HUD Archives: News Releases

HUD No. 08-125
Brian Sullivan
(202) 708-0685
For Release
August 15, 2008


WASHINGTON - U.S. Housing and Urban Development Secretary Steve Preston and California Governor Arnold Schwarzenegger today announced that the California State Program will receive more than $105 million to support community development and produce more affordable housing in the GoldenState. HUD's annual funding will also provide downpayment assistance to first-time homebuyers; assist individuals and families who might otherwise be living on the streets; and offer real housing solutions for individuals with HIV/AIDS.

"This funding will help the state of Californiato rebuild its neighborhoods and affordable housing stock," said Preston. "By helping communities to improve their infrastructure or assisting families to purchase their first home, HUD is helping improve neighborhoods from the ground up."

"Increasing homeownership and reinvigorating neighborhoods is one of the most powerful things we can do to improve our economy and our communities. This federal funding will help to do exactly that in California and will be administered by our Department of Housing and Community Development to also make vital infrastructure improvements and provide assistance to those are most in need," said Governor Arnold Schwarzenegger. "This important funding will work in partnership with our Proposition 1C, which the voters of Californiaapproved in order to improve housing infrastructure in our state."

The funding announced today includes:

  • $    39,262,869    in Community Development Block Grant (CDBG) funds;
  • $    55,776,502    in HOME Investment Partnerships (HOME) funding;
  • $        371,363    in American Dream Downpayment initiative;
  • $     6,757,419    in Emergency Shelter Grant (ESG); and,
  • $     3,069,000    for Housing Opportunities for Persons with AIDS (HOPWA).
  • $105,237,153     TOTAL

Since 1974, HUD's Community Development Block Grant (CDBG) Program has provided more than $120 billion to state and local governments to target their own community development priorities. In addition to the annual block grant funding announced today, nearly $20 billion in supplemental CDBG funding is currently supporting the State of Louisiana's long-term disaster recovery programs following Hurricanes Katrina and Wilma. The rehabilitation of affordable housing and the improvement of public facilities have traditionally been the largest uses of CDBG although the program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed to communities according to a statutory formula based on a community's population, poverty, and age of its housing stock, and extent of overcrowded housing.

HOME (HOME Investment Partnerships Program)�is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have completed more than 834,000 affordable housing units, including 352,000 for new homebuyers. In addition, 186,000 tenants have received direct rental assistance.

The American Dream Downpayment Initiative (ADDI)�helps first-time homebuyers with the biggest hurdles to homeownership - downpayment and closing costs. The program was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. Since the program's inception, ADDI has assisted nearly 29,000 families to purchase their first home.

Emergency Shelter Grants (ESG)�help local communities to meet the basic shelter needs of homeless individuals and families. These grants also provide transitional housing and a variety of support services designed to move the homeless away from a life on the street toward permanent housing. This block grant program, along with more than $14 million HUD awarded New Orleansand Jefferson Parish by competition, helps thousands of local homeless assistance programs to help those who would otherwise be living on the streets.

HUD's Housing Opportunities for Persons with AIDS (HOPWA)�grants are distributed to states and cities based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide resources for operating community residences and providing rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care. A stable home environment is a critical component for low-income persons managing complex drug therapies and potential side effects from their treatments.


HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet�and

Content Archived: May 14, 2010