Washington, Jan 14, 2010 - The Department of Housing and Urban Development (HUD) will award a $10,191,000 grant to a coalition of El Paso non-profit organizations led by the El Paso Collaborative for Community and Economic Development (the Collaborative) to convert vacant properties into affordable housing, Congressman Silvestre Reyes announced today.  The grant is part of HUD’s Neighborhood Stabilization Program (NSP) and is one of the single largest awards for El Paso funded under the American Recovery and Reinvestment Act.

“This is certainly great news for the Collaborative and the entire El Paso community,” Congressman Reyes said.  “These competitive grants were awarded to the organizations that demonstrated the most innovative ideas to spur economic development.  The funding will help strengthen El Paso’s economic base, as vacant homes are converted to affordable housing for families with the greatest need.”

“I am so grateful HUD awarded this grant to the El Paso Collaborative and its team,” said Delia Chavez, Executive Director of the El Paso Collaborative for Community and Economic Development.  “Our team is a ‘power performance team.’  We have been recognized for success and accomplishments in the past, and I am confident this new initiative will be another success story that will benefit many families in El Paso.  We also extend our appreciation to Congressmen Reyes for his support of this project.”

"We are pleased to be awarded this HUD grant that will bring much needed relief to several of El Paso's neighborhoods," said Jerry Romero, Chairman of the Board of the El Paso Collaborative.  "The Collaborative looks forward to working with HUD to implement a successful project."

The non-profit coalition is comprised of the El Paso Collaborative for Community and Economic Development, Lower Valley Housing Corporation, Habitat for Humanity-El Paso, and Project Vida.

The organizations will use the funds to acquire, rehabilitate, and return to productive use a minimum of 100 single-family homes in 22 eligible census tracts located inside and outside of El Paso’s city limits.  Eighty-five of the homes will be returned to use for homeownership and fifteen of the homes will be returned to use as rental properties.  The affordable housing units will be made available to low-income families with the greatest need.

The HUD grant will also require financial counseling for families receiving homebuyer assistance funds through NSP.  In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.  

The Neighborhood Stabilization Program was created to revitalize neighborhoods, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate vacant homes and convert them to affordable housing.  Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to the housing crisis and falling home values.  The City of El Paso has received over $3 million in NSP funds since 2008.  

The El Paso Collaborative for Community and Economic Development (the Collaborative) is a not-for-profit organization that has served El Paso and the surrounding area since 1996.  The Collaborative is a “community lender,” a U.S. Treasury-certified Community Development Financial Institution.  Community Development Financial Institutions were established to provide access to capital to underserved populations.  The Collaborative offers a wide variety of loans, programs, and services.

Since February 2009, the El Paso area has received over $600 million for various projects and initiatives under the American Recovery and Reinvestment Act.  For a list of projects visit Congressman Reyes’ website at www.reyes.house.gov and view the “El Paso Recovery Map” under the American Recovery and Reinvestment Act section.
 
###