BUSH ADMINISTRATION ANNOUNCES $26.8 MILLION IN HOUSING AND COMMUNITY DEVELOPMENT FUNDS FOR 15 LOCAL CITIES AND COUNTIES

SAN FRANCISCO - Southern California cities and counties will receive more that $26.8 million in federal assistance
to stimulate local economies, promote affordable housing, help the homeless and assist families and individuals with HIV/AIDS, Housing and Urban Development Secretary Mel Martinez announced today.

"These grants do so much good for so many people," Martinez said. "This money helps communities do the critical work of stimulating business development and job growth, providing affordable housing and helping our most
vulnerable neighbors."

The funding announced today for Southern California is in addition to $48.7 million in grants to 16 California cities
and communities announced July 2. Today's grants includes $106.2 million to the State of California, which in turn provides funding to dozens of smaller California cities and communities.

The funds are awarded through four different programs: Community Development Block Grant (CDBG) funds; Home Investment Partnership (HOME) Funds; Emergency Shelter Grant (ESG) funds; and, Housing Opportunities for
Persons with AIDS (HOPWA).

First awarded in 1974, Community Development Block Grant (CDBG) funds enable state and local governments to target their own economic development priorities. Although the rehabilitation of affordable housing has traditionally been the largest single use of the grants, the program is also an increasingly important catalyst for economic development activities that expand job and business opportunities for lower income families and neighborhoods.

HOME (Home Investment Partnerships Program) is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Since 1992, more than a half million affordable housing units have been acquired, constructed or rehabilitated and nearly 70,000 tenants have received direct rental assistance. In addition, more than 200,000 new homebuyers have received assistance to purchase
their first homes through the HOME program.

Emergency Shelter Grants (ESG) help communities meet the basic shelter needs of homeless individuals and families. Part of HUD's award-winning Continuum of Care initiative, these grants also provide transitional housing and a
variety of support services designed to move the homeless away from a life on the street toward permanent
housing.

HOPWA grants are distributed based on the number of AIDS cases as reported to the Centers for Disease Control
and Prevention. The grants expand housing opportunities, provide rental assistance, and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care.

HUD's block grant programs are distributed by formula around the country based on criteria including population, income levels, poverty rates and age of housing stock.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as
enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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Note to editors: Communities that choose to receive their block grants at other times of the year are not included
in today's announcement.

LOS ANGELES FIELD OFFICE REGION RECEIVING GRANTS

(San Luis Obispo, Santa Barbara, Ventura and Los Angeles Counties)