News Release

Contact Kevin Herglotz, (202) 720-4623

Tim McNeilly, (202) 690-0498

WASHINGTON, August 31, 2001--The U.S. Department of Agriculture today announced the selection of 66 projects totaling $17.5 million in competitive grant funds for economically distressed rural communities in 21 states. The grant funds will assist in developing essential community facilities in areas of extremely high unemployment and severe economic depression.

"It's important that we help our rural areas that are in greatest need," said Agriculture Secretary Ann M. Veneman. "Today's selected projects will bring essential medical, fire fighting, and child care services and facilities to rural communities that may not otherwise be able to afford them."

The grants are made available through a special initiative under the Community Facilities program of USDA Rural Development's Rural Housing Service. Funds under the initiative are earmarked by the Congress for rural communities where the "not employed" rate is greater than 19.5 percent. Rural Development offers assistance to develop essential community facilities and services for public use in rural communities with populations of less than 20,000.

Grant funds are available to eligible public entities, nonprofit corporations and tribal governments. The monies provide for community service facilities including fire and rescue buildings/equipment, streets, utilities, community buildings, libraries, hospitals, clinics, and day-care centers.

Applications were considered competitively, with communities having the lowest populations and lowest median incomes given selection priority. Other selection criteria included each project's economic feasibility and the program's goal of distributing program funds throughout all regions of the United States.

Selected states and grant totals include

Alaska - $6,306,387

Arizona $211,170

Hawaii - $679,012

Idaho - $236,600

Illinois - $554,090

Iowa - $1,271,600

Kentucky - $530,000

Louisiana - $539,000

Minnesota - $875,000

Mississippi - $1,146,960

Missouri - $369,971

Montana - $140,000

New Jersey - $700,000

New Mexico - $777,025

Oklahoma - $36,000

Puerto Rico - $1,232,287

South Dakota - $299,660

Utah - $50,000

Virginia - $700,000

West Virginia - $150,330

Wisconsin - $720,445

A complete list of the selected individual grant recipients and projects can be found at http//www.rurdev.usda.gov/rd/newsroom/2001/cfrecips01.html.

USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http//www.rurdev.usda.gov.

The amounts awarded for Iowa are listed below.

IOWA - $1,271,600

Lansing Housing Corp. - Thornton Manor

$300,000

Purpose Construct a 12-unit assisted living facility and clinic to serve the residents of Lansing, Allamakee County, IA.

Colesburg Commercial Club

$74,200

Purpose Purchase and renovate a building to house a community health clinic to serve the residents of Colesburg, Delaware County, IA.

City of Searsboro

$88,300

Purpose Construct a new fire station to serve the residents of Searsboro, Poweshiek County, IA.

City of Lime Springs

$110,000

Purpose Construct a fire station/community center to serve the residents of Lime Springs, Howard County, IA.

City of Alta Vista

$147,100

Purpose Construct a multi-use community center to serve the residents of Alta Vista, Chickasaw County, IA.

City of Spillville

$191,800

Purpose Expand library to provide additional library space and a community room to serve the residents of Spillville, Winneshiek County, IA.

New Liberty Volunteer Fire Department

$19,200

Purpose Construct a new three-bay fire station with meeting and training facilities to serve the residents of New Liberty, Scott County, IA.

Jefferson County Board of Supervisors

$23,500

Purpose Purchase of a new fire truck on behalf of the Polk Township Trustees, Jefferson County, IA.

City of Rolfe

$167,500

Purpose Construct a city hall/library/community center to serve the residents of Rolfe, Pocahontas County, IA.

City of Ridgeway

$150,000

Purpose Construct a multi-use community/senior meal site and after school center to serve the residents of the City of Ridgeway, Winneshiek County, IA.