The U.S. Department of Housing and Urban Development this week announced $633.2 million in housing assistance grants to create affordable housing for very low-income elderly and people with disabilities.

The funding includes $511.9 million in Section 202 grants and $121.3 million in Section 811 grants. To be classified as “very low-income,” a household’s income cannot exceed 50 percent of the area’s median income.

“These grants will help the nation’s very low-income elderly and people with disabilities find decent housing that they can afford,” said HUD Secretary Alphonso Jackson. “Neither group should ever have to worry about being able to find a safe place to live.”

HUD’s Section 202 grants fund the construction and rehabilitation of projects to create apartments for the very low-income elderly, and also subsidize rents for three years so that residents will pay only 30 percent of their adjusted incomes as rent.

The Section 811 grants usually fund newly built apartment, group home or condominium units 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. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.

HUD typically awards the funds to nonprofit agencies in the form of capital advances, which covers the cost of developing the housing, and project rental assistance, which covers the difference between the residents’ contributions toward rent and the cost of operating the project.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription