HUD Archives: News Releases

Sheryl Miller
(605) 330-4223

For Release
October 31, 2007

North Sioux City and Watertown projects awarded funds

SIOUX FALLS - It will soon be easier for senior citizens and people with disabilities to find affordable housing in
South Dakota, thanks to more than $4 million in housing assistance grants announced recently by U.S. Housing and Urban Development Secretary Alphonso Jackson. Here is a list of the South Dakota grantees and project summaries.

Section 202 Grant
Lutheran Social Services of South Dakota will build a 21-unit project in North Sioux City, designed and built
specifically for individuals age 62 or over. The project will house 20 residents and 1 manager. The design of the building features corridors that are wider than required to accommodate a "street-scape" approach to the halls.
Each apartment will have a porch at its entrance that residents can personalize if they wish. The apartments will be located within 1-2 miles of several amenities such as banks, grocery stores, medical centers and restaurants. In addition, public transportation is available for the elderly residents.

Section 811 Grant
Watertown will be the home to Accessible Space Inc.'s (ASI) new 19-unit independent living project. The project
will consist of 18 units for individuals with physical disabilities and 1 manager unit. The building will meet or exceed
the identified standards of energy efficiency, and is located within 2 miles of the hospital as well as various restaurants, stores, movie theater, bank and post office. A multitude of supportive services will also be available for the residents.

"This Administration is committed to making sure our senior citizens and people with disabilities have opportunities to find decent housing that they can afford," said Jackson. "Neither group should ever have to worry about being able
to find a safe place to live."

Section 202 Grants ($518.9 million nationwide to assist very low-income elderly)

HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly by funding the construction and/or rehabilitation of projects to create apartments. In addition, these grants will subsidize rents for three years so that residents will pay only 30 percent of their adjusted incomes as rent. Section 202 grants provide 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.

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 $20,850 a year.

Section 811 Grants ($124.8 million nationwide to assist very low-income people with disabilities)

HUD's Section 811 program allows persons with disabilities to live independently in their communities by increasing
the supply of rental housing with the availability of supportive services by funding the construction and/or rehabilitation of projects to create apartments. In addition, these grants will subsidize rents for three years so that residents will pay only 30 percent of their adjusted incomes as rent.

Under the 811 program, at least one person in the household must be at least 18 years old and have a disability,
such as a physical or developmental disability or chronic mental illness. The term "person with disability" 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.

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


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