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HUD Archives: News Releases


HUD No. 98-610
Further Information:For Release
In the Washington, DC area: 202/708-068511 a.m. Wednesday
Or contact your local HUD officeNovember 18, 1998

CUOMO ANNOUNCES $9.1 MILLION IN HOUSING AID FOR BUFFALO, LEWISTON, ORCHARD PARK, AND WEST SENECA, NY FOR ELDERLY AND PEOPLE WITH DISABILITIES

Housing and Urban Development Secretary Andrew Cuomo today awarded $9.1 million to non-profit groups in Buffalo, Lewiston, Orchard Park and West Seneca, NY to create subsidized housing for poor senior citizens and people with disabilities.

In these four cities, the $9.1 million of HUD assistance will fund construction or rehabilitation of 94 apartment units for senior citizens and four apartment units for people with disabilities, and will also provide rental assistance subsidies on all of these units for five years.

Cuomo made the announcement via TV satellite from Washington with Buffalo Mayor Anthony Masiello, Lewiston Township Supervisor Richard Demus, and West Seneca Supervisor Paul Clark.

Everyone receiving the housing assistance must be classified as "very low income" – meaning a household with an income of less than 50 percent of the area median. On a national basis, this amounts to an income of less than $8,000 a year.

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

"This assistance can transform the lives of some of the most vulnerable Americans," Cuomo said. "Without this aid, impoverished senior citizens and people with disabilities would be forced to live in substandard conditions, in nursing homes or other institutions, or on the streets and in homeless shelters."

Nationally, Cuomo said HUD is awarding $696 million to non-profit groups in 48 states, the District of Columbia and Puerto Rico under the Section 202 Program for senior citizens and the Section 811 Program for people with disabilities. The 202 Program is awarding $563 million of the money and the 811 Program is awarding $133 million. The assistance will create 6,563 apartment units for the elderly and 1,650 rental units for people with disabilities around the United States, and will subsidize the units for five years.

A total of 368 groups applied for the Section 202 assistance and 166 received grants. A total of 236 groups applied for the Section 811 and 161 received grants.

HUD provides Section 202 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 elderly or people with disabilities.

  • 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 subsidized housing assistance Cuomo announced for the four communities:

SECTION 202 – ELDERLY HOUSING

    Project location: Buffalo
    Non-profit sponsor: Friendship Manor HDFC
    Capital Advance: $1,521,600
    Five-year rental subsidy: $336,000
    Number units and project description: Project will fund new construction of a 20-unit apartment building for the elderly.

    Project location: Lewiston
    Non-profit sponsor: I.T.C. Corp. & Center City Neighborhood Dev. Corp.
    Capital Advance: $1,826,000
    Five-year rental subsidy: $403,000
    Number units and project description: Project will fund new construction of a 24-unit apartment building for the elderly.

    Project location: West Seneca
    Non-profit sponsor: Belmont Shelter Corp.
    Capital Advance: $3,804,300
    Five-year rental subsidy: $839,500
    Number units and project description: Project will fund new construction of a 50-unit apartment building for the elderly.

SECTION 811 – HOUSING FOR PEOPLE WITH DISABILITIES

    Project location: Orchard Park
    Non-profit sponsor: Niagara Frontier Vocational Rehabilitation Center, Inc.b Capital Advance: $309,800
    Five-year rental subsidy: $67,500
    Number of units and project description: Project will fund a four bedroom ranch-style home for persons with developmental disabilities.

Content Archived: January 20, 2009

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