HUD AWARDS $300,000 IN GRANT TO PROMOTE AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN VIRGINIA'S RURAL COMMUNITIES
Grants for rural and tribal communities to address housing, poverty and jobs

RICHMOND - The U.S. Department of Housing and Urban Development today awarded $300,000 to the National
Council on Agriculture Life & Labor Research Fund (NCALL) to address distressed housing conditions and concentrated poverty. HUD Secretary Shaun Donovan said the grants from HUD's new Rural Innovation Fund promote an "entrepreneurial approach" to affordable housing and economic development in rural Virginia.

"Rural America is vast and diverse, and different communities face different challenges and opportunities," said Donovan. "Because there is no 'one-size-fits-all' approach to strengthening rural communities, this funding provides flexible resources to address either housing or economic development needs, or both. This is especially important for communities that may have more limited access to resources because of their distant locations. These are catalytic projects that will have an impact on their communities for generations to come."

NCALL in Dover, Delaware will receive a Rural Innovation Fund Single Purpose grant in the amount of $300,000 to facilitate development of apartment units and homes for first-time homebuyers in Accomack and Northampton Counties on Virginia's Eastern Shore. The project will support the continuation of the area's first homeownership education program, which provides pre-purchase, financial literacy, and foreclosure prevention services. This unique approach to both the supply and demand side of affordable housing in this designated "difficult to develop" area will yield practical solutions, project momentum, and provide a successful transition through pre-development, financing, construction, and sales or rent-up. NCALL will partner with the Accomack-Northampton Planning District Commission (A-NPDC) and their Housing Alliance and Housing Authority.

"HUD is delivering on its commitment to strengthen Virginia's Eastern Shore with this grant," said HUD Regional Administrator Jane C. W. Vincent. "We want to improve the supply of affordable housing for rural communities in Virginia that will increase the quality of life for those who work in the agricultural, tourism and retail industries that service the local communities and the state economy."

HUD's new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities in 20 states throughout the country. HUD received 307 applications for over $236 million, almost 10 times the amount available. Eligible applicants were federally recognized Indian tribes, state housing
finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support a variety
of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

HUD awarded Rural Innovation Fund grants in three categories nationwide:

• Comprehensive Grants - 7 Comprehensive grants nationwide, in which grantees have examined the
  social, housing and economic needs and resources of their target areas and made proposals that address
  these needs through activities that will have sustained benefit and resources after HUD assistance is used.
  The maximum grant amount was $2,000,000 for this category.
   
• Single Purpose Grants - 31 Single Purpose grants nationwide, for more targeted initiatives, which
  typically focus primarily on either housing or economic development. The maximum award amount was
  $300,000 for this category. Virginia received one single purpose grant.
   
• Economic Development and Entrepreneurship for Federally Recognized Tribes - 8 Indian Economic Development and Entrepreneurship grants nationwide, awarded from $5 million set aside for applications for federally recognized Indian tribes. The maximum award amount was $800,000 for this category.

Highlights of the Awards include:

• 19 states are represented among the service areas, including Virgina.
   
• 27 awardees - over half - are tribes or tribal affiliates nationwide. Tribal organizations were competitive in all categories under the NOFA.
   
• 789 housing units are proposed for low income beneficiaries nationwide.
   
• 655 total jobs will be created through activities assisted by the grants nationwide. Jobs include 178 construction jobs and 460 permanent jobs nationwide.
   
• Grantees have proposed to leverage over $18 million in other funds for their respective projects.

Read complete grant summaries for each grant announced today nationwide on HUD's website.

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