HUD Archives: News Releases
October 14, 2002
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.
To be eligible for the assistance a household must be classified as "very low
income," which means an income less than 50 percent of the area median. Nationally,
this means an income of less than $19,040 a year.
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
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:
Development Block Grant (CDBG)
funds enable state and local governments to target their own economic development
Investment Partnerships (HOME)
is the largest federal block grant to state and local governments designed
exclusively to create affordable housing for low-income households.
Housing for People with Disabilities
program vouchers enable families having a person with disabilities to lease
affordable private housing of their choice.
Assistance Program (RAP)
program provides housing choice vouchers to enable non-elderly disabled
families to access affordable housing.
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.
Ohio project summaries
View All Section 202/Section
811 grant awards Nationwide
Content Archived: April 9, 2010