HUD Archives: News Releases

BUSH ADMINISTRATION ANNOUNCES MORE THAN $800 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES
Secretary Martinez and Congressman Oxley Announce $37.8 Million for Ohio

WASHINGTON - Housing and Urban Development Secretary Mel Martinez joined with Congressman Michael G. Oxley today to announce that more than $800 million in housing assistance grants will be awarded this year to help the nation's very low-income elderly and people with disabilities. The grants include $700 million for the elderly and $176 million for people with disabilities. Included in the announcement were two grants for Lutheran Social Services of Central Ohio totaling more than $3 million for construction of elderly housing in Marion, Ohio.

Martinez and Oxley made the announcements at the Harding Home State Memorial in Marion, Ohio. The funding announcements also included, $30.9 million in housing assistance grants for Ohio's very low-income elderly and $6.9 million for Ohio citizens with disabilities.

"The Bush Administration is committed to making sure our senior citizens and people with disabilities have a decent, safe and affordable place to live," Martinez said. "The money that we awarded today is one way we can give back to a generation of Americans who have given us so much."

"Under the leadership of Secretary Martinez, HUD has demonstrated its commitment to improving housing opportunities for all Americans," Oxley said. "As Chairman of the House Financial Services Committee, I will continue to work with Secretary Martinez and HUD on programs that improve the quality of life in our communities."

Section 202 Grants (funding to assist very low-income elderly)

In addition to funding the construction and rehabilitation of projects to create apartments, HUD grants will subsidize rents for five years so that residents will pay only 30 percent of their adjusted incomes as rent.

HUD provides two forms of Section 202 funds to non-profit groups:

• Capital advances. This money covers the cost of developing the housing. It does not need to be repaid if the housing is available for occupancy by very low-income seniors for at least

• Project rental assistance. This money covers the difference between the resident's contribution toward rent and the cost of operating the project.

Section 811 Grants (funding to assist very low-income people with disabilities)

This housing, most of which will be newly constructed, typically is small apartment buildings for no more than 14 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.

Secretary Martinez and Congressman Oxley also announced HUD funding for several additional programs in Ohio. This funding totals more than $4 million and includes:

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov.

View Ohio project summaries
View All Section 202/Section 811 grant awards Nationwide

###

Content Archived: April 9, 2010