HUD AWARDS $1 MILLION TO OSKALOOSA, IOWA TO ADD AFFORDABLE HOUSING TO REJUVENATED DOWNTOWN
$3 million in funding goes to three cities across U.S. to bring back small town's Main Streets

OSKALOOSA, IA - Oskaloosa, Iowa will receive $1 million from the U.S. Department of Housing and Urban
Development that will help the city include affordable housing as it revitalizes its Historic Central Business District
or "Main Street."

HUD Secretary Alphonso Jackson announced today that Oskaloosa is among three cities - with populations of less than 50,000 - to receive $1 million to build affordable housing in town centers that are under rejuvenation. These grants are issued under HUD's HOPE VI/Main Street program that helps "Small Town USA" include affordable housing
in their ongoing effort to invigorate older, downtown business districts.

"HUD is pleased to give Oskaloosa the resources it needs to bring affordable housing to its rejuvenated town center," said Jackson. "HUD wants to help these communities add housing to the mix of its multi-million dollar efforts to bring back these areas."

Henderson, North Carolina and West Sacramento, Calif. were also awarded this funding to rehabilitate or construct affordable housing in the area where rejuvenation of their Main Streets has already begun.

Oskaloosa, Iowa is a city of approximately 11,000 people. The city has been redeveloping its downtown since 1985 and its main street area is on the National Register of Historic Places as a City Square Commercial Historic District. $13 Million has been invested in this main street area since 1985. In the last few years, the city invested $1.4 Million into the City Hall and $1.7 Million into rejuvenation of the streetscape. The Oskaloosa Downtown Development, LLC (ODD) was formed in 2002 when several members of the Oskaloosa Main Street organization invested over $100,000 to stabilize a downtown building that the city was going to demolish due to safety concerns. They made an agreement with the city that mixed their investment with city funds to rehabilitate the building and use sale
proceeds to rehabilitate other downtown properties. Several buildings have been rehabilitated using a total of $1.3 Million in private investment. This grant of $1,000,000 will develop eight 2-bedroom low-income housing elevator
units in a four-story, burned-out building located on a key corner of the main street area. If not rehabilitated, this building would soon have to be demolished. The ODD will invest $89,000 into this main street rejuvenation and a
local bank has committed to invest almost $700,000 in loans. These loans could not have been made available, and this building would not have survived, without the income from the Main Street low-income housing units.

A portion of HUD HOPE VI funds are set aside to create the Main Street program for small communities with a population of less than 50,000 and that does not have a local housing authority or has one that serves less than
100 public housing units in the city.

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 and 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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