HUD AWARDS $24.6 MILLION IN GRANTS TO REDEVELOP BROWNFIELDS
AND TO CREATE THOUSANDS OF JOBS IN 17 COMMUNITIES
City of Seattle receives grant and loan guarantee to stimulate revitalization and employment

WASHINGTON - A metal scrap yard, a landfill and contaminated industrial sites will soon become hotels, office buildings and even a high tech silicon wafer factory because of $24.6 million in grants and nearly $119 million in loan guarantee assistance announced today by Housing and Urban Development Secretary Alphonso Jackson. The city
of Seattle will receive a total of $2 million in grants and $10 million in loan guarantees as part of today's announcement.

The grant funding is provided through HUD's Brownfields Economic Development Initiative (BEDI) to 17 communities and is expected to stimulate nearly 7,000 jobs. In addition to the grant funding and loan guarantees, these abandoned, underutilized and contaminated areas will benefit from $49 million in other public and private investment.

"Today we join local communities to make another investment in areas some may have forgotten," said Jackson. "Together, we will not only breathe new life into these distressed areas, we will restore economic vitality in surrounding neighborhoods and create thousands of jobs for those who live there."

The funding and the guaranteed loan assistance announced today help local governments to redevelop abandoned, idle or underutilized facilities where redevelopment is complicated by environmental contamination. By combining grants with a low-interest guaranteed-loan program, HUD helps communities to convert abandoned or underutilized sites into useful commercial and industrial developments, thereby increasing the area's tax base and creating new
job opportunities where none existed.

Often perceived as unproductive eyesores in their communities, these brownfields hold tremendous potential as
sites for community revitalization. Many of these brownfield sites are strategically located in or around key areas
and were, in many cases, the economic centers of their communities. Redevelopment of these sites is both a challenge and an opportunity and returning them to productive use can serve as a catalyst for local economic recovery. Complex financial, legal and environmental risks and uncertainties are some of the biggest barriers to
owners and developers.

Since 1998, HUD has made an investment of more than $177 million in BEDI grants and $845 million in companion Section 108-guaranteed-loans in 137 communities. These funds have leveraged another $1.1 billion in other public
and private funds.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; 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 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.

The City of Seattle will receive $2 million of BEDI funds and $10 million in Section 108-guaranteed loan funds to establish a brownfields loan fund to assist in the redevelopment of brownfields throughout the city. Since 2002,
the city has administered a brownfields loan fund with previous BEDI and Section 108 loan funds, providing more
than $12.9 million in assistance to five brownfield redevelopment projects in the Pioneer Square district. The city
estimates the creation of 350 new jobs as a result of this new award. The BEDI grant will be used as a loan loss reserve and to reduce the interest on Section 108-financed loans from the fund. The Section 108 loan will be used
for loans to assist in the redevelopment of brownfield sites. Contact: Karin Zaugg (206) 733-9810.

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NOTE TO EDITORS: Detailed project summaries can be found at www.hud.gov/news/index.cfm.