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 pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

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 $12,075.

• 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; and 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 and espanol.hud.gov.

Section 202 - Supportive Housing for the Elderly

Project Location: Artesia, NM
Non-Profit Sponsor: Eastern Plains Housing Dev Corp
Capital Advance: $1,261,000
Five-year rental subsidy: $289,000
Number of units: 21
Project Description:
The funds will be used to construct 20 one-bedroom units for very low-income elderly persons and a two-bedroom unit for a resident manger. Although located in the City of Artesia, the site is within 10-35 miles of several smaller rural communities. These surrounding communities will have access to and use of this project. Not far from the site, the Artesia Senior Center, will be available for the use of the residents. The Center provides transportation to and from doctor appointments, grocery shopping, visiting, and meal site run.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Albuquerque, NM
Non-Profit Sponsor: NewLife Homes, Inc.
Capital Advance: $1,003,500
Five-year rental subsidy: $202,500
Number of units: 15
Project Description:
The funds will be used to construct 14 one-bedroom units for persons with disabilities. Located in the West side,
near the Wesgate community center, the project will be adjacent to historic Route 66 with stunning views of the
City of Albuquerque. The building will be designed in the southwest style whose scale and mass is in harmony with
the neighborhood. It will include a one-bedroom resident manger's unit. A single-family residential neighborhood is nearby as is a community health unit.

Project Location: Clovis, NM
Non-Profit Sponsor: Eastern Plains Housing Dev Corp
Capital Advance: $892,000
Five-year rental subsidy: $202,500
Number of units: 15
Project Description:
The funds will be used to construct 14 units for persons with physical disabilities. There will be a mixture of six one-bedroom, six two-bedroom and two three-bedroom units. There will also be a two-bedroom unit for the resident manager. This project will be located in Clovis, New Mexico. It is in close proximity to hospitals, central fire station, churches and transportation. The one-story building will be consistent with the scale and mass of the neighborhood. The community building will be designated for recreation, workshops and family events.

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