HUD AWARDS $2,655,180 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL ARIZONA
Grants designed to create jobs & affordable housing in nine communities

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $2,655,180 to nine rural housing programs in Arizona to stimulate economic development, create jobs and produce more affordable housing. The funding is provided through HUD's Rural Housing and Economic Development Program. The grants announced today are part of $25 million HUD is awarding to 85 rural housing programs throughout the country.

"These grants will create jobs and produce critically needed affordable housing throughout rural areas of our country that are desperate for both," said Donovan. "We are committed to an economic recovery that is sustainable and reaches every corner of our country, including rural communities that are so important to our nation's economic health."

Moenkopi Developers Corporation, Inc. will receive an Innovative Housing and Economic Development grant in
the amount of $257,280.00. This funding will be used to: 1) select and train 60 restaurant staff; 2) conduct final construction review for Moenkopi restaurant and correct any deficiencies found; 3) create and disseminate
restaurant marketing campaign for local/regional and tourism markets; 4) facilitate the design and engineering for water system improvements that will provide water system capacity for workforce housing; 5) secure financing for water system expansion to allow for workforce housing construction; and 6) secure financing to build all 72 units of workforce housing to support restaurant and other workers. MDC will leverage $131,747 for this project.

The Primavera Foundation, Inc. will receive an Innovative Housing and Economic Development grant in the
amount of $300,000.00. This funding will be used to 1) rehabilitate homes in fair condition (needing up to $25,000 in repairs, and less than half of the home's value), 2) to raze and replace distressed homes in poor condition (repairs exceed $25,000), and 3) to purchase blighted or foreclosed lots and rehabilitate or replace the housing and sell it to
a low-income, first time homebuyer. This four year plan for the program includes razing and replacing 25 homes, rehabilitating 15 homes, and purchasing and reselling 15 foreclosed/infill properties. RHED funds will allow for
Primavera to purchase two infill/foreclosed, blighted properties and to rehabilitate/replace them with safe, Energy Staff housing units. Monies from the sale of these homes will be recycled, and Primavera will continue to purchase
and rehabilitate properties throughout the city. Partners for this project include: Neighbor Works America, Pima County HOME, and Pima County Neighborhood Stabilization Project. The proposed leveraging for this project is $1,175,000.

Bik'eh Hozho Community Development Corporation will receive an Innovative Housing and Economic
Development grant in the amount of $298,900.00. This funding will be used to: 1) conduct community-wide
strategic planning sessions to determine the proper composition of the Arts/Retail/Housing district and the various phases of site development; 2) conduct building inspections on each of the 19 abandoned buildings; 3) create site layout plans/drawing detailing replacement of each element of the Arts/Retail/Housing district; 4) complete a Site Development Plan detailing market, timing and potential funding sources for each element of the district; 5) complete a feasibility study for the first phase of site development; 6) conduct outreach activities geared towards veterans and other groups unlikely to receive services without such marketing activities to inform them of services offered by Bik'eh Hozho CDC; 7) offer small business training to current and aspiring entrepreneurs through one-on-one
technical assistance; 8) provide business loans to entrepreneurs for business development or expansion; and 9) create partnerships with federal agencies/programs that will allow Bik'eh Hozho CDC to leverage RHED funds. The proposed leveraging for this project is $151,900.

International Sonoran Desert Alliance will receive an Innovative Housing and Economic Development grant in the amount of $300,000.00. This funding will be used to: 1) rehab an historic train depot to create a stunning visitor center that will serve as a magnet to stop many of the 1.4 million cars currently driving past the Ajo town plaza;
2) rehab vacant commercial space and provide low rent, shared services, and affordable housing to 10 micro entrepreneurial projects that will include a Native American gallery that will serve at least 35 rural Native Americans artists and artisans and to provide skill building workshops. The proposed leveraging for this project is $150,000.00.

Nogales Community Development Corporation will receive an Innovative Housing and Economic Development grant in the amount of $300,000.00. This funding will be used to develop and implement a housing rehabilitation program for the City of Nogales, AZ. Their project will pilot a four tiered housing rehabilitation and community building program to serve low and moderate income households. This project will include construction and management of a micro-enterprise development area, and loan and housing counseling. The partner for this project is the Santa Cruz Community Foundation (SCCF). The proposed leveraging for this project is 157,677.

Hopi Tribe will receive an Innovative Housing and Economic Development grant in the amount of $299,000.00. This funding will be used to construct an assisted living facility on the Hopi Reservation for low-income elderly persons in the Navajo Nation. The proposed leveraging for this project is $140,164.00

Elfrida Citizens Alliance, Inc. will receive an Innovative Housing and Economic Development grant in the amount of $300,000.00. This funding will be used to provide funds to install 22 new energy efficiency solar systems for 22 low income homes in the Sulphur Spring Valley in Cochise County, AZ. Partners for this project include: Venture Catalyst Inc., The Housing Authority of Cochise County, Community Foundation of Southern Arizona and Sulphur Springs
Valley Electric Cooperative, Inc. The proposed leveraging for this project is $160,000.00.

Chicanos Por La Causa, Inc. will receive an Innovative Housing and Economic Development grant in the amount of $300,000.00. This funding will be used implement a two-part project that integrates housing and economic development activities, and is designed to meet the needs of low-income residents of Santa Cruz County Arizona, in and around the Colonia and border city of Nogales, Arizona. The proposed leveraging for this project is $150,000.00.

Pascua Yaqui Tribe will receive an Economic Development and Entrepreneurship for Federally Recognized Indian Tribes grant award in the amount of $300,000.00. This funding will be used to construct a quick service restaurant
at the Tribe's gas station and convenience store, Del Sol Marketplace, to create new job opportunities, investment
in entrepreneurship development, business retention and expansion for low-income residents. The proposed
leveraging for this project is $257,300.00

Rural Housing and Economic Development (RHED) grants support 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. Since 1998, RHED grants have provided nearly $250 million, creating/training more than 41,000 jobs, assisting nearly 6,300 businesses and producing nearly 16,000 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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