HUD often is misunderstood. It was created in 1965 to provide "a decent home and suitable living environment" for all Americans, and with its significant budget (HUD's 2003 request totals $31.5 billion), some may think HUD's primary role is to "hand out" funds. While grants are important to help meet its mission, HUD's strength comes from integrating a "hand up" and "hands on" approach to local partnerships. Recently, that successful combination was used by dedicated HUD professionals to made a difference for thousands of men, women and children in Anaheim, California's toughest urban neighborhood.

Tenants at the former Jeffrey-Lynn apartments in Anaheim - hard working low- and moderate-income families - were trapped and had no easy escape. At one time the neighborhood, with a view of Disneyland, was a pleasant and inviting place to live. But over the years - in a depressingly familiar scenario - the community that surrounded the Jeffrey-Lynn properties changed drastically. Once individually owned eight-plexes, most of the buildings now were in a severe state of disrepair and the neighborhood overrun with crime. The Jeffrey-Lynn units were "affordable," because three or four families often lived in a one-bedroom apartment, pooling their salaries to pay the monthly rent. In 1998, Mayor Tom Daly proposed that the city help Jeffrey-Lynn's hard working families. But local officials were stunned when the ambitious plan supported by the City Council was met with the families' anger and skepticism.

At that point it seemed to be the worst of all possible worlds: Gangs ruled the streets. In each of the 720 one-bedroom units, as many as 10 or 12 people slept on the floor at night, and waited in turn to use the bathroom or shower. And reaction to the plan made Community outreach sessions and City Council meetings sometimes raucous, with claims flying that it was an attempt to move the working poor away from the beautiful scenic backdrop of Disneyland. At the least, tenants' rights activists feared the displacement of thousands of families during renovations, and desperate low-income families feared being put out on the street.

HUD's Santa Ana and Los Angeles offices were involved, and recommended offering a "hand up" to the neighborhood and also gave a helping hand to the city. HUD staff meet with and took part in focus groups held by tenant activist groups. They stressed that the success of any plan reflected, in large measure, how well local officials involved the people most directly affected in on-going planning - including sensitive issues like the unavoidable relocation that the rehabilitation would require. HUD mediated conflicts and played honest broker in the initial meetings between Anaheim city staff and the community. The role played by HUD made a difference.

HUD funding also helped make the development possible, including $3.8 million in HOME funds, $869,000 through Rental Rehab, and $500,000 from the Community Development Block Grant program - but it was less than one tenth of the $54 million total for the rehabilitation, which primarily came from private lenders, the City of Anaheim, and state tax credits.

What was difficult - some thought impossible at first - is now a success, thanks to a commitment to partnership, patience, and constant communications with local groups including the Neighborhood Advisory Board and United Neighborhoods. Phase I of Anaheim's ambitious plan opened on March 19th, and the first 300 of the 500 families who ultimately will live in what is now called Hermosa Village could not be happier. In fact, the clear success of this development has made the greater community, the city and state proud as well. Once overcrowded one-bedroom nightmares have been converted to three- and four-bedroom dream apartments. Alleyways once controlled by gangs are now "greenbelts" with tot lots that are inviting, safe, and well used by neighborhood children.

The attractive housing units rival homes anywhere in the city and are highly energy efficient. There is a beautifully designed community center, a large "resort size" pool with an attractive outer patio, a large computer center that will provide regular ESL (English as a second language) courses, and Internet access for community members. The Boys and Girls Club - which also receives CDBG funds and benefited from computer donations from the Santa Ana HUD office - has an on site facility to provide after school care and tutoring for the children in the neighborhood. So far, 400 children signed up for the Hermosa Village programs.

Celebrating at the Ribbon Cutting: Francisco Ceja (Advisory Board), Linda Padilla Smyth (Special Assistant to the Anaheim City Manager), Theresa Camiling (Santa Ana HUD), Mayor of Anaheim Tom Daly, William Barth (LA CPD Director), David Quezada (FHEO Director-LA Office)

The site is now owned by the city's public housing authority, and rental assistance has reduced rents from $579 for an old one-bedroom, to $360 per month for a new three-bedroom (this alone has changed lives - one family used the savings to buy a used car, which allows the mother to get home two hours earlier to cook an early dinner for her children and spend time helping with their homework). And in one pleasant side effect, 12 families will not return to Hermosa Village following relocation. Instead, through the help of a HUD Approved Housing Counseling agency and the City of Anaheim's Housing Authority, a dozen families were able to use their relocation benefits to purchase their own first home.