Reg. VI No. 06-03
January 6, 2006
BUSH ADMINISTRATION ANNOUNCES MORE THAN $6 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN OKLAHOMA
Coalgate, Collinsville, Broken Arrow, Heavener, McAlester Receive Grants for Elderly/Disabled Housing
FORT WORTH � It will soon be easier for senior citizens and people with disabilities nationwide to find affordable housing, thanks to more than $710 million in housing assistance announced today by Housing and Urban Development Secretary Alphonso Jackson. In Oklahoma, Coalgate, Collinsville, Broken Arrow, Heavener and McAlester received grants totaling $6,204,800 to help very low-income elderly and people with disabilities find decent, safe housing that they can afford. A list of grantees and amounts follows.
"Our senior citizens have given us so much, and Americans with disabilities make remarkable contributions to our society every day. Neither group should ever have to worry about being able to afford a decent place to live," said Jackson. "The grants we are announcing today will go a long way toward achieving that goal."
Section 202 Grants ($574.8 million nationally 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 five 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 $20,300 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 ($135.8 million nationally 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 $12,180.
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: Coalgate, OK
Non-Profit Sponsor: Big Five Community Services, Inc.
Capital Advance: $1,120,400
5-year rental subsidy: $238,500
Number of units: 17
The funds will be used to build a 17-unit project for very low-income elderly persons. The project will consist of four buildings with a community meeting room. A small office is included for staff with ample room for residence to visit with the staff if desired. The residence will facilitate a sense of family and community.
Project Location: Collinsville, OK
Non-Profit Sponsor: St John Villas, Inc.
Capital Advance: $2,702,300
5-year rental subsidy: $575,000
Number of units: 41
The funds will be used to construct a 41 unit five building complex for very low income elderly persons. The project will consist of the 41 units, an office, community room, and laundry room. It will be located in an area accessible for shopping and other activities necessary for a good quality of life. The residence will facilitate a sense of family and community.
Project Location: Broken Arrow, OK
Non-Profit Sponsor: VOA NTL SVCS
Capital Advance: $739,200
5-year rental subsidy: $126,500
Number of units: 9
Funds will be used to construct nine units in three houses to serve residents with developmental disabilities in a supportive housing environment. The housing project will include homes designed to resemble other homes in the neighborhood selected. Careful attention to energy efficiency is to be designed into the homes. There will be a
central community area to include living room, dining area, kitchen, and laundry facilities.
Project Location: Heavener, OK
Non-Profit Sponsor: KI BOIS Comm Action Found
Capital Advance: $263,700
5-year rental subsidy: $56,500
Number of units: 4
Funds will be used to construct a four-unit bedroom unit to service developmentally disabled 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: McAlester, OK
Non-Profit Sponsor: KI BOIS Comm Action Found
Capital Advance: $298,200
5-year rental subsidy: $84,500
Number of units: 6
The Sponsor's purpose is to serve residents with developmental disabilities in a supportive housing environment. The complex will consist of one house containing six residents. The proposed housing project will include a home designed to resemble other homes in the neighborhood selected. There will be a central community area to include living room, dining area, kitchen, and laundry facilities.