HUD AWARDS $1.8 MILLION FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL TEXAS
Brownsville, McAllen, El Paso, San Elizario, San Juan, Raymondville Receive Grants

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today awarded announced the award
of $1.8 million in grants to six rural communities in Texas to stimulate economic development, create jobs and
produce more affordable housing. The funding is provided through HUD's Rural Housing and Economic Development Program (see attached list for amounts and grants summaries).

Nationally, $16.8 million in grants was awarded to 56 communities in 23 States, and together, these rural
communities are expected to generate more than $35 million from other public and private sources to further
promote economic development and employment.

"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.

Community Development Corporation of Brownsville will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The award will be used to fund loans under three different loans programs: Rural and Colonia Loan Program; the Affordable Housing Loan Program; and the Mutual Self Help/Bootstrap Housing Program. The proposed leveraging amount is $705,865.
Contact: Donald Currie
901 East Levee, Brownsville, TX 78520
Telephone Number: (956) 541-4955

Community Development Corporation of South Texas in McAllen will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The RHED funds will be used to capitalize the
Hidalgo County Affordable Housing Mortgage Fund. The Community Development of South Texas proposes to finance 20 affordable mortgages to low-income families. The proposed leveraging amount is over $2 million.
Contact: Robert A. Calvillo
1420 Erie Street, McAllen, TX 78501
Telephone Number: (956) 664-0158

El Paso Empowerment Zone Corporation in El Paso will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The El Paso Empowerment Zone Corporation is a collaborative partnership of four non-profit organizations and the University of Texas at El Paso's Center for Environmental
Resource Management targeting homeownership for 8 low-income Colonia households in and around the rural community of Tornillo, Texas. The award will be used to construct 8 family housing units, utilizing local residents
while enhancing their income and training experience. The proposed leveraging amount is $2.5 million.
Contact: Phyllis Rawley
201 E. Main Drive, Suite 603, El Paso, TX 79901
Telephone Number: (916) 351-1680

Organizacion Progresiva de San Elizario (OPSE) in San Elizario will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. OPSE has a self-help housing program that has produced solar passive adobe homes for residents in the region. The organization will add to their model pilot
program by acquiring additional land for their model subdivision. Eighteen low-income families will build their own new adobe homes in this subdivision using the self-help approach. The proposed leveraging amount is $180,000.
Contact: Antonio Araujo
1444 Main Street, San Elizario, TX 79849-0423
Telephone Number: (915) 851-0000

Proyecto Azteca in San Juan will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The award will be used as leverage for their project to construct 25 new affordable homes with the Colonia The funds will also be used for new homeownership counseling, financial literacy classes as part of their new Self-Help New Construction Program. The proposed leveraging amount is $703,125.
Contact: David A. Garza
P.O. Box 27, San Juan, TX 78589
Telephone Number: (956) 702-3307

Willacy County Industrial Foundation, Inc. in Raymondville will receive a Rural Housing and Economic Development Innovative grant award in the amount of $300,000. The award will be used to renovate 5,000 square feet of the commercial building and dedicate the office spaces to the New Raymondville Small Business Incubator Program. The purpose of the small business incubator program is to encourage small business development and create new jobs in the community. The proposed leveraging amount is $270,278.
Contact: Carlos Mondragon
143 South 7th Street, Raymondville, TX 78580-2516
Telephone Number: (956) 607-9925

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