BUSH ADMINISTRATION AWARDS $764,857 TO BOOST ECONOMIC DEVELOPMENT AND JOB GROWTH IN RURAL TENNESSEE
Funds will help produce affordable housing in Tennessee

MEMPHIS - Housing and Urban Development Secretary Alphonso Jackson today announced $24.5 million in grants to help more than one hundred rural communities in 36 states stimulate local economies, produce more affordable
housing and boost job growth. The funding is provided through HUD's Rural Housing and Economic Development Program to the following recipients in Tennessee:

In addition, these grants are expected to generate nearly $48 million from other public and private sources to further promote economic development and employment.

"This investment in rural America demonstrates that this Administration's commitment to our nation's heartland is strong," said Jackson. "These grants will help rural communities across Tennessee produce affordable housing and
jobs where they're needed most."

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 non-profit organizations, federally recognized Native American tribes, community development corporations
and state agencies will administer these grants. The funding will help 105 rural communities to build and improve affordable housing, create jobs and generate community and economic development.

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 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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