|HUD No. 10-07-13|
July 13, 2010
OBAMA ADMINISTRATION ANNOUNCES MORE THAN $1.3 MILLION TO HELP VERMONT VERY LOW-INCOME ELDERLY
BOSTON - Senior citizens in Vergennes will soon be able to find additional affordable housing, thanks to more than $1.3 million in housing assistance announced today by the U.S. Department of Housing and Urban Development
(HUD). Addison County Community Trust has been awarded $1,355,200 to provide eight units of housing in
Vergennes. To read a detailed summary of the grant, visit HUD's website.
The funding is part of $550 million awarded nationwide that 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.
"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 New England Regional Administrator Richard A. Walega. "Neither of these groups should ever have to worry about being able to find a safe place to live."
Section 202 Capital Advance
HUDs 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, HUDs 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. In Addison County, based on 50 percent of the area 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 $23,300 a year.
HUD provides the Section 202 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 under Section 202.
- 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.