HUD AWARDS $300,000 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL ARIZONA
$16.8 million in Rural Housing and Economic Development grants awarded nationwide

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today awarded $300,000 to Chicanos Por La Causa, Inc in Phoenix to stimulate economic development, create jobs and produce more affordable housing. The funding is part of $16.8 million in grants provided through HUD's Rural Housing and Economic Development Program nationwide.

In addition to the HUD grant announced today, rural communities are expected to generate more than $150,000
from other public and private sources to promote economic development and employment.

"These grants will go a long way toward producing more affordable housing in rural communities across our country," said Jackson. "HUD funding, and the private investment these grants will generate, will offer more than just an affordable home to working families in rural areas. These grants will trigger economic development and breathe new life into rural neighborhoods that are desperate to grow."

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.

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 $190 million, creating more than 12,000 jobs, assisting nearly 8,200 businesses and producing nearly 20,000 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.

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