HUD AWARDS $494 MILLION TO A RECORD NUMBER OF CITIES FOR PUBLIC HOUSING REVITALIZATION

WASHINGTON - Today the Department of Housing and Urban Development awarded 28 cities $494,267,265 million in HOPE VI grants that will be used to revitalize distressed public housing units and spur economic development in these communities.

"Revitalizing distressed communities continues to be a priority of this administration," said HUD Secretary Mel Martinez. "The grants awarded today will revitalize neighborhoods, improve lives and transform communities for years to come."

The awardees will rebuild 9,916 new housing units that will include: 3,717 public housing units with HOPE VI funds, 3,840 affordable and market rental units and 2,359 homes for sale with private funds. They will also demolish 7,233 aging public housing units.

These communities also include plans for new community centers that will house childcare centers, employment and healthcare services, as well as youth and elderly recreational facilities. For many, plans create architectural features that blend the new public housing developments with the surrounding community.

The 28 awardees were selected from 58 applicants. Cities were competitively selected with an emphasis on the effectiveness and project readiness 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.

Through the HOPE VI program, HUD has awarded $5 billion in 193 grants to 114 cities. With $2.5 billion already awarded, but not yet spent, and an additional $1 billion to be awarded in 2002 and 2003, HOPE VI funding will continue to impact communities well into the future.

As part of today's award, HUD will pay relocation costs for residents being displaced by the revitalization effort. Relocated residents who meet program requirements will be given the 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 the revitalized development.

When the first HOPE VI grants were awarded 10 years ago, it was the only significant means of leveraging private capital to revitalize public housing properties. Today new financial tools are available to public housing authorities (PHA). HUD has approved bond and loan deals that have leveraged approximately $500 million in the last two years. PHAs can mortgage their properties to leverage private capital. In Maryland, PHAs are forming consortia to leverage their collective resources and assets to attract private capital. Cities such as Chicago are committing hundreds of millions of dollars of their own money to revitalize public housing neighborhoods. HUD is also seeking additional tools from Congress such as the Public Housing Reinvestment Initiative and the 80 percent loan guarantee initiative, which allow PHAs to leverage up to $1.7 billion in additional private sector financing.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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