HUD Archives: News Releases

HUD No. 00-195
Further Information: For Release
In the Washington, DC area: 202/708-0685 Tuesday
Or contact your local HUD office August 1, 2000


WASHINGTON – U.S. Housing and Urban Development Secretary Andrew Cuomo today awarded a $28.4 million grant to the Newport Housing Authority that will be used to provide housing for 313 families and to demolish 202 deteriorated public housing apartments.

In Newport, the HOPE VI grant will be used to revitalize the Peter G. Noll, Booker T. Washington, and McDermott-McLane public housing projects. Upon completion, the grant from HUD will develop 150 public housing rental units, 96 market-rate units and 67 affordable rental units

Today’s grant will ultimately attract $28 million in total investment to Newport, a return equal to about 90 cents for every dollar invested this year in the program. In 1993, the first year of the program, the return was only 31 cents for each dollar invested.

The HUD grant will also be used as leverage for funding the city’s economic and commercial development efforts on the waterfront. The neighborhood revitalization and waterfront redevelopment are interdependent goals of the City of Newport, which is initiating $300 million worth of economic redevelopment. Residents will also be assisted with education and employment services.

The HOPE VI Revitalization grants being awarded now will total nearly $515 million.

"Today’s awards bring us a step closer to meeting a bold pledge by the Clinton-Gore Administration to remake the nation’s public housing so that every American will have a safe, clean and decent place to live," Cuomo said. Joining Cuomo in making the announcement were Senators Mitch McConnell and Jim Bunning and Representative Ken Lucas.

Lucas said, "Newport's revitalization effort reflects an aggressive, community-oriented approach which has the potential to not only change the face of public housing in Newport, but to provide the city with an urgently needed revitalization program for their existing housing. The people of Newport have worked hard to improve the quality of life of our community. This HOPE VI revitalization award will help continue the rebirth of our river cities."

The HOPE VI grants, first awarded by HUD in 1993, have five objectives:

  • Improve public housing by demolishing severely distressed public housing projects, such as high-rises and barracks-style apartments, and replace them with townhouses or garden-style apartments that blend aesthetically into the surrounding community.
  • Reduce concentrations of poverty by encouraging a mix of incomes among public housing residents and by encouraging working families to move into housing that is part of revitalized communities.
  • Provide support services, such as education and training programs, child care services, transportation and counseling to help public housing residents get and keep jobs.
  • Establish and enforce high standards of personal and community responsibility through explicit lease requirements.
  • Forge partnerships that involve public housing residents, state and local government officials, the private sector, non-profit groups and the community-at-large in planning and implementing new communities.

As part of today’s awards, HUD will pay temporary relocation costs for residents whose apartments are being demolished. Relocated residents who meet program requirements will be given the first opportunity to move back to the newly constructed units at the site. Alternatively, if residents choose not to return to public housing, they will be given vouchers to subsidize their rents in privately owned apartments. In addition, relocated residents receiving vouchers will be provided with the same job training and services offered to people living in replacement public housing.

All newly constructed units must conform to HUD guidelines for Healthy Homes. This initiative ensures that safeguards are in place to protect residents from hazards caused by lead, fire, carbon monoxide and radon.

Newport’s application came from a pool of 74 that requested nearly $1.8 billion in grants. The funds will be used to build or rehab more than 10,100 housing units; nearly 6,400 severely distressed units will be demolished. Cities were competitively selected based upon the effectiveness of their public housing revitalization plans. HUD policy provides local housing authorities with the flexibility to develop revitalization plans that meet their own special needs.

The HOPE VI program was created as a result of a report by the National Commission on Severely Distressed Public Housing, which found nearly 100,000 units of "severely distressed" public housing in the U.S.

From 1993-99, HUD awarded 131 revitalization grants totaling $3.5 billion. More than 50,000 units of distressed public housing have been approved for demolition and 39,000 new public housing units are being created as a result of the program.

About 2.7 million people live in the nation’s 1.3 million public housing units. Nearly half of the units are home to families with children, 32 percent have senior citizens, and 17 percent are home to people with disabilities. The median annual income of households in public housing is $9,777.


Content Archived: December 13, 2009