A cooperative housing park in Allenstown will receive $500,000 in federal money for improvements to its water system.

The Catamount Hill Co-op, a 150-unit manufactured housing park, was awarded the U.S. Department of Housing and Urban Development money through a Community Development Finance Authority block grant last month.

The money will be used to replace an outdated water distribution system, said Michele Talwani, spokeswoman for the New Hampshire Community Development Finance Authority. The park will see water mains and tanks improved and receive small septic and electrical upgrades, she said.

In all, the state received $9 million through the block grant, with about $4.7 million going toward 13 affordable housing and public facilities projects. The other half will go toward economic development and job creation projects, Talwani said.

The town of Hillsboro received $368,500 in grant money to complete construction on eight affordable housing units for low- and moderate-income people with disabilities.

AMY AUGUSTINE