Housing and Urban Development Secretary Andrew Cuomo today awarded $9.5 million to San Francisco non-profit groups to create subsidized housing for poor senior citizens and people with disabilities.

In San Francisco, the HUD assistance will fund construction or rehabilitation of 85 apartment units for senior citizens and 14 apartment units for people with disabilities, and will also provide rental assistance subsidies on all of the units for five years.

Cuomo made the announcement via TV satellite from Washington with Congresswoman Nancy Pelosi and San Francisco Mayor Willie Brown.

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 assistance and 161 received grants.

HUD provides Section 202 and Section 811 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 San Francisco:

SECTION 202 - ELDERLY HOUSING

Project Location: San Francisco
Non-Profit sponsor: Tenants and Owners Development Corp.
Capital Advance: $6,328,700
Five-year rental subsidy: $1,609,500
Number of units and project description: 85 new apartments, consisting of 55 efficiency and 30 one-bedroom apartments, will be developed for very low income elderly households in a nine-story high-rise elevator building.

SECTION 811 - HOUSING FOR PEOPLE WITH DISABILITIES

Project Location: San Francisco
Non-Profit Sponsor: Progress Foundation
Capital Advance: $1,364,100
Five-year rental subsidy: $246,500
No. of Units/Project Description: Project will fund construction of 14 new units for people with disabilities.