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CUOMO AWARDS $34.9 MILLION HOPE VI GRANT TO DECATUR, ILLINOIS TO TRANSFORM PUBLIC HOUSING AND HELP RESIDENTS

As part of a program to transform public housing around the nation, U.S. Housing and Urban Development Secretary Andrew Cuomo today awarded the Decatur, Illinois Housing Authority a $34.9 million HOPE VI grant to make housing available for 449 families and to demolish 386 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 Decatur, the HUD grant will be used to revitalize the Longview Place public housing development in the city's Near North neighborhood. The grant also will help 75 Decatur public housing residents find jobs and provide supportive services for 500 young people over the next three years.

The HUD grant will draw an estimated $61 million in other investment to the area.

Rosanna Marquez, Secretary Cuomo's Representative for the Midwest, made the announcement today in Decatur with Senator Dick Durbin, Congressmen David Phelps and Ray LaHood, and Decatur Mayor Terry Howley.

"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 Durbin said: "Today's announcement is essential to revitalizing the City of Decatur. This HOPE VI grant will give working families the opportunity to raise their children in a decent, affordable environment. I would like to thank Secretary Cuomo for his commitment to the future of our community."

In Decatur, the new units being built with the HOPE VI grant will be made up of 268 new public housing units and 157 affordable homes for purchase.

The Housing Authority and its partners will use the grant to create a mixed-income neighborhood and to construct three group homes for developmentally disabled and mentally ill people. The grant also will be used to upgrade the space that houses the Ullrich Family Investment Center, as well as create the Community Investment Partnership to coordinate community services. Funding will support programs to help residents move from welfare to work with a goal of cutting in half the number of households with primary income from public assistance.

Previously in Illinois, the Chicago Housing Authority received a $50 million HOPE VI revitalization grant for the Cabrini-Green development in 1994, an $18.4 million HOPE VI revitalization grant for the Henry Horner development in 1996, a $25 million HOPE VI revitalization grant for the Robert Taylor development in 1996, a $24.5 million HOPE VI revitalization grant for the ABLA Brooks Extension development in 1998, a $35 million HOPE VI revitalization grant for the ABLA development in 1998, a $1.3 million HOPE VI demolition only grant for the Wells Extension development in 1998, a $1.5 million HOPE VI demolition only grant for the Washington Park development in 1998, a $672,000 HOPE VI demolition only grant for Darrow Homes in 1998, a $290,500 HOPE VI demolition only grant for Brooks Homes in 1998, and a $923,500 HOPE VI demolition only grant for Brooks Extension in 1998.

In addition, the Housing Authority of East St. Louis received a $1 million HOPE VI demolition only grant for North Park Tower in 1996; the Peoria Housing Authority received a $16.2 million HOPE VI revitalization grant for Colonel John Warner Homes in 1997; and the Springfield Housing Authority received a $19.8 million HOPE VI revitalization grant for John Hay Homes in 1994.

The replacement housing units in the 21 cities around the nation receiving HOPE VI grants this year 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.

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. In Decatur, each HOPE VI dollar awarded today is expected to generate $1.77 in other investment.

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 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 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. 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 the 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 Section 8 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:

• Changing the physical shape of public housing by demolishing severely distressed projects - high-rises and barracks-style apartments - and replacing them with garden-style apartments or townhouses that become part of their surrounding communities.

• Reducing concentrations of poverty by encouraging a greater income mix among public housing residents and by encouraging working families to move into public housing and into new market-rate housing being built as part of the neighborhoods where public housing is located.

• Establishing support services - such as education and training programs, child care services, transportation services and counseling - to help public housing residents get and keep jobs.

• Establishing and enforcing high standards of personal and community responsibility by barring drug dealers and other criminals from moving into public housing and evicting those already there, under President Clinton's One Strike and You're Out policy and through other anti-crime programs as well.

• Forging broad-based partnerships to involve public housing residents, state and local government officials, the private sector, non-profit groups and the community at large in planning and implementing the new communities.