HUD AWARDS HUGO $300,000 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT

OKLAHOMA CITY - U.S. Housing and Urban Development Secretary Steven Preston today awarded $16.9 million to
60 rural housing programs across the country to stimulate economic development, create jobs and produce more affordable housing. Included in the funding announced today was a grant of $300,000 to Little Dixie Community
Action Agency, Inc. in Hugo.

The funding is provided through HUD's Rural Housing and Economic Development Program. Little Dixie was the only RHED grantee in Oklahoma.

"HUD is deeply invested in promoting affordable housing and community development throughout rural America," said Preston. "These grants will stimulate the kind of employment, economic growth, and housing development that will have a direct impact on working families in our rural communities."

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. In addition to the funding announced today, rural communities are expected to generate nearly $59 million from other public and private sources to promote economic development and employment.

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 $223 million, creating/training more than 35,000 jobs, assisting nearly 5,500 businesses and
producing 14,000 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.

Little Dixie Community Action Agency will use its $300,000 RHED grant to provide support for eight energy efficient homes, a homeownership and economic development training center, job creation, and small businesses for low
income residents in Idabel and McCurtain counties. Partners for this project are LDCAA and Bryan Nichols Construction. The proposed leveraging for this project is $308,358. Contact: Rhonda Teague, (580) 326-3351.

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