July 12, 2010
OBAMA ADMINISTRATION ANNOUNCES MORE THAN $8.5 MILLION TO HELP VIRGINIA�S VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES
RICHMOND - Senior citizens and persons with disabilities in Virginia will soon be able to find additional affordable housing, thanks to more than $8.5 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities.
Nationwide, more than $550 million in the grants were announced today. They are provided through HUD's Section
202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states. (See attachment for a detailed summary of Virginia's grants).
"The Obama Administration is committed to making sure our senior citizens and persons with disabilities have opportunities to live in decent, affordable homes," said HUD Secretary Shaun Donovan. "Neither of these groups should ever have to worry about being able to find a safe place to live."
Section 202 Capital Advance ($454.5 million nationwide to assist very low-income elderly)
HUD's Section 202 Capital Advance Program expands the supply of affordable housing with supportive services for
the elderly. It provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.
In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section
202 program also provides Project Rental Assistance Contract (PRAC) funds to subsidize the rents so that residents only pay 30 percent of their adjusted incomes.
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 $22,400 a year.
Section 811 Capital Advance ($95.7 million nationwide to assist very low-income 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.
Capital advance funds are awarded under HUD's Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have 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 provides persons with disabilities the opportunity 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 $13,450.
HUD provides the Section 202 and Section 811 funds to non-profit organizations in two forms:
- Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very
low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with disabilities (under Section 811).
- Project Rental Assistance Contract (PRAC). This is funding that goes to each development to cover
the difference between the residents' contributions toward rent and the HUD-approved cost of operating
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY
Project Location: Rocky Mount, VA
Non-Profit Sponsor: Metropolitan Housing and CDC, Inc.
Capital Advance: $5,351,500
Three-year rental subsidy: $474,000
Number of units: 44
The funds will be used to construct 44 one-bedroom units for very low-income elderly and a community building
with laundry facilities. The site will offer convenient access to services, which includes hospital, clinics, recreational facilities and shopping. The proximity to all facilities such as shopping and medical care is in reasonable distance and should require a minimum of transportation services.
Project Location: Woodstock, VA
Non-Profit Sponsor: Shenandoah Area Agency on Aging
Capital Advance: $1,337,800
Three-year rental subsidy: $118,500
Number of units: 11
The funds will be used to construct 11 one-bedroom units for very low-income elderly persons. A van will be
provided at the site for medical, shopping and community services to accommodate the needs of the residents.
SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES
Project Location: Danville, VA
Non-Profit Sponsor: Danville-Pittsylvania Community Services
Capital Advance: $574,000
Three-year rental subsidy: $43,200
Number of units: 4
The funds will be used to construct 4 one-bedroom units for very low-income persons with developmental
disabilities. The proposed group home will allow individuals to live in an area where families and natural supports are located. The location is in close proximity to services such as medical, shopping and transportation.
Project Location: Fredericksburg, VA
Non-Profit Sponsor: Rappahannock Community Service, Inc.
Capital Advance: $649,200
Three-year rental subsidy: $64,800
Number of units: 6
The funds will be used to construct 6 one-bedroom units for very low-income persons with developmental
disabilities. The residents will be provided with services such as medical, shopping and transportation. This will
allow residents to blend into the surrounding community and allow them to live as independently as possible.