CUOMO ANNOUNCES $27.5 MILLION IN HOUSING ASSISTANCE TO GROUPS IN MASSACHUSETTS FOR SENIOR CITIZENS AND PEOPLE WITH DISABILITIES

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WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today awarded non-profit groups in Massachusetts $27.5 million to create 261 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 326 people will live in the low-rent apartments in Massachusetts. There will be about 257 senior citizens living in 206 apartments, and about 69 people with disabilities living in 55 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 along with Senator Edward Kennedy, Senator John Kerry, Congressman Joe Moakley, Congressman Marty Meehan and Congressman Michael Capuano.

"Today's investment by HUD will create and support over 261 units of affordable housing for elderly and disabled residents of thirteen communities throughout our state," Senator Kennedy said. "The nonprofit organizations receiving these awards have created impressive local partnerships to implement these projects, which will provide desperately needed housing for our neediest residents."

"This grant money will increase the number of safe, modern housing units available to our seniors," Congressman Capuano said. "It represents an important investment in our neighborhoods and in the battle to expand our affordable housing options. I commend HUD for this initiative."

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 Massachusetts under HUD's Section 202 Program to house the elderly and under the Section 811 Program to house people with disabilities:

Dorchester	$7,004,800
Hyde Park	$5,348,700
Jamaica Plain	$6,655,900
Lowell	$807,200
Ludlow	$499,900
Marlboro	$2,007,700
Methuen	$3,328,500
Revere	$522,300
Springfield	$912,300
Wellesley	$435,800
State Total	$27,523,100

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.

MASSACHUSETTS

Section 202 - Supportive Housing for the Elderly

Project Location: Dorchester, MA
Non-Profit Sponsor: Action For Boston Comm Dev, Inc.
Capital Advance: $3,926,000
Five-year rental subsidy: $906,000
Number of Units: 45
Project description:

The Sponsor will develop a 45-unit project in Boston's Dorchester neighborhood. This funding will transform the former Boston Ice House facility into a state-of-the-art residential property for the elderly. It will serve all of the needs of an increasing elderly population and re-establish the location as a valuable community asset.

Project Location: Dorchester, MA
Non-Profit Sponsor: Veterans Benefits Clearinghouse
Capital Advance: $1,369,900
Five-year rental subsidy: $362,000
Number of Units: 18
Project description:

The Otto and Muriel Snowden House will provide a total of 18 efficiency units of housing for the elderly in a three-story elevator building. The project will include a large community room, a kitchen and a half bathroom, as well as shared laundry facilities. The Sponsor will provide support services as needed.

Project Location: Hyde Park, MA
Non-Profit Sponsor: Roman Cath Archbishop Of Boston
Capital Advance: $4,362,200
Five-year rental subsidy: $986,500
Number of Units: 50
Project description:

Funds will be used for 50 one-bedroom newly constructed units for the very low income elderly which includes a craft room and a library. The proposed building footprint is sited with the existing buildings' open courtyard facing the proposed new building addition creating a sunny, private, enclosed courtyard for residents to enjoy.

Project Location: Jamaica Plain, MA
Non-Profit Sponsor: Cooperative Services Inc.
Capital Advance: $5,427,900
Five-year rental subsidy: $1,228,000
Number of Units: 62
Project description:

This development will provide 61 one-bedroom units of housing for very low income elderly tenants. In addition, there will be a two-bedroom unit for a resident manager. Ten percent of the units will be designed as handicapped accessible. The building plan emphasizes efficiency, security, and a sense of community.

Project Location: Methuen, MA
Non-Profit Sponsor: Lebanese Comm Hsg For The Elderly, Inc.
Capital Advance: $2,704,500
Five-year rental subsidy: $624,000
Number of Units: 31
Project description:

This development will provide 31 one-bedroom units of newly constructed housing for the very low income elderly. The units will be located on the ground floor, serving to promote the ability of residents to age in place and allow a social atmosphere. This development will supplement an existing elderly housing building adjacent to this site. Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Dorchester, MA
Non-Profit Sponsor: Bay Cove Human Services, Inc.
Capital Advance: $360,400
Five-year rental subsidy: $80,500
Number of Units: 4
Project description:

The funds will be used for the construction of a five-bedroom group home (4 bedrooms for persons with disabilities and one bedroom for a resident manager) in Dorchester,MA. The target population will consist of persons who are chronically mentally ill. The project will be energy and construction efficient, with design emphasis on amenities suitable for persons with chronic mental illness. Accommodations will also include computer technologies for the residents.

Project Location: Lowell, MA
Non-Profit Sponsor: CASCAP, Inc.
Capital Advance: $666,700
Five-year rental subsidy: $140,500
Number of Units: 8
Project description:

The funds will be used for the acquisition and rehabilitation of eight units in Lowell, MA. The target population will consist of seven individuals with chronic mental illness. One unit will be for a resident manager. The abandoned property, when rehabilitated, will contribute to the work of the city of Lowell in revitalizing this urban neighborhood.

Project Location: Ludlow, MA
Non-Profit Sponsor: Behavioral Health Network, Inc.
Capital Advance: $379,400
Five-year rental subsidy: $120,500
Number of Units: 6
Project description:

The funds will be used for the acquisition and rehabilitation of two three-person group homes for persons with developmental disabilities. These buildings are in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities.

Project Location: Marlboro, MA
Non-Profit Sponsor: Advocates, Inc.
Capital Advance: $1,645,700
Five-year rental subsidy: $362,000
Number of Units: 18
Project description:

The proposed project is an independent living project. The project entails rehabilitation of a four- story building that will house 18 residents with chronic mental illness. The independent living project will contain 4 two-bedroom apartments and 14 one-bedroom apartments. Only one resident will reside in each of the bedrooms. Each apartment will include a bathroom, kitchen/dinning area, and living room. Each individual unit will contain the following amenities: range, refrigerator, carpeting, window blinds, and vinyl flooring.

Project Location: Revere, MA
Non-Profit Sponsor: North Suffolk MH Assoc.
Capital Advance: $401,800
Five-year rental subsidy: $120,500
Number of Units: 6
Project description:

The funds will be used for the acquisition and rehabilitation of an existing single family home located in a residential neighborhood. When completed, this proposed group home will provide housing for six persons with developmental disabilities. The project will provide the residents an opportunity to be independent, productive and integrated into the community.

Project Location: Springfield, MA
Non-Profit Sponsor: MH Assoc. of Greater Springfield, Inc.
Capital Advance: $409,800
Five-year rental subsidy: $100,500
Number of Units: 5
Project description:

The funds will be used for the acquisition and rehabilitation of five one-bedroom units at two condominium developments for persons with chronic mental illness. These buildings are in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities.

Project Location: Springfield, MA
Non-Profit Sponsor: MH Assoc. of Greater Springfield, Inc.
Capital Advance: $321,500
Five-year rental subsidy: $80,500
Number of Units: 4
Project description:

The funds will be used for the acquisition and rehabilitation of a group home for four persons with chronic mental illness. This project is in close proximity to medical facilities, shopping, entertainment, places of worship and recreational activities.

Project Location: Wellesley, MA
Non-Profit Sponsor: NWW Committee for Comm Living, Inc.
Capital Advance: $355,300
Five-year rental subsidy: $80,500
Number of Units: 4
Project description:

Funds will be used for the renovation of an existing cottage style single family home into a 4- bedroom residence for persons with developmental disabilities. This project also includes a studio apartment for the use of a resident manager. The house will be made accessible by the addition of a new ramp. Supportive services will also be provided at the choice of the residents.