HUD AWARDS A $3,694,540 GRANT TO THE HOUSING AUTHORITY OF OLIVE HILL TO REPLACE HOUSING DAMAGED BY FLOODING

LOUISVILLE - The U.S. Department of Housing and Urban Development today awarded the Housing Authority of
Olive Hill a total of $3,694,540 to assist in the replacement of 50 public housing units damaged by the flood of
May 5, 2003.

The funding, which is to be provided over a two-year period, will be used to build new housing units that will
replace the Hydreco Village housing complex located next to Tygart Creek. Hydreco Village has been flooded three times since 1997.

Federal and state regulations require that substantially damaged units (beyond 50 percent of market value) be brought into compliance with floodplain management requirements as a prerequisite for issuing repair permits. HUD approved the replacement grant, as it was determined that there is no feasible way to bring the existing complex
into compliance with the requirements.

The new units will be built at other locations throughout Olive Hill using the HUD grant, insurance proceeds, FEMA funding and Housing Authority capital grant and operating funds. In all, the Housing Authority of Olive Hill has approximately $5 million available for replacement of the units.

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