WASHINGTON - Housing and Urban Development Secretary Mel Martinez announced $700 million to help stimulate New York City's economic recovery following the terrorist attacks of September 11th. The announcement is part of the Bush Administration's $2.8 billion assistance package that will help businesses affected by the attacks on the World Trade Center and to spur the City's economic recovery.

The $700 million funding is part of HUD's Community Development Block Grant program - the largest single CDBG grant in the program's 27-year history.

"This is a critical investment in helping New York City recover from the events of September 11th," said Martinez. "HUD is committed to supporting the businesses and citizens of New York during this unprecedented time and the announcement of this money is another step in that direction."

The assistance is the latest installment in the Bush Administration's emergency response to New York City. The relief package is the result of consultation with New York Governor George Pataki, New York City Mayor Rudolph Giuliani and the state's congressional delegation. Previous relief efforts have funded emergency response measures including removing debris and repairing lower Manhattan's infrastructure.

HUD's $700 million CDBG funding to New York is part of Bush's $20 billion commitment to help the City respond and recover from the terrorist attacks. In addition to this relief, HUD last month announced it is giving two New York City housing agencies $15 million in emergency assistance to help defray extraordinary costs incurred after the terrorist attacks. The $700 million grant will allow the City to target assistance to affected businesses in lower Manhattan as well as to stimulate the long-term economic recovery of the area.

Since the attacks, HUD moved quickly to provide relief for affected individuals and families in New York and around the nation. Martinez directed all FHA-approved lenders to provide relief to families with FHA insured mortgages affected by the recent terrorist attacks. Martinez also encouraged the lending industry to follow suit and delay any foreclosure action against those impacted by the events of September 11th. In addition, under the 1940 Soldiers' and Sailors' Civil Relief Act, HUD advised all FHA-approved lenders to reduce mortgage interest rates to no more than six percent for eligible active duty military personnel.

In addition, Martinez issued a letter to the housing industry and state and local leaders to stand united against any housing discrimination that may result against Americans in the wake of the attacks. Martinez stressed that America's strength is in part due to its great diversity and the fact that America has always welcomed people of all ethnic and religious backgrounds.

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