BUSH ADMINISTRATION ANNOUNCES NEARLY $2.4 MILLION TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN MUNCIE
HUD grants targeted for lower income persons and families

INDIANAPOLIS - The City of Muncie is receiving nearly $2.4 million in funding from the Department of Housing and Urban Development to stimulate its local economy and produce more affordable housing.

"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said HUD Secretary Alphonso 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."

The funding announced today includes 1,697,000 in Community Development Block Grant (CDBG) funds and
$696,933 in HOME Investment Partnerships (HOME) funding.

For the past 30 years, HUD's Community Development Block Grant (CDBG) Program has awarded over $100 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.

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 and espanol.

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