CUOMO ANNOUNCES HUD WILL INSURE NEARLY $350 MILLION IN SINGLE-FAMILY HOME MORTGAGES IN THE DELTA COUNTIES OF ARKANSAS

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo announced today that the Federal Housing Administration estimates it will insure nearly $350 million in single-family home mortgages in the Delta Counties of Arkansas, not including Little Rock, over the next five years starting in 2000.

The insurance will enable an estimated 7,000 Arkansas Delta families, who might otherwise not be able to obtain mortgages, to own their own homes.

"HUD's mission is to make the dream of homeownership a reality," Cuomo said. "FHA mortgage insurance in the Delta Counties will help thousands of Arkansas families become homeowners in the coming years."

FHA, which is a part of HUD, insures loans made by private lenders to homebuyers. FHA insurance guarantees the lender timely payment of the outstanding loan balance, in the event the homebuyer defaults on the loan.

Because FHA mortgage insurance protects lenders from losses, it enables many Americans who otherwise would have been unable to qualify for conventional mortgages to receive loans and become homeowners. Over its six-decade history, FHA has made homeownership available to about 30 million families.

In addition to FHA insurance, HUD has already awarded the Delta Counties of Arkansas nearly $4.8 million in grants since President Clinton visited the region in July as part of his New Markets tour to focus attention on those areas of the country that are not fully participating in the nation's historic economic growth.

The grants went to programs that include housing counseling, job assistance, job training, drug elimination and the construction of new assisted-living facilities for low-income senior citizens and people with disabilities.

There are also a number of infrastructure development projects currently underway in the Delta Counties through the use of millions of dollars from previously awarded HUD Community Development Block Grants.

Community Development Block Grants are awarded by HUD to local governments for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, and improving community facilities and services. Some examples of CDBG-funded projects in the Delta Counties include a new public health unit in Dumas, road and sewer improvements in West Memphis and Jonesboro, and renovation of a community center in Jonesboro.

HUD GRANTS TO THE DELTA COUNTIES OF ARKANSAS

HUD Grants to the Delta Counties of Arkansas Released Since the President's New Markets Tour

Local Housing Counseling Program: Local housing counseling agencies use these grants to counsel first-time homebuyers, homeowners and renters facing financial difficulties and other housing-related problems. In addition, the organizations help people, including minorities and people with disabilities, to become more aware of homebuying opportunities. Announced August 12, 1999

• Crowley's Ridge Development Council, Inc., Jonesboro, AR,$9,136
• Universal Housing Development Corp., Russellville, AR,$18,492
• East Arkansas Legal Services, West Memphis, AR, $9,768

Family Self Sufficiency: Family Self-Sufficiency grants will go to public housing authorities in the Delta Counties to hire coordinators who will help get jobs for adults receiving HUD rental assistance. Announced October 1, 1999

• Jonesboro URHA, $25,146
• Lee Co. Housing Authority, $20,744
• Mississippi Co. PFB, $31,143
• Pine Bluff Housing Authority, $23,643
• Pulaski Co. Housing Authority, $25,604
• St. Francis Co. Housing Authority, $22,229

Youthbuild: Under this program, local governments, housing authorities and non-profit groups receive grants to give young people ages 16 to 24 on-the-job training through building and renovating affordable housing for homeless people and other low-income families. Youthbuild also provides academic training that helps young people get general equivalency high school diplomas, and provides social services and training in leadership skills. Announced October 7, 1999.

• Mid-South Community College, West Memphis, AR, $350,000.

Public Housing Drug Elimination Grants: Provides funds to public housing authorities to fight crime and drug abuse in public housing developments. Announced November 16, 1999.

• Camden Housing Authority, $117,448
• England Housing Authority, $26,613
• Forrest City Housing Authority, $98,553
• Jonesboro Urban Renewal & Housing Authority, $33,431
• Pine Bluff Housing Authority, $64,223

Multifamily Housing Drug Elimination Grants: Provides funds to privately-owned, HUD-subsidized apartment developments, to fight drug abuse and drug-related crime in the immediate surroundings of the developments. Announced November 16, 1999.

• St. John Apartments, Pine Bluff, AR, $66,637

New Approach Drug Elimination Grants: Provides funds to privately-owned, HUD-subsidized housing developments to fight drug abuse and drug-related crime in and around the neighborhoods of these developments. Announced November 16, 1999.

• Cedar Hill Apartments LP, Monticello, AR, $206,480.

Section 202 Supportive Housing for the Elderly: This program helps expand the supply of affordable housing and also provides supportive services for the elderly. These services include cleaning, cooking and transportation to allow older Americans to live as independently as possible in their own apartments. Grant recipients receive capital advances to construct, rehabilitate or acquire housing. Repayment of the capital advance is not required as long as the housing remains available for at least 40 years and is occupied by very low-income people 62 years of age or older. Eligible grant recipients include private non-profit organizations and consumer cooperatives. Announced November 19, 1999.

• North Arkansas Human Services System, Inc., DeWitt, AR, Capital Advance of $825,300; five-year rental subsidy of $176,000.
• White River Area Agency on Aging, Judsonia, AR, Capital Advance $619,000, Five-year rental subsidy of $132,000.
• White River Area Agency on Aging, Oil Trough, AR, Capital Advance $619,000, Five-year rental subsidy of $132,000.

Section 811 Supportive Housing for People With Disabilities: This program allows people with disabilities to live independently by increasing the supply of rental housing with supportive services and related facilities. As with the 202 Program, Section 811 grantees receive capital advances to construct, rehabilitate or acquire housing. Eligible residents are very low-income people with a disability. Announced November 19, 1999.

• North Arkansas Human Services System, Inc., Wynne, AR, Capital Advance of $928,500; five-year rental subsidy of $198,000.

CDBG (Community Development Block Grant) Funds At Work- in the Delta Counties

The following projects are by no means an exhaustive list, but are examples of infrastructure currently under way through the use of the Community Development Block Grant in the Delta Counties of Arkansas:

• Dumas: Desha County received a Small Cities CDBG grant for $500,000 on October 22, 1999, to build a Public Health Unit. They are currently planning to hold a ground-breaking ceremony on December 10 at 9:00 a.m.

• West Memphis: South 21st Street Improvements, cost $159,300, estimated completion date mid-2000. This is a completion of the south loop project which will divert traffic from the downtown area to airport and river port to the interstate. It should eliminate much of the eighteen-wheeler traffic from the downtown area.

• Jonesboro: Washington Street Drainage, cost $361,000, proposed completion in 2000. This is phase two of the Washington Street Drainage project; phase one, at a cost of $554,500, is complete, and was a major drainage improvement project in a low-income area. Snakes and rats were commonly seen in this area; the drainage areas were falling in, almost taking some houses. The City constructed a concrete 18 ft. by 4 ft. high drainage structure to eliminate this problem. The drainage structure went from Matthew Street to Washington Street, a low-income area.. The phase two work will go from McDaniel Street to Kitchen Street.

• Jonesboro: Mays Addition Sewer Improvements, cost $593,000, proposed completion in 2000. The City is proposing to bring in a main interceptor facility line to service over 100 houses in this large area. The sewer lines will couple with the septic tanks and tie on to a main interceptor facility line, giving the low- and moderate-income residents sewer service.

• Jonesboro: Parker Park Community Center, cost $300,000, proposed start in 2000. The City is proposing to renovate the Community Center near its public housing. The Center has two large basketball courts, a soccer field outside, a baseball field, and a place for a tennis court. Because of its proximity to public housing, it will be used primarily by low-income children.

• Pine Bluff: West 13th Street Project, cost $1.4 to 1.5 million, estimated completion date spring 2000. Creates ties to the local elementary school located on West 13th. Allows the traffic to flow in and out of the neighborhood and an off-ramp from I-530 into the City of Pine Bluff.
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  Content Archived: January 20, 2009