BUSH ADMINISTRATION ANNOUNCES $17.1 BILLION TO REBUILD GULF REGION
HUD funding to include more than $1.8 billion

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced the Bush Administration is seeking more than $17.1 billion in funding to assist in the long-term redevelopment of communities throughout the Gulf region following Hurricane Katrina. The Administration's emergency supplemental spending request will provide HUD with more than $1.8 billion to help local leaders with the strategic planning necessary to revitalize devastated areas.

"The tools we're asking Congress to provide will build on the commitment this Administration has made to restore this region," said Jackson. "Working with our local partners, we're hoping to offer not only brick and mortar solutions to rebuilding, but the hope and healing that goes along with it."

Including in the funding request announced today is:

• $1.5 billion through HUD's Community Development Block Grant (CDBG) Program;
• $200 million through the Administration's Homesteading Initiative;
• $70 million through HUD's HOME Investment Partnerships Program; and,
• $50 million through HUD's Self-Help Homeownership Opportunity Program (SHOP).

Since 1974, HUD's Community Development Block Grant(CDBG) Program has awarded more than $112 billion to state and local governments to target their own community development priorities. Normally, CDBG funds are distributed by formula around the country based on a community's population, poverty, the age of its housing stock, and extent of overcrowded housing. In extraordinary cases, however, CDBG can be used to help communities to recover from disaster. Following the terror attacks of September 11, 2001, CDBG has been a source of funding to help revitalize Lower Manhattan.

The Administration's Homesteading Initiative seeks to create homeownership opportunities by transferring federally owned property to local governments for the resettlement of displaced families. Such federal property may include HUD-owned single-family homes, property conveyed by other government agencies and donated properties from nongovernmental entities.

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 committed to produce more than 811,000 affordable housing units, including almost 319,000 for new homebuyers purchasing their first home. In addition, nearly 127,000 tenants have received direct rental assistance.

HUD's SHOP Program funds eligible nonprofit organizations with experience in developing "self-help housing" for lower income homebuyers. These sweat equity programs funded through SHOP, like Habitat for Humanity, tap into the power of volunteerism, the experience of tradesmen and the hard work of the families themselves to increase homeownership.

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 as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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