$8.9 Million in Federal Aid for Rental Assistance and Affordable Housing Projects


Providence, RI, October 26, 2007  – In an effort to ensure that low-income seniors and people with disabilities have access to affordable housing and support services, U.S. Senator Jack Reed (D-RI), today announced that non-profit organizations in Providence, Little Compton, Cranston, and Warwick will receive a federal boost of over $8.9 million. The grants are being awarded through the Department of Housing and Urban Development’s (HUD) Section 202 and 811 Programs, which provide federal aid to non-profits and community organizations for the development of supportive housing and rental assistance for very low-income seniors and those with disabilities.

“It is imperative that we increase and preserve affordable housing opportunities for Rhode Islanders. I am proud to have helped secure federal funding for these critical programs. Many Rhode Islanders who currently live in Section 202 and 811 housing units are on fixed incomes and unable to bear the rising costs of health care and housing on their own,” said Reed, a member of both the Banking Committee, which oversees federal housing policy and the Appropriations subcommittee which oversees federal spending for HUD programs. Senator Reed has strongly supported funding for Section 202 and 811 Programs and has fought the Bush Administration’s attempts to cut funding for these initiatives. “This money will help ensure that more of our low-income seniors and people with disabilities have access to affordable housing.”

Throughout his career, Senator Reed has been a tireless champion for better access to affordable housing, and has led the effort to preserve the low-income tax credit, a tool that has helped fund construction of affordable housing for more than three million Americans.

Organizations receiving the federal grants are:

Section 202 Supportive Housing for the Elderly

HUD’s Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation. In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents so that residents will pay only 30 percent of their adjusted incomes as rent. To be eligible for the assistance a household must be classified as “very low- income,” which means an income less than 50 percent of the area median.

Non-Profit Organization: Church Community Housing Corporation (Little Compton, RI)
Capital Advance: $2,854,600
Five-year rental subsidy: $272,400
Number of units: 20
Project Description: This facility will provide 20 one-bedroom units of housing for very low-income elderly residents of Little Compton and Newport County. The location is on a hillside overlooking the scenic Sakonnet River. Common spaces proposed are internally sited to maximize the view of the river and to provide a comfortable and sunny year-round sitting and gathering area for residents and their visitors. Other features include a fitness/exercise room and computer lab.
Non-Profit Organization: SWAP, Inc. (Providence, RI)
Capital Advance: $3,140,100
Five-year rental subsidy: $299,400
Number of units: 22
Project Description: The funds will be used to construct 22 one-bedroom units for very low-income elderly persons in Providence, Rhode Island. The location of the proposed site is extremely convenient and appropriate for elderly persons with many resources in close proximity such as food markets, banks, clothing stores, restaurants, medical offices and public transportation. A wide range of supportive services will also be provided to assist residents to continue to live as independently and productively as possible.

Section 811 – Supportive Housing for Persons with Disabilities

Section 811grants provide housing 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.

Non-Profit Organization: Spurwink/RI (Cranston, RI)
Capital Advance: $1,364,200
Five-year rental subsidy: $136,200
Number of units: 10
Project Description: This facility, located in Cranston, Rhode Island, will provide 10 one bedroom dwelling units for very low-income persons with developmental disabilities. The site location is in a mixed-use village in close proximity to many commercial and community facilities used by local residents including shopping, restaurants, medical offices recreational facilities and places of worship. Many of these businesses and facilities are within walking distance thereby promoting the ability of residents to live as independently as possible.
Non-Profit Organization: House of Hope Community Development Corp. (Warwick, RI)
Capital Advance: $766,400
Five-year rental subsidy: $68,100
Number of units: 5
Project Description: The funds will be used to rehabilitate and construct five units of housing for very low-income persons with physical disabilities in Warwick, Rhode Island. The site is proximate and accessible to shopping, medical services, places of worship, recreational facilities, employment and public transportation which will allow the residents to live as independently as possible.

HUD provides the Section 202 and Section 811 funds to non-profits in two forms:

• Capital advances: This is money that covers the cost of developing the housing. It does not need to be repaid as long as the housing is available for at least 40 years for occupancy by very low-income seniors (under Section 202) or very low-income people with disabilities (under Section 811).

• Project rental assistance: This is money that goes to each non-profit group to cover the difference between the residents’ contributions toward rent and the cost of operating the project.


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