HUD ANNOUNCES $1.2 MILLION TO LEWIS COUNTY MENTAL HEALTH ASSOCIATION TO CONSTRUCT HOUSING FOR PERSONS WITH MENTAL ILLNESS IN CENTRALIA

SEATTLE - Housing and Urban Development Secretary Alphonso Jackson announced that Lewis County Mental
Health Association would be the recipient of a $1,203,400 capital advance to construct housing for the mentally ill
in Centralia.

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

Lewis County Mental Health Association was awarded the capital advance for construction of 11 one-bedroom units for persons with chronic mental illness who are capable of living independently with proper financial and community supportive services. The project will include a two-bedroom unit for a resident manager. It is anticipated that many
of those served will have been homeless or at risk of being homeless.

"People with chronic mental illness in Centralia will benefit from this project," said HUD's Regional Office Director,
John W. Meyers. "We're pleased to see this project receive HUD funding to add housing for these vulnerable people
in the community."

HUD also awarded a five-year rental subsidy of $202,000 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.

The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness. The program allows persons with disabilities to live independently
in their communities by increasing the supply of rental housing with the availability of supportive services.

HUD provides the Section 811 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
  people with disabilities.
  
  
• 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 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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