HUD No. 20-020

HUD Public Affairs

(202) 708-0685 FOR RELEASE

Friday

February 7, 2020

HUD AWARDS FUNDS TO BUILD 1,100 HOMES FOR LOW-INCOME SENIORS



WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today awarded more than $51 million in housing assistance to non-profit organizations across the country to finance more affordable housing construction, provide rental assistance, and facilitate supportive services delivery for very low-income seniors.

“Expanding affordable housing opportunities is a priority, especially for our nation’s most vulnerable populations,” said HUD Secretary Ben Carson. “These awards will facilitate capital investment in senior housing developments and create roughly 1,100 new homes, the majority for very low-income seniors.”

“The combination of Capital Advance and Project Rental Assistance grants creates greater supply of new rental units and supports the viability of existing properties,” said Federal Housing Commissioner Brian Montgomery.

Requiring leverage with other sources of private capital, HUD has significantly reduced the reliance on federal investment for the development of these properties–$88,000 per unit today compared to $156,000 per unit in 2012–the last time HUD made Section 202 construction/ rehabilitation grant awards.

Section 202 grants provide very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to meet their unique needs. HUD provides these funds to non-profit organizations in two forms:

Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.

This is funding that covers the cost of developing, acquiring, or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years. Project Rental Assistance Contracts (PRAC). This is project-based funding which covers the difference between residents’ contributions toward rent and the cost of operating the project.

Program eligibility requires residents to be very low-income or earning less than 50 percent of the area median income. However, most households that receive Section 202 earn less than 30 percent of the median for their area. The following grantees are receiving funding awards:



Section 202 Grant Awards



State Grantee PRAC Units Total Project Units Award Amount Hartford, CT New Samaritan Corporation 22 22 $4,648,305 Douglasville, GA National Church Residences 16 90 $2,577,352 Warner Robins, GA Community Housing and Development Corporation* 120 120 $1,132,640 Newton, MA Jewish Community Housing for the Elderly III, Inc. 25 25 $4,176,269 Baltimore City, MD Comprehensive Housing Assistance, Inc* 40 75 $3,734,840 Baltimore, MD CSI Support & Development Services 7 81 $1,141,097 Anoka, MN Volunteers of America National Services 10 80 $2,051,803 Albuquerque, NM Elderly Housing Development and Operations Corporation 20 40 $2,096,945 Cleveland, OH Vesta Longfellow, LLC 6 56 $1,234,596 East Cleveland, OH The McGregor Foundation 80 80 $3,461,280 Columbus, OH National Church Residences 28 76 $4,971,176 Village of Windham, OH Neighborhood Development Services, Inc* 30 30 $4,937,980 Collingdale, PA Catholic Housing and Community Services 21 50 $871,055 City of Dillon, SC Tapestry Development Group, Inc.* 33 33 $2,661,593 Austin, TX Guadalupe Neighborhood Development Corporation 26 34 $4,191,637 Frederick, VA Wesley Housing Development Corporation of Northern Virginia 11 63 $2,056,299 Seattle, WA HumanGood Affordable Housing 20 82 $3,129,490 Tacoma, WA Mercy Housing Northwest* 60 60 $2,573,395 Total 575 1,097 $51,647,750



*Denotes an Opportunity Zone property.