HUD Archives: News Releases

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September 18, 2007

Almost $150,000 is awarded in Tennessee

KNOXVILLE - U.S. Housing and Urban Development's Secretary Alphonso Jackson today announced $18,440,932 in Section 202 Demonstration Planning Grant (DPG) funds will be awarded to 75 sponsors that provide supportive
housing for elderly projects. $148,800 is awarded locally to the Douglas Cherokee Economic Authority, Inc. for two projects targeted for Tennessee communities.

"This funding helps breathe new life into neighborhoods," said Jackson. "By helping communities to improve their infrastructure or assisting families to purchase their first home, HUD is helping improve neighborhoods from the
ground up."

These "predevelopment" funds will assist sponsors of these Section 202 Elderly Housing projects in 31 states. The grants will help them bring their projects from the award of a Section 202 grant to initial closing within the allotted
18 months.

The Section 202 DPG Program will provide upfront funds for such predevelopment activities as architectural and engineering work, site control, and other expenses related to the development of the projects prior to initial closing. Without the grant funding, such costs would not be reimbursable until closing or would have to come from other funding sources.

To be eligible for the grants, the activities must otherwise be eligible for funding under the Section 202 Supportive Housing for the Elderly Program. The maximum grant amount per single application is $400,000, however, no more
than $800,000 could be awarded to a single sponsor or its affiliated organizations.

Subsequent to providing predevelopment grant funding to the selected applicants, the Department will assess the impact of the availability of such funding on the ability of sponsors to expedite the development processing of
Section 202 projects.

Tennessee breakdown:

Douglas Cherokee Economic Authority, Inc. (targeted for Cleveland, Tennessee) $78,700
Douglas Cherokee Economic Authority, Inc. (targeted for the Nashville area) $70,100
Total: $148,800


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

For more information, please contact: Mark J. Brezina, Knoxville Office Director at (865) 545-4400, ext. 105


Content Archived: March 15, 2011