Demolition and Revitalization of Severely Distressed Public Housing

Revitalization Grants enable PHAs to improve the living environment for public housing residents of severely distressed public housing projects through the demolition, substantial rehabilitation, reconfiguration, and/or replacement of severely distressed units; revitalize the sites on which severely
distressed public housing projects are located and contribute to the improvement of the surrounding neighborhood; lessen isolation and reduce the concentration of low-income families; build sustainable mixed-income communities; and provide well-coordinated, results-based community and supportive services that directly complement housing redevelopment and that help residents to achieve self-sufficiency, young people to obtain educational excellence, and the community to secure a desirable quality of life.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - The level of field office involvement in the administration of a project varies grant-by-grant.

All HOPE VI Demolition grants are administered in the Field, and most Revitalization grants are administered in Headquarters.

Applicants should contact the HUD Field Office listed on the internet at http://www.hud.gov/local/ that has jurisdiction for their area.


Program Accomplishments

Through fiscal year 1993 to 2007, PHAs received 35 planning, 242 revitalization, and 287 demolition-only grants and 9 HOPE VI Main Street. Fiscal year 2008 grants have not yet been awarded. Over 88,554 severely distressed public housing units have been demolished under the HOPE VI program. Over 67,332 new housing units have been developed.

Uses and Use Restrictions

HOPE VI Revitalization grant funds may be used to fund the revitalization of severely distressed public housing developments.

Such activities include the demolition of severely distressed public housing developments or portions thereof; relocation costs for affected residents; disposition activities; rehabilitation of existing public housing units and/or community facilities; development of new public and other housing units and community facilities; homeownership activities; acquisition activities; necessary management improvements and administrative costs; and community and supportive services.

Up to 15 percent of a grant may be used for community and supportive services activities.

Eligibility Requirements

Applicant Eligibility

For HOPE VI Revitalization Grants, Public Housing Agencies (PHAs) operating public housing units are eligible to apply.

Indian Housing Authorities and PHAs that only administer the Section 8 Program are not eligible to apply.

Beneficiary Eligibility

For HOPE VI Revitalization Grants, the ultimate beneficiaries are residents of the severely distressed public housing and residents of the revitalized development.

Credentials/Documentation

Eligibility requirements to apply for a HOPE VI grant are included in each year's Notice of Funding Availability (NOFA). This program is covered under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Applicants are provided with guidance from HUD Headquarters and may ask questions of HUD staff while preparing their applications.

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

A NOFA is published in the Federal Register announcing the availability of funds and includes necessary application materials. The NOFA and all necessary application materials are made available on the Grants.gov website as well.

Award Procedures

HUD Headquarters reviews each eligible application for threshold compliance, assigns rating points to applications that pass all thresholds, and the highest-rated applications are notified that they have been selected to participate in the HOPE VI program. Funds are obligated when HUD and the applicant execute a form HUD-1044, "Assistance Award/Amendment."

Deadlines

The deadline for submitting an application for HOPE VI is published in each year's NOFA.

Authorization

The funding authority for HOPE VI revitalization grants under the fiscal year 2008 HOPE VI NOFA is provided by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007) under the heading "Revitalization of Severely Distressed Public Housing (HOPE VI)." The program authority for the HOPE VI program is Section 24 of the 1937 Act, as amended by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007).

Range of Approval/Disapproval Time

Approximately 3 months from the application deadline date.

Appeals

Applicants are notified by HUD if an application is not approved.

Renewals

None.

Assistance Considerations

Formula and Matching Requirements

Grantees must provide a 5 percent overall match. For HOPE VI Revitalization Grants, if more than 5 percent of the grant is used for Community and Supportive Services, any amount over that 5 percent must be matched (up to a maximum of 15 percent).

Length and Time Phasing of Assistance

Each year's grant agreement sets out the requirements regarding timetables and milestones.

Post Assistance Requirements

Reports

Quarterly Progress Report, Quarterly Obligation and Expenditures Report, Closeout Report.

Audits

HOPE VI Revitalization grants are audited in conjunction with regular HUD or independent public accountant audits of PHA operations in accordance with 24 CFR 85.26, and after grant close-out.

Records

Copies of budgets and accumulative cost records through the grant period, and other records necessary to indicate compliance with the Grant Agreement.

Financial Information

Account Identification

86-0218-0-1-604.

Obigations

(Grants) FY 07 $97,020,000; FY 08 est $97,600,000; and FY 09 est $0.

Range and Average of Financial Assistance

The HOPE VI Revitalization Grants awarded in FY 2006 ranged from $11.9 to $20 million, with an average of $18 million. The maximum grant amount was set at $20 million. Fiscal year 2007 grants ranged from $8.855 to $20 million, with an average of $17.7 million. The maximum grant amount was set at $20 million. Fiscal year 2008 grants have not yet been awarded (application deadline is June 20, 2008).

Regulations, Guidelines, and Literature

No regulations have been published. Each grant is subject to the terms of its NOFA and Grant Agreement, which is the contract signed by the Grantee and HUD. HUD posts guidance to its Home Page (http://www.hud.gov/offices/pih/programs/ph/hope6/) that provides Grantees with information on timelines, budgets, financial instructions, and other program guidance. HUD also publishes a Mixed- Finance Guidebook that is available to the public by calling (800) 955-2232.

Information Contacts

Regional or Local Office

The level of field office involvement in the administration of a project varies grant-by-grant. All HOPE VI Demolition grants are administered in the Field, and most Revitalization grants are administered in Headquarters. Applicants should contact the HUD Field Office listed on the internet at http://www.hud.gov/local/ that has jurisdiction for their area.

Headquarters Office

Assistant Secretary for Public and Indian Housing, Deputy Assistant Secretary for Public Housing Investments, Office of Urban Revitalization, Department of Housing and Urban Development, Washington, DC 20410. Telephone: (202) 401-8812.

Criteria for Selecting Proposals

As published in each NOFA.



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