OBAMA ADMINISTRATION ANNOUNCES $4.9 MILLION TO FUND HOUSING FOR VERY LOW-INCOME SENIORS IN VERMONT

BURLINGTON - More very low-income senior citizens in Vermont will have access to affordable supportive housing thanks to $4,885,200 in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). This grant will help Cathedral Square Corp., a non-profit organization produce accessible
housing, offer rental assistance, and facilitate supportive services for the elderly.

The grant funding awarded under HUD's Sections 202 and 811 Supportive Housing programs will kick start
construction or major rehabilitation for more than 170 housing developments in 42 different states and Puerto Rico.
In Vermont, more than 28 elderly households will be affordably housed with access to needed services. A detailed summary of the Vermont grant can be found below.

"The Obama Administration is committed to helping our senior citizens find a decent, affordable place to live that is close to needed healthcare services and transportation," said Michael McNamara, HUD Vermont Field Office Director. "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 and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to both programs. 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 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program
will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes. Section 202 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.

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 or Section 202 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.

VERMONT GRANTS

Section 202 - Supportive Housing for the Elderly

Project Location: Burlington, VT
Non-Profit Sponsor: Cathedral Square Corp.
Capital Advance: $4,543,800
Three-year rental subsidy: $341,400
Number of units: 28
Project Description: Cathedral Square Corporation has had great success combining HUD Section 202 funding with other federal, state, and local funding sources to create affordable housing for the elderly. This 28-unit project,
which will be located in Burlington, Vermont, will be no exception. CSC's relationship with service providers throughout the state will enrich the tenants' lives and help encourage aging in place. Units over and above the 28 HUD funded units may be added to the project with outside funding sources.

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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 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. 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.