News Release

FAYETTEVILLE AND RUSSELLVILLE RECEIVE $600,000 IN GRANTS FROM HUD FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT
$16.8 million in Rural Housing and Economic Development grants awarded nationwide

FORT WORTH - Housing and Urban Development Secretary Alphonso Jackson today awarded $600,000 to rural housing programs in Fayetteville and Russellville, Arkansas, to stimulate economic development, create jobs and produce more affordable housing. The funding is part of $16.8 million in grants provided nationwide through HUD's Rural Housing and Economic Development Program. Information about the two Arkansas grantees follows.

In addition to the HUD grants announced today, rural communities are expected to leverage more than $260,000 from other public and private sources to promote economic development and employment.

"These grants will go a long way toward producing more affordable housing in rural communities across our country," said Jackson. "HUD funding, and the private investment these grants will generate, will offer more than just an affordable home to working families in rural areas. These grants will trigger economic development and breathe new life into rural neighborhoods that are desperate to grow."

Rural Housing and Economic Development (RHED) grants help pay for land acquisition, new home construction, housing demolition, infrastructure improvements and construction training. Other possible uses include homeownership and financial counseling; financial assistance to homeowners, businesses and developers; creating microenterprises and small business incubators; and establishing lines of credit or revolving loan pools to benefit the local business community.

Qualified applicants are local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, State housing finance agencies and/or local economic development agencies. RHED grants have provided nearly $190 million, creating more than 12,000 jobs, assisting nearly 8,200 businesses and producing nearly 20,000 affordable homes.

Rural communities will use this funding as seed money to pay the start-up costs for housing or economic development projects. These grants will also help organizations to hire and train their staffs, develop strategic plans and acquire office space and other needed facilities.

Community Resource Group, Inc. in Fayetteville, Arkansas, will use its $300,000 RHED grant to assist in building 80 energy efficient homes in the Colonias. The proposed leveraging for this project is $150,000.
Contact: Dr. Elaine Crutchfield
3 East Colt Square Drive, Fayetteville, AR 72703
Telephone Number: (479) 443-2700 x110

Universal Housing Development Corporation in Russellville, Arkansas, will use its $300,000 RHED grant to assist in rehabilitating 17 houses for low-income families. Partners for this project are Concerned Citizens for a Better Dover, Dover First Baptist Church, Hector Lion's Club, and Woodlawn Baptist Youth. The proposed leveraging for this project is $110,155.
Contact: Beverly Massey
P.O. Box 846, Russellville, AR, 72811
Telephone Number: (479) 968-5001

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 at www.hud.gov and espanol.hud.gov.

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