HUD AWARDS $44.9 MILLION TO STATE OF NEW JERSEY TO TRANSFORM PUBLIC HOUSING, HELP RESIDENTS

WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $44.9 million to the state of New Jersey to transform aging public housing units into dynamic, mixed-income communities.

The Jersey City Housing Authority received a $34 million HOPE VI grant for Lafayette Gardens. The grant will be used to replace 492 older public housing units with 293 new public housing units. The plan also includes developing 352 affordable and market rate rental units and 205 affordable and market rate homeownership units, creating a total of 850 housing units.

The Housing Authority of the City of Bridgeton received a $10.9 million HOPE VI grant for Cohansey View. The grant will be used to replace 62 older public housing units with 96 new public housing units. The plan also includes developing 161 affordable and market rate rental units, 6 lease-to-own homeownership units and 104 affordable and market rate homeownership units, creating a total of 367 housing units.

"We have seen cities across the country transform aging public housing units into thriving, mixed-income communities," said HUD Assistant Secretary for the Office of Public and Indian Housing Michael Liu, who made the announcement in New Jersey today. "Jersey City and Bridgeton will join them in this effort to improve neighborhoods and give public housing residents the tools that lead to self-sufficiency."

These two cities were selected from a pool of 66 applications the agency received for the 2001 funding. Today's grant will ultimately attract $130 million in total investment to Jersey City, a return equal to about $3.82 for every dollar invested this year in the program. In Bridgeton, the grant will attract $61.8 million in total investment, a return equal to about $5.65 for every dollar invested. In 1993, the first year of the HOPE VI program, the return was only 31 cents for each dollar invested.

HUD will award more than $491 million this year nationally in HOPE VI grants. The funds will be used to build or rehab more than 12,000 housing units and replace 8000 older public housing units. 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 public housing units in the U.S. in need of revitalization. The HOPE VI grants, first awarded by HUD in 1993, have five objectives:

• Improve public housing by replacing severely distressed public housing projects, such as high-rises and barracks-style apartments, 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 award, HUD will pay relocation costs for residents being temporarily relocated or displaced by the revitalization effort. 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.

Since 1993, not including this year's grants, HUD has awarded 149 HOPE VI grants to 90 cities. The program's $4 billion in awards has leveraged more than $7 billion in public and private funds.