BUSH ADMINISTRATION ANNOUNCES $14,324,982 IN HOUSING AND COMMUNITY DEVELOPMENT FUNDS FOR 3 CALIFORNIA CITIES AND COUNTIES AND NATIVE AMERICAN HOUSING PROGRAMS

SAN FRANCISCO - Two California cities and a Native American entity will receive $14.3 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 funds are awarded through three different programs: Community Development Block Grant (CDBG) funds;
Section 108 loan program funds; and Indian Housing Block Grant funds.

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.

Today's CDBG grant is to Madera for $835,000.

Section 108 is the loan guarantee portion of the Community Development Block Grant Program (CDBG). The
primary objective is the development of viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. It provides communities with a source of financing for land acquisitions, economic development, property rehabilitation, public facilities and other eligible projects, emphasizing large - scale development.

Today's 108 loan guarantee is to San Jose, for $13 million. The City of San Jose and its Redevelopment Agency will use the funds to partially finance the construction of a new 800 space parking deck to replace spaces lost due to downtown redevelopment. The project calls for residential space, retail space, and hotel and office space. The new parking deck, which will serve a five-block downtown area, will be on the site of the former Greyhound Bus terminal.

The Indian Housing Block Grant (IHBG) program is a formula grant that allows tribes or tribally designated housing entities (TDHEs) to provide a range of affordable housing activities on a reservation or Indian area. The block grant approach to housing for Native Americans was authorized by the Native American Housing Assistance and Self Determination Act (NAHASDA) of 1996. The tribes or TDHEs are empowered with the responsibility of determining
how those funds should be used to address needs specific to their own communities.

Today's grant is to the Pit River Tribe of California for $489,082.

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.

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

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