HUD AWARDS $1.2 MILLION FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL TEXAS
Carrizo Springs, El Paso, New Caney and San Juan Receive Grants

FORT WORTH - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded a total of $1.2
million to four grantees 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. The grants announced today are part of $25 million HUD is awarding to 85 rural housing programs throughout the country. The grantees and amounts follow.

"These grants will create jobs and produce critically needed affordable housing throughout rural areas of our country that are desperate for both," said Donovan. "We are committed to an economic recovery that is sustainable and reaches every corner of our country, including rural communities that are so important to our nation's economic health."

Neighborhood Housing Services of Dimmit County, Inc. in Carrizo Springs will use its $300,000 RHED grant to construct up to five affordable homes in several Colonias; for fair housing training and counseling; homeownership training; and credit counseling. These projects will also provide additional employment opportunities for construction workers in the area. It is estimated that more than 15 workers will be hired by the NHSDC, Inc. The proposed leveraging for this project is $410,000. Contact Person: Manuel Estrada, (803) 876-5295 ext. 105.

Motivation Education and Training, Inc. in New Caney will use its $300,000 RHED grant to renovate or replace
10 homes in Maverick County owned by low-income farmworkers, benefitting 38 low-income household members.
A total of 30 farmworkers, including owners of the homes to be repaired or replaced, will also be trained in building skills and green building techniques to improve opportunities for higher paying construction jobs, helping 24 to obtain new jobs. Energy efficiency measures will be incorporated on at least seven homes. Training will occur through
classes offered by Southwest Texas Junior College. Partners in this project include Southwest Texas Junior College and the Workforce Center. The proposed leveraging for this project is $153,000. Contact Person: Francisco Esparza, (281) 689-5544.

Upper Rio Grande Workforce Development Board in El Paso will use its $300,000 RHED grant to provide support
for the development of a regional job training center and small business incubator. The regional job training center
will house career and technical instruction and apprenticeship programs in the construction trades and other high skilled, demand occupations. The facilities design of the initiative includes developing a site which would
accommodate a multi-purpose facility surrounded by six classrooms. The incubator will provide training, counseling
and office and production space for developing small businesses. Partners in this project include the Upper Rio
Grande Workforce Development Board and Development Corporation of Presido. The proposed leveraging for this project is $255,000. Contact Person: Dennis McEntire, (432) 229-3275.

Proyecto Azteca Inc. in San Juan will use its $300,000 RHED grant to support the construction of 12 new
affordable homes and the purchase of four lots, with the assistance of the Colonia residents along the Texas-Mexico border, using the self-help construction method. Proyecto Azteca incorporates new homeownership counseling and financial literacy classes and economic development as important elements to the program. The proposed leveraging for this project is $465,500. Contact Person: Saul Villarreal, (956) 702-3307.

Rural Housing and Economic Development (RHED) grants support 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.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, State housing finance agencies and/or local economic development agencies. Since 1998, RHED grants have provided nearly $250 million, creating/training more than 41,000 jobs, assisting nearly 6,300 businesses and producing nearly 16,000 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.

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HUD is the nation's housing agency committed to sustaining homeownership; 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.