BUSH ADMINISTRATION DELIVERS $30 MILLION IN COMMUNITY DEVELOPMENT AND HOUSING FUNDS FOR NINE SOUTHERN CALIFORNIA COMMUNITIES
HUD grants also invest in two Native-American communities

SAN FRANCISCO - Housing and Urban Development Secretary Mel Martinez today announced nine Southern California communities and two Indian tribal groups will receive $30,041,853 in federal assistance to stimulate local economies, produce affordable housing and help homeless individuals and families.

"The funding we announce today is an investment to promote economic development and job growth, increase the supply of affordable housing and help our most vulnerable neighbors," said Martinez. "These resources are evidence
of our continuing commitment to provide communities with the resources they need to meet the particular needs of their residents."

The funding announced today is provided through HUD's Community Development Block Grant Program, the HOME Investment Partnerships Program and the Emergency Shelter Grant Program. The two Native-American communities will be funded through HUD's Indian Housing Block Grant Program (see attached chart).

HUD's Community Development Block Grant (CDBG) Program enables state and local governments to target their
own economic development priorities. The rehabilitation of affordable housing has traditionally been the largest single use of the grants although CDBG is also an important catalyst for job growth 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, nearly 700,000 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 allows tribes or tribally designated housing entities (TDHEs) to
provide a range of affordable housing activities. The block grant approach to housing for Native Americans was enabled by the Native American Housing Assistance and Self Determination Act (NAHASDA) of 1996. This single needs-based grant empowers the Tribe with the responsibility of determining how the funds should be used to
address the needs specific to its communities. Among other things, the funds may be used for housing development, modernization, management services and operating assistance, housing counseling, crime prevention and safety, training and technical assistance.

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 at www.hud.gov.

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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.