HUD Archives: News Releases


HUD No. 04-55
Patricia Campbell
(817) 978-5974
For Release
Wednesday
October 27, 2004

BUSH ADMINISTRATION ANNOUNCES MORE THAN $9 MILLION FOR
HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH
DISABILITIES IN OKLAHOMA
Clayton, Hartshorne, Idabel, McCurtain, Stilwell, Hobart, Muskogee and
Tulsa Receive Grants

OKLAHOMA CITY - Housing and Urban Development Secretary 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 Oklahoma, Clayton, Hartshorne, Idabel, McCurtain, Stilwell, Hobart, Muskogee and Tulsa received grants totaling $9,186,100. 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 for 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.

HUD provides the 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 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: Clayton, OK
Non-Profit Sponsor: Little Dixie Community Action Agency
Capital Advance: $659,100
Five-year rental subsidy: $140,500
Number of units: 10
Project Description:
Funds will be used to construct 10 one-bedroom units for very-low income elderly persons. The site for the project
is located in rural southeast Oklahoma and has access to religious, recreational, social, medical and shopping opportunities. An array of supportive services will be offered both on-site and off-site in order to help maximize residents' health, privacy, independence, and safety.

Project Location: Hartshorne, OK
Non-Profit Sponsor: KI BOIS Community Action Foundation
Capital Advance: $1,186,300
Five-year rental subsidy: $252,500
Number of units: 18
Project Description:
This will be an 18-unit project servicing the elderly of southeast Oklahoma. The sponsor's mission is to help eliminate the causes of poverty and to improve the quality of life for persons residing in a four county area in southeast Oklahoma. Currently there is not a facility of this nature for the elderly in the area.

Project Location: Idabel, OK
Non-Profit Sponsor: Choctaw Hope Development Corp
Capital Advance: $1,265,800
Five-year rental subsidy: $252,500
Number of units: 19
Project Description:
Funds will be used to construct 19 one-bedroom units for very low-income elderly residents and a two-bedroom unit for the on-site manager located in three buildings. The site is located in rural southeastern Oklahoma and has access to religious, recreational, social, medical and shopping opportunities. An array of supportive services will be offered both on-site and off-site in order to help maximize residents' health, privacy, independence and safety.

Project Location: McCurtain, OK
Non-Profit Sponsor: KI BOIS Community Action Foundation
Capital Advance: $659,100
Five-year rental subsidy: $140,500
Number of units: 10
Project Description:
Funds will be used to construct 10 one-bedroom units for very-low income elderly persons. The site for the projec
t is located in rural southeast Oklahoma and has access to religious, recreational, social, medical and shopping opportunities. An array of supportive services will be offered both on-site and off-site in order to help maximize residents' health, privacy, independence, and safety.

Project Location: Stilwell, OK
Non-Profit Sponsor: Greater Muskogee Community Foundation
Capital Advance: $1,252,300
Five-year rental subsidy: $266,500
Number of units: 19
Project Description:
Funds will be used to construct 19 one-bedroom units for very-low income elderly persons. The site for the project
is located in rural southeast Oklahoma and has access to religious, recreational, social, medical and shopping opportunities. An array of supportive services will be offered both on-site and off-site in order to help maximize residents' health, privacy, independence, and safety.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Hobart, OK
Non-Profit Sponsor: Searchlight Center, Inc.
Capital Advance: $929,600
Five-year rental subsidy: $196,500
Number of units: 14
Project Description:
Funds will be used to construct 14 one-bedroom units for very low-income disabled residents. The site for the
project is in southwest Oklahoma. The residents will have access to religious, recreational, social, medical and shopping opportunities. An array of services will be offered both on-site and off-site in order to maximize residents' health, privacy and safety.

Project Location: Muskogee, OK
Non-Profit Sponsor: Greater Muskogee Community Foundation
Capital Advance: $922,700
Five-year rental subsidy: $196,500
Number of units: 14
Project Description:
Funds will be used to construct 14 one-bedroom units for very low-income persons with disabilities. The site for the project is in northeast Oklahoma. The site has access to religious, recreational, social, medical and shopping opportunities. An array of supportive services will be offered both on-site and off-site in order to help maximize residents' health, privacy and safety.

Project Location: Tulsa, OK
Non-Profit Sponsor: VOA National Services
Capital Advance: $739,200
Five-year rental subsidy: $126,500
Number of units: 9
Project Description:
The Sponsor's purpose is to serve residents with developmental disabilities in a supportive housing environment.
The project will consist of three houses containing three residents each. The proposed housing project shall include homes designed to resemble other homes in the neighborhoods selected. Careful attention to energy efficiency is to be designed into the project. There will be a central community area to include living room, dining area, kitchen, and laundry facilities.

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