BUSH ADMINISTRATION ANNOUNCES $29.5 MILLION TO STIMULATE ECONOMIC DEVELOPMENT AND HOUSING IN 13 VIRGINIA CITIES AND COUNTIES
Bristol, Charlottesville, Chesapeake, Danville, Fredericksburg, Hampton, Lynchburg, Newport News, Radford, Richmond, Roanoke, Suffolk and Chesterfield County Receive HUD Funds

RICHMOND, VA - Thirteen communities in Virginia will receive a total of nearly $29.5 million in federal funding to stimulate local economies, produce more affordable housing and help homeless individuals and families, Housing and Urban Development Secretary Alphonso Jackson announced today. The funding will also help house and serve individuals with HIV/AIDS and assist lower income families to purchase their first home (see attached chart).

The funding will be targeted to Bristol, Charlottesville, Chesapeake, Danville, Fredericksburg, Hampton, Lynchburg, Newport News, Radford, Richmond, Roanoke and Suffolk and Chesterfield County.

"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 Virginians trying to cross the threshold into homeownership and reinforce our commitment to
rebuilding entire communities."

Announcements of allocations for the balance of Virginia's entitlement communities - Alexandria, Blacksburg, Christiansburg, Harrisonburg, Hopewell, Norfolk, Petersburg, Portsmouth, Virginia Beach and Winchester and
Arlington, Fairfax, Henrico and Prince William counties as well as the State of Virginia - are expected later this year.

The funding is provided through five HUD programs:

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.

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.

The American Dream Downpayment Initiative (ADDI) aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time
homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created
to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. Information about this program is available at For the past 30 years, HUD's Community Development Block Grant (CDBG) Program has awarded over $108 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.

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.

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.

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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