HUD No. 06-113
September 15, 2006
HUD ANNOUNCES MORE THAN $14 MILLION TO HELP DEVELOP HOUSING FOR VERY LOW-INCOME ELDERLY
WASHINGTON - The Department of Housing and Urban Development today announced more than $14 million in grants to help expedite the development of 62 rental housing projects for very low-income elderly people. These "predevelopment" funds will assist sponsors of these Section 202 Elderly Housing projects in 26 states. The grants will help them bring their projects from the award of a Section 202 grant to initial closing within the allotted 18 months.
"This funding will help many organizations cope with the complexities of developing these important projects and allow them to help more elderly people in their communities," said Brian Montgomery, 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 nation's 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, and 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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Note to editors : State-by-State breakdown of individual grant recipients is available on the HUD Website.