Treasury awards $90 mln for community development

WASHINGTON, June 29 (Reuters) - U.S. Treasury Secretary Timothy Geithner awarded $90 million in financial aid to communities hard hit by the recession, the Treasury Department said on Monday.

The grants issued through the Recovery Act will be used to generate capital for small businesses, mortgage loans for homebuyers, and funding for affordable housing projects and other facilities in 26 states and Puerto Rico, among others, the department said.

"The Recovery Act is playing a critical role in restoring economic growth and strengthening our nation's financial stability by developing and investing in local communities," Geithner said in remarks prepared for delivery in New York.

Geithner made the announcement at The Point, an organization dedicated to youth development in the Bronx, the department said.

A text of the remarks was released in Washington. (Reporting by Nancy Waitz, Editing by Chizu Nomiyama)