HUD AWARDS FUNDING FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL MAINE
$16.8 million in Rural Housing and Economic Development grants awarded nationwide

The U.S. Department of Housing and Urban Development has awarded $899,992 to rural housing programs in Orono, Bangor and Old Towne, Maine to stimulate economic development, create jobs and produce more affordable housing. The funding is part of $16.8 million in grants provided through HUD's Rural Housing and Economic Development
Program nationwide (see attached list of grantees and project summaries in Maine).

In addition to the HUD grants announced today, the grantees are expected to generate more than $4.3 million from other public and private sources to promote economic development and employment.

"These grants will go a long way toward producing more affordable housing in rural communities across our country," said HUD Secretary Alphonso Jackson. "HUD funding, and the private investment these grants will generate, will
offer more than just an affordable home to working families in rural areas. These grants will trigger economic development and breathe new life into rural neighborhoods that are desperate to grow."

Rural Housing and Economic Development (RHED) 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.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally
recognized Indian tribes, State housing finance agencies and/or local economic development agencies. RHED grants have provided nearly $190 million, creating more than 12,000 jobs, assisting nearly 8,200 businesses and producing nearly 20,000 affordable homes.

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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet
and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

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HUD Rural Housing and Economic Development Grants Maine

Orono: Four Directions Development Corporation - $299,992
This award will assist the applicant in providing Green and Affordable homeownership training; 8 residents submit
loan applications; and the funding will be used to provide loans to build, purchase, or renovate homes to be more environmentally sustainable and energy efficient. The applicant has a population of fewer than 2500. Partners for
this project are the Episcopal Justice and Community Development and the Penobscot Indian Nation Housing Authority. The proposed leveraging for this endeavor is $260,000. Contact: Ms. Susan Hammond, (207) 866-6545.

Bangor: Penquis CAP - $300,000
This award will assist the applicant in creating appreciating assets for 12 mobile home owners. The applicant has
a population fewer than 2,500 inhabitants. Partners for this project are Main Stream Finance, Penquis CAP, Inc.,
Tri-County Technical Center, the Town of Brownville Regional Community, and the Development Program. The proposed leveraging for this endeavor is $241,952. Contact: Mr. Michael Bush, (207) 973-3545.

Old Town: Penobscot Indian Nation - $300,000
This award will assist the applicant in constructing 12 new housing units for low-to-moderate income residents. Penobscot Indian Nation has a population fewer than 2,500 inhabitants and is a Federally Recognized Indian Tribe. Partners for the project are the Nation's Housing Authority and BIA Road Funds. The proposed leveraging for this endeavor is $3,878,516. Contact: Mr. Craig Sanborn, (207) 817-7372.

NOTE: For information on projects or grants, please contact the grantee. For information on the Rural Housing and Economic Development Grant, or other HUD programs and services, please contact Kristine Foye at (617) 994-8218.