HUD Archives: News Releases

HUD No. 03-109
Donna White
(202) 708-0685

For Release
October 21, 2003

2003 HOPE VI Funding Application In Today's Federal Register

WASHINGTON - The U.S. Department of Housing and Urban Development today announced the availability of $574 million in 2003 HOPE VI Revitalization and Demolition grants to revitalize aged public housing and transform neighborhoods across the country.

The Notice of Funding Availability (NOFA) appears in today's Federal Register and on HUD's website. Public housing authorities (PHAs) have until January 20, 2004 to compete for the Revitalization grants. The deadline for the Demolition grants is February 18, 2004. Awards for the Revitalization grants are generally made four to five months after the deadline. The maximum grant award for the Revitalization program is $20 million.

For the first time since the inception of the Revitalization program, HUD will award points to a PHA based on the number of units the PHA has produced under previous HOPE VI Revitalization grants. This move addresses the Department's concerns that many past Revitalization grant recipients have not produced units in a timely manner.

"Of the $5.5 billion that has been awarded since 1993, including this current round of funding, $3 billion remains in the pipeline," said HUD Assistant Secretary Michael Liu. "This year's NOFA will reward those housing authorities that are aggressively building housing."

The 2003 HOPE VI funding is distributed in this way:

  • $447.75 million is available for the HOPE VI Revitalization Program, which public housing authorities use to demolish, rehabilitate or rebuild severely distressed public housing units.
  • $40 million is available for the HOPE VI Demolition Program, which PHAs use to demolish distressed public housing to rid these dilapidated public housing units.
  • The remaining $86.2 million in funding will be used to support other activities related to implementing the HOPE VI grants, such as creating Neighborhood Networks centers at the new developments; funding the cost of Housing Choice Vouchers that will be used for relocating residents; and providing technical assistance to PHAs that are awarded 2003 grants.

There have been 193 HOPE VI Revitalization grants awarded to 114 housing authorities since 1993 - totaling $5 billion. Revitalization grant funds may be used for an array of activities, including: demolition of severely distressed public housing; acquisition of sites for off-site construction; capital costs of major rehabilitation, new construction and other physical improvements; and community and supportive service programs for residents, including those relocated as a result of revitalization efforts.

HUD will pay relocation costs for residents whose apartments are being demolished. Relocated residents in good standing will be given an opportunity to move back to the newly constructed units at the site, or will be given Housing Choice Vouchers (Section 8) that will subsidize their rents in privately owned apartments if they choose not to return to public housing.

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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