HUD Archives: News Releases

HUD No. KY11-012
Deborah Knight
(502) 582-6074
For Release
August 23, 2011

Grants for rural communities to address housing, poverty and jobs

LOUISVILLE - The U.S. Department of Housing and Urban Development today awarded $1.2 million to four rural grantees in Kentucky to address distressed housing conditions and concentrated poverty. HUD Secretary Shaun Donovan said the grants from HUD's new Rural Innovation Fund promote an "entrepreneurial approach" to affordable housing and economic development in rural areas (see list of Kentucky service area grants below).

"Rural America is vast and diverse, and different communities face different challenges and opportunities," said Donovan. "Because there is no 'one-size-fits-all' approach to strengthening rural communities, this funding provides flexible resources to address either housing or economic development needs, or both. This is especially important for communities that may have more limited access to resources because of their distant locations. These are catalytic projects that will have an impact on their communities for generations to come."

HUD Southeast Regional Administrator Ed Jennings, Jr. said, "Kentucky is to be commended for strengthening its communities with these grants particularly in two key areas: jobs and housing. By training new construction workforces, including young, at-risk youth, and constructing new affordable housing, including energy-efficient housing these efforts will provide a more promising future for these rural communities for years to come."

HUD's new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities in 19 states throughout the country. HUD received 307 applications from 48 states for over $236 million, almost 10 times the amount available. Eligible applicants were federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

HUD awarded Rural Innovation Fund grants in three categories nationwide:

Comprehensive Grants - 7 Comprehensive grants nationwide, in which grantees have examined the social, housing and economic needs and resources of their target areas and made proposals that address these needs through activities that will have sustained benefit and resources after HUD assistance is used. The maximum grant amount was $2,000,000 for this category.

Single Purpose Grants - 31 Single Purpose grants nationwide, for more targeted initiatives, which typically focus primarily on either housing or economic development. The maximum award amount was $300,000 for this category. Kentucky received four single purpose grants.

Economic Development and Entrepreneurship for Federally Recognized Tribes - 8 Indian Economic Development and Entrepreneurship grants nationwide, awarded from $5 million set aside for applications for federally recognized Indian tribes. The maximum award amount was $800,000 for this category.

Highlights of the Awards nationwide include:

  • 19 states are represented among the service areas, including Kentucky.
  • 27 awardees - over half - are tribes or tribal affiliates nationwide. Tribal organizations were competitive in all categories under the NOFA.
  • 789 housing units are proposed for low income beneficiaries nationwide.
  • 655 total jobs will be created through activities assisted by the grants nationwide.

Grantees have proposed to leverage over $18 million in other funds for their respective projects.

FY 2010 Rural Innovation Fund Awards for KENTUCKY

State City Grant Type Grantee
Grant Amount
Kentucky Mayfield Single Purpose Purchase Area Housing Corporation
  Hazard Single Purpose Housing Development Alliance, Inc.
  Louisville Single Purpose Young Adult Development in Action, Inc.
  Somerset Single Purpose Southeast Kentucky Economic Development Corporation


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Content Archived: July 31, 2013