BUSH ADMINISTRATION AWARDS $1,734,000 TO BOOST ECONOMIC DEVELOPMENT AND JOB GROWTH IN RURAL KENTUCKY
Funds will help produce affordable housing in Kentucky

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced $1,734,000 in grants to help more than one hundred rural communities in 36 states stimulate local economies, produce more affordable housing and boost job growth. The funding is provided through HUD's Rural Housing and Economic Development Program (see attached list).

In addition, these grants are expected to generate nearly $48 million from other public and private sources to
further promote economic development and employment.

Rural Housing and Economic Development grants help pay for land acquisition, new home construction, housing demolition, infrastructure improvements and construction training. Other possible uses include homeownership and financial counseling; financial assistance to homeowners, businesses and developers; creating microenterprises and small business incubators; and, establishing lines of credit or revolving loan pools to benefit the local business community.

Rural non-profit organizations, federally recognized Native American tribes, community development corporations
and state agencies will administer these grants. The funding will help 105 rural communities to build and improve affordable housing, create jobs and generate community and economic development (see attached list).

Rural communities will use this funding as seed money to pay the start-up costs for housing or economic
development projects. These grants will also help organizations to hire and train their staffs, develop strategic
plans and acquire office space and other needed facilities.

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 as
well as 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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