Thanks to the passage of the American Recovery and Reinvestment Act, the Federal government is helping states recover from the recession. While the majority of the funds will flow through existing state programs and formulas, there is also billions in competitive grant dollars. Governor Kulongoski created The Oregon Way Advisory Group to compete more effectively for these grant dollars and to identify opportunities to use formula dollars for projects that elevate Oregon's green leadership.

The Obama Administration's Homeowner Affordability and Stability Plan will offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to stay current on their mortgage payments, while attempting to prevent the destructive impact of foreclosures on families and communities.

Public investment in affordable housing development generates significant economic benefit, creates jobs and supports local business, Victor Merced, director, Oregon Housing and Community Services, observed of his department's newly published Housing as an Economic Stimulus.

This demonstrates that federal stimulus money for housing will add value to Oregon's economy.

"Each dollar our agency invests in housing creates $11 in benefit to the Oregon economy," according to Merced. "And that doesn't include the immeasurable benefits to an individual or family of having a safe, quality, affordable home."

HUD has approved Oregon's Neighborhood Stabilization Plan that guides $19.6 million in federal funds to communities affected by foreclosures resulting from subprime mortgages.

"Oregon has strong consumer protection laws on the books that enabled the state to take action against more predatory mortgage lenders in 2008 than in previous years, and state-supported counseling services also have helped many families avoid foreclosure in the first place," Gov. Ted Kulongoski said. "But because it's impossible to be fully insulated from the nationwide mortgage crisis, we need to prevent the ripple effects of concentrated foreclosures. These dollars will keep communities viable and preserve the value of surrounding homes."

In 2007, 13 percent of the state's population, or 474,189 Oregonians, lived on incomes less than the federal poverty level. Nearly 40 percent of families headed by single mothers lived in poverty.

These troubling facts are reported in new Report on Poverty 2008 released today by Oregon Housing and Community Services and the Community Action Partnership of Oregon at the state capitol.