HUD AWARDS $1 MILLION TO EXPAND AFFORDABLE HOUSING TO REVITALIZED DOWNTOWN AREA OF MARSHALLTOWN, IOWA
Six small towns receive $5.5 million to include affordable housing to "Main Street" revitalization

DES MOINES - The downtown area of Marshalltown, Iowa will get a housing makeover due to a $1 million grant announced today by the U.S. Department of Housing and Urban Development. The funding is designed to expand the production of affordable housing to the rural community's historic central business district or "Main Street" area.

HUD Secretary Shaun Donovan said that Marshalltown is among six communities with populations less than 50,000 that will receive funding under HUD's HOPE VI Main Street program to encourage affordable housing production in
their city centers.

"Raising capital to build affordable housing can be a challenge when small towns give their downtowns a facelift,"
said Donovan. "This funding will provide Marshalltown the tools it needs to create affordable housing for lower
income families so they can share with the broader revitalization of their downtown."

Marshalltown will use the funds to construct 28 affordable rental units in a reconfigured Iowa Wholesale building that is currently vacant. Both covered and uncovered parking will also be built for residents of the new community.

These grants are issued through HUD's HOPE VI Main Street program that allows small towns include affordable housing in their ongoing effort to revitalize older, downtown business districts. A portion of HOPE VI funds are set aside to create the Main Street program for small communities that does not have a local housing authority or has
one that manages less than 100 public housing units. The funds are used to rehabilitate or construct affordable housing in the area where rejuvenation has already begun.

Also receiving 2009-2010 Main Street funding are Hawkinsville, Georgia; Coamo, Puerto Rico; Martin, South Dakota;
Kit Carson, Colorado; and Wrangell, Alaska.

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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 and espanol.hud.gov.