CUOMO ANNOUNCES $7.5 MILLION IN HUD AID FOR HOUSING ELDERLY AND DISABLED IN RHODE ISLAND AND $595.6 MILLION NATIONWIDE

In Rhode Island, the HUD assistance will create: 56 apartment units for the elderly and 20 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.

"The men and women who spent decades working hard to build 20th Century America should not be left without a place in live in 21st Century America," Cuomo said. "People challenged by disabilities should not face the added challenge of keeping a roof over their heads."

"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 of developing the housing. It does not need to be 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.

Providence Mayor Vincent A. Cianci, Jr. said: "Funding from HUD has been, and is, essential to our city's ability to affect systemic change, especially as it applies to the economically poorest segment of our population. We are grateful for HUD's investment in our city and pleased to welcome Secretary Cuomo with whom I am honored to work as he leads HUD with great compassion and commitment."

Here is a breakdown of the HUD assistance In Rhode Island:

SECTION 202 -- ELDERLY HOUSING

	Project location: West Warwick, RI
	Capital advance:  $4,562,300
	Five-year rental subsidy:  $$950,000
	Non-profit sponsor: Women's Development Corp. in Providence, RI
	Number units and project description: 56 units will be
        constructed for housing the elderly. WDC has a successful 
        track record and is regarded as a national leader in the
        development of innovative housing and economic development 
        opportunities for families, individuals, and special needs groups.
	SECTION 811 -- HOUSING FOR PEOPLE WITH DISABILITIES
	Project location: Providence, RI
	Capital advance:  $807,600
	Five-year rental subsidy:  $170,000
	Non-profit sponsor:  MAP Alcohol & Drub Rehab Services, Inc.
        in Providence, RI           
	Number units and project description: Ten units will be 
        rehabilitated to be used for housing for persons with 
        physical disabilities.  MAP has well-developed collaborations
        with many reputable community-based organizations serving
        persons with substance abuse problems.  
	Project location: Woonsocket, RI
	Capital Advance: $855,500
	Five-year rental subsidy: $170,000                                	
	Non-profit sponsor: Northern Rhode Island CMHC
	Number units and project description: This project will rehab
        10 units of housing for residents who are Chronically Mentally Ill
        and HIV positive.  The Northern RI Community Mental Health Center
        is generally recognized as one of the most innovative and effective 
        of RI's eight community mental health centers in developing 
        community-based housing for its client population.