PORTLAND WINS $18.5 MILLION IN HUD FUNDS TO INVEST IN HILLSDALE TERRACE
Third Time Portland Has Won a HUD HOPE VI Public Housing Revitalization Grant

PORTLAND - The U.S. Department of Housing and Urban Development today competitively awarded an $18.5 million HOPE VI Public Housing Revitalization Grant to Home Forward, the housing authority serving Portland. HUD awarded just 8 HOPE VI grants nationwide today.

This is the third HOPE VI Revitalization grant Portland's housing authority has won. It won a $16.9 million HOPE VI grant in 2005 to build Humboldt Gardens and a $35 million HOPE VI grant in 2001 to build New Columbia. Both projects have been completed and have leveraged more than $250 million in other investments in the two neighborhoods.

Portland's award was welcomed by U.S. Senator Ron Wyden, U.S. Senator Jeff Merkley, Congressman David Wu and Portland Commissioner Nick Fish.

Home Forward intends to use the HOPE VI awarded today to demolish the 60-unit Hillsdale Terrace public housing complex and replace them with 129 units of housing including 73 new public housing/low income housing tax credit units, 36 project-based Housing Choice Voucher/low income housing tax credit units, 13 tax credit-only units, and 7 Habitat for Humanity homeownership units The new public housing units are expected to comply with Energy Star standards and will be submitted for LEED certification as well. Revitalization of the 7-plus acre Hillsdale Terrace site also will include development of a 6,000 square-foot early education center. The HOPE VI grant will leverage over $28.8 million in non-HUD funds, including $5.5 million from the City of Portland, $7 million from Home Forward, $1.9 million in grants and over $12 million in Low Income Housing Tax Credit equity.

HUD today awarded $153 million in HOPE VI grants to eight communities. In addition to Portland, Boston, Denver, Louisville, Paterson, Phoenix, St. Louis and Taunton, Massachusetts also won HOPE VI grants today.

"No one can dispute the exceptional track record of HOPE VI to improve housing conditions for hundreds of communities and most importantly, thousands of families," said HUD Secretary Shaun Donovan. "As we move toward the next generation of neighborhood revitalization-one that links housing, education, transportation, healthcare, and other support services-we will always remember it all began with HOPE VI."

"This grant represents a significant investment in one of Portland's oldest neighborhoods," said Mary McBride, HUD's Northwest Regional Administrator, "expanding the supply and the mix of housing, creating new economic opportunity and linkages and making sure that it's a vibrant, integral part of 21st century Portland."

"We're honored to receive our third HOPE VI grant, and are pleased that HUD recognized the tremendous need for
this revitalization project," said Steve Rudman, executive director of Home Forward. "We're ready to hit the ground running and begin work on building a brighter future for all of our residents at Hillsdale Terrace."

"Congratulations to our partner Home Forward," said Portland Commissioner Nick Fish. "The HOPE VI grant is great news for our City. It will improve the lives of families living at Hillsdale Terrace, create family-wage construction jobs, strengthen connections to the surrounding community, and continue Portland's tradition of leadership in green buildings."

"Home Forward is an exemplary public housing authority, recognized by HUD and the industry as a national leader," said U.S Senator Ron Wyden. "For the Housing Authority this is more than just an opportunity to rebuild and expand their housing stock; it is an opportunity to change lives and revitalize an entire community."

"Stable housing is the foundation for a family's success," said U.S. Senator Jeff Merkley. "This award, which will allow the full redevelopment of an aging public housing facility, is terrific recognition of the work being done in Portland to provide those housing opportunities."

"This is a big day for all those who work to provide affordable housing for Portland families," said Congressman David Wu. "Through this investment in our community, the innovative HOPE VI program is promoting economic growth in addition to providing residents with stability and access to services. I was proud to lend my support for this proposal, and I am grateful for the efforts of HUD, the City of Portland, and their partners for making this commitment to a brighter future."

HUD awarded high marks to applicants that plan to extend neighborhood transformation efforts beyond public housing linking housing interventions with early childhood education programs. The Obama Administration is challenging communities to build upon the HOPE VI lessons to employ a comprehensive approach to community transformation. Choice Neighborhoods aims to transform neighborhoods of poverty into viable mixed-income neighborhoods with access to economic opportunities by revitalizing severely distressed public and assisted housing and then linking these neighborhoods to well-functioning services, effective schools, public transportation and jobs.

Housing authorities are competitively selected for HOPE VI grants based on many factors including the effectiveness and project readiness of their revitalization plans. HUD gives recipients the flexibility to develop revitalization plans that meet their local needs. Among other criteria, grantees are selected based on the capacity of their housing authority and its development team to administer and manage completion of the revitalization effort; the severity of physical distress of the development; the ability of the housing authority to supplement the HOPE VI grant with funding from other sources, private, state or local government; the ability to provide supportive services to displaced residents; and the proposed green development and energy efficiency strategies.

Since 1993, HUD has awarded 260 HOPE VI Revitalization grants to 133 housing authorities - totaling nearly $6.3 billion. HUD began awarding HOPE VI grants following a 1992 report by the National Commission on Severely Distressed Public Housing that found approximately 86,000 public housing units in the U.S. needed revitalization. HOPE VI Revitalization grants are used for an array of activities, including: demolition of severely distressed public housing; acquisition of sites for off-site construction; capital costs of major rehabilitation; new construction and other physical improvements; costs for mobility counseling and relocation; and community and supportive service programs for residents, including those relocated as a result of revitalization efforts.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.