|Home | En Español | Contact Us | A to Z|
HUD Archives: News Releases
CUOMO ANNOUNCES $16.8 MILLION GRANT TO WILMINGTON TO TRANSFORM PUBLIC HOUSING AND HELP RESIDENTS GET JOBS
WILMINGTON - Housing and Urban Development Secretary Andrew Cuomo today presented Wilmington with a $16.8 million grant as part of a nationwide program that is replacing decaying public housing with new housing and helping residents get education, training and jobs to become self-sufficient.
"This program is about much more than rebuilding housing," Cuomo said. "It's about giving public housing residents the chance to rebuild their lives. We're creating a new vision for public housing. We will replace slums that trapped families in poverty and dependence with attractive new communities that will be gateways to jobs, opportunity and self-sufficiency."
Cuomo made the announcement of the grant to Wilmington at a news conference with Gov. Tom Carper, Senator Joseph H. Biden, Jr., Mayor James H. Sills, Jr., and local housing leaders.
Cuomo said the grant to Wilmington will be used to revitalize the Eastlake public housing development. The funds will help create 175 new housing units at the site and demolish 267 deteriorated units of public housing.
In addition, the grant to Wilmington will help 193 families currently living at Eastlake and 66 new families that will live at the revitalized Eastlake get jobs and become self-sufficient by providing them with job training, education, child care, transportation and counseling services. Nationally, HUD funds will be used to help about 10,000 families get jobs and become self-sufficient.
HUD is awarding a total of $507 million in highly competitive grants to 22 cities under the public housing transformation program known as HOPE VI, Cuomo said, and is replacing more occupied units of low-income housing in the 22 cities than are being demolished.
The 22 cities will demolish about 7,000 units of severely distressed public housing that are occupied, and another 3,400 units that are vacant because of their extremely poor condition. Rehabilitating the substandard units would cost more than tearing them down.
The 7,000 occupied and 3,400 vacant units of public housing being demolished in the 22 cities will be replaced by about 12,100 units of housing - including about 6,800 units of new public housing, 3,300 units of new privately owned low-income rental housing, and about 2,000 units that will be sold for homeownership.
In Wilmington, the new units being built will be made up of 80 units of rental public housing, 71 affordable units for homeownership, and 24 market-rate units for homeownership.
HUD will help public housing residents who get jobs in Wilmington to buy 71 of the new public housing units. Nationally, about 1,200 public housing units will be made available for homeownership by public housing residents.
Housing authorities receiving the HUD grants plan to use $108 million of the assistance to hire public housing residents to work on the revitalization of their own developments. These jobs will provide paychecks and teach valuable job skills to public housing residents.
On top of this, housing authorities will use HUD funds to make loans and provide other assistance to public housing residents to help them start small businesses - such as lawn care, catering and cleaning services - that are expected to create another 400 jobs for public housing residents.
In addition to the grant to Wilmington, HUD today announced grants to Philadelphia for $25.2 million and Chester, PA for $9.7 million. HUD has also recently announced HOPE VI grants to Albany, NY for $28.8 million, New Brunswick, NJ for $7.5 million, Roanoke, VA for $15.1 million, Cincinnati for $31.1 million, Atlanta for $34.7 million, Lexington, KY for $19.3 million, Chicago for $35 million, Tulsa for $28.6 million, Milwaukee for $34.2 million, Los Angeles for $23 million, Denver for $25.7 million, and Oakland, CA for $12.7 million.
HUD's investment of $507 million in public housing transformation grants this year is expected to help generate a record $1.15 billion in additional investment in housing and jobs programs at public housing developments - including $854.1 million in private funds and $300.2 million in other government funds.
This year, every dollar HUD is investing in public housing transformation is generating a record high average of $2.28 in other investment - far more than the 31 cents in other investment the transformation program generated when it began in 1993.
HUD will pay temporary relocation costs for residents whose apartments are being demolished. Relocated residents of a development will be given the first opportunity to move back to the newly constructed units at the site, or will be given rental assistance vouchers that will subsidize their rents in privately owned apartments if they choose not to return to public housing.
In addition, relocated residents receiving rental assistance vouchers will be given the same job training and other services that will be offered to people living in the replacement public housing, to help them get jobs and become self-sufficient.
All new units being built will conform to guidelines of HUD's Healthy Homes Initiative, which will ensure that homes incorporate safeguards to protect residents against hazards such as lead poisoning, fire, carbon monoxide and radon.
The 22 cities receiving grants were selected in a competition involving 101 cities that submitted applications requesting a total of $1.95 billion in grants. Cities were selected based on a checklist of criteria measuring the effectiveness of their public housing revitalization plans.
Under the Clinton Administration, HUD is carrying out the most dramatic transformation of public housing since the public housing program was created in 1937 by President Franklin Roosevelt, Cuomo said.
HUD has approved the construction of 33,000 units of new public housing since 1993 and has demolished about 28,000 units of the worst public housing in the nation under HOPE VI. Residents of demolished housing have moved into new public housing or received rental assistance vouchers under the Section 8 program to subsidize their rents in privately owned apartments.
HUD's assistance to Wilmington will be tailored to carry out plans developed locally. Each of the 22 local communities receiving grants developed its own revitalization program under a HUD policy that gives them great flexibility to come up with plans to meet their own special needs.
The HOPE VI program has five key objectives:
There are about 1.2 million units of public housing around the nation, where about 2.8 million people live. The median annual income of households in public housing is $6,939. A total of 46 percent of households are made up of families with children, another 30 percent house senior citizens, and 11 percent are home to people with disabilities.
COMMENTS FROM DELAWARE ELECTED OFFICIALS ON HUD PUBLIC HOUSING REVITALIZATION GRANT TO WILMINGTON
Governor Tom Carper: "Affordable housing is an integral part of helping people become self-sufficient and is tied closely to our broader welfare reform efforts in Delaware. Many public and private agencies across the state have worked to make this day possible."
Senator Joseph R. Biden, Jr.: "This project is about more than bricks and mortar. It's about crime and drugs and gangs and violence. It's about creating a safe place to live, raise a family, go to school, or just spend the evening on your front porch - without having to worry about you and your kids getting caught in the crossfire of gun shots. With the federal, state and city funds that will be used to demolish and rebuild this community - our goal - our absolute goal - must be to create a thriving community where drug dealers and gangs are not welcome.
Senator William V. Roth, Jr.: "How appropriate that the name of the federal program making this grant possible for the city of Wilmington is the "HOPE VI" program. Hope is what this major award offers to the people of Eastlake - hope for a safe and secure place to call home; hope for better jobs; and hope for a better community in which to live. The HOPE VI award can help families in the Eastlake community build not just new housing, but a new future for themselves and their children."
Congressman Michael Castle: "The funding provided by this program is a great step toward transforming public housing and creating new education, training and employment opportunities for Delawareans, and it is my hope that this grant will help families return to self-sufficiency."
Mayor James H. Sills, Jr.: "We are delighted to welcome Secretary Cuomo to the City of Wilmington. I am certain that his visit will signify the dawn of a new day in terms of realizing the City's housing revitalization goals for the year 2000."
Content Archived: January 20, 2009