HUD ANNOUNCES $5.4 MILLION GRANT TO KOREAN WOMEN'S ASSOCIATION FOR CONSTRUCTION OF HOUSING FOR LOW-INCOME ELDERLY IN TACOMA

SEATTLE - Housing and Urban Development Secretary Alphonso Jackson announced that the Korean Women's Association would be the recipient of a $5,439,500 capital advance to construct housing for very low-income elderly persons in Tacoma.

"President Bush is committed to making sure our senior citizens have opportunities to live in decent, safe and affordable homes," Jackson said. "These grants will certainly help in achieving that goal."

"Tacoma's very low-income elderly will benefit from this project," said Seattle Regional Director John W. Meyers. "We're pleased to see this project receive HUD funding to add housing for these vulnerable people in the
community."

Korean Women's Association was awarded the capital advance for construction of 54 one-bedroom units for very
low-income elderly persons and a two-bedroom unit for a resident manager. The project will be one of the first completed in a major urban redevelopment scheme.

HUD also awarded a five-year rental subsidy of $991,500 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 of less than 50 percent of the area median.

HUD provides two forms of Section 202 funds to non-profit groups:

• Capital advances. This money covers the cost of developing the housing. It does not need to be repaid
  if the housing is available for occupancy by very low-income seniors for at least 40 years.
  
  
• Project rental assistance. This money covers the difference between the resident's contribution 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 as
well as 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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