HUD Archives: News Releases

HUD No. 04-026
Tom Friesen
(406) 449-5050
For Release
May 6, 2004

HUD grants targeted to lower income persons and families in need

HELENA, MT - The State of Montana will receive more than $13 million in funding from the Department of Housing
and Urban Development to stimulate its economy, produce more affordable housing, and help homeless individuals
and families. HUD Secretary Alphonso Jackson said the funding represents another investment in improving the living conditions for Montana's 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 three significant grants:

 in Community Development Block Grant (CDBG) funds;
 in Home Investment Partnerships (HOME) funding; and,
 in Emergency Shelter Grant (ESG).

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. Montana will devote approximately 30 percent of its CDBG to fund economic development projects, 40 percent for infrastructure and public facilities, and 20 percent for housing assistance.

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.

Hundreds of low-income Montanans experiencing long-term housing shortages will be helped in 10 Montana communities because of the nearly $5 million of HOME funding managed by the Montana Department of Commerce.
It is anticipated that these dollars will stimulate more than $18 million for housing programs from other public and private sources.

Emergency Shelter Grants (ESG) help local communities meet the basic shelter needs of homeless individuals and families. These grants provide transitional housing and a variety of support services designed to move the homeless away from a life on the street toward permanent housing. This block grant program, in concert with more than $1 billion HUD awards by competition, helps thousands of local homeless assistance programs to help those who would otherwise call the streets their home. The Montana Department of Public Health and Human Services administers
the Emergency Shelter Grant (ESG) for the state, providing vouchers for emergency housing as well as essential
food and health services for the homeless population.

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


Content Archived: June 27, 2011