BUSH ADMINISTRATION AWARDS $24.6 MILLION TO HELP RURAL COMMUNITIES STIMULATE ECONOMIC DEVELOPMENT AND CREATE JOBS
Funds will help produce affordable housing in 32 States and Puerto Rico
Six Arizona Organizations Awarded $1,939,927

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced $24.6 million in grants to help rural communities in 32 states and Puerto Rico produce affordable housing and stimulate economic development. The funding announced today is 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. The funding will help 87 rural communities to build and improve affordable housing, create jobs and generate community and economic development (see attached list).

"This funding demonstrates the Bush Administration's continued investment in rural communities across our country," said Martinez. "These grants will not only help fund critically needed housing and economic development projects
but will help generate even more funding from other public and private sources."

Six Arizona organizations received grants totaling $1,939,927. They are:

• The Arizona-Mexico Border Health Foundation, in Tucson, awarded $150,000 to hire additional staff and
  provide training.
• The Arizona Department of Housing in Phoenix, awarded $400,000 to creat affordable homeownership opportunities and other efforts for Colonias residents.
• The Nogales Main Street Association in Nogales, awarded $389,927 to establish an entrepreneurial
  development center in a Colonias area of Arizona.
• The International Sonoran Desert Alliance in Ajo, awarded $400,000 to help restore and convert a school complex into housing and workspace for low-income artisans.
• PPEP Microbusiness and Housing Development Corporation in Tucson, awarded $400,000 to provide training
  and direct services to beneficiaries.
• The Navajo Partnership for Housing, Inc., in St. Michael, awarded $400,000 to expand an existing loan fund
  to help beneficiaries build or buy homes.

Rural communities will use this funding as seed money to pay the start-up costs for activities undertaken by new organizations or for specific housing or economic development projects undertaken by new or existing groups. These grants will also help organizations to hire and train their staffs, develop strategic plans and acquire office space and other needed facilities. It's expected HUD's 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 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.

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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