BUSH ADMINISTRATION ANNOUNCES MORE THAN $800 MILLION TO HELP VERY LOW-INCOME ELDERLY & PEOPLE WITH DISABILITIES
More than $7.7 million for projects in Oregon State

WASHINGTON, DC - Housing and Urban Development Secretary Mel Martinez has announced that more than $800 million in housing assistance grants will be awarded this year to help the nation's very low-income elderly and people with disabilities. The grants include $700 million for the elderly and $176 million for people with disabilities. The
funding announcements included $3.3 million for Oregon State's very low-income elderly and over $4.4 for people
with disabilities. See attachment for descriptions of projects funded in Oregon State.

"The Bush Administration is committed to making sure our senior citizens and people with disabilities have a decent, safe and affordable place to live," Martinez said. "The money that we awarded today is one way we can give back
to a generation of Americans who have given us so much."

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

In addition to funding the construction and rehabilitation of projects to create apartments, HUD 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, this means an income of less than $19,040 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
  
  
• 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)
This housing, most of which will be newly constructed, typically is small apartment buildings for no more than 14 people, group homes for three to four people per home, or condominium units. Residents will pay 30 percent of their 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 $11,025, and a two-person household will have an income of about $12,600.

HUD provides the 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.

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Note to Editors: A national listing of 202/811 project summaries are available on the HUD website.

Following are project descriptions in Oregon State:

Oregon State Fiscal Year 2002 Grantees

Section 202 - Supportive Housing for the Elderly

Project Location: Portland, OR
Non-Profit Sponsor: Washington County Council on Aging
Capital Advance: $2,930,100
Five-year rental subsidy: $453,500
Number of units: 31
Project Description:
The funds will be used to construct a 3-story building with 31 one-bedroom units for seniors. The sponsor is hoping
to build a sense of community through a community garden, computers, a community lounge/library, and group excursions. The sponsor currently has 2 other Section 202 projects.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Beaverton, OR
Non-Profit Sponsor: Tualatin Valley Housing Partners
Capital Advance: $1,373,700
Five-year rental subsidy: $205,000
Number of units: 15
Project Description :
The funds will be used for the new construction of an apartment complex with 14 one-bedroom units for persons
with developmental disabilities. There will also be a 2-bedroom manager's unit. Common space adjacent the
manager's unit will be provided with several Internet-linked computers, a fax machine and a resource library for the residents' personal or employment use. Potential residents are being consulted about the design of the project and have requested that space for a basketball court be provided as well as lawn space for games.

Project Location: Hillsboro, OR
Non-Profit Sponsor: Homestreet Incorporated
Capital Advance: $1,355,100
Five-year rental subsidy: $205,000
Number of units: 15
Project Description :
The project will provide 14 one bedroom apartments for people with chronic mental illnesses, and a manager's unit. The sponsor, Homestreet, Inc, has over 20 years of experience working with this population and will provide the support services needed by the tenants. Homestreet currently operates another 18-unit 811 project. The new
project will be located on East Main, directly behind a light rail (MAX) station.

Project Location: Portland, OR
Non-Profit Sponsor: Portland Alternative Living Inc.
Capital Advance: $1,047,200
Five-year rental subsidy: $132,000
Number of units: 10
Project Description :
Portland Alternative Living, Inc. (a grassroots organization) and Portland Habilitation Center are co-sponsoring this project to provide housing for people with developmental disabilities. The project will consist of a mixture of 1 and 2 bedroom units and will include a onsite manager. It is anticipated that the project will have an outdoor recreation area, a community room and a computer lab.

In addition, a Section 202 project was funded in Vancouver, Washington:

Project Location: Vancouver, WA
Non-Profit Sponsor: Columbia Non-Profit Housing
Capital Advance: $5,061,200
Five-year rental subsidy: $935,500
Number of units: 65
Project Description :
The funds will be used to construct a 3-story building with 64 one bedroom units for seniors. A one-bedroom resident manager's unit will also be provided. The Vancouver Housing Authority will manage the project. Amenities such as grocery stores, pharmacies and medical facilities are close by and easily accessible. The sponsor currently has 5
other Section 202 projects and is building a Section 811 project for adults with chronic mental illnesses.