Gary, Hammond, and East Chicago will receive a combined $12,372,877 in grants from the U.S. Department of Housing and Urban Development that were authorized by the American Recovery and Reinvestment Act.

The grants include $9,372,877 from the HUD Capital Fund for the cities' public housing agencies and $3 million for Gary to reduce lead-based paint hazards.

"The housing crisis is part of the reason why we got into this economic mess, and grants like these to address housing concerns will help get us out if it," said U.S. Rep. Pete Visclosky, D-Merrillville.

"Everybody should have a safe and adequate home, and these economic stimulus grants will help low-income people in Northwest Indiana secure a decent place to live. That way they can better join in the efforts to revitalize our economy."

The Capital Fund grants are for development, financing, modernization, and management improvements for the cities' public housing agencies.

They may not be used for luxury improvements, direct social services, costs funded by other HUD programs, operations, or rental assistance.

Gary will receive $5,874,358, Hammond will receive $1,613,194, and East Chicago will receive $1,885,325.

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