BUSH ADMINISTRATION ANNOUNCES MORE THAN $710 MILLION TO HELP VERY LOW-INCOME ELDERLY
$1,103,000 goes to Cleveland

CLEVELAND - It will soon be easier for thousands of senior citizens to find affordable housing, thanks to more than $710 million in housing assistance announced today by Housing and Urban Development Secretary Alphonso Jackson. These grants will help the nation's very low-income elderly find decent, safe housing that they can afford.

The City of Cleveland, Tennessee and the Douglas Cherokee Economic Authority, Inc. are the recipients of
$1,103,000 that will be used to construct 11 one-bedroom units for very-low income elderly persons. The site for
the project is located within close proximity to services such as medical, shopping, restaurants, etc� The city library and the Cleveland/Bradley County Senior Center are within 3 miles that will allow the residents to participate in the many activities sponsored by the center. The funds are in the form of Capital Advance, $948,500, and $154,500
five-year rental subsidy.

"We are proud and pleased that these funds will go to improve the lives of senior citizens in Cleveland, Tennessee", said Mark Brezina, Knoxville HUD Field Office Director.

Congressman Zach Wamp, representing Tennessee's 3rd district said: "This is great news for senior citizens in the Cleveland area. This is an excellent example of cooperation by the federal and local governments to assist elderly Americans on fixed incomes who sometimes find it hard to make ends meet."

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.

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.

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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