BUSH ADMINISTRATION ANNOUNCES $12,445,803 TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN UTAH
HUD grants targeted to lower income persons and families in need

UTAH - The State of Utah will receive nearly $12.5 million in funding from the Department of Housing and Urban Development to stimulate its economy, produce affordable housing, help the homeless, and assist families and individuals with HIV/AIDS. HUD Secretary Alphonso Jackson said the funding represents another investment in improving the living conditions for Utah's lower income families.

"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said Jackson. "These funds will serve as a catalyst for low-income families trying to cross the threshold into homeownership and reinforces our commitment to rebuilding entire communities."

The funding announced today includes four significant grants:

• $7,526,622 in Community Development Block Grant (CDBG) funds;
• $4,211,827 in Home Investment Partnerships (HOME) funding;
• $587,354 in Emergency Shelter Grant (ESG); and,
• $120,000 for Housing Opportunities for Persons with AIDS (HOPWA).

For the past 30 years, HUD's Community Development Block Grant (CDBG) Program has awarded over $100 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most popular programs. The rehabilitation of affordable housing has traditionally been the largest single use of the grants although CDBG is also an important catalyst for job growth and business opportunities. CDBG funds are distributed by formula around the country based on a community's population, income levels, poverty rates and the age of its housing stock. The State of Utah will be utilizing approximately 30% of their 2004 CDBG funds for projects that are either culinary water development based or on making secondary (irrigation) systems work. Other CDBG funded projects include, Senior Centers, Youth and Child Care Centers, parks and Recreation, and Accessibility Projects for the disabled.

HOME (HOME Investment Partnerships Program) is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have committed to produce nearly 785,000 affordable housing units, including almost 300,000 for new homebuyers purchasing their first home. In addition, over 100,000 tenants have received direct rental assistance.

In the State of Utah HOME program funds continue to be integrated into the Olene Walker Housing Loan Fund and leveraged to the maximum extent possible. The State's goal is to create additional housing. The State's highest priority is to promote the production of large unit (three and four bedroom) apartments opportunities for lower income people.

Emergency Shelter Grants (ESG) help local communities to meet the basic shelter needs of homeless individuals and families. These grants also provide transitional housing and a variety of support services designed to move the homeless away from a life on the street toward permanent housing. This block grant program, in concert with more than $1 billion HUD awards by competition, helps thousands of local homeless assistance programs to help those who would otherwise call the streets their home. The Department of Community and Economic Development, Division of Community Development, State Community Services Office (SCSO) administers the Emergency Shelter Grant (ESG) program. The SCSO programs also administer the state's Homeless Trust Fund, Critical Needs Housing, and the Emergency Food Network programs.

HUD's Housing Opportunities for Persons with AIDS (HOPWA) grants are distributed based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care. A stable home environment is a critical component for low-income persons managing complex drug therapies and potential side effects from their treatments.

The HOPWA Program is coordinated through the State HIV/AIDS Housing Steering committee (SHAHSC). SHAHSC is a statewide body of housing advocates, providers, and consumers. Projects have included short-term rental assistance and/or emergency assistance for rural areas except in northern and southwestern rural Utah. Housing information, referrals, and placement services are also provided.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, 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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