BUSH ADMINISTRATION AWARDS $6.7 MILLION FOR HOUSING FOR VERY LOW-INCOME ELDERLY & PEOPLE WITH DISABILITIES IN DANVILLE, DUBLIN AND MARTINSVILLE
Bush Administration Awards More than $633 Million Nationally

WASHINGTON, DC - Some $6.7 million in capital and rental supports for housing for the elderly and persons with disabilities in Danville, Dublin and Martinsville was announced today by Secretary of Housing and Urban Development Alphonso Jackson. The awards will result in 73 more affordable housing units in Virginia.

"These grants will help the nation's very low-income elderly and people with disabilities find decent housing that
they can afford," said Jackson. "Neither group should ever have to worry about being able to find a safe place to
live."

Today's awards include $4,886,300 in capital advance and $570,200 in rental supports under the Section 202
program to the Metropolitan Housing & Community Development Corporation for 58 units of housing in Dublin. In addition, under the Section 811 program, $758,200 in capital advance funds and $89,500 in rental supports was awarded to the Danville-Pittsylvania Community Services Board for 9 units of housing in Danville and $399,100 in capital advance funds and $59,100 in rental supports were awarded to the Piedmont Regional Community Services Board for six units of housing in Martinsville. (Details follow at end of release)

Secretary Jackson's announcement was part of an announcement awarding some $633 million in funds nationwide under HUD's Section 202, Supportive Housing for the Elderly, and Section 811, Supportive Housing for Persons with Disabilities. The funds were awarded as a result of a national competition.

The two competitive HUD grant programs announced today are:

Section 202 Grants ($511.9 million nationwide to assist very low-income elderly)

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 three 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 $20,850 a year.

Section 811 Grants ($121.3 million nationwide 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 $12,550.

HUD provides the Section 202 and 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 seniors
  (under Section 202) or very low-income people with disabilities (under Section 811).
  
  
• Project rental assistance. This money 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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet
and espanol.hud.gov.

Virginia Winners

Section 202 - Supportive Housing for the Elderly

Project Location: Dublin, VA
Non-Profit Sponsor: Metropolitan Housing and CDC, Inc.
Capital Advance: $4,886,300
Three-year rental subsidy: $570,300
Number of units: 58
Project Description:
The funds will be used to construct 58 one-bedroom units for very low-income elderly persons. The project will
have a community building for the resident's use along with a multipurpose room with kitchen, office space and laundry facilities. The residents will have easy access to shopping and medical facilities. The property will be
located in Dublin, VA.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Danville, VA
Non-Profit Sponsor: Danville-Pittsylvania Community Services
Capital Advance: $758,200
Three-year rental subsidy: $88,500
Number of units: 9
Project Description:
The funds will be used to construct 9 one-bedroom garden apartments for very low-income persons with chronic mental illness. This project will be adjacent to an existing 5-unit independent living facility for persons with chronic mental illness. The location is in close proximity to services such as medical, shopping and public transportation.
Staff will provide skill training and coordination of care in all aspects of community living that will allow the residents to be self-sufficient and to live independently.

Project Location: Martinsville, VA
Non-Profit Sponsor: Piedmont Regional Community Services Board
Capital Advance: $399,100
Three-year rental subsidy: $59,100
Number of units: 6
Project Description:
The funds will be used to construct 6 one-bedroom units for very low-income persons with developmental
disabilities. The location is in close proximity to services such as medical, shopping, and public transportation.
The proposed housing will allow residents to blend into the surrounding community yet provides the accessibility
features and the availability of supportive services that allow them to live as independently as possible.

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