HUD AWARDS $900,000 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN SOUTH DAKOTA
Grants will help 3 rural housing and development programs in the state

SIOUX FALLS - Housing and Urban Development Secretary Alphonso Jackson today awarded $900,000 in grants to three rural communities in South Dakota to stimulate economic development, create jobs and produce more
affordable housing. Grants were awarded to the Lakota Fund in Kyle, the Oglala Sioux Tribe Partnership for Housing
in Pine Ridge, and the Northeast South Dakota Community Action Program in Sisseton. The funding is provided
through HUD's Rural Housing and Economic Development Program (see attached summary).

"Today we make another investment in our nation's heartland," said Jackson. "This funding will help stimulate
critically needed business development and that ultimately means jobs in these rural communities. These grants and the private investment they help to leverage will also produce more affordable housing opportunities for working families across this great country."

Rural Housing and Economic Development 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.

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.

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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

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Northeast South Dakota Community Action Program in Sisseton will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The Northeast South Dakota Community Action Program (NESDCAP) mission is to be responsive to the needs of lo-income residents and serve as an advocate and vehicle for community interests and concerns in the geographic area. NESDCAP will use the RHED funds to provide assistance through the housing loan fund for at least 17 individuals/families at an average of $15,000 per loan. Housing counseling services, training in the area of financial management will also be funded through RHED funds.
The proposed leveraging amount is $667,700.

Oglala Sioux Tribe Partnership for Housing in Pine Ridge will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The Oglala Sioux Tribe Partnership for Housing in Pine Ridge will use funds to address housing needs on Pine Ridge through a comprehensive approach that focuses on strengthening homeownership and credit counseling efforts; constructing an affordable, energy-efficient model home; and providing affordability subsides to mortgage borrowers. The proposed leveraging amount is $150,000.

The Lakota Fund in Kyle will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The Lakota Funds will use these funds to start a revolving loan fund for first time homebuyers and entrepreneurs who are starting businesses on the Reservation. Their target group will be their tribal reservation. The proposed leveraging amount is $268,900.