HUD Archives: News Releases


Lee Jones
(804) 771-2100 ext. 3743
For Release
Friday
October 22, 2004

BUSH ADMINISTRATION AWARDS VIRGINIA ALMOST $13.9 MILLION TO EXPAND HOUSING FOR VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Groups in Louisa, Martinsville, Newport News, Rocky Mount, Stafford, Suffolk, Virginia Beach and Williamsburg win funds to build and operate 165 new units for elderly and people with disabilities

RICHMOND, VIRGINIA - Housing and Urban Development Secretary Alphonso Jackson today announced that $13,875,100 will be awarded to non-profit groups in Virginia to provide 160 new housing units for the very low-
income elderly and persons with disabilities.

The awards are part of some $789 million in Section 202 - Housing for the Elderly - and Section 811- Supportive Housing for Persons with Disabilities - announced today by the Secretary in Lorain, Ohio.

"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."

Some $9.4 million in capital funds and $2 million in rental assistance will go to 133 units for the elderly in Louisa, Martinsville and Williamsburg under the Section 202 program. Some $1.9 million in capital funds and $490,000 in
rental assistance will go to 32 housing units in group homes for persons with disabilities in Louisa, Newport News, Rocky Mount, Stafford, Suffolk and Virginia Beach. (Project summaries at the end of this release)

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

In addition to funding the construction and rehabilitation of projects to create apartments, HUD 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. 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)

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

The grants are awarded under HUD's Section 811 program, which 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," 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, 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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Virginia
Section 202 - Supportive Housing for the Elderly

Project Location: Louisa, VA
Non-Profit Sponsor: VA United Methodist Housing Development Corp
Capital Advance: $1,558,600
Five-year rental subsidy: $337,000
Number of units: 22
Project Description:
The funds will be used to construct a one-story building consisting of 22 one-bedroom apartments for the very-low income elderly. A community room, office and laundry room will be located on the site. The site will include features that will address visitability for visitors and residents. The project will be convenient to medical facilities, shopping, and churches.

Project Location: Martinsville, VA
Non-Profit Sponsor: John H. Wellons Foundation
Capital Advance: $1,558,600
Five-year rental subsidy: $337,000
Number of units: 22
Project Description:
The funds will be used to construct Phase II, which will consist of 22 one-bedroom units for the very-low income elderly. A community building is located on the site and includes a manager's office, multipurpose room with kitchen, laundry room and maintenance room. The project will be located in Martinsville, VA, and will be convenient to
medical facilities, shopping, and churches.

Project Location: Martinsville, VA
Non-Profit Sponsor: John H. Wellons Foundation
Capital Advance: $1,558,600
Five-year rental subsidy: $337,000
Number of units: 22
Project Description:
The funds will be used to construct 22 one-bedroom units for the very-low income elderly. A community building
will be located on the site and will include a manager's office, multipurpose room with kitchen, laundry room and maintenance room. The project will be located in Martinsville, VA, and will be convenient to medical facilities, shopping, and churches.

Project Location: Williamsburg, VA
Non-Profit Sponsor: Bay Aging
Capital Advance: $4,746,700
Five-year rental subsidy: $1,025,000
Number of units: 67
Project Description:
The funds will be used to construct 67 one-bedroom apartment units for the very low-income elderly. The proposed project will include a community room, craft area, warming kitchen and laundry room. The project is located in Williamsburg, VA, and will be very convenient to shopping, medical facilities, churches and a neighborhood park.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Louisa, VA
Non-Profit Sponsor: Region Ten Community Services Board
Capital Advance: $300,300
Five-year rental subsidy: $76,500
Number of units: 5
Project Description:
The funds will be used to construct a group home consisting of 5 bedrooms for persons with chronic mental illness located in Louisa, Virginia. Supportive services available to the residents will include medication services, case management, transportation, and outpatient services which are all located one and a half miles from the proposed project.

Project Location: Newport News, VA
Non-Profit Sponsor: Community Alternative Management Group, Inc.
Capital Advance: $315,500
Five-year rental subsidy: $76,500
Number of unit: 5
Project Description:
The funds will be used to rehabilitate a five-bedroom group home for very low-income persons with developmental disabilities. The project will be located in a residential neighborhood that will promote the integration of tenants in
the surrounding community. Supportive services will include vocational rehabilitation, employment services, medical services, etc.

Project Location: Rocky Mount, VA
Non-Profit Sponsor: VA United Methodist Housing Development Corp
Capital Advance: $347,500
Five-year rental subsidy: $92,000
Number of units: 6
Project Description:
The funds will be used to construct a one-story group home for very low-income persons with developmental disabilities. The home will consist of six bedrooms, living room, dining room, office, and laundry room. One unit will
be designed for the hearing impaired and one unit will be designed for the visually impaired. Computers and internet access will be available.

Project Location: Stafford, VA
Non-Profit Sponsor: Rappahannock Community Ser
Capital Advance: $347,500
Five-year rental subsidy: $92,000
Number of units: 6
Project Description:
The funds will be used to construct a six-bedroom group home for very low-income persons with developmental disabilities, including one bedroom for the hearing impaired and one bedroom for the sight impaired. The project will
be located in Stafford, VA. The home will provide residents with computer access, literacy, employment, and independent community based living. Shopping, medical facilities, places of worship, and recreational facilities will
be fully accessed by the residents.

Project Location: Suffolk, VA
Non-Profit Sponsor: W Tidewater Community Service
Capital Advance: $300,300
Five-year rental subsidy: $76,500
Number of units: 5
Project Description:
The funds will be used to construct a one-story home. It will consist of five bedrooms that will be fully accessible including the kitchen, two bathrooms and all common spaces, small office and laundry area. The location is in close proximity to services such as medical and shopping.

Project Location: Virginia Beach, VA
Non-Profit Sponsor: Community Alternative Management Group, Inc.
Capital Advance: $315,500
Five-year rental subsidy: $76,500
Number of units: 5
Project Description:
The funds will be used to acquire and rehabilitate a five-bedroom group home for very low-income persons with developmental disabilities. The project will be located in Virginia Beach, VA. Residents will be assisted with transportation to the resources necessary for employment, education, shopping, and medical facilities. This home
will allow residents to blend in to the surrounding community and benefit from the supportive services that allow
them to live as independently as possible.

 

 
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