HUD AWARDS $2.2 MILLION IN RURAL HOUSING & ECONOMIC
DEVELOPMENT FUNDS TO 8 ORGANIZATIONS IN ALASKA, OREGON & WASHINGTON

SEATTLE - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $2,207,304 to eight organizations in Alaska, Oregon and Washington to stimulate economic development, create jobs and produce more affordable housing 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. In the Northwest, organizations will use their awards to, among other things, establish micro-loan and business development programs, expand a seafood company, increase the inventory of affordable housing, establish
a tribal tourism program and start a construction company.

"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."

HUD 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.

The award amounts to organizations in the Northwest are:

Northwest organizations will use their RHED awards in the following ways.

• The Organized Village of Kasaan in Ketchikan, AK will use its award to complete Phase II of its project to develop the capacity to provide a full array of tourism related services in their area.

      
• The Chilkoot Indian Association in Haines, Alaska, will use its award to develop a microloan program to support businesses and business start-ups in the Haines, Borough.

      
• The Ketchikan Indian Community in Ketchikan, Alaska will use its award to create an Economic Development Department and Business Office to train tribal members in business practices and foster entrepreneurship by creating a microloan program.

      
• The Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians in Coos Bay, OR will use its award
  to assist in a revolving loan funds in the start-up of a tribally-owned construction company.

      
• The Makah Tribe in Neah Bay, WA will use its award to develop homeownership opportunities through the construction of 77 homes in Sail River Heights.

      
• The Lummi Indian Nation in Bellingham, WA will use its award to a site for processing, sales and distribution seafood products, as well as create a marketing plan, engage in product development, test market, and advertise the products and create a system whereby members can use the communal infrastructure and brand to the fullest advantage.

      
• The Spokane Tribe of Indians in Wellpinit, WA will use its award to provide critical economic development and entrepreneurship opportunities and training for low income and unemployed tribal members, including economic opportunities related to "green" business enterprises and small scale child care providers.

      
• The Quinault Indian Nation in Taholah, WA will use its award to expand private business development, asset-building and financial literacy on the Reservation and among tribal members.

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 espanol.hud.gov.

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