HUD AWARDS $16.9 MILLION FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL AMERICA
$1,795,425 to benefit rural areas of Arizona

WASHINGTON - 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 six grants totaling $1,795,426 in rural Arizona.

The funding is provided through HUD's Rural Housing and Economic Development Program (see attached). In
Arizona, HUD awarded grants to Comite de Bien Estar (San Luis), the Hopi Tribe (Kykotamovi), International Sonoran Desert Alliance (Ajo), Moenkopi Developer's Corporation (Tuba City), Nogales Community Development Center (Nogales), and White Mountain Apache Housing Authoity (Whiteriver).

"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."

Comite de Bien Estar in San Luis, AZ will receive a Rural Housing and Economic Development Innovative grant award
in the amount of $300,000. This Innovative award will assist this organization in providing financial literacy training
to their targeted group. The organization will concentrate on credit repair and down payment assistance to low income families in San Luis, AZ. Services provided by this award will assist Colonia residents in their efforts to
become homeowners and self sufficient members of their community. The applicant is proposing leveraging in the amount of $390,347.

Contact Person: Mr. John McGrady
963 East B Street, San Luis, AZ 85349-0000
Telephone Number: (928) 627-8559

The Hopi Tribe in Kykotamovi, AZ will receive a Rural Housing and Economic Development Innovative grant award in the amount of $296,800. This Innovative award will assist the applicant in the architectural and engineering design
of the Hopi Elder Living Facility, and the hiring of a project manager, and a consultant to assist in the creation of a
10 year budget and pro-forma. This needs assessment will look at the long term project sustainability. It will also concentrate on economic development training for their 10 staff members in the Office of Elderly Services. Partners for this project will be the organization's Office of Elderly Services, and the applicant. Proposed leveraging for this proposal is $195,006.

Contact Person: Leon Nuvayestewa
P. O. Box 123, Kykotamovi, AZ 86039
Telephone Number: (928) 734-3551

International Sonoran Desert Alliance in Ajo, AZ will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. This Innovative award will assist the applicant in their renovation of the historic manual arts building on Ajo's Curley School campus. This shared workspace will be outfitted with tools and provide skills and product development workshops. Project goals will also include the retention of jobs and the creation of new jobs by recruiting and developing businesses to fill the vacant commercial space. This project will provide increased opportunities for completing a feasibility study analysis that will benefit the development of affordable rental housing in unused space in this historic property. Partners for this project are the Arizona State Heritage Fund. Proposed leveraging for this project will be $354,602.

Contact Person: Tracy Taft
400 W. Vananda Avenue, Ajo, AZ 85321
Telephone Number: (520) 387-6823

Moenkopi Developer's Corporation, Inc., in Tuba City, AZ will receive a Rural Housing and Economic Development Innovative grant award in the amount of $298,626. This innovative award will aid the non-profit in the creation of
60 units of workforce housing and 60 new jobs for low and moderate income residents at the Moenkopi Hotel and Conference Center. The RHED award will assist them in construction management, consulting services, architectural needs and with their project related costs. The proposed leveraging for this proposal is $193,050.

Contact Person: Dr. Daniel Honahni
P. O. Box 1229, Clifford Honahnie Building, US Highway, 264
Tuba City, AZ 86045
Telephone Number: (928) 283-5903

Nogales Community Development Corporation in Nogales, AZ will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. This Innovative award will assist the applicant in the restoration and renovation of two historic properties for affordable rental housing and retail space in downtown Nogales. This three year project will allow the partners to develop at least 30 rental units for low income persons, and to assist at least two existing businesses. This proposed activity will also create 5 new jobs for low income persons. Partners for this project will include the Wells Fargo Bank, the University of Arizona - Drachman Institute Architectural Design Assistance, and the Enterprise Community Partners consulting assistance. Proposed leveraging for this project is $540,830.

Contact Person: Yvonne Delgadillo
124B N Terrace Avenue, Nogales, AZ 85621
Telephone Number: (520) 397-9219

White Mountain Apache Housing Authority in Whiteriver, AZ will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. This Innovative award will be used to construct 20 affordable rental units and a community center on a location of the reservation for on-site infrastructure as well as provision
of resident services to new tenants. The center will provide meeting space to conduct workshops, homeownership counseling, job training and entrepreneurial activities for improving the living conditions both socially and
economically for their targeted group. Partners in this project will include the Indian Health Service Office of Environmental Health and Engineering, the Housing Authority, and monies from their Indian Block Grant Funds. The proposed leveraging for this project is $3,808,045.

Contact Person: Kristy McCarthy
P. O. Box 1270, Whiteriver, AZ 85941-1270
Telephone Number: (410) 544-7050

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.

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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