June 7, 2004

Housing and Urban Development Secretary Alphonso Jackson announced May 19 the city of New Orleans will receive more than $28.5 million in funding to stimulate its economy, produce more affordable housing, help the homeless, and assist families and individuals with HIV/AIDS. Jackson made the announcement after speaking to the annual gathering of the Public Housing Authorities Directors Association and said the funding represents another investment in improving the living conditions for New Orleans- lower income families.

"This Administration is committed to promoting economic development and job growth, increasing the supply of affordable housing, and helping our most vulnerable neighbors," said Jackson. "These funds will serve as a catalyst for low-income families trying to cross the threshold into homeownership and reinforces our commitment to the future of this wonderful city." The funding announced includes:

• $18,071,000 in Community Development Block Grant (CDBG) funds;
• $ 6,793,847 in Home Investment Partnerships (HOME) funding;
• $ 665,564 in Emergency Shelter Grant (ESG); and,
• $ 2,992,000 for Housing Opportunities for Persons with AIDS (HOPWA).

The rehabilitation of affordable housing has traditionally been the largest single use of the grants although CDBG is also an important catalyst for job growth and business opportunities. CDBG funds are distributed by formula around the country based on a community's population, income levels, poverty rates and the age of its housing stock. 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 nearly 785,000 affordable housing units, including almost 300,000 for new homebuyers purchasing their first home.

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 as well as enforces the nation's fair housing laws. More information on HUD is available on the website www.hud.gov and www.espanol.hud.gov.