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Show HUD stimulates over 5.300 jobs in state The U.S. Department of Housing and Urban Development Develop-ment (HUD), with its low to moderate-income housing and Community Development Block Grant (CDBG) Program is a Federal agency charged with assisting low to moderate-income families and communities com-munities for developing or insuring a better quality of life. HUD also provides a massive economic stimulus throughout the nation. For the state of Utah, HUD is responsible for creating a great number of jobs-second only to Kennecott Copper Corporation, Utah's largest industrial employer. Based on the physical impact im-pact of, HUD funded programs, pro-grams, retail sales pick up and employment increases. It is estimated that the input of HUD's millions of dollars will stimulate over 5,300 jobs in the state of Utah during the coming year. On the other hand, 6,900 basic jobs represent repre-sent Kennecott Copper's direct dir-ect employment in its mining and processing operations. During the coming year HUD will be responsible for the construction of approximately approxi-mately 2,372 units of multi-family multi-family or single family low to moderate-income housing in the state in the various programs. pro-grams. These include HUD's Section 8 program which provides pro-vides a rent subsidy to lower-income lower-income families to help them afford decent housing in the private market. Depending on income, no eligible tenant need pay more than 15 to 25 percent of adjusted income for rent. This rental assistance may be used in existing housing or new construction or substantially rehabilitated units, all of which must meet certain HUD standards of safety and sanitation. HUD pays the difference between 15 and 25 percent of the tenants' adjusted income and fair market rents as determined deter-mined by HUD. The Section 202 Housing program is designed to provide pro-vide housing and related facilities facil-ities for the elderly and handicapped. handi-capped. Households of one or more persons, the head of which is at least 62 years of age or is handicapped, are eligible and pay only 15 to 25 percent of their adjusted income in-come for rent. Non-Indian and Indian public pub-lic housing, long active in the state provides 1,607 families with low to moderate-income , housing. Since inception, including in-cluding existing and approved new public housing units, -construction cost will amount collectively to over $30.5 million. mil-lion. Also, during this year HUD will pay out over $142,000 for modernization and operating subsidies for the existing units. These units are financed with public funds with HUD insuring debt retirement re-tirement over a 40 year period. The Section 235 program enables eligible families to purchase homes with a small down payment, and depending depend-ing on adjusted income, pay as low as a 5 percent mortgage interest rate. The home owner own-er may contribute as high as 20 percent of adjusted income to monthly mortgage payments. pay-ments. HUD has provided 3 percent per-cent housing loans since 1951 for 10 universities and colleges col-leges within the state totaling over $40 million. HUD will save the participating schools over $50 million in mortgage interest over the terms of the mortgages. Housing for Indians provide basically the same low rent and low mortgage interest rate opportunites as the aforementioned programs with slight variations. During the coming year approximately $60 million will be committed for low to moderate-income housing in the state of Utah. In addition, HUD is obligated to pay out approximately $9.8 million this year to cover the rental subsidies in the state which allow qualifying low to moderate-income families to pay no more than 25 percent of their incomes for housing. Funds ' for HUD's CDBG programs in the state of Utah will amount to approximately $10 million. HUD awards "block" grants to local Governments to fund a wide range of community development activities including includ-ing new water and sewer projects or rehabilitation of existing water and sewer systems, streets, rehabilitation rehabilita-tion of housing, new or improved im-proved public facilities, parks, urban beautification, and historic his-toric preservation. Communities Com-munities receiving "block" grants must apply for them annually. Those communities receiving grants are determined deter-mined by HUD. Seventeen Utah communities will be funded during the coming year. In 1934 the Federal Housing Hous-ing Administration (FHA) was conceived to stimulate housing sales and the home building industry. This was successfully accomplished by FHA extending the loan period per-iod and guaranteeing the lender lend-er that he would not lose on a mortgage investment if the buyer defaulted on his housing hous-ing payment. As a result, since the inception of FHA, a division of HUD, FHA has written over $1.4 billion of insurance in the state of Utah. Of this amount over $800 million is still in effect. In Fiscal Year 1976 over $129 million of FHA insurance was written, and under the present pre-sent economy it is growing substantially. It is expected to , grow at an accelerated clip in ! the forseeable future. |