HUD Archives: News Releases


Hollis Wormsby
Alabama PAO
(205) 731-2617 ext. 1129
For Release
Friday
June 23, 2006

HUD AWARDS 3,100 HOUSING AGENCIES NATIONWIDE $2.2 BILLION TO IMPROVE PUBLIC HOUSING DEVELOPMENTS
147 Alabama Housing Authorities Share $68,128,613

BIRMINGHAM � Alabama Public Housing Authorities received more than $68 million dollars to improve their public housing developments in recently released funding announcements. The Department of Housing and Urban Development awarded more than 3,145 public housing agencies across the nation $2.2 billion in federal funding
today. The funding allows these agencies to make large-scale improvements to their public housing developments. The State of Alabama has over 147 housing authorities sharing the announced funding.

"Just over a million families rely on local public housing agencies to provide safe, decent housing," said HUD Regional Director Bob Young, in announcing the funding for Alabama Housing Authorities. "This funding gives these entities
the resources to make major improvements to their developments. HUD is proud to assist them in this effort to
provide quality affordable housing."

The $68 Million awarded to Alabama Housing Authorities today is part of the $2,239,041,166 national funding
awarded from HUD's Capital Fund program, which is distributed annually to public housing agencies (PHAs) to help them develop, finance, and/or modernize the public housing in their communities. The funding can also be used to improve management operations within the agency.

Over the past five years, PHAs have leveraged this funding, through the Capital Fund Financing Program (CFFP),
and issued bonds in the private market to raise additional capital for major modernization needs.

Although the Quality Housing and Work Responsibility Act of 1998 included an amendment that allowed PHAs to
borrow funds on the private market to raise capital for major repairs to its housing stock, it was not until 2001 this financing tool was utilized. Repairs that will normally take five or 10 years can be accomplished in one to two years with the resources the program generates in a shorter time period. PHAs pledge a percentage of their future Capital Fund, subject to annual appropriations, under CFFP to repay debt.

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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Content Archived: March 8, 2011