BUSH ADMINISTRATION AWARDS FUNDS TO HELP VERY LOW-INCOME ELDERLY & PEOPLE WITH DISABILITIES IN VIRGINIA
Groups in Charlottesville, Chesapeake, Hampton, Lynchburg, Manassas, Newport News, Richmond, Springfield, Staunton, Urbanna and Waynesboro win HUD Funds

RICHMOND - Housing and Urban Development Secretary Mel Martinez has announced the award of $18.7 million in capital funds and $4.3 million in rental assistance over the next five years for 13 new housing complexes for
Virginia's very low-income elderly and people with disabilities.

Not-for-profit organizations in Charlottesville, Chesapeake, Hampton, Lynchburg, Manassas, Newport News,
Richmond, Springfield, Staunton, Urbanna and Waynesboro won the HUD grants, either under the Section 202
program to provide housing to the low-income elderly or under the Section 811 program to provide housing to
persons with disabilities.

"The Bush Administration is committed to making sure our senior citizens and people with disabilities have a decent, safe and affordable place to live," Martinez said. "The money that we awarded today is one way we can give back
to a generation of Americans who have given us so much."

Under both the Section 202 and Section 811 grant programs, HUD provides capital funds to construct or rehabilitate apartments as well as rental subsidies for five years so that residents will pay only 30 percent of their adjusted incomes as rent.

Under the Section 202 elderly housing program, a household must must be classified as "very low-income," which means an income less than 50 percent of the area median. Nationally, this means an income of less than $19,040 a year.

Under HUD's Section 811 program for people with disabilities, most the housing will be newly constructed in small apartment buildings for no more than 14 people or group homes for three to four people per home, or condominium units.

The Section 811 program provides 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" under the Section 811 program, 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 $11,025, and a two-person household will have an income of about $12,600.

The Virginia organizations receiving Section 202 elderly housing funds from HUD this year are:

• The John H. Wellons Foundation will receive a $4,871,300 capital advance grant and $1,038,000 in rental
  subsidies over the next five years for construction of a 72-unit complex in Lynchburg.
  
  
• The Birmingham Green Adult Care Residence will receive $5,610,300 capital advance grant and $1,281,500
  in rental subsidies over the next five years for construction of a 77-unit assisted living complex in Manassas
  that is expected to replace an existing 64-unit facility.
  
  
• Virginia United Methodist Housing will receive $2,804,000 in capital advance grants (2) and $731,000 in
  rental subsidies over the next five years to construct two, 25-unit complexes for the elderly in Staunton.
  
  
• Bay Aging, Inc. will receive a $1,616,600 capital advance grant and 365,500 in rental subsidies over the
  next five years to construct a 25-unit complex for the elderly in Urbanna.

The Virginia organizations receiving Section 811 housing funds from HUD this year are:

• Community Housing Services, Inc., will receive a $259,900 capital advance grant and $58,500 in rental
  subsidies over the next five years to acquire and rehabilitate a 4-person group home in Charlottesville for
  persons with chronic mental illness.
  
  
• Community Alternatives Management Group will receive $667,000 in capital advance grants (3) and
  $220,500 in rental subsidies over the next five years to acquire and rehabilitate three, five-bed group
  homes for people with developmental disabilities, with one each in Chesapeake, Hampton and Newport News.
  
  
• Birmingham Green Adult Care Residence and Accessible Space, Inc. will receive a $1,238,700 capital advance grant and $250,000 in rental subsidies over the next five years to construct a 15-unit facility in Manassas for people with chronic mental illness, developmental disabilities and physical disabilities.
  
  
• Virginia Supportive Housing, Inc. and High Hopes will receive a $306,700 capital advance grant and $80,000
  in rental subsidies over the next five years to acquire and renovate a house in Richmond for use as a 6-bed
  group home for people with brain and spinal-cord injuries.
  
  
• Community Living Alternatives, Inc. will receive an $820,000 capital advance grant and $150,000 in rental
  subsidies over the next five years for a 9-bed group home in Springfield for people with developmental
  disabilities.
  
  
• ARC of Augusta County will receive a $289,000 capital advance grant and $73,500 in rent subsidies over the
  next five years to acquire and rehabilitate a house as a 5-bed group home for people with developmental disabilities.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, 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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