HUD AWARDS BROWNSVILLE AND EL PASO $600,000 FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT

FORT WORTH - U.S. Housing and Urban Development Secretary Steven Preston today awarded $16.9 million to 60 rural housing programs across the country to stimulate economic development, create jobs and produce more affordable housing. Included in the funding announced today were grants, in the amount of $300,000 apiece, to the Community Development Corporation of Brownsville and the La Fe Community Development Corporation in El Paso.

The funding is provided through HUD's Rural Housing and Economic Development Program.

"HUD is deeply invested in promoting affordable housing and community development throughout rural America," said Preston. "These grants will stimulate the kind of employment, economic growth, and housing development that will have a direct impact on working families in our rural communities."

Rural Housing and Economic Development (RHED) 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 micro enterprises and small business incubators; and establishing lines of credit or revolving loan pools to benefit the local business community. In addition to the funding announced today, rural communities are expected to generate nearly $59 million from other public and private sources to promote economic development and employment.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, State housing finance agencies and/or local economic development agencies. RHED grants have provided nearly $223 million, creating/training more than 35,000 jobs, assisting nearly 5,500 businesses and
producing 14,000 affordable homes.

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.

Community Development Corporation of Brownsville will use its $300,000 RHED grant to support the provision
of ten homes in rural areas with a population of less than 20,000. This project's target area is located within a designated colonial. Partner for this project is Rio Grande Valley Multibank, and the proposed leveraging for this project is $930,000.; Contact: Nick Mitchell-Bennett, (956) 541-5455.

La Fe Community Development Corporation in El Paso will use its $300,000 RHED grant to rehabilitate five
houses and train 20 people. This project will equip youth with construction skills. Partners for this project include Centro de Salud Familiar La Fe Inc., ACCION Texas, and El Paso Collaborative. The proposed leveraging for this
project is $92,640. Contact: Carlos Gallinar, (915) 545-7230.