BUSH ADMINISTRATION AWARDS RECORD $1.1 BILLION TO PROVIDE HOUSING AND SERVICES TO HOMELESS INDIVIDUALS AND FAMILIES
Federal strategy emphasizes permanent housing and intervention for most vulnerable, over $26 million awarded to New Jersey grantees

WASHINGTON - Housing and Urban Development Secretary Mel Martinez today announced the largest amount of homeless assistance in the nation's history - more than $1.1 billion to fund thousands of local housing and service programs around the country. Today's announcement signals a continuing effort by the Bush Administration to focus more resources on providing permanent housing and supportive services to the homeless including those persons
who are mentally ill, addicted or physically disabled. A total of $26,246,544 was awarded to New Jersey grantees.

"We must continue to seek effective ways to help our most vulnerable neighbors to find the housing and services
they need to break their cycle of homelessness," said Martinez. "The funding we announced today is a critical step toward ending chronic homelessness while providing a helping hand to those individuals and families to avoid a life
on the streets."

HUD's Continuum of Care and Emergency Shelter Grant programs will support more than 3,000 local programs in all
50 states, the District of Columbia, Puerto Rico and Guam. As a result, an estimated 740,000 persons will receive
the housing and services they need to become self-sufficient. For a more detailed local summary of the funding announced today, visit the press release page.

Two types of grants will be awarded:

• Continuum of Care grants provide permanent and transitional housing to homeless persons. In addition, these Continuum grants fund services like job training, health care, mental health counseling, substance abuse treatment and child care. New Jersey organizations received $22,051,544 in Continuum of Care grants.



• Emergency Shelter Grants convert buildings into homeless shelters, assist in the operation of local shelters
  and fund related social service and prevention programs. New Jersey communities received $4,195,000
  in Emergency Shelter Grants.

Most of the funding announced today, $969 million in Continuum of Care grants, is awarded through a competitive process. These grants provide each community the flexibility they need to meet the needs of their homeless clients. Continuum grants fund outreach and assessment programs at the local level as well as provide transitional and permanent housing to homeless persons and families.

By contrast, $150 million in Emergency Shelter Grants are awarded to more than 300 jurisdictions by a formula
based on that community's need. These grants assist state and local governments create, improve and operate emergency shelters for homeless people. In addition, this source of funding may also support essential services including job training, health care, drug/alcohol treatment, childcare and other homelessness prevention activities.

Approximately $105 million of the Continuum grants awarded today will renew funding of existing programs through HUD's Shelter Plus Care program which helps to pay rent and provide permanent housing for disabled homeless individuals and their families. The Shelter Plus Care program requires that HUD-funded projects help their clients live independently and provide needed supportive services from funding sources other than HUD.

Ending chronic homelessness is a primary goal of HUD's assistance programs. Research indicates that approximately
10 percent of those persons who are homeless for more than a year also suffer from mental illness, addiction or
some form of physical disability. Studies also find that this population consumes over half of the resources designed
to assist all homeless individuals and families. By shifting the federal emphasis toward meeting the needs of the most vulnerable homeless persons, more resources become available for those who experience homelessness as a
temporary condition.

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.

###