HUD AWARDS MILLIONS TO HELP PEOPLE WITH DISABILITIES FIND HOUSING

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced nearly $150 million in grants that non-profit groups will use to create approximately 1,600 affordable homes for people with disabilities.

"This funding which may be used to construct new housing, or acquire or rehabilitate existing housing will help ease the housing frustration of very low income people with disabilities across the country," said Martinez. "We are firmly committed to making more housing units available nationwide to very low income people with disabilities."

The housing, most of which will be newly constructed, typically is small apartment buildings for no more than 18 people, group homes for three to four people per home, or condominium units. Residents will pay 30 percent of their income for rent and the federal government will pay the rest.

The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness. The term "person with disabilities" also includes two or more people with disabilities living together, and one or more persons with disabilities living with one or more live-in attendants. The program allows persons with disabilities to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.

To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $11,025, and a two-person household will have an income of about $12,600.

HUD provides the 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 people with disabilities.
  
• Project rental assistance. This is money that goes to each non-profit group to cover the difference between the residents' contributions toward rent and the cost of operating the project.

A total of 248 groups applied for funding announced today, with 139 groups in 40 states receiving the grant funding.Below is a breakdown of the Section 811 program grants awarded by state:

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Note to Editors:

• Individual project summaries are available on the HUD website