HUD AWARDS $2 MILLION IN GRANTS TO PROMOTE AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN STATE'S RURAL COMMUNITIES
Grants for rural and tribal communities to address housing, poverty and jobs

SAN FRANCISCO - The U.S. Department of Housing and Urban Development today awarded $2 million to seven rural and tribal communities throughout California to address distressed housing conditions and concentrated poverty. HUD Secretary Shaun Donovan said the grants from HUD's new Rural Innovation Fund promote an "entrepreneurial approach" to affordable housing and economic development in rural areas (see list of STATE service area grants below).

"Rural America is vast and diverse, and different communities face different challenges and opportunities," said Donovan. "Because there is no 'one-size-fits-all' approach to strengthening rural communities, this funding provides flexible resources to address either housing or economic development needs, or both. This is especially important for communities that may have more limited access to resources because of their distant locations. These are catalytic projects that will have an impact on their communities for generations to come."

"Building on the Rural Housing and Economic Development program," said HUD Regional Administrator Ophelia Basgal, "the Rural Innovation Fund takes a more comprehensive approach by helping communities use federal dollars not just on a problem-by-problem basis, but to meet multiple needs."

For example, the The Karuk Tribe, through its Karuk Community Development Corporation (KCDC), in Happy Camp, California will receive a Rural Innovation Fund Indian Economic Development and Entrepreneurship grant in the amount of $392,266 to provide job training, small business assistance, and financial education to residents. KCDC will provide vocational and job training programs for 90 residents; credit, homeownership, and financial counseling for 60 residents; and entrepreneurship training for 60 residents or 10 new businesses. A computer center will allow residents to obtain GEDs, certificates, or Associate degrees via distance learning. Other California grant recipients are Habitat for Humanity Lake County, All Mission Indian Housing, the La Jolla Band of Luiseno Indians, the Santa Rosa Band of Mission Indians, the Cahuilla Band of Indians, and the Bear River Band of Rohnerville Rancheria. All of these groups will receive $300,000 each via the grant.

HUD's new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities in 19 states throughout the country. HUD received 307 applications from 48 states for over $236 million, almost 10 times the amount available. Eligible applicants were federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support
a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

HUD awarded Rural Innovation Fund grants in California for:

• Single Purpose Grants - 31 Single Purpose grants nationwide, for more targeted initiatives, which typically focus primarily on either housing or economic development. The maximum award amount was $300,000 for this category. California received six single purpose grants.
  
  
• Economic Development and Entrepreneurship for Federally Recognized Tribes - 8 Indian Economic Development and Entrepreneurship grants nationwide, awarded from $5 million set aside for applications for federally recognized Indian tribes. The maximum award amount was $800,000 for this category. California received one Indian Economic Development grant.

Highlights of the Awards nationwide include:

• 19 states are represented among the service areas, including California.
  
  
• 27 awardees - over half - are tribes or tribal affiliates nationwide. Tribal organizations were competitive
  in all categories under the NOFA.
  
  
• 789 housing units are proposed for low income beneficiaries nationwide.
  
  
• 655 total jobs will be created through activities assisted by the grants nationwide. Jobs include 178 construction jobs and 460 permanent jobs nationwide.
  
  
• Grantees have proposed to leverage over $18 million in other funds for their respective projects.
  
  

Read complete grant summaries for each grant announced today nationwide on HUD's website.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.

FY 2010 Rural Innovation Fund Awards for California