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CUOMO ANNOUNCES $20.2 MILLION HOPE VI GRANT TO HIGH POINT, NORTH CAROLINA TO TRANSFORM PUBLIC HOUSING AND HELP RESIDENTS
WASHINGTON - As part of a program to transform public housing around the nation, Housing and Urban Development Secretary Andrew Cuomo today awarded the Housing Authority of the City of High Point, NC a $20.2 million HOPE VI grant to make housing available for 198 families and to demolish 198 deteriorated public housing apartments.
The funds are part of $571 million in highly competitive grants that HUD is awarding to 21 housing authorities this summer under the public housing transformation program known as HOPE VI. The grants will be used to provide public, affordable and market-rate housing for 9,311 families and to demolish 9,134 units of severely distressed public housing in 21 cities.
In High Point, the HUD grant will be used to revitalize the Springfield Townhomes. The grant also will help 102 High Point public housing residents find jobs and provide supportive services for 300 young people over the next three years.
The HUD grant will draw an estimated $12 million in other investment to the area.
Cuomo made the announcement today in a telephone conference call with Senator John Edwards, Congressman Howard Coble and High Point Mayor Rebecca Smothers.
"We are transforming public housing projects with problems into new mixed-income communities with promise," Cuomo said. "We are making public housing a launching pad to opportunity, jobs and self-sufficiency - instead of a warehouse trapping people in poverty and long-term dependence."
Senator Edwards said: "This HOPE VI grant will help High Point build strong neighborhoods and safe places to raise families. I am looking forward to visiting the new Springfield community and seeing first-hand the turnaround that is due to happen."
Congressman Coble said: "After several attempts to obtain this funding, we are pleased that the High Point Authority will be the recipient of the HOPE VI funds. This grant will provide much-needed housing to the citizens of High Point."
High Point Mayor Rebecca Smothers said: "This grant is a great tribute to the housing authority and to the neighborhood where the funds will be used. We're very excited that residents of the Springfield neighborhood will have this opportunity to build a strong safe community amid the new homes, commercial development and recreational facilities that the grant will help provide."
Cuomo also announced today a $29.4 million HOPE VI grant to the Housing Authority of Raleigh to revitalize the Halifax Courts development.
In High Point, the new units being built with the HOPE VI grants will be made up of 35 new public housing units; 125 affordable and market-rate homes for purchase; and 38 units of privately-owned low- and moderate-income housing financed with the help of the federal Low-Income Housing Tax Credit.
The revitalization plan in High Point also includes the development of a Village Center for commercial space and community services, and the expansion of the existing Frazier Athletic Center. Existing athletic fields will be reconfigured, and parks and greenways will be added. The Housing Authority has received a commitment from PGA's First Tee Foundation to construct a six- to nine-hole golf course on the site. The new golf complex will complement the Housing Authority's job training and welfare-to-work effort.
Working with the New Springfield Consortium and WorkFirst Works, the Housing Authority will substantially decrease the number of households receiving welfare assistance and increase the number of people in the High Point work force.
The High Point Housing Authority received a $1 million demolition grant from HUD for Springfield Townhomes in 1998. In addition, these North Carolina housing authorities received HOPE VI grants from HUD in recent years: Charlotte - a $41.7 million revitalization grant for Earle Village in 1993, a $24.5 million revitalization grant for Dalton Village in 1996, and a $34.7 million revitalization grant for Fairview in 1998; Greensboro - a $23 million revitalization grant for Morningside Homes in 1998; Wilmington - a $11.6 million revitalization grant for Robert S. Jervay Place in 1996; Winston-Salem - a $27.7 million revitalization grant for Kimberly Park Terrace in 1997; Mid-East Regional - a $1.8 million demolition grant for scattered sites in 1998; Raleigh - a $500,000 demolition grant for Dandridge Downs in 1998; Sanford - a $65,000 demolition grant for Southfield Village in 1997.
The replacement housing units in the 21 cities around the nation receiving HOPE VI grants will be made up of 3,720 units of new public housing, 2,358 units of new privately owned affordable and market-rate rental housing, and 3,233 units that will be sold for homeownership by public housing residents and by market-rate buyers.
Some of the replacement housing units will be at the site of public housing being demolished, and some will be at other locations.
Nationally, HOPE VI funds will also be used to help about 3,400 public housing residents get jobs and become self-sufficient.
This year, every dollar HUD is investing in public housing transformation is generating a record high average of $2.07 in other investment - far more than the 31 cents in other investment the transformation program generated when it began in 1993.
HUD's investment of $571 million in HOPE VI public housing transformation grants around the nation this year is expected to help generate a record $1.2 billion in additional investment in housing and jobs programs at public housing developments - including $854 million in private funds and $328 million in other government funds.
HUD will pay temporary relocation costs for residents whose apartments are being demolished. Relocated residents in good standing 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 with HOPE VI funds 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 21 housing authorities receiving HOPE VI grants were selected in a competition involving 80 cities that submitted applications requesting a total of $1.8 billion. Cities were selected based on 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. The HOPE VI program was created in 1992 as a direct result of the National Commission on Severely Distressed Public Housing report that found nearly 100,000 units of "severely distressed" public housing.
HUD has approved the demolition of 53,000 units of the worst public housing under the HOPE VI program, and has approved creation of housing opportunities for 72,000 families. The new housing opportunities include 35,000 new public housing units, 25,000 other new units to achieve mixed-income housing, and 12,000 housing units subsidized by rental assistance vouchers.
There are about 1.4 million units of public housing around the nation, where nearly 2.7 million people live. The median annual income of households in public housing is $9,257. A total of 49 percent of households are made up of families with children, another 32 percent house senior citizens, and 17 percent are home to people with disabilities.
HUD's HOPE VI assistance will be tailored to carry out plans developed by each grant recipient. Each recipient developed its own revitalization program under a HUD policy that gives local housing authorities great flexibility to come up with plans to meet their own special needs.
The HOPE VI program has five key objectives:
Content Archived: January 20, 2009
Content Archived: January 20, 2009