HUD ANNOUNCES $7.5 MILLION TO HELP VERY LOW-INCOME ELDERLY IN VERMONT
Funding part of $511.9 million awarded nationwide

VERMONT - Today, the U.S. Department of Housing and Urban Development announced that two organizations in Vermont are receiving funding to produce affordable housing units for low-income seniors. This funding is part of $511.9 million in housing assistance announced nationwide. (A list of grant recipients in Vermont is attached.)

"At HUD, we are committed to making sure our senior citizens have opportunities to live in decent, safe and
affordable homes," said Taylor Caswell, HUD regional director. "The grants that we awarded today will certainly help
in achieving that goal."

The grants are awarded under HUD's Section 202 program, which 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 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.

HUD provides the Section 202 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.
  
  
• 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; 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.

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Section 202 Grants in Vermont

Project Location: Essex, VT
Non-Profit Sponsor: Cathedral Square Corporation
Capital Advance: $5,392,200
Three-year rental subsidy: $431,400
Number of units: 40

Project Description: Cathedral Square Corporation will combine HUD funding with tax credits to construct housing
for the very low-income elderly in Essex, Vermont. The project will include 40 HUD units plus additional units. This project will help to address the approximately 2-year waiting list for affordable housing with the Vermont State Housing Authority and the Burlington Housing Authority. The sponsor was awarded a Section 202 grant in 2005 for
a project in Southern Burlington, which also combined HUD funding, tax credits, and other state and federal funding sources.

Project Location: Newport, VT
Non-Profit Sponsor: Gilman Housing Trust, Inc.
Capital Advance: $1,617,600
Three-year rental subsidy: $129,600
Number of units: 12

Project Description: Gilman Housing Trust will rehabilitate two buildings in downtown Newport, Vermont to create
12 units of housing for the very low-income elderly along with commercial space. The buildings, which are currently occupied by a bank and an antiques/collectibles shop, will feature housing on the second and third floors with the bank and antiques shop on the first floor.