OBAMA ADMINISTRATION ANNOUNCES $1.4 MILLION TO FUND HOUSING FOR PERSONS WITH DISABILITIES IN VIRGINIA

RICHMOND - Thousands more very low-income senior citizens and persons with disabilities in Virginia will have access to affordable supportive housing thanks to $1.4 million in housing assistance announced today by the U.S.
Department of Housing and Urban Development (HUD). These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for persons with disabilities.

The grant funding awarded under HUD's Sections 202 Supportive Housing program will kick start construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico. In Virginia, more than
12 persons with disabilities will be affordably housed with access to needed services. A detailed summary of the Virginia grant is attached to this release.

"The Obama Administration is committed to helping our senior citizens and persons with disabilities find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan. "Recent bipartisan changes to these two supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act
provided needed enhancements and reforms to the Section 811 program. Nonprofit grant recipients will now receive federal assistance that is better leveraged and better connected to state and local health care investments, allowing greater numbers of vulnerable elderly and disabled individuals to access the housing they need even more quickly.

Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts. Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

HUD's Section 811 program provides 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 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.

HUD provides these 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 Contracts. This is funding that goes to each development to cover the
  difference between the residents' contributions toward rent and the cost of operating the project.

Residents must be "very low-income" with household incomes less than 50 percent of their median for that area. However, most households that receive Section 811 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.

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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 asa 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. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.

Virginia

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Gloucester, VA
Non-Profit Sponsor: Middle Peninsula - Northern Neck Community Services
Capital Advance: $1,325,300
Three-year rental subsidy: $133,500
Number of units: 12

Project Description: The funds will be used to newly construct twelve units for very low-income persons with chronic mental illness. The project will contain ten one-bedroom units and two two-bedroom units and designed
with a centrally located community room for social gatherings and recreation. The project is in close proximity to shopping, markets, banks, churches, and other community resources. Curb-to-Curb transportation will be offered to address any transportation needs. A wide range of services will be offered to enable residents to live independently.