HUD Archives: News Releases

Kristine Foye
(617) 994-8218
For Release
October 31, 2006

Funding part of $633 million awarded nationwide

Today, the U.S. Department of Housing and Urban Development announced that two non-profit organizations in
Rhode Island are receiving funding to produce affordable housing units for low-income seniors and people with disabilities. This funding is part of $633 million in housing assistance announced nationwide.
(A list of grant recipients in Rhode Island and descriptions of the projects is attached.)

"At HUD, we are committed to making sure senior citizens and people with disabilities have opportunities to live in decent, safe and affordable homes," said Taylor Caswell, HUD regional director. "The grants that we awarded today will certainly help in achieving that goal."

The grants are awarded under HUD's Section 202 program, which provides affordable housing for low-income elders, and the Section 811 program, which provides affordable housing for low-income persons with disabilities. Residents
will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

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 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.

Section 811grants provide 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 $12,550.

HUD provides the Section 202 and 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 seniors
    (under Section 202) or very low-income people with disabilities (under Section 811).

  • 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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet

Section 202 and 811 Grants in Rhode Island

Section 202 - Supportive Housing for the Elderly

Project Location: Portsmouth, RI
Non-Profit Sponsor: Coastal Housing Corporation
Capital Advance: $2,319,200
Three-year rental subsidy: $237,300
Number of units: 18
Project Description: The project, located in Portsmouth, Rhode Island, will provide 18 one-bedroom units for very low-income elderly persons. The site is adjacent to an existing elderly housing complex that will ensure effective delivery of supportive services. The residents will have easy access to Town Offices, shopping and similar services and amenities.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Bristol, RI
Non-Profit Sponsor: Operation Stand Down Rhode Island
Capital Advance: $1,500,800
Three-year rental subsidy: $132,000
Number of units: 10
Project Description: The funds will be used to construct and rehabilitate 10 units for very low-income persons with physical disabilities. The new construction will include 4 single-story duplexes consisting of 8 two-bedroom units and the rehabilitated units will provide 2 one-bedroom units. The site is close to amenities so that independent living opportunities will be enhanced and residents will be able to integrate smoothly into the surrounding community.


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