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Arkansas State HUD Office
Further Information:For Release
In the Washington, DC area: 202/708-1420Friday
Or contact your local HUD officeOctober 24, 1997

CUOMO ANNOUNCES $6.3 MILLION IN HUD AID FOR HOUSING ELDERLY AND DISABLED IN ARKANSAS AND $595.6 MILLION NATIONWIDE

WASHINGTON -- Housing and Urban Development Secretary Andrew Cuomo today announced $6.3 million in HUD assistance to non-profit groups in Arkansas to create subsidized housing for senior citizens and people with disabilities with very low incomes.

In Arkansas, the HUD assistance will create: 93 apartment units for the elderly and 12 rental units for people with disabilities. It will also provide rental subsidies to residents of the housing for five years.

Nationwide, Cuomo said HUD is awarding $595.6 million to non-profits in 45 states, the District of Columbia and Puerto Rico this week under the Section 202 Program for senior citizens and the Section 811 program for people with disabilities. The 202 program is awarding $501.3 million of the money and the 811 program is awarding $94.3 million.

On a national level, the HUD assistance will create: 6,006 apartment units for the elderly and 1,169 rental units for people with disabilities. It will provide rental subsidies for the units for five years.

"My Administration is committed to helping those who need it most," President Clinton said. "The men and women who spent decades working hard to build 20th Century America should not be left without a place to live in 21st Century America. By providing shelter to our most vulnerable citizens, we are improving the quality of life and building a better America for everyone."

"America will not turn its back on older Americans and people with disabilities struggling to get by on very low incomes," Cuomo said. "Without HUD assistance, many of these Americans simply could not make it. They would be forced to live in slums, or doubled and tripled up with relatives in overcrowded housing, or sent to nursing homes or other institutions at greater taxpayer expense, or even forced into homelessness in the most extreme cases."

The HUD aid is designed to provide housing for people 62 and older and adults with disabilities who have incomes below 50 percent of the area median. Nationally, 50 percent of median income amounts to less than $8,000 a year.

Residents pay 30 percent of their income in rent, and HUD subsidies pay the remaining funds needed to operate the housing.

HUD provides funds to the non-profits in two forms:

  • Capital advances. This is money that covers the cost od developing the housing. It does not need to repaid as long as the housing is available for occupancy by very low-income elderly or people with disabilities for at least 40 years.

  • Project rental assistance. This goes to each non-profit to cover the difference between the resident's contribution toward rent and the cost of operating the project.

Here is a breakdown of the HUD assistance in Arkansas:

SECTION 202 -- ELDERLY HOUSING

    Project location: Beebe, AR
    Capital advance: $780,800
    Five-year rental subsidy: $167,500
    Non-profit sponsor: White River Area Agency on Aging in Batesville
    Number units and project description: 16 one-bedroom apartments will be built for the elderly.

    Project location: Osceola, AR
    Capital advance: $1,268,900
    Five-year rental subsidy: $272,500
    Non-profit sponsor: North Arkansas Human Services
    Number units and project description: 26 one-bedroom apartments will be built for the elderly.

    Project location: Jonesboro, AR
    Capital advance: $1,900,300
    Five-year rental subsidy: $377,000
    Non-profit sponsor: Wesley Housing Corp. of Memphis, TN
    Number units and project description: 37 units of low-income elderly housing will be built.

    Project location: Diamond City, AR
    Capital advance: $693,300
    Five-year rental subsidy: $136,500
    Non-profit sponsor: Diamond City Methodist Village
    Number units and project description: 14 one bedroom apartments will be built for the elderly.

SECTION 811 -- HOUSING FOR PEOPLE WITH DISABILITIES
    Project location: Hot Springs, AR
    Capital Advance: $585,600
    Five-year rental subsidy: $126,000
    Non-profit sponsor: Small Group Work Therapy of Hot Springs
    Number units and project description: 12 one-bedroom apartments will be built for persons with chronic mental illness.

Content Archived: December 16, 2010

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