HUD AWARDS MORE THAN $28 MILLION IN GRANTS TO PROMOTE AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES

Grants leverage an extra $18 million for rural and tribal areas to address housing, poverty and jobs

WASHINGTON, DC – August 23, 2011 – (RealEstateRama) –– The U.S. Department of Housing and Urban Development today awarded more than $28 million to 46 rural and tribal communities throughout the nation to address distressed housing conditions and concentrated poverty. HUD Secretary Shaun Donovan said the grants from HUD’s new Rural Innovation Fund promote an ‘entrepreneurial approach’ to affordable housing and economic development in rural areas (see list of grants by the state of their service area below).

“Rural America is vast and diverse, and different communities face different challenges and opportunities,” said Donovan. “Because there is no ‘one-size-fits-all’ approach to strengthening rural communities, this funding provides flexible resources to address either housing or economic development needs, or both. This is especially important for communities that may have more limited access to resources because of their distant locations. These are catalytic projects that will have an impact on their communities for generations to come.”

For example, the Atmautluak Traditional Council in Alaska will train a construction workforce in green, energy-efficient new construction. Habitat for Humanity Lake County in California will repair and renovate 30 homes as part of its Jobs-for-Homes Project and hire local workers in the process. The Midwest Minnesota Community Development Corporation in Minnesota will provide business financing to redevelop an abandoned commercial facility for the production of biomass heating pellets, capitalizing on the area’s supply of wood and logging residue, and linking in low-skilled area workers in the process. The Lac Courte Oreilles Band of Lake Superior Chippewa Indians in Wisconsin will create a visitors center to promote tribal businesses and provide a venue for the work of local crafts and tradespersons.

HUD’s new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities in 19 states throughout the country. HUD received 307 applications from 48 states for over $236 million, almost 10 times the amount available. Eligible applicants were federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

HUD awarded Rural Innovation Fund grants in three categories:

• Comprehensive Grants – 7 Comprehensive grants, in which grantees have examined the social, housing and economic needs and resources of their target areas and made proposals that address these needs through activities that will have sustained benefit and resources after HUD assistance is used. The maximum grant amount was $2,000,000 for this category.
• Single Purpose Grants – 31 Single Purpose grants, for more targeted initiatives, which typically focus primarily on either housing or economic development. The maximum award amount was $300,000 for this category.
• Economic Development and Entrepreneurship for Federally Recognized Tribes – 8 Indian Economic Development and Entrepreneurship grants, awarded from $5 million set aside for applications for federally recognized Indian tribes. The maximum award amount was $800,000 for this category.

Highlights of the Awards include:

• 19 states are represented among the service areas, including Alaska and Puerto Rico.
• 27 awardees – over half – are tribes or tribal affiliates. Tribal organizations were competitive in all categories under the NOFA.
• 789 housing units are proposed for low income beneficiaries.
• 655 total jobs will be created through activities assisted by the grants. Jobs include 178 construction jobs and 460 permanent jobs.
• Grantees have proposed to leverage over $18 million in other funds for their respective projects.

Read complete grant summaries for each grant announced today.

###

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD.

FY 2010 Rural Innovation Fund Awards

Contact:
Elena Gaona
(202) 708-0685