CLEVELAND – The U.S. Department of Housing and Urban Development (HUD) announced nearly $15 million to four awardees in Ohio to build 242 new homes for low-income seniors.
These funds are part of more than $51 million announced nationally 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.
“These funds will not only ensure permanent housing affordability for low-income seniors but will also provide design that accommodates independent aging-in-place,” said HUD Midwest Regional Administrator Joseph P. Galvan.
“One of our biggest challenges in serving seniors in the community through our PACE program is safe and affordable housing,” said Ann M. Conn, President and CEO, The McGregor Foundation. “This grant will allow McGregor to leverage our community partnerships and various funding streams to build new affordable housing for our most vulnerable neighbors.”
“Adequate and affordable housing are among the issues most important to older Ohioans,” said Ohio Department of Aging Director Ursel McElroy. “Ohio has the sixth-largest 65-plus population in the U.S. As our population ages even further, planning for housing needs is imperative,” McElroy added. “These grants help us to address housing needs in both the short and long-term future.”
“The housing stock is aging in the Village of Windham, prioritizing housing for our Senior population is vital to ensure quality and affordable housing.” said Stacy Brown, Executive Director of Neighborhood Development Services, Inc. “HUD’s Section 202 Supportive Housing for the Elderly program addresses both affordability and the connection between housing and supportive services.” added Brown.
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.
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.