July 12, 2010
OBAMA ADMINISTRATION ANNOUNCES MORE THAN $986,000 TO HELP WEST VIRGINIA'S VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIES
CHARLESTON - Senior citizens and persons with disabilities in West Virginia will soon be able to find additional affordable housing, thanks to more than $986,000 in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding 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.
Nationwide, more than $550 million in the grants were announced today. They are provided through HUDs Section 202 and Section 811 Supporting Housing programs and will fund 169 projects in 46 states. (See attachment for a detailed summary of West Virginias grants).
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 Secretary Shaun Donovan. Neither of these groups should ever have to worry about being able to find a safe place to live.
Section 202 Capital Advance ($454.5 million nationwide to assist very low-income elderly)
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. 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 $22,400 a year
Section 811 Capital Advance ($95.7 million nationwide to assist very low-income with disabilities)
This housing, most of which will be newly constructed, typically is small apartment buildings, group homes for three to four people per home, or condominium units. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.
Capital advance funds are awarded under HUDs Section 811 program, providing housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have a physical or developmental disability or chronic mental illness. The term person with disabilities also
includes two or more people with disabilities living together, and one or more persons with disabilities living with one
or more live-in attendants. The program provides persons with disabilities the opportunity to live independently in
their communities by increasing the supply of rental housing with the availability of supportive services.
To be classified as very low-income, a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $13,450.
HUD provides the Section 202 and Section 811 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 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 the project.
HUD is the nation's housing agency committed to sustaining homeownership; 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.
SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES
Project Location: Charleston, WV
Non-Profit Sponsor: Religious Coalition for Community Renewal
Capital Advance: $394,500
Three-year rental subsidy: $23,400
Number of units: 2
Project Description: An allocation of funding has been approved for the construction of a Group Home that will provide housing for Chronically Mentally Ill persons. Two housing units are proposed for a new construction. The site, to be identified, will be located within the city limits of Charleston, West Virginia and have all the amenities and city
services as well as public utilities.
Project Location: Huntington, WV
Non-Profit Sponsor: Prestera Center for Mental Health Services, Inc
Capital Advance: $498,500
Three-year rental subsidy: $69,900
Number of units: 6
Project Description: An allocation of funding has been approved for the construction of a Group Home that will provide housing for Chronically Mentally Ill persons. Six housing units are proposed for a new construction. The site, to be identified, will be located within the city limits of Huntington, West Virginia and have all the amenities and city services as well as public utilities