BUSH ADMINISTRATION AWARDS $150,000 TO BOOST HOUSING DEVELOPMENT IN RURAL ALASKA

ALASKA - Housing and Urban Development Secretary Alphonso Jackson today announced $150,000 in grants to help rural communities in Alaska produce more affordable housing. The funding is provided through HUD's Rural Housing
and Economic Development Program and is part of a total $24.5 million awarded to more than a hundred rural communities nationwide.

In addition, these grants are expected to generate nearly $48 million from other public and private sources to further promote economic development and employment.

"This investment in rural America demonstrates that this Administration's commitment to our nation's heartland is strong," said Jackson. "These grants will help rural communities across Alaska produce affordable housing and jobs where they're needed most."

Rural Housing and Economic Development grants help pay for land acquisition, new home construction, housing demolition, infrastructure improvements and construction training. Other possible 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.

Rural non-profit organizations, federally recognized Native American tribes, community development corporations
and state agencies will administer these grants. The funding will help 105 rural communities to build and improve affordable housing, create jobs and generate community and economic development.

Rural communities will use this funding as seed money to pay the start-up costs for housing or economic
development projects. These grants will also help organizations to hire and train their staffs, develop strategic plans and acquire office space and other needed facilities.

In Alaska, the single recipient of the RHED grant is the Rural Alaska Community Action Program, Inc. (RurAL CAP).
This grant will be used by RurAL CAP to leverage program funds from USDA Rural Development in the creation of
self-help housing. Funds will provide financial literacy, homeownership, and construction training to help families gain the skills they need to qualify for and participate successfully in homeownership programs.

Colleen Bickford, Alaska Field Office Director for HUD, said: "RurAL CAP is a strong agency that has worked to help rural communities and the people in them for many years. We are pleased they won this award, and are confident Alaska will have new homeowners because of the RHED funding."

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 and espanol.hud.gov.

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