HUD AWARDS MORE THAN $17 MILLION TO HELP DEVELOP HOUSING FOR THE ELDERLY
Lynnwood & Federal Way Elderly Housing Groups Win Grants

SEATTLE, WA - Senior housing developments in 30 states will receive critically needed funding to get their projects off the ground thanks to more than $17 million in "pre-development" grants announced by U.S. Housing and Urban Development Secretary Steve Preston.

The grants, awarded under HUD's Section 202 Demonstration Planning Grant (DPG) program, were awarded to 63 project sponsors that have previously won Section 202 capital advance grants to construct supportive housing for the low-income elderly.

Two organizations in Washington State have been awarded DPG grants - the Korean Women's Association in
Federal Way, and the American Baptist Home in Lynnwood. Both organizations won $400,000 pre-development
grants, the maximum amount of funds available under the DPG program.

"This funding will help these organizations cope with the complexities of developing vitally important elderly housing projects in their communities," said Preston. "These funds can make all the difference between these senior housing developments getting built or not. In many respects, it's our way of investing in our elderly just as they devoted so much of themselves to us."

The Korean Women's Association will use its DPG grant for pre-development costs associated with the construction
of a 62 unit complex for the elderly adjacent to Federal Way's transit center. Last October, the Association won a $7,855,500 Section 202 capital advance grant to build the complex and a three-year rental subsidy of $736,800 to insure that rents are affordable for its very low-income residents.

The American Baptist Home will use its DPG grant for pre-development costs associated with the construction of a 40-unit complex with a community center, computer center and library in Lynnwood. Last October the Home won a $5,077,700 Section 202 capital advance grant and a three-year rent subsidy of $471,300.

DPG grants provide upfront funds for such pre-development activities as architectural and engineering work, site control, and other expenses related to the development of the projects prior to initial closing. Without the grant funding, such costs would not be reimbursable until closing or would have to come from other funding sources.

To be eligible for the grants, the activities must otherwise be eligible for funding under the Section 202 Supportive Housing for the Elderly Program. The maximum individual grant amount is $400,000 while no more than $800,000
can be awarded to a single sponsor or its affiliated organizations.

To be eligible to reside in a Section 202 complex, a household must be classified as "very low-income," which means an income less than 50 percent of the area median. Nationally, based on 50 percent of the national 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 $20,850 a year.

Project sponsors awarded Section 202 DPG pre-development grants are required to complete the processing of their elderly housing developments within 18 months. HUD is assessing the impact of the availability of such funding on
the ability of sponsors to expedite the development processing of Section 202 projects.

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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.