HUD AWARDS $2.8 MILLION IN GRANTS TO PROMOTE AFFORDABLE
HOUSING AND ECONOMIC DEVELOPMENT IN STATE'S RURAL COMMUNITIES
Grants for rural and tribal communities to address housing, poverty and jobs

SAN FRANCISCO - The U.S. Department of Housing and Urban Development today awarded $2.8 million to four rural and tribal communities throughout Arizona to address distressed housing conditions and concentrated poverty. HUD Secretary Shaun Donovan said the grants from HUD's new Rural Innovation Fund promote an "entrepreneurial approach" to affordable housing and economic development in rural areas (see list of STATE service area grants below).

"Rural America is vast and diverse, and different communities face different challenges and opportunities," said Donovan. "Because there is no 'one-size-fits-all' approach to strengthening rural communities, this funding provides flexible resources to address either housing or economic development needs, or both. This is especially important for communities that may have more limited access to resources because of their distant locations. These are catalytic projects that will have an impact on their communities for generations to come."

"Building on the Rural Housing and Economic Development program," said HUD Regional Administrator Ophelia Basgal, "the Rural Innovation Fund takes a more comprehensive approach by helping communities use federal dollars not just on a problem-by-problem basis, but to meet multiple needs."

For example, the Nogales Community Development (NCD) in Nogales, Arizona will receive a Rural Innovation Fund Comprehensive grant in the amount of $1,999,177 to revitalize the downtown core of the rural colonia while helping low-income residents build assets to move out of poverty. These goals will be achieved through three primary activities. First, NCD will develop a multi-use training and resource center to provide residents with self-sufficiency services and spur revitalization of historic downtown buildings. Second, NCD will provide services including rental housing rehab, foreclosure mitigation, housing counseling and financial literacy, business development, and education, including scholarships for higher education. Other self sufficiency supports include citizenship classes, developing community gardens, public health education, and access to transportation and child care. Third, NCD will create a comprehensive continuum of services referral system that bundles client housing, business, public health and education services with a program that trains and deploys lay community workers to link residents with services. This project will create at least 100 jobs and rehabilitate 10 housing units. Other Arizona recipients are Elfrida Citizens Alliance, Inc (ECA) in Elfrida; The San Carlos Housing Authority in Peridot, and The International Sonoran Desert Alliance (ISDA) in Ajo. All of these are receiving $300,000 via the grant.

HUD's new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities in 19 states throughout the country. HUD received 307 applications from 48 states for over $236 million, almost 10 times the amount available. Eligible applicants were federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support
a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

HUD awarded Rural Innovation Fund grants Arizona for :

• Comprehensive Grants - 7 Comprehensive grants nationwide, in which grantees have examined the social, housing and economic needs and resources of their target areas and made proposals that address these needs through activities that will have sustained benefit and resources after HUD assistance is used. The maximum grant amount was $2,000,000 for this category. Arizona received one comprehensive grant.
  
  
• Single Purpose Grants - 31 Single Purpose grants nationwide, for more targeted initiatives, which typically focus primarily on either housing or economic development. The maximum award amount was $300,000 for this category. Arizona received three single purpose grants.
  
  

Highlights of the Awards nationwide include:

• 19 states are represented among the service areas, including Arizona.
  
  
• 27 awardees - over half - are tribes or tribal affiliates nationwide. Tribal organizations were competitive in all categories under the NOFA.
  
  
• 789 housing units are proposed for low income beneficiaries nationwide.
  
  
• 655 total jobs will be created through activities assisted by the grants nationwide. Jobs include 178 construction jobs and 460 permanent jobs nationwide.
  
  
• Grantees have proposed to leverage over $18 million in other funds for their respective projects.
  
  

Read complete grant summaries for each grant announced today nationwide on HUD's website.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at http://twitter.com/#!/HUDNews or on Facebook at www.facebook.com/HUD.