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The HOPE VI Program
(Public Housing Revitalization)

Public housing agencies with severely distressed housing are eligible to apply for annual, competitive grants under the HOPE VI program to revitalize their communities and benefit public housing residents.

  • For FY2000, 72 applicants are seeking a share of the $513.8 million available.
  • Funding 1993 through 1999 totals $3,724,297,410.
  • HUD made awards to 119 housing agencies in 32 states, the District of Columbia, Puerto Rico and the Virgin Islands through 1999.
  • HUD awarded 35 planning grants through 1995 total $14,752,081.
  • HUD awarded 131 revitalization grants 1993-99, total $3,541,195,771.
  • HUD awarded 108 demolition-only grants 1993-99, total $168,349,558.

HOPE VI began as a demonstration program, the result of the 1992 Congressional Commission on Severely Distressed Public Housing. Distressed housing is that which is uninhabitable because of poor siting or design, concentrated poverty, has high rates of vandalism or criminal activity, or contributes significantly to disinvestment in the surrounding community (section 535 QHWRA or section 24 1937 Act). The purpose of the Commission was to confirm the suspected high numbers of such developments, and recommend solutions. The program was not written in statute Until QHWRA (see section 535 of QHWRA or section 24 of the 1937 Act). Instead, HUD crafted the program through successive NOFAs, changing focus slightly year to year. Section 18 of the 1937 Act, demolition and disposition requirements, do not apply to those activities under HOPE VI. HUD's interpretation of the statute with regard to the Uniform Relocation Act (URA) is that it since the URA is not in effect for section 18 demolition, then the URA does apply to HOPE VI because section 18 does not.

Initially, the HOPE VI program looked a little like a sophisticated modernization project. The plans offered by the first grantees, a group of 31 large cities who received $2.45 billion between 1993-1995, were criticized by HUD for not going far enough with what the program seemed to allow. Many initial submissions were re-worked several times over, especially to incorporate HUD's heavy focus on demolition of public housing communities. By the completion of the 1999 grants, HUD expects to have demolished 82,000 public housing units, and to replace 51,000 of those with affordable units. The program showcases innovative mixed-income, mixed-finance housing developments and public-private partnerships that place schools, churches, civic and community services and employment in or near the developments.

Residents of public housing have remained skeptical of the government's ability to provide them with better homes and more opportunity. Strife among residents, HUD and housing agencies slowed the implementation of early grants, sometimes by years. HOPE VI has proven the value of public-private and non-profit partnerships in solving tough urban problems. HUD insists that residents are a part of this partnership process, and must be included in the revitalization process. Better guidance to residents and agencies has improved these relationships. HUD continues to refine the administration of the program, which tends to draw criticism for being overly regulatory from some perspectives, and not regulated enough from others.

HOPE VI will sunset, or receive no appropriations beyond September 30, 2002. Similar but separate revitalization activities are permitted in the capital program, but without HOPE VI, there will not be the critical push to local communities provided by HOPE VI's extraordinarily large grants and comprehensive scope.

Ongoing research by HUD and its contractors is tracking the progress of 15 pilot sites over a 15-year period. HUD has also commissioned a study of public housing residents who chose to leave their project site when grant implementation began. Most of these families chose a section 8 rent voucher. They became disconnected from their public housing community and the services offered to those who chose to stay in relocation housing until the new development was ready.

NAHRO Policy Position

Due to the loss of affordable housing experienced in the HOPE VI program, NAHRO supports additional funding and opportunities for incremental production of affordable housing as an eligible activity in the HOPE VI program.

For more information, please contact Christine Siksa, Policy Analyst for Housing, at 202-289-3500, ext. 252 or by e-mail at csiksa@nahro.org.

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