CUOMO ANNOUNCES $42 MILLION IN HUD FUNDS FOR SAN BERNARDINO COUNTY

New Public-Private Partnership to Revitalize Communities

SAN BERNARDINO, CA - During a visit to San Bernardino this weekend as a guest of U.S. Congressmen George Brown and Jerry Lewis, Housing and Urban Development Secretary Andrew Cuomo today announced more than $42 million in new economic development funds for San Bernardino County and the successful completion of a landmark public-private partnership to provide quality, affordable housing in the community.

"Congressmen Lewis and Brown are working in partnership with HUD to strengthen housing and community development programs in California and around the nation," Cuomo said. "I'm glad to have the opportunity to come to San Bernardino to learn more about the challenges facing this area and to be a part of the changes revitalizing the community."

Secretary Cuomo delivered checks to community officials totaling $27 million in Consolidated Plan funds for housing and economic development projects in San Bernardino County, San Bernardino City, Ontario, Fontana, Rialto, Rancho Cucamonga, Upland, Apple Valley and Chino. The Consolidated Plan funds are part of more than $281 million in HUD grants for 55 cities and counties in Southern California.

San Bernardino communities recently won several John J. Gunther Blue Ribbon "Best Practices" awards for outstanding management of programs funded by HUD.

In addition to the $27 million in Consolidated Plan funds, Secretary Cuomo also praised an historic agreement for a $15 million Neighborhood Initiative partnership that will allow local governments and the private sector to work together to rehabilitate homes and provide quality, affordable housing. Under the cooperative agreement worked out between HUD, San Bernardino County, San Bernardino City, Redlands and Highland, local governments will work with the private sector to rehabilitate and sell foreclosed homes to new homeowners in targeted neighborhoods with a high concentration of Federal Housing Administration (FHA) properties.

The Neighborhood Initiative agreement calls for participating localities to invest at least $10 million in government funds. Together, all HUD and local government agency funds to be invested are expected to leverage up to an additional $100 million in private sector investments by local banks and contractors. The County and participating cities will target specific blocks within areas that have a significant concentration of FHA-owned, foreclosed properties. HUD will sell all properties to participating local government agencies at a price equal to 80 percent of the appraised value. HUD also will provide a further discount of $2,500 per home when participating agencies purchase a group of ten or more properties at one time.

"This is a ground breaking agreement that will serve as a national model for revitalization of communities in distressed urban areas with a high concentration of foreclosed properties," Cuomo said. "Everyone involved is making a serious commitment to the community and backing up that commitment with investments. Community leaders are doing an excellent job working in partnership with HUD. We have forged an unprecedented alliance that gives local government agencies and their non-profit partners the flexibility and control they need to build stronger, healthier neighborhoods."

Also during his visit to San Bernardino County, Cuomo announced a $250,000 Economic Development Initiative (EDI) grant for the Inland Empire Business Incubator program at Norton Air Force Base. EDI grants finance job creation, housing rehabilitation and construction of public facilities and large-scale development projects. The Inland Empire Business Incubator aims to foster new jobs for the region and replace the 10,000 jobs lost when Norton AFB closed. The Incubator offers shared space and access to resources, along with consulting and support services such as assistance with marketing and financing. To date 23 small businesses have established operations within the current facilities.

Congressman Lewis is Chairman of the House Appropriations Subcommittee which funds HUD programs, including Consolidated Plans, Neighborhood Initiatives and EDI grants.

"These funds will go toward community-based solutions to the housing and economic development challenges facing San Bernardino County communities," Cuomo said. "We are funding a comprehensive strategy to create jobs and affordable housing, help homeless people become self-sufficient and increase homeownership."

Under HUD's 1998 Consolidated Plans for community development funding, assistance approved for San Bernardino County and communities in the County is as follows:

• San Bernardino County -$12.6 million, including $8.6 million in Community Development Block Grant funds; $3.7 million under the HOME Investment Partnership program; and $313,000 from HUD's Emergency Shelter Grant program. These funds will be used for affordable housing programs to improve accessibility, preservation and revitalization.

• San Bernardino City - $5.6 million, including $3.8 million in Community Development Block Grant funds; $1,646,000 under the HOME Investment Partnership program; and $152,000 through the Emergency Shelter Grant program. These funds will be used for affordable housing programs and to provide shelter and support services for the homeless.

• Ontario - $3.3 million, including $2.4 million in Community Development Block Grant funds; $715,000 under the HOME Investment Partnership Program; and $97,000 through the Emergency Shelter Grant program. These funds will be used to help families become homeowners, retain affordable housing and extend partnerships in government.

• Fontana - $1.8 million, including $1.4 million in Community Development Block Grant funds and $402,000 under the HOME Investment Partnership program for mental health programs and programs for disabled persons.

• Rialto - 1.1 million in Community Development Block Grant funds to remove barriers to affordable housing and reduce lead-based paint hazards.

• Rancho Cucamonga - $952,000 in Community Development Block Grant funds for homeless programs, among other community initiatives.

• Upland - $707,000 in Community Development Block Grant funds to improve the living conditions and opportunities for low-income renters.

• Apple Valley -- $569,000 in Community Development Block Grant funds to preserve the existing housing stock.

• Chino -- $700,000 in Community Development Block Grant funds for utility assistance, counseling, rental/shelter and food supplies.

Congressman Brown said: "I am very pleased that these federal funds will now start to flow to our region. The flexibility of these funds allows them to be used for such worthwhile activities as community-sponsored day care and after-school programs and the building and rehabilitation of parks and other facilities. The public broadly benefits from these valuable community development investments."

Congressman Lewis said: "San Bernardino County is well served by these HUD grant programs. This funding will assist in meeting the most pressing challenges of our local communities. We are continuing to develop a unique local/federal partnership that will address the critical economic development needs of our region."

San Bernardino County, San Bernardino City and Fontana recently received a total of five John J. Gunther Blue Ribbon "Best Practices" Awards for outstanding administration of HUD-funded programs. The awards honor state and local governments that do exemplary work to improve the supply of affordable housing, create jobs, strengthen local economies, fight housing discrimination, reduce homelessness, increase homeownership and accomplish other goals to improve life in America's communities.

The City of San Bernardino was named a Gunther "Best Practices" award-winner for its program to acquire, rehabilitate and resell problem properties in the City's revitalization area. San Bernardino County was named a Gunther award-winner for its work to provide decent and affordable housing for the region.

Fontana received three Gunther "Best Practices" awards for its successful to provide affordable housing for low-to-moderate income individuals; the town's Special Detail Team of law enforcers that have effectively addressed safety needs; and Fontana received a third "Best Practices" award for its streamlined, integrated information system that has enabled staff to better provide timely and accurate information.