first off this could very simply be done using joomla
a content management system that is available for free - click here
then there are many addons like galleries and application forms and mailouts etc that could be added you can find these on the joomla website unfder the extensions link
as for hosting, there are cheap packages out there but most are not very reliable...i would recommend click here, you can signup for $4 a month and get a free domain name. within the control panel of that hosting package there is a facility called fantastico...which has a lot of built in scripts (joomla been one) which you can just click on fill in a little bit of information then press install and its all ready to go so it couldnt be any easier!
monthly traffic is relevant if you have a lot of vistors or big files...its the amount that the website can transfer to the users computer, but wit that hosting package i offered above should be more than adaquate.
i hope this helps :)