April 27, 2005
HUD ANNOUNCES MORE THAN $20 MILLION TO HELP DEVELOP HOUSING FOR VERY LOW-INCOME ELDERLY
WASHINGTON - The Department of Housing and Urban Development today announced more than $20 million in grants to provide predevelopment funding for 104 sponsors of Section 202 Elderly Housing projects in 38 states. The funds will assist them in bringing their projects from the award of a Section 202 grant to initial closing within the allotted 18 months.
"The Department is aware of the complexities of developing Section 202 projects and understands that a lack of predevelopment funding may be a contributing factor in many instances where project sponsors are not able to move their approved projects forward within the required timeframe," said John C. Weicher, Assistant Secretary for Housing-Federal Housing Commissioner.
The Section 202 Demonstration Planning Grant Program will provide upfront funds for such predevelopment activities as architectural and engineering work, site control, and other expenses related to the development of the projects prior to initial closing. Without the grant funding such costs would not be reimbursable until closing or would have to come from other funding sources.
To be eligible for the grants, the activities must otherwise be eligible for
funding under the Section 202 Supportive Housing for the Elderly Program. The
maximum grant amount per single application is $400,000, however no more than
$800,000 could be awarded to a single sponsor or its affiliated organizations.
Subsequent to providing predevelopment grant funding to the selected applicants, the Department will assess the impact of the availability of such funding on the ability of sponsors to expedite the development processing of Section 202 projects.
HUD is the nations housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and 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 and espanol.hud.gov.
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