The proposed amendment would allow for a funding line item increase and number of units to produce under the new construction activity. The increase to the new construction activity will be made possible by decreasing public services ($1,740), residential rehabilitation ($29,260), small repairs ($54,000) and reconstruction ($175,000). This amendment will better serve the housing needs of current colonia residents by providing them the opportunity to live in newly constructed units taking into consideration that there are approximately 183 vacant lots within these five colonias. Another contributing factor to the success of this project includes additional leverage dollars in the amount of four hundred thousand dollars ($400,000) that are being obtained through other funding sources by Proyecto Azteca, the Self-Help Administrator for this contract. The funds shall be used for lot purchase, construction hard costs and in-kind construction labor. The in-kind labor is not part of the leveraged $400,000. The UCP also proposes to request authority to assist colonia residents in alternatives to their current living conditions by providing housing outside of the colonias - as allowed by the Texas Administrative Code Title 10 Part 1 Chapter 3.1(c)(9). The Performance Statement and Budget Amendment will reallocate funding within categories and will not affect the total number of beneficiaries. The proposed changes are as follows:

Activity                         Contract                         Contract               Proposed            Proposed
Name                           Amount                          Beneficiaries          Amount              Beneficiaries

Public Services                12,540                            300                      10,800                   300
Rehabilitation                109,260                              27                      80,000                     32
Small Repair                  151,200                            126                      97,200                   108
Administration               100,000                                                      100,000
Reconstruction              387,000                              27                    212,000                     16
New Construction          240,000                             18                     500,000                     42
                                  1,000,000                           498                  1,000,000                498