HUD No. 04-0713IN
(312) 353-6236 ext. 2666
July 13, 2004
BUSH ADMINISTRATION ANNOUNCES $4.1 MILLION TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN MINNESOTA
HUD grants targeted for lower income persons and families in St. Paul and Ramsey County
MINNEAPOLIS - The City of St. Paul and Ramsey County will receive more than $4.1 million in federal funding to stimulate their local economies, produce more affordable housing and provide downpayment assistance to lower income families.
"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said 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:
- $1,286,000 in Community Development Block Grant (CDBG) funds for Ramsey County;
- $2,539,044 in HOME Investment Partnerships (HOME) funding for St. Paul; and,
- $280,227 in American Dream Downpayment Initiative funding for St. Paul.
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.
The American Dream Downpayment Initiative (ADDI) aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time
homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created
to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.
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