AGREEMENT WITH HUD RETURNS CHICAGO HOUSING AUTHORITY TO LOCAL CONTROL

Officials of the U.S. Department of Housing and Urban Development and the City of Chicago today signed an agreement that returns the Chicago Housing Authority to local control, HUD Secretary Andrew Cuomo announced.

Under the agreement, Mayor Richard M. Daley will nominate a 10-member Housing Authority Board of Commissioners by July, including three public housing residents selected by resident groups. Board members will need the approval of the City Council to take office.

"The signing of this agreement represents a major accomplishment for Mayor Daley, the City of Chicago, and the Chicago Housing Authority," Cuomo said. "Our action is a vote of confidence in the good work that Mayor Daley and the CHA have been doing to improve living conditions for residents of public housing in Chicago."

"I want to thank Secretary Cuomo for working with us to reach this agreement," the Mayor said. "It's a reflection of the Clinton-Gore Administration's commitment to changing the way government works…. Our goal is to bring an end to the isolation of public housing residents, to improve their quality of life, and to offer both better housing and more opportunities for meaningful and rewarding work."

The CHA is the third-largest housing authority in the nation (after New York City and Puerto Rico) and operates housing for about 131,000 people with low and moderate incomes.

Harold Lucas, HUD Assistant Secretary for Public and Indian Housing, joined Daley at a press conference in Chicago announcing the signing of a landmark Memorandum of Understanding turning over control of the CHA to the City of Chicago.

Under the agreement, Chicago, HUD and the CHA agree to begin a planning process that will result in a Performance Compact by the end of the year. The Compact will establish an action plan and identify the regulatory and legislative flexibility and resources that will transform public housing in Chicago.

HUD will review the Performance Compact and work with the CHA to put it into effect on Jan. 1, 2000. HUD will work to help the Compact succeed in its goal of creating improved public housing.

In May 1995, because of deteriorated living conditions and years of management problems at CHA properties, the CHA Board of Commissioners voted to transfer control of the housing authority to HUD. Joseph Shuldiner, who was HUD Assistant Secretary for Public and Indian Housing, was then hired to become the Executive Director of the CHA.

In August 1998 - because of improved living conditions, improved management performance, and a successful partnership between public housing residents and the CHA - Cuomo removed the CHA from HUD's list of troubled public housing authorities. Cuomo announced at the time that HUD would begin a transition period that would end with the return of the CHA to local control.

Cuomo today praised both Shuldiner for his work as Executive Director of the CHA and Karen Newton, HUD's Deputy Assistant Secretary in charge of recovery efforts for troubled public housing authorities. "The progress at the CHA would not have been possible without the hard work and talent of Joe Shuldiner and Karen Newton," the Secretary said.