BUSH ADMINISTRATION ANNOUNCES $2.3 MILLION TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN TURLOCK, CALIFORNIA

SAN FRANCISCO - Turlock, California will receive $2,327,812 in federal funding to stimulate its economies, produce more affordable housing and help provide downpayment assistance to lower income families, Housing and Urban Development Secretary Alphonso Jackson today announced.

"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said Jackson. "These funds will serve as a catalyst
for low-income families trying to cross the threshold into homeownership and reinforces our commitment to
rebuilding entire communities."

Today's announcement includes $102,107 in American Dream Downpayment Initiative funds; $890,000 in Community Development Block Grant funds; and, $1,335,705 in HOME funds.

For the past 30 years, HUD's Community Development Block Grant (CDBG) Program has awarded over $108 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most popular programs. 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. CDBG funds are distributed by formula around the country based on a community's population, income levels, poverty rates and the age of its housing stock.

HOME (HOME Investment Partnerships Program) is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have committed to produce nearly 785,000 affordable housing units, including almost 300,000 for new homebuyers purchasing their first home. In addition, over 100,000 tenants have received direct rental assistance.

The American Dream Downpayment Initiative (ADDI) aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time
homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created
to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and 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 and espanol.hud.gov.

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