HUD No. 04-OR-17
November 24, 2004
HUD ANNOUNCES $5.6 MILLION GRANT TO NORTHWEST HOUSING ALTERNATIVES, INC. FOR CONSTRUCTION OF LOW-INCOME ELDERLY HOUSING IN PORTLAND
Housing to be located at New Columbia
PORTLAND - Housing and Urban Development Secretary Alphonso Jackson announced that Northwest Housing Alternatives, Inc. would be the recipient of a $5,645,200 capital advance to construct housing for very low-income elderly persons in Portland.
"President Bush is committed to making sure our senior citizens have opportunities to live in decent, safe and affordable homes," Jackson said. "These grants will certainly help in achieving that goal."
"We're pleased to see this project, which will be located in the heart of the New Columbia community, receive HUD funding for construction of housing specifically for very low-income elderly," said HUD's Portland Field Office Director Tom Cusack. "This will add another dimension to this HOPE VI revitalization."
Northwest Housing Alternatives, Inc. was awarded the capital advance for construction of 61 one-bedroom units for very low-income elderly persons and a two-bedroom unit for a resident manager. The sponsor plans to build another four units with mixed financing. When completed, this housing will be located in a diverse community with access to neighborhood services, shopping, parks and public transportation.
HUD also awarded a five-year rental subsidy of $933,500 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 of less than 50 percent of the area median.
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.
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.