Secretary Martinez announced last Friday the Department had awarded $24.6 million in grants to help 87 rural communities in 32 states and Puerto Rico produce affordable housing and stimulate economic development. The funding was provided through HUD's Rural Housing and Economic Development Program.

Rural non-profit organizations, federally recognized Native American tribes, community development corporations and state agencies will administer these grants.

Rural communities will use the funding to pay start-up costs for activities undertaken by new organizations or for specific housing or economic development projects undertaken by new or existing groups. The grants will also help organizations to hire and train staff, develop strategic plans and acquire office space and other needed facilities.

The HUD funding will leverage an additional $44 million from other public and private sources.

HUD's Rural Housing and Economic Development grants help pay for land acquisition, new home construction, housing demolition, infrastructure improvements and construction training. Other uses include homeownership and financial counseling; financial assistance to homeowners, businesses and developers; creating microenterprises and small business incubators; and, establishing lines of credit or revolving loan pools to benefit the local business community.