HUD AWARDS $600,000 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL ARIZONA
Grants will help two rural housing and development programs statewide

PHOENIX, AZ - Housing and Urban Development Secretary Alphonso Jackson today awarded $600,000 in grants to
two rural communities in Arizona to stimulate economic development, create jobs and produce more affordable housing. The funding announced today is part of $16.8 million in grants awarded nationwide through HUD's Rural Housing and Economic Development Program (see attached summary).

"Today we make another investment in our nation's heartland," said Jackson. "This funding will help stimulate
critically needed business development and that ultimately means jobs in these rural communities. These grants
and the private investment they help to leverage will also produce more affordable housing opportunities for
working families across this great country."

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 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.

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, and 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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Elfrida Citizen's Alliance in Elfrida will receive a Rural Housing and Economic Development Innovative grant award
in the amount of $300,000. The Elfrida Citizen's Alliance is the only nonprofit located in Sulphur Springs Valley that
works exclusively in the Colonia to provide owner-occupied home repair, homeownership opportunities, and works
with local businesses to enhance economic development. The Alliance proposes to use the award to establish a revolving loan fund to provide nine low interest loans for small businesses; to revitalize the main business district through a fa�ade improvement program; and develop a self-help homeownership program to provide affordable homeownership for 12 very low-income persons. The proposed leveraging amount is $178,000.

Contact: Janet Johnson
10374 Highway 191, P.O. Box 172, Elfrida, AZ 85610
Telephone Number: (520) 642-6969

International Sonoran Desert Alliance in Ajo will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The Alliance proposes to use the RHED funds to renovate a dilapidated building in the town center and convert it to a community economic development facility; relocate business support services into the new facility and expand them; plan and design a commercial kitchen incubator to be placed in the same facility, and extend the homebuyer education and counseling services for one year. The proposed total leveraging amount is $150,000.

Contact: Tracy Taft
P.O. Box 687, Ajo, AZ 85321
Telephone Number: (520) 387-6823