BUSH ADMINISTRATION DELIVERS MORE THAN $91 MILLION TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN PHILADELPHIA
HUD grants targeted to lower income persons and families in need

PHILADELPHIA - Housing and Urban Development Secretary Alphonso Jackson and Senator Arlen Specter today delivered more than $91 million in HUD assistance to Philadelphia to stimulate the City's local economy, produce more affordable housing and help homeless individuals and families. The funding will also help house and serve individuals with HIV/AIDS and will provide downpayment assistance to lower income families.

Jackson and Specter announced the funding at People's Emergency Center, a Philadelphia social service agency that provides housing and services to homeless women, teenagers and their children.

"HUD is proud to stand shoulder-to-shoulder with Philadelphia to help build better neighborhoods and encourage the American Dream of homeownership," said Jackson. "This funding demonstrates President Bush's commitment to promote community development, create more jobs, produce affordable homes and help our most vulnerable neighbors."

Specter said, "This funding is going to make a tremendous impact on Philadelphia and the lives of its disadvantaged. By enabling our disadvantaged residents to overcome homelessness and poverty we can help them realize their full potential and become more productive members of our community. I applaud the men and women who commit their time and energy to helping those less fortunate. The service and resources they provide the City of Philadelphia are invaluable."

The funding announced today includes:

• $63,067,000 in Community Development Block Grant (CDBG) funds;
• $16,994,144 in HOME Investment Partnerships (HOME) funding;
• $ 1,304,898 in American Dream Downpayment assistance;
• $ 2,332,000 in Emergency Shelter Grant (ESG); and,
• $ 7,632,000 for Housing Opportunities for Persons with AIDS (HOPWA).

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.

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.

The American Dream Downpayment Initiative (ADDI) aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time
homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created
to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. Information about this program is available on the Internet.

Emergency Shelter Grants (ESG) help local communities to meet the basic shelter needs of homeless individuals and families. These grants also 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.

HUD's Housing Opportunities for Persons with AIDS (HOPWA) grants are distributed based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many
communities develop strategic AIDS housing plans and fill in gaps in local systems of care. A stable home
environment is a critical component for low-income persons managing complex drug therapies and potential side effects from their treatments.

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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