HUD Archives: News Releases

HUD Reg. VI 09-66
Patricia Campbell
(817) 978-5974
For Release
September 3, 2009

Albuquerque, Gallup, Ohkay Owingeh and Mescalero Receive Grants

NEW MEXICO - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded a total of $1.2
million to four grantees in New Mexico to stimulate economic development, create jobs and produce more affordable housing. The funding is provided through HUD's Rural Housing and Economic Development Program. The grants announced today are part of $25 million HUD is awarding to 85 rural housing programs throughout the country. The organizations and amounts follow.

"These grants will create jobs and produce critically needed affordable housing throughout rural areas of our country that are desperate for both," said Donovan. "We are committed to an economic recovery that is sustainable and reaches every corner of our country, including rural communities that are so important to our nation's economic health."

New Mexico Mortgage Finance Authority in Albuquerque will use its $300,000 RHED grant to assist a minimum of
15 families to renovate and/or demolish and rebuild their currently dilapidated homes and to connect to a recently installed gas line. A new gas line that will enable 46 families to have access to natural gas will also be added as part of the overall project. Partners in this project include the Community Action Agency of Southern New Mexico and Tierra Del Sol Housing Corporation. The proposed leveraging for this project is $387,000. Contact Person: Debbie Davis, (505) 767-2221.

Ohkay Owingeh Housing Authority in Ohkay Owingeh will use its $300,000 RHED grant to expand its Revolving
Loan Fund (RLF), which will include: 1) a housing rehab financing product and 2) complete the creation of Chann
pee-yah. This will enable OOHA to leverage RHED funding with its retained earnings and existing CDFI technical assistance funding to offer much-needed loans for Tribal members to construct five new homes and to renovate seven existing homes. Partners in this project include Tsay Corporation, the Tribal office, Tribal Utilities, Rio Arriba County officials, local entrepreneurs and community based groups. The proposed leveraging for this project is $500,000. Contact Person: Tomasita Duran, (505) 852-0189.

Community Area Resource Enterprise in Gallup will use its $300,000 RHED grant to assist in the rehabilitation of
an old hotel built in the 1930s. Rehabilitation will focus on renovating the vacant ground floor, which will house up
to 20 homeless low-income individuals. This project will contain rooms, dorms, bathrooms, office space for services,
a dining area and a commercial kitchen. Partners working with this project will include Battered Family Services, Southwest Indian Foundation and Tohatchi Area Opportunity and Services. The proposed leveraging for this project
is $311,000. Contact Person: Sanjay Choudhrie, (505) 722-0066.

Mescalero Apache Housing Authority in Mescalero will use its $300,000 RHED grant to assist in rehabilitating 26 homes over the next two years for very low and low/moderate-income homeowners and renters and to build upon
its construction force account capacity to create a new construction department. The creation of this new construction department will enable MAHA to address the severe housing rehabilitation needs and assist in reducing the high employment rate on the reservation. The construction partner working with this project is Pavillion Construction, LLC. proposed leveraging for this project is $853,546. Contact Person: Timothy Horan,
(575) 464-9221.

Rural Housing and Economic Development (RHED) grants support 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. Since 1998, RHED grants have provided nearly $250 million, creating/training more than 41,000 jobs, assisting nearly 6,300 businesses and producing nearly 16,000 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.


Content Archived: March 23, 2011