HUD Archives: News Releases

HUD No. 00-30
Further Information:For Release
In the Washington, DC area: 202/708-0685Friday
Or contact your local HUD officeFebruary 11, 2000


Housing and Urban Development Secretary Andrew Cuomo, joined by Congressman Ed Towns, today said President Clinton's FY 2001 proposed HUD budget would benefit low-income senior citizens with $779 million for elderly housing programs - a $69 million increase from this year.

"The generation that worked hard to build a strong America in the 20th century shouldn't be thrown into a housing crisis after retirement in the 21st century," Cuomo said. "This budget is good news for struggling senior citizens who need our help to cope with rising housing costs they simply can't afford."

Speaking at the Eileen Dugan Senior Center in Brooklyn, Cuomo said HUD's budget for the current fiscal year is expanding and preserving the supply of affordable housing, benefiting senior citizens, creating jobs, and helping revitalize communities.

Central to HUD's elderly housing programs is the highly successful Section 202 Supportive Housing for the Elderly program. The FY 2001 budget requests $629 million for the production of new units - an increase of $19 million for the Section 202 program from last year.

The Section 202 program works with local non-profits to create housing tailored to the needs of senior citizens and offers rental assistance to the very-low income elderly who will live in those units. Currently there are 43 Section 202 programs in Brooklyn. Since 1996, HUD has provided $50.8 million in Section 202 funding for Brooklyn.

In addition, the FY 2001 budget will further expand access to assisted living for lower-income elderly by spurring the construction of new affordable assisted living facilities. The FY 2001 budget requests $50 million to help more than 1,500 low-income elderly receive long-term access to assisted living facilities.

On top of this, the Administration proposes another $50 million in FY 2001 to provide grant assistance to existing Section 202 properties for conversion of part or all of the facility to assisted living.

Other programs for the elderly in the Administration's FY 2001 budget include $50 million for Service Coordinators. These coordinators enable the elderly, especially the frail elderly or those with disabilities, to continue to live as independently as possible by helping them to obtain needed services.

Also new in the FY 2001 budget is $4 million in funding to establish Intergenerational Learning Centers to benefit seniors and children. Following is a breakdown of the Administration's proposed housing budget for the elderly:

(Budget Authority in Millions)

  2000 2001 Increase
Elderly Housing Production (Section 202) $610 $629 $19
Assisted Living Production . $50 $50
Conversion to Assisted Living $50 $50 0
Intergenerational Learning Centers [$4] [$4]
Service Coordinators $50 $50 0
Total, Elderly Programs $710 $779 $69

On Monday, President Clinton proposed increasing the Department of Housing and Urban Development's budget by $6 billion in Fiscal Year 2001 to $32.1 billion - the strongest HUD budget in more than 20 years, with increases in every program area.

The new budget proposal builds on two years of excellent budgets for HUD and the successful implementation of sweeping management reforms that were instituted by Secretary Cuomo.


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