WASHINGTON - The US Treasury on Monday said it has awarded US$268 million (S$390 million) in previously approved economic stimulus funds for affordable housing projects in Indiana, Missouri, Tennessee and Washington, DC.

The allocations are part of a Treasury program that funnels $3 billion from the Obama administration's $787 billion economic stimulus plan to affordable housing.

Under the program, state housing agencies will receive funding to construct affordable housing developments or renovate qualified affordable housing.

The Treasury said in this second round of funding, Indiana will receive $164 million, Missouri will receive $17 million; Tennessee will receive $53 million and the District of Columbia will receive $33.7 million.

The loss of jobs during the recession and a sharp fall in housing starts has suggested the need for affordable housing has risen markedly during the recession, the Treasury said in a statement.

'This initiative will help spur construction and development, create much needed jobs and increase the availability of affordable housing for families around the country,' said US Treasury Deputy Secretary Neal Wolin. -- REUTERS