Housing Authorities Use Recovery Act Funds to Save Properties and Jobs

Funding provided by the American Recovery and Reinvestment Act of 2009 (the ARRA) is beginning to make a real difference in local communities throughout Missouri and the rest of the country. In Excelsior Springs and Sikeston, Missouri, the local housing authorities have used "stimulus" grants to make major capital improvements to their properties while greatly improving the living conditions of low-income residents and creating as well as retaining jobs. For many housing authorities, the ARRA money could not have arrived at a better time.

Excelsior Springs Housing Authority - In 2003, about half of the 50 units at North Winds Development Project
were not livable and remained vacant for many years due to failure of waterproofing material below ground level that allowed water to seep into the units causing mold problems. Additionally, there was no insulation in the walls of the buildings, and most of the interiors needed a complete renovation including bathroom fixtures, floors, kitchen fixtures, wallboard repair, ceiling repair, etc. These repairs were going to cost an estimated $1.4 million and would take 15 years, or more, using all the funds available through public and private sources.

This photo is an example of mold and decay that residents had to live with before the Recovery Act funds were invested in the North Winds Development in Excelsior Springs, MO.

Excelsior Springs Housing Authority residents can now enjoy clean and comfortable units.

Using HUD's Capital Fund Financing Program, most of the project was scheduled to be rehabilitated with a new loan, but the project fell short of the total funds needed for completion. The Recovery Act's grant funds will now enable
the completion of 46 units by next year and many units are already finished.

Excelsior Springs Housing Authority Executive Director, Nancy Nolker, proudly displays the renovated properties at the North Winds Development.

At one time, this project was in a desparate situation and many residents lived in unhealthy blight. The property is now a desirable place to live, and it is a shining example of what is possible for the affordable housing community. In addition, some police officers and their families now live in the development, adding even greater interest by future tenants. The added security and attractive modernization work is now nearing completion, and has been greatly enhanced by the additional Recovery Act funds.

Housing Authority of the City of Sikeston - During a recent visit to HUD's field office in St. Louis, MO, Bobby Henry, the Executive Director of the Housing Authority in Sikeston, MO, described the use of the Recovery Act grant as a real success story. "We have three contractors working on our Developments receiving contracts funded by the ARRA Capital Fund Grant. Between the three contractors, three new employees have been hired and seven employees were retained all because of the "Stimulus" Grant received by the Sikeston Housing Authority."

For more information about the American Recovery and Reinvestment Act of 2009, please see visit HUD's Recovery Act website.