HUD ANNOUNCES MORE THAN $9.3 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN RHODE ISLAND

It will soon be easier for thousands of senior citizens and people with disabilities to find affordable housing, thanks
to more than $710 million in housing assistance announced today by the U.S. Department of Housing and Urban Development. Four projects in Rhode Island were awarded grants totaling $12,988,700 which will help the very low-income elderly and people with disabilities find decent, safe housing that they can afford (See attached list of grant recipients and project summaries).

"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 Taylor Caswell, HUD's New England Regional Director. "The grants we are announcing today will go a long way
toward achieving that goal."

The funding awarded under the Section 202 program - funding to assist the very low-income elderly, and the
Section 811 program - funding to assist people with disabilities.

Section 202 Grants

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

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.

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Section 202 - Supportive Housing for the Elderly

Project Location: Portsmouth, RI
Non-Profit Sponsor: Coastal Housing Corporation
Capital Advance: $594,600
Five-year rental subsidy: $106,000
Number of units: 5
Project Description: The project, located in Portsmouth, Rhode Island, will provide 5 one-bedroom units for very
low income elderly persons. The site is adjacent to an existing elderly housing complex which will ensure effective delivery of supportive services. The residents will have easy access to Town Offices, shopping and similar services and amenities.

Project Location: Warwick, RI
Non-Profit Sponsor: Valley Affordable Housing Corp
Capital Advance: $5,019,800
Five-year rental subsidy: $866,000
Number of units: 42
Project Description: The funds will be used to construct 41 one-bedroom units for very low-income elderly persons and one two-bedroom unit for a resident manager. The location of this project is in a quiet residential neighborhood and adjacent to an existing adult day center. This will allow opportunities for interaction and the sharing of
resources and supportive services

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Central Falls, RI
Non-Profit Sponsor: Gateway Healthcare Inc
Capital Advance: $1,189,300
Five-year rental subsidy: $211,500
Number of units: 10
Project Description: The funds will be used to acquire and rehabilitate 10 one-bedroom units at two sites for very
low-income persons with chronic mental illness. Facilities such as shopping, restaurants and places of worship are
in close proximity to the project that will promote residents' integration into the surrounding community. The project will also be well served by the statewide transit system.

Project Location: Hopkinton, RI
Non-Profit Sponso : South Shore Mental Health Center
Capital Advance: $1,189,300
Five-year rental subsidy: $211,500
Number of units: 10
Project Description: The funds will be used to construct 10 units of housing for the chronically mentally ill in Hopkinton, Rhode Island. Residents will enjoy close proximity to places of employment, worship, shopping and other services. South Shore Mental Health will work with each resident to ensure that they will be integrated into the neighborhood and the community to their fullest extent possible.