BUSH ADMINISTRATION DELIVERS $1.76 MILLION IN COMMUNITY DEVELOPMENT AND HOUSING FUNDS FOR YUMA AND GILBERT, ARIZONA
HUD also grants $2.2 million to Colorado River Reservation

SAN FRANCISCO - Housing and Urban Development Secretary Mel Martinez today announced Yuma and Gilbert, Arizona will receive $1,763,000 in federal assistance to stimulate their local economies and produce more affordable housing. In addition, Martinez announced the Colorado River Reservation will receive $2,190,176 to assist its Native American population in promoting community and economic development.

"The funding we announce today is an investment to promote economic development and job growth, increase the supply of affordable housing and help our most vulnerable neighbors," said Martinez. "These resources are evidence
of our continuing commitment to provide communities with the resources they need to meet the particular needs of their residents."

Yuma will receive $1,139,000 in Community Development Block Grant (CDBG) funds and Gilbert will receive $624,000 in CDBG funds. The funding announced for the Colorado River Reservation is provided through HUD's Indian Housing Block Grant (IHBG) funds.

HUD's Community Development Block Grant (CDBG) Program enables state and local governments to target their
own economic development priorities. The rehabilitation of affordable housing has traditionally been the largest
single use of the grants although CDBG is also an important catalyst for job growth and business opportunities for lower income families and neighborhoods.

The Indian Housing Block Grant (IHBG) program allows tribes or tribally designated housing entities (TDHEs) to
provide a range of affordable housing activities. The block grant approach to housing for Native Americans was enabled by the Native American Housing Assistance and Self Determination Act (NAHASDA) of 1996. This single needs-based grant empowers the Tribe with the responsibility of determining how the funds should be used to
address the needs specific to its communities. Among other things, the funds may be used for housing development, modernization, management services and operating assistance, housing counseling, crime prevention and safety, training and technical assistance.

HUD's block grant programs are distributed by formula around the country based on criteria including population, income levels, poverty rates and age of housing stock.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, 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.

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Note to editors: Communities that choose to receive their block grants at other times of the year are not
included in today's announcement.