BUSH ADMINISTRATION ANNOUNCES $25,229,089 IN HOUSING AND COMMUNITY DEVELOPMENT FUNDS FOR 12 CALIFORNIA CITIES, COUNTIES AND NATIVE AMERICAN HOUSING PROGRAMS

SAN FRANCISCO - California cities, counties and Native American programs will receive over $25 million in federal assistance to stimulate local economies, promote affordable housing, help the homeless and assist Native American housing programs, 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 awards include $17,293,000 for Oakland, $693,000 for Milpitas, and $3,920,000 for Ventura County. Nine Native American programs also received grants.

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, 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.

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.

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.

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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California

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