HUD ANNOUNCES $2.9 MILLION IN COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING IN HARRISBURG

PHILADELPHIA - U.S. Housing and Urban Development Secretary Shaun Donovan today announced Harrisburg will receive more than $2.9 million to support community development and produce more affordable housing. HUD's annual funding will also help find homes for individuals and families living on the streets and provide permanent housing for individuals living with HIV/AIDS.

"This funding provides the building blocks needed to improve communities," said Donovan. "Now, more than ever,
these grants promote neighborhood development, produce affordable housing, and help extremely low-income
persons find their place in their communities."

"This multi-million dollar investment will help revitalize Harrisburg communities and provide access to affordable
quality housing," said Mid-Atlantic Regional Administrator Jane Vincent. "The funding also provides supportive
services to help homeless people and families get off the streets and back on their feet."

The funding announced today includes:

• $ 2,251,631 in Community Development Block Grant (CDBG) funds;
• $    625,932 in HOME Investment Partnerships (HOME) funding;
• $     91,268 in Emergency Shelter Grant (ESG).
  $2,968,831 TOTAL

Since 1974, HUD's Community Development Block Grant (CDBG) Program has provided approximately $132 billion to state and local governments to target their own community development priorities. The rehabilitation of affordable housing and the improvement of public facilities have traditionally been the largest uses of CDBG although the
program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed
to communities according to a statutory formula based on a community's population, poverty, and age of its housing stock, and extent of overcrowded housing.

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 completed nearly 950,000 affordable housing units, including 403,000 for new homebuyers. In addition, 224,000 tenants have received direct rental assistance.

Emergency Shelter Grants (ESG) provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also
provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.

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