HUD Archives: News Releases

BUSH ADMINISTRATION ANNOUNCES $350 MILLION TO HELP LOWER MANHATTAN BUSINESSES
Second installment of $2 billion grant will help New York City create and retain thousands of jobs

WASHINGTON - Tens of thousands of jobs in Lower Manhattan will be retained or created because of a $350 million plan approved today by Housing and Urban Development Secretary Mel Martinez. Today's action is the second installment of a $2 billion HUD grant, the largest single grant in Department history, designed to help businesses suffering from last year's terror attacks that forced many employers and jobs to leave Lower Manhattan.

This summer, HUD approved a $306 million plan to keep and attract residents who live and work in Lower Manhattan and to reimburse New York for the costs of an interim memorial to victims of September 11th. In addition, HUD provided New York $700 million to compensate businesses for economic losses following the attacks and to retain businesses and attract new companies and jobs to Lower Manhattan.

"Today's announcement is another example of the Bush Administration's commitment to the citizens of New York City," said HUD Secretary Martinez. "We are committed to retaining and encouraging new jobs in Lower Manhattan."

"This grant is critical as we continue to work together at all levels of government to rebuild our city, revitalize our economy and bring new jobs and economic opportunities to Lower Manhattan," said New York Governor George Pataki. "On behalf of all New Yorkers, I want to thank President Bush and Secretary Martinez for providing this vital assistance."

New York City Mayor Michael Bloomberg said, "The continued resurgence of Lower Manhattan is essential to revitalize New York City and keep the economy growing. Business, both large and small, needs this assistance in order to continue to form and flourish and I can't thank President Bush and Secretary Martinez enough for their unflagging support."

Administered by the Empire State Development Corporation (ESDC), the Lower Manhattan Development Corporation (LMDC), and the New York City Economic Development Corporation (EDC), the plan announced today will have three components:

World Trade Center Business Recovery

This program will help businesses and non-profit organizations with fewer than 500 employees and located south of 14th Street. This $150 million investment is expected to keep 225,000 jobs at those organizations receiving the assistance and another 150,000 jobs at businesses indirectly affected by the activities of those assisted organizations. Businesses located closest to ground zero will be eligible for grants up to $300,000.

Smaller companies with fewer than 200 employees will be eligible for grants of up to $3,500 per worker. LMDC planners anticipate this grant program will directly help create or keep 65,000 jobs in Lower Manhattan and indirectly stimulate the employment of another 30,000 individuals.

The World Trade Center Job Creation and Retention Program offers grants, loan guarantees and low-cost loans to help larger firms that were displaced from their workspace for at least one month. Organizations with more than 200 workers in Lower Manhattan, as well as firms willing to locate in the downtown area, are expected to retain or create up to 255,000 jobs, both directly and indirectly, because of this program.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, 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 and its programs is available on the Internet.

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Content Archived: April 9, 2010