Washington, D.C. -- U.S. Representative Neil Abercrombie announced that Hawaii will be receiving $9,861,610 from the Department of Housing and Urban Development to jumpstart affordable housing programs stalled by the economic recession.

The funds are part of the American Recovery and Reinvestment Act of 2009, passed by Congress in February.  The HUD program is designed to help state housing agencies resume development of affordable rental housing.

“The American Recovery and Reinvestment Act was enacted to get the nation’s ailing economy moving again, with a major focus on creating and saving jobs,”  said Abercrombie. “This $10 million grant means more high quality, affordable housing options for low-income Hawaii families, when those options are in short supply.” 

The current economic crisis has hit the construction industry hard, particularly residential construction, as investment in low income housing has virtually dried up.  Across the country, as many as 1,000 projects — nearly 150,000 units of housing — are on hold.  In Hawaii, 8,257 families are on the waiting list for public housing and 2,500 families are waiting for Section 8 rental assistance vouchers from the state. 

In response, the Recovery Act includes $2.25 billion in capital investment in stalled rental housing developments.  And, since the Recovery Act is also aimed at creating jobs, state housing credit agencies are required to give priority to projects that can begin immediately and be completed by February 2012.

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