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HUD # 06-WA-04
Pamela Negri
(206) 220-5356
For Release
January 9, 2006



SPOKANE – Arlene Patton, Spokane Field Office Director for the U.S. Department of Housing and Urban Development, announced today a capital advance of $2,157,200 to East Central Community Organization to build a 25-unit independent living project for the elderly in Spokane. An additional five-year rental subsidy of $394,000 is also a part of the overall grant. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the remainder from this subsidy.

East Central Community Organization will work with the proposed owner 5th and Stone Senior Housing Project and the consultant Kiemle & Hagood of Spokane, to construct the new two-story building. It will consist of 24 one-bedroom units for the residents and 1 two-bedroom unit for a resident manager.

"This non-profit locally sponsored Elderly Housing will allow residents to remain within the neighborhood they are most comfortable living in,” said Arlene Patton, HUD Spokane Field Office Director. “It also strengthens the revitalization efforts of the East Central Community."

The East Central Community Organization grant, which is one of five 202 grants awarded in Washington, is part of $574.8 million competitively awarded nationally in HUD Section 202 grants. HUD's Section 202 grant 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 for five years 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.

HUD provides two forms of Section 202 funds to non-profit groups:

Capital advances. This money covers the cost of developing the housing. It does not need to be repaid if the housing is available for occupancy by very low-income seniors for at least 40 years.

Project rental assistance. This money covers the difference between the resident's contribution toward rent and the cost of operating the project.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.


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