OBAMA ADMINISTRATION ANNOUNCES MORE THAN $21 MILLION TO HELP PENNSYLVANIA'S VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES

PHILADELPHIA - Senior citizens and persons with disabilities in Pennsylvania will soon be able to find additional affordable housing, thanks to more than $21 million in housing assistance announced today by the U.S. Department
of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities.

Nationwide, more than $550 million in the grants were announced today. They are provided through HUD's Section
202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states. (See attachment for a detailed summary of Pennsylvania's grants).

"The Obama Administration is committed to making sure our senior citizens and persons with disabilities have opportunities to live in decent, affordable homes," said HUD Secretary Shaun Donovan. "Neither of these groups should ever have to worry about being able to find a safe place to live."

Section 202 Capital Advance ($454.5 million nationwide to assist very low-income elderly)

HUD's Section 202 Capital Advance Program expands the supply of affordable housing with supportive services
for the elderly. It provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.

In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section
202 program also provides Project Rental Assistance Contract (PRAC) funds to subsidize the rents so that residents only pay 30 percent of their adjusted incomes.

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 $22,400 a year.

Section 811 Capital Advance ($95.7 million nationwide to assist very low-income 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.

Capital advance funds are awarded under HUD's Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have 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 provides persons with disabilities the opportunity 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 $13,450.

HUD provides the Section 202 and Section 811 funds to non-profit organizations in two forms:

• Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the
  development. Repayment is not required as long as the housing remains available for occupancy by very
  low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with
  disabilities (under Section 811).
  
  
• Project Rental Assistance Contract (PRAC). This is funding that goes to each development to cover the
  difference between the residents' contributions toward rent and the HUD-approved cost of operating the
  project.

###

HUD is the nation's housing agency committed to sustaining homeownership; 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 and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES

Pennsylvania

Project Location: Beaver Falls, PA
Non-Profit Sponsor: Supportive Services, Inc.
Capital Advance: $1,145,200
Three-year rental subsidy: $101,400
Number of units: 9
Project Description:
The funds will be used to rehabilitate an existing mixed commercial/residential building located in Beaver County, PA into 9 one-bedroom units for very low income persons with chronic mental illness. The project is designed to offer permanent housing options for a population that based on disability and personal history has a higher than average rate of becoming homeless. Various amenities such as grocery stores, pharmacies, restaurants, banks and personal service stores will be available to the residents and within walking distance of the site.

Project Location: Erie, PA
Non-Profit Sponsor: HANDS Inc
Capital Advance: $1,216,200
Three-year rental subsidy: $112,500
Number of units: 10
Project Description:
The funds will be used to construct 10 one-bedroom units for very low-income persons with chronic mental illness. The project is located in a historic neighborhood and is within walking distance of a variety of businesses,
restaurants, grocery stores, community centers, recreational and cultural activities. The site is also located on one
of the Erie County Metropolitan Transit Authority's main transportation arteries. Each unit will offer its own entry, thereby increasing the residents' sense of independence and ownership.

Project Location: New Kensington, PA
Non-Profit Sponsor: Family Services of Western PA
Capital Advance: $471,800
Three-year rental subsidy: $33,900
Number of units: 3
Project Description:
The funds will be used to construct 3 units for very low-income persons with developmental disabilities. The project consists of a ranch-style structure with 3 one-bedroom units that are fully accessible. The proposed site is located within a short distance to grocery stores, retail stores and recreational opportunities. By providing residents with immediate access to amenities, coupled with the availability of supportive services, the residents will find that they are able to maintain their independence and quality of life.

Project Location: Philadelphia, PA
Non-Profit Sponsor: KenCrest Centers
Capital Advance: $1,661,000
Three-year rental subsidy: $141,600
Number of units: 9
Project Description:
The funds will be used to rehabilitate 3 scattered site group homes for very-low income persons who are physically disabled and developmentally disabled. The proposed project will consist of 3 rehabilitated single family homes to house 9 residents. The Sponsor will be providing transportation and support services to the residents to integrate them into the community and to help them become self-sufficient.