|HUD No. 06-145
October 31, 2006
BUSH ADMINISTRATION ANNOUNCES MORE THAN $633 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Secretary Jackson announces $10.7 million for Nevada
WASHINGTON, DC - Thousands of additional senior citizens and people with disabilities will soon be able to find affordable housing, thanks to more than $633 million in housing assistance announced today by the U.S. Department of Housing and Urban Development. HUD Secretary Alphonso Jackson today joined Congresswoman Nancy Johnson (CT-5) to make the announcement in New Britain, Connecticut.
"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."
Nevada grants include $7.5 million for senior housing in Reno, and $3.2 million for housing for the disabled in Henderson.
Section 202 Grants ($511.9 million nationwide to assist very low-income elderly)
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 ($121.3 million nationwide 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 $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 and espanol.hud.gov.
Section 202 - Supportive Housing for the Elderly
Project Location: Reno, NV
Non-Profit Sponsor: Volunteers of America Nat'l Svcs
Capital Advance: $7,493,100
Three-year rental subsidy: $639,000
Number of units: 60
Paradise Drive will be located in Reno, Nevada. This project will incorporate universal design and good visual
standards in construction and these procedures will allow very low-income elderly residents to continue to live independently and to enjoy an improved living environment. Special design features in individual units and common spaces, such as emergency call systems and grab bars, will ensure the physical safety of the residents who are
aging in place. The project will address a community-identified need for affordable housing in the City of Reno, Nevada.
Section 811 - Supportive Housing for Persons with Disabilities
Project Location: Henderson, NV
Non-Profit Sponsor: Accessible Space, Inc.
Capital Advance: $3,272,200
Three-year rental subsidy: $255,600
Number of units: 25
Las Vegas Valley Supportive Housing project will be designed to serve very low-income adults with the most
severe mobility impairments, as well as those with cognitive deficits resulting from a traumatic brain injury. The development will assist in the integration of its residents into the community through the availability of supportive care services and allow them to pursue education and employment. Attention will be paid to the special design
needs of the residents including, lighting, noise control, and safe transitions between each floor area.
Note: State-by-state breakdown of individual grant summaries is available on HUD's Website.