HUD ANNOUNCES OVER $3 MILLION IN GRANTS TO CONSTRUCT HOUSING FOR PERSONS WITH DISABILITIES IN SALEM AND WILSONVILLE

PORTLAND - Housing and Urban Development Secretary Alphonso Jackson announced that Chemeketa Nonprofit Housing Inc. would be the recipient of a $1,204,700 capital advance to construct housing for very low-income persons with disabilities in Salem. Caritas Community Housing Corporation would be the recipient of a $1,925,000 capital advance to construct housing for very low-income persons with mental illnesses in Wilsonville. Chemeketa
and Caritas were the only two Oregon recipients of FY 2004 Section 811 funding for affordable housing through
HUD's yearly competitive grant process.

"President Bush is committed to making sure persons with disabilities have opportunities to live in decent, safe and affordable homes," Jackson said. "These grants will certainly help in achieving that goal."

Chemeketa Nonprofit Housing Inc. was awarded the capital advance for construction of 10 one-bedroom units and three two-bedroom units for persons with disabilities who are capable of living independently with supportive
services. The project will include a two-bedroom unit for a resident manager. Kestrel Ridge will be located in south Salem, which currently lacks comparable facilities. The local housing authority is donating land for the project and local governments are providing additional money through their HUD funded HOME programs.

Caritas Community Housing Corporation was awarded the capital advance for construction of 20 one-bedroom units for persons with chronic mental illnesses and a two-bedroom unit for a resident manager. The project will be part of the planned community being built on the former state mental hospital site.

"People with disabilities in Salem and Wilsonville will benefit from these projects," said HUD's Portland Field Office Director, Tom Cusack. "We're pleased to see these projects receive HUD funding to add housing for these vulnerable people in the community."

HUD also awarded five-year rental subsidies of $199,000 to Chemeketa and $306,000 to Caritas 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.

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 program allows persons with disabilities to live independently
in their communities by increasing the supply of rental housing with the availability of supportive services.

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.

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