PRESIDENT CLINTON ANNOUNCES $1.5 MILLION IN RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE FOR KENTUCKY

HAZARD, KY - President Clinton today announced $1.5 million in Department of Housing and Urban Development Rural Housing and Economic Development Grants to five Eastern Kentucky organizations.

The President, HUD Secretary Andrew Cuomo and other federal officials were in Kentucky today on the first stop of the President's New Markets Tour of six urban and rural communities where unemployment is too high and jobs are too scarce. Corporate and governmental leaders are joining the President on the tour, during which he is announcing new initiatives to bring economic opportunity to these places left behind.

"The grants we're announcing today will improve housing, increase homeownership, create jobs and spark economic development in eastern Kentucky," Cuomo said. "We will give people in need in Kentucky the opportunity to build better futures by becoming participants instead of spectators in our nation's booming economy."

The grants will go to: Kentucky Highlands Investment Corporation - $461,854; Federation of Appalachian Housing Enterprises - $482,374; Kentucky Farmworkers Program - $209,519; Kentucky Mountain Housing Development Corporation - $200,000; and Pendleton County Industrial Authority -- $200,000. (See attachment).

Cuomo also announced more details of the federal government's first Appalachian Summit, scheduled for August 12-13.

HUD is coordinating the comprehensive interagency conference, which will identify housing, economic development, transportation, labor, and agricultural needs facing Appalachia and bring together representatives of government, business, community groups and others to address those needs.

Agriculture Secretary Dan Glickman, Labor Secretary Alexis Herman, and Transportation Secretary Rodney Slater are scheduled to join Cuomo in participating in the first day of the conference in Ashland, KY. The second day of the conference will be held in Huntington, WV. The Appalachian Regional Commission, and the States of Kentucky and West Virginia are also co-sponsoring the conference.

HUD's commitment to the Appalachian region and the Kentucky Highlands Investment Corporation (KHIC), which received one of the rural grants announced today, is long-standing. HUD provided $2 million in Economic Development Initiative funds in 1998 and granted tax credit status to KHIC's community development corporation in 1994, enabling KHIC to secure an additional $2 million in private sector investment. The public/private sector dollars financed the expansion or creation of a number of businesses in Jackson County.

KHIC provided financing for the Mid-South Electric Co. in Annville, KY, which President Clinton visited today. The company employs 900 people.

In addition, the Jackson County Industrial Park has used HUD funding to make infrastructure improvements to keep and attract new businesses. Some of the workers in the Industrial Park are new homeowners in the nearby Tyner Subdivision, made possible by HUD funding. This is a neighborhood built over the last three years with the help of a local non-profit group that is making homeownership possible for the working poor who wanted to move out of public housing.

Using HUD grants, the Kentucky Mountain Housing Development Corporation has built 11 houses so far in the Tyner Subdivision, with four more under construction, and also provides low-interest loans.

DETAILS OF $1.5 MILLION IN RURAL GRANTS TO KENTUCKY GROUPS

Here are details of HUD Rural Housing and Economic Development Grants in Kentucky announced today by President Clinton:

Kentucky Highlands Investment Corporation -- $461,854 to establish a program to show how Community Development Corporations can participate in creating high-skilled, high-paying jobs. The project will focus on providing reduced- risk equity financing, and creating an industry-driven job training program. This project will serve the counties of Clay, Clinton, Bell, Harlan, Jackson, McCreary, Rockcastle, Wayne and Whitley. Other resources for this project total $3,230,000.

Federation of Appalachian Housing Enterprises -- $482,374. The Federation is a regional network of community-based nonprofit housing organizations whose 29 member group serve over 80 counties within Appalachian Kentucky, Tennessee, Virginia, and West Virginia. The group will use the grant as an equity investment in its revolving home loan fund, and to strengthen a post-home ownership counseling partnership with member groups in four states.

Kentucky Farmworker Programs -- $209,519 to serve Adair, Clinton, McCreary and Wayne Counties. KFP will use the HUD funds to determine whether the housing needs of migrant and seasonal farmworkers are being adequately met in the counties and to find ways to better meet these needs. The group is a private, non-profit corporation that offers a full range of manpower and supportive services to farmworkers

Kentucky Mountain Housing Development Corporation (KMHDC) -- $200,000 to help increase the availability of affordable housing in Jackson County for the chronically poor. KMHDC has leveraged a $25,000 donation from the Diehl Foundation and $25,000 in numerous private donations. Some of the key participants in the partnership with KMHDC are the: Appalachian Regional Commission, Christian Application Project, Federation of Appalachian Enterprises, the Kentucky Housing Corporation, Red Bird Mission, Thompson Charitable Foundation, and Jackson County Fiscal Court.

The Pendleton County Industrial Authority -- $200,000. The project is the creation of the Pendleton County Economic and Community Development Center and consists of building acquisition, renovation and improvements. The Center will provide access to information, counseling and other housing services. This program will serve citizens, organizations and businesses located in Pendleton County. In-kind leveraging resources total $2,087,000 for disaster assistance, micro loans and financial resources in support of this program. Some of the key participants include: Pendleton County Industrial Authority, USDA, Rural Electric Corporation, Star Bank Corporation, Pendleton Federal Savings Bank, Farmers National Bank, Fifth Third Bank, and United Kentucky Bank of Pendleton County.

Content Archived: January 20, 2009