HUD Archives: News Releases


HUD No. 04-41
Patricia Campbell
(817) 978-5974 ext. 5965
For Release
Wednesday
October 27, 2004

BUSH ADMINISTRATION ANNOUNCES MORE THAN $34 MILLION FOR HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH
DISABILITIES IN TEXAS
Amarillo, Carrizo Springs, Fort Worth, Houston, San Antonio, Austin and El Paso Receive Grants

FORT WORTH � Housing and Urban Development Secretary Alphonso Jackson has announced that more than $789 million in housing assistance grants will be awarded nationally this year to help the nation's very low-income elderly and people with disabilities. In Texas, Amarillo, Carrizo Springs, Fort Worth, Houston, San Antonio, Austin and El Paso received grants totaling $34,809,300. A list of the projects follows.

"President Bush is committed to making sure our senior citizens and people with disabilities have opportunities to live
in decent, safe and affordable homes," Jackson said. "The grants that we awarded today will certainly help in achieving that goal."

"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said Jackson. "These funds will serve as a catalyst
for low-income families trying to cross the threshold into homeownership and reinforces our commitment to rebuilding entire communities."

Section 202 Grants (funding to assist very low-income elderly)

Section 202 grants fund the construction of projects and rehabilitation of units to create apartments for very low-income elderly persons. In addition, HUD subsidizes rents for five years so that residents 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, $20,125 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 (funding to assist very low-income people with disabilities)

HUD's Section 811 program provides housing for households with one or more very low-income individuals, at least
one of whom must be at least 18 years old and have a disability, such as a physical or developmental disability or chronic mental illness. 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.

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 pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

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 $12,075.

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.

Section 202 - Supportive Housing for the Elderly

Project Location: Amarillo, TX
Non-Profit Sponsor: Mary E Bivins Foundation
Capital Advance: $4,293,000
Five-year rental subsidy: $886,000
Number of units: 60
Project Description: The proposed project is comprised of a three-story winged building that encompasses 60 one-bedroom/one-bath apartment units for elderly residents, as well as community areas. The building will be organized with adjacent parking for the residents' convenience, safety and accessibility. The community areas are intended to provide opportunities for social interaction and recreation by the residents, including the entry lobby/lounge, TV lounge, laundry facilities and exterior courtyard.

Project Location: Carrizo Springs, TX
Non-Profit Sponsor: Community Service Agency of South Texas
Capital Advance: $805,300
Five-year rental subsidy: $163,000
Number of units: 13
Project Description: The funds will be used to construct a seven building, 13-unit complex for very low-income seniors. The structure will also accommodate one resident manager and a common area for social, educational and recreational activities. The layout of the seven buildings will create a private open garden area in a central
courtyard. The buildings will be connected by a walkway.

Project Location: Fort Worth, TX
Non-Profit Sponsor: The Salvation Army
Capital Advance: $8,539,300
Five-year rental subsidy: $1,757,000
Number of units: 120
Project Description: The project, Evangeline Booth Apartments, will be located in south Ft. Worth, Texas. The
funds will be used to construct 119 one-bedroom units for the elderly, and a two-bedroom unit for a resident manager. This project will sit in an area of gently rolling hills and mature trees; the site is ideal for a senior citizens project. The three-story, elevator building will be adjacent to a city park. The building will contain a common room, laundry, a beauty/barber shop and administrative offices.

Project Location: Houston, TX
Non-Profit Sponsor: AAMA Community Development Corp.
Capital Advance: $5,303,800
Five-year rental subsidy: $1,085,500
Number of units: 75
Project Description: This new Section 202 development will be located at 7123 Harrisburg, in Houston and designed
for the special needs of very low-income elderly persons. The project is comprised of one three-story interconnected building including 74 one-bedroom/one-bath apartments for elderly residents and a two-bedroom apartment for the manager.

Project Location: Houston, TX
Non-Profit Sponsor: National Church Residences
Capital Advance: $3,117,800
Five-year rental subsidy: $630,500
Number of units: 44
Project Description: This new Section 202 development will be located in Houston on Kirkwood Drive, just north of South Glen Drive adjoining another Section 202 development sponsored by National Church Residences, and will be designed for the special needs of very low-income elderly persons. The project will be comprised of one three-story building including 43 one-bedroom/one-bath apartments for elderly residents and a two-bedroom apartment for the resident manager. All apartments open onto interior corridors providing a high degree of security as well as accessibility via elevator and stairs.

Project Location: San Antonio, TX
Non-Profit Sponsor: The Salvation Army
Capital Advance: $4,161,300
Five-year rental subsidy: $826,500
Number of units: 62
Project Description: The 62 one-bedroom unit project will be home to very low-income seniors and one resident manager. The apartments and common area will be designed to be safe and enhance socialization among the residents, facilitate provision of services and encourage independent living. The landscaped and inviting outdoor
area will include benches and lawn furniture placed around many native trees.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Austin, TX
Non-Profit Sponsor: Austin Travis County MHMR
Capital Advance: $1,362,600
Five-year rental subsidy: $271,000
Number of units: 20
Project Description: The Sponsor will use the funds to construct 20 units of affordable housing for very low-income persons with disabilities through the rehabilitation of an existing 20-unit apartment community. The site is conveniently located in a developed area, near shopping areas, restaurants, pharmacies and other necessities. The site is located on a major bus route, which offers the residents opportunities to access the myriad of recreational amenities surrounding the proposed site.

Project Location: Austin, TX
Non-Profit Sponsor: UCP of TX, Inc.
Capital Advance: $413,000
Five-year rental subsidy: $81,500
Number of units: 6
Project Description: The funds will be used to acquire six fully accessible condominiums for very low-income people with physical, mental, and developmental disabilities. The proposed units will be scattered throughout a larger condominium development, so the residents with disabilities will be fully integrated into the community. A city bus
stop located in front of the neighborhood will make accessible all of the many services that are in close proximity.

Project Location: El Paso, TX
Non-Profit Sponsor: UCP of TX, Inc.
Capital Advance: $969,700
Five-year rental subsidy: $142,500
Number of units: 10
Project Description: The funds will used to acquire and renovate 10 single-family residences to serve as independent living for persons with disabilities. The proposed housing integrates persons with disabilities within 10 residential settings throughout El Paso, Texas. The residents will have access to grocery stores, places of worship, banks, pharmacies, retail, recreational activities and public transportation.

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Content Archived: March 15, 2011