News Releases - Civic News & Info
Written by HUD Public Affairs   
Monday, 21 November 2011 15:49

In addition to this capital advance, three-year rental subsidy will help cover rent and operating costs

WASHINGTON – More very low-income senior citizens in Iowa will have access to affordable supportive housing thanks to $2.3 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These funds will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly

The grant funding awarded under HUD’s Sections 202 Supportive Housing program will kick start construction or major rehabilitation for more than 97 housing developments in 42 different states and Puerto Rico.  In Iowa, 15 additional elderly households will be affordably housed with access to needed services in Burlington where “West Central Illinois Area Agency on Aging” was awarded $2,147,500.

“The Obama Administration is committed to helping our senior citizens find a decent, affordable place to live that is close to needed healthcare services and transportation,” said HUD Secretary Shaun Donovan.  “Recent bipartisan changes to HUD’s supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own.”

In Burlington, the capital advance funds will be used to construct a single story 15 unit facility and an additional $156,300 three-year HUD rental subsidy will help cover rent and operating costs.  The one-bedroom units will feature adjustable height shelving, lever handles and be designed for wheelchair adaptability.  The project is in close proximity to a grocery store, wellness center, and other desirable neighborhood amenities.  Residents will have access to a daily door-to-door transport service.

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to HUD’s programs.  Nonprofit grant recipients will now receive federal assistance that is better connected to state and local health care investments, allowing greater numbers of vulnerable elderly individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto.  In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD’s Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes.  Section 202 provides 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 frail elderly resident.

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.  This is funding that goes to each development to cover the difference between the residents’ contributions toward rent and the cost of operating the project.


Residents must be “very low income” with household incomes less than 50 percent of their median for that area.  However, most households that receive Section 202 assistance earn less than 30 percent of the median for their area.  Generally, this means that a one-person household will have an annual income of about $13,500.


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