HUD Archives: News Releases

CUOMO ANNOUNCES $25.2 MILLION IN HOUSING ASSISTANCE TO GROUPS IN MARYLAND FOR SENIOR CITIZENS AND PEOPLE WITH DISABILITIES

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today awarded non-profit groups in Maryland $25.2 million to create 295 apartments for poor senior citizens and people with disabilities, and to provide rental assistance subsidies for five years to people living in the apartments.

An estimated 369 people will live in the low-rent apartments in Maryland. There will be about 285 senior citizens living in 228 apartments, and about 84 people with disabilities living in 67 apartments.

"Too many older Americans struggling to get by on fixed incomes and too many people with disabilities who may be unable to work just don't have the money to pay for rising housing costs," Cuomo said. "HUD helps these people get housing they desperately need. We keep them out of nursing homes where they don't belong and out of slum housing."

Cuomo announced the grants in a telephone press conference with Senator Paul Sarbanes and Congressman Elijah Cummings.

"I am pleased to join Secretary Cuomo in announcing this commitment to provide housing opportunities for the elderly and persons with disabilities throughout the State of Maryland," Senator Sarbanes said. "HUD's continued commitment in housing is to be commended. I also commend the work of the non-profit organizations who are receiving these funds - for they are so critical in helping better the quality of life for Maryland's elderly and disabled communities each and every day."

Cuomo said that the assistance is part of $792 million that HUD is awarding this week in affordable housing assistance for senior citizens and people with disabilities with very low incomes in 44 states and Puerto Rico.

The assistance around the country will create 8,943 subsidized apartments for an estimated 11,180 senior citizens and people with disabilities. Nationally, a total of 7,142 of the apartments will house about 8,930 senior citizens, and the remaining 1,801 apartments will house about 2,250 people with disabilities.

Most of the apartments funded by the grants will be newly constructed with the HUD funds, but some will be existing units that will be purchased, and rehabilitated when necessary.

Here is where the assistance will go in Maryland under HUD's Section 202 Program to house the elderly and under the Section 811 Program to house people with disabilities:

MARYLAND

Baltimore	$1,731,000
Beltsville	$984,400
Catonsville	$673,300
Columbia	$916,700
Olney	$6,214,300
Princess Anne	$827,700
Randallstown	$6,354,800
Reisterstown	$5,839,400
Silver Spring	$636,600
Temple Hills	$1,051,400
State Total	$25,229,600

Households must be classified as having very low incomes - defined as no more than 50 percent of area median income - to be eligible for the housing assistance. However, most people who live in housing funded by the Section 202 and Section 811 assistance have incomes of less than 30 percent of the area median. Median income varies by metropolitan area, but on a national basis 30 percent of median income works out to about $10,000 a year for one person and about $11,500 annually for a two-person household.

People living in the apartments will pay 30 percent of their income for rent, with HUD subsidies paying for the remainder.

The Section 202 Program helps expand the supply of affordable housing and also provides supportive services for the elderly. These services include cleaning, cooking and transportation to allow older Americans to live as independently as possible in their own apartments. Grant recipients receive capital advances to construct, rehabilitate or acquire housing. Repayment of the capital advance is not required as long as the housing remains available for at least 40 years and is occupied by very low-income people 62 years of age or older. Eligible grant recipients include private non-profit organizations and consumer cooperatives.

The Section 811 Program allows people with disabilities to live independently by increasing the supply of rental housing with supportive services and related facilities. As with the 202 Program, Section 811 grantees receive capital advances to construct, rehabilitate or acquire housing. Eligible applicants are very low-income people with a disability.

In addition to awarding the new grants, Cuomo issued a HUD report that said more than 7.4 million senior citizen households pay more than they can afford for housing - defined as more than 30 percent of their income. Others live in housing that is substandard or fails to accommodate their physical limitations or needs for assistance.

The report - titled Housing Our Elders: A Report Card on the Housing Conditions and Needs of Older Americans - identifies serious challenges to four key dimensions of elderly housing conditions in America: adequacy, affordability, accessibility and appropriateness.

The report finds that three out of four Americans approaching retirement age own their own homes, and that their housing affordability problems, though significant, are less frequent than among younger households. However, the report also finds that reduced income and increasing frailty of older Americans can place at risk years of financial, physical and emotional investment in homes and neighborhoods.

Some of the other key findings of the report include:

• Six percent of seniors (1.45 million households) live in housing that needs repair and/or rehabilitation.
• Approximately 1.7 million elderly households with low incomes are in urgent need of affordable housing because they spend more than half their incomes on housing.
• The majority of elderly renters pay more than 50 percent of their incomes for housing.
• Approximately 1.1 million elderly households report unmet needs for home modifications.
• There is a shortage of fully accessible housing in both the owner-occupied and in rental stock.

Cuomo said HUD's new budget for Fiscal Year 2000 addresses many of the issues addressed in the report and provides funding to continue and expand elderly housing programs. These programs are part of the new Housing Security Plan for Older Americans and will enable HUD to develop a broad range of housing options - a continuum of care -- to meet the changing housing needs of senior citizens. These options include:

• Continued funding of the Section 202 elderly housing program with $610 million for construction of housing.
• A $50 million increase in funds to hire service coordinators, who help senior citizens get services they need to continue living in their HUD-subsidized apartments.
• $50 million to convert existing HUD senior citizen housing to assisted living facilities for senior citizens who need a higher level of care. The legislation also allows seniors already receiving assistance through housing vouchers to use the vouchers in assisted living facilities for the first time, enabling many to avoid moving into more institutional and expensive nursing homes.
• An expansion of HUD's reverse mortgage program, which allows older Americans to borrow against the value of their homes, so they don't have to sell their homes to get needed cash.

HUD FUNDING FOR HOUSING FOR SENIOR CITIZENS AND PEOPLE WITH DISABILITIES

*Note: To calculate the approximate number of residents who will live in the new housing, multiply the number of units by 1.25.

MARYLAND

Section 202 - Supportive Housing for the Elderly

Project Location: Olney, MD
Non-Profit Sponsor: Victory Housing, Inc.
Capital Advance: $5,079,300
Five-year rental subsidy: $1,135,000
Number of Units: 76
Project description:
The funds will be used for the new construction of a 4-story elevator building consisting of 75 one-bedroom units plus community space and a resident manager's unit for independent elderly persons. This project is in an area that has been underserved with funding such as this, and also promotes a greater choice of housing for the residents. It is in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities. This building will begin the campus-like setting, that will be the first for this area, which includes a church and a retreat center.

Project Location: Princess Anne, MD
Non-Profit Sponsor: Shore Up, Inc.
Capital Advance: $678,700
Five-year rental subsidy: $149,000
Number of Units: 10
Project description:
The funds will be used to construct 10 one-bedroom apartments for the independent elderly. This project will be Phase II of an earlier HUD 202 known as Loretta Village Elderly Housing funded in 1994, that consists of 20 one-bedroom apartments.

Project Location: Randallstown, MD
Non-Profit Sponsor: Cooperative Services, Inc.
Capital Advance: $5,270,300
Five-year rental subsidy: $1,084,500
Number of Units: 74
Project description:
The funds will be used for the new construction of 74 apartments; 73 one-bedroom revenue units and one two-bedroom manager's unit. This project is to be located in Randallstown and will be very convenient to shopping, public transportation, medical facilities and a local library.

Project Location: Reisterstown, MD
Non-Profit Sponsor: Associated Catholic Charities
Capital Advance: $4,828,900
Five-year rental subsidy: $1,010,500
Number of Units: 68
Project description:
The funds will be used for the new construction of 67 one-bedroom apartments for the independent elderly. The project will be built next to the 202 project funded for 72 units in Fiscal Year 1998 to Catholic Charities. The project will include a multi-purpose room with a Computer Learning Center, library, lounges, laundry room and mail room.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Baltimore, MD
Non-Profit Sponsor: People Encouraging People
Capital Advance: $763,900
Five-year rental subsidy: $149,000
Number of Units: 10
Project description:
The funds will be used to acquire and rehabilitate three properties that will be occupied by 10 residents with chronic mental illness. These properties are scattered throughout northeast Baltimore City, thereby promoting greater housing choice for residents. The Sponsor will be providing all of the supportive services.

Project Location: Baltimore, MD
Non-Profit Sponsor: Community Housing Associates
Capital Advance: $331,200
Five-year rental subsidy: $119,000
Number of Units: 8
Project description:
The funds will be used to acquire and rehabilitate an 8-bedroom group home for persons with chronic mental illness. The site is convenient to medical facilities, shopping, places of worship and entertainment activities.

Project Location: Baltimore, MD
Non-Profit Sponsor: Dulaney Station, Inc.
Capital Advance: $293,400
Five-year rental subsidy: $74,500
Number of Units: 5
Project description:
The funds will be used to acquire and rehabilitate a townhouse structure in Baltimore City into a group home residence for 5 residents with chronic mental illness. The property is located in the Charles Village area and is convenient to amenities such as shopping places of worship and healthcare.

Project Location: Beltsville, MD
Non-Profit Sponsor: Melwood Horticultural Training Center, Inc.
Capital Advance: $847,900
Five-year rental subsidy: $136,500
Number of Units: 9
Project description:
The funds will be used for the acquisition and moderate rehabilitation of three single-family detached homes consisting of three single-occupancy bedrooms for persons with developmental disabilities. The residents will share the common areas. This is a scattered-site project, which promotes a greater choice of housing for the residents, and the homes are in close proximity to medical facilities, shopping entertainment, places of worship and recreational activities. The Sponsor provides vocational training and employment skills to each of their recipients, in addition to providing housing. In addition to the Beltsville site, units will also be located at 9322 Alcona Street, Lanham, MD and 7508 Riverdale Road, Riverdale, MD.

Project Location: Catonsville, MD
Non-Profit Sponsor: ReVisions
Capital Advance: $554,300
Five-year rental subsidy: $119,000
Number of Units: 8
Project description:
The funds will be used to acquire and rehabilitate two single family homes that will each be occupied by four residents with chronic mental illness. The two properties are scattered within a single family residential community, thereby promoting greater housing choice for persons with disabilities. The properties are in close proximity to the Sponsor's vocational training center and the Sponsor will provide transportation and other supportive services to the residents.

Project Location: Columbia, MD
Non-Profit Sponsor: Columbia Housing Corporation
Capital Advance: $782,700
Five-year rental subsidy: $134,000
Number of Units: 9
Project description: The funds will be used to acquire and rehabilitate three townhouses that will each be occupied by three persons with chronic mental illness. These three properties are scattered throughout Columbia, thereby promoting greater housing choice for the residents. The sponsoring organizations will be providing all of the necessary supportive services.

Project Location: Silver Spring, MD
Non-Profit Sponsor: Threshold Services, Inc.
Capital Advance: $545,600
Five-year rental subsidy: $91,000
Number of Units: 6
Project description:
Funds will be used for the acquisition and substantial rehabilitation of two (2) single-family detached homes consisting of three single occupancy bedrooms for persons with chronic mental illness. The residents will share the common areas. This is a scattered-site project which promotes greater choice of housing for the residents, and the units are in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities. In addition to the Braddock Road site, units will also be located at 8406 Tahona Drive, Silver Spring, MD.

Project Location: Temple Hills, MD
Non-Profit Sponsor: Vesta, Inc.
Capital Advance: $869,400
Five-year rental subsidy: $182,000
Number of Units: 12
Project description: Funds will be used for the acquisition and substantial rehabilitation of two single-family detached homes consisting of three single occupancy bedrooms and one single-family home consisting of six single occupancy bedrooms for persons with chronic mental illness. The residents will share the common areas. This is a scattered-site project which promotes a greater choice of housing for the residents, and the units are in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities. In addition to the Old Temple Hills Road site, units will also be located at 4706 Iverson Place and 6309 Larwin Drive, Temple Hills, MD.

Content Archived: January 20, 2009