HUD Archives: News Releases


HUD No. 09152008a
John Gemmill
(205) 731-2617
For Release
Monday
September 15, 2008

HUD AWARDS $16.9 MILLION FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL AMERICA
$600,000 to benefit rural areas of Alabama

ALABAMA - U.S. Housing and Urban Development Secretary Steven Preston today awarded $16.9 million to 60 rural housing programs across the country to stimulate economic development, create jobs and produce more affordable housing. Included in the funding announced today, HUD awarded two grants totaling $600,000 in rural Alabama.

The funding is provided through HUD's Rural Housing and Economic Development Program. In Alabama, HUD awarded grants to Collaborative Solutions, Inc. and Hale Empowerment and Revitalization. Here are summaries on the grants funded in Alabama:

Collaborative Solutions, Inc. in Birmingham, AL received a grant award in the amount of $300,000. This Innovative award will assist in the Rural Supportive Housing Initiative of Alabama. This initiative will work to increase the organizational capacity of four community mental health centers in rural areas. It will also create 10 new units of permanent supportive housing and rehab 12 units of substandard housing for special needs populations at risk of becoming homeless. Partners in this project include the West Tennessee Legal Services, Alabama Department of Mental Health and MR, United Cerebral Palsy, AltaPointe Health Systems, Montgomery Area Mental Health Authority, East Central Mental Health Mental Retardation Board, Inc., West Alabama Mental Center, and Volunteers of America-Southeast. Proposed leveraging for this project is $773,051.

Hale Empowerment and Revitalization in Greensboro, AL received a grant award in the amount of $300,000. This Innovative award will assist them in training workers in the area of home construction. This award will provide training for youth between the ages of 16 - 24. The educational component will assist them in obtaining their GED, along with providing them with hands on training in the construction trade. Partners in this effort include Shelton Stat's Adult Education Program and Habitat for Humanity. Proposed leveraging for this applicant is $131,918.

"HUD is deeply invested in promoting affordable housing and community development throughout rural America," said Preston. "These grants will stimulate the kind of employment, economic growth, and housing development that will have a direct impact on working families in our rural communities."

Rural Housing and Economic Development (RHED) 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. In addition to the funding announced today, rural communities are expected to generate nearly $59 million from other public and private sources to promote economic development and employment.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, State housing finance agencies and/or local economic development agencies. RHED grants have provided nearly $223 million, creating/training more than 35,000 jobs, assisting nearly 5,500 businesses and
producing 14,000 affordable homes.

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.

###

The following communities will receive grants under HUD's Rural Housing and Economic Development Program this year:

FY 2008 Rural Housing and Economic Development Awards

State

Recipient

City

Amount

Alabama

Collaborative Solutions, Inc.

Birmingham

$300,000

Hale Empowerment and Revitalization Organization, Inc

Greensboro

$300,000

Alabama Total

$600,000

 
Content Archived: March 8, 2011