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Content provided by the Catalog of Federal Domestic Assistance
14.866 Demolition and Revitalization of Severely Distressed Public Housing

FEDERAL AGENCY:

PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

Department of Housing and Urban Development Appropriations Act of 1993, Public Law 102-389; Section 24, U.S. Housing Act of 1937.
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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 attain educational excellence, and the community to secure a desirable quality of life. HOPE VI Demolition Grants enable PHAs to expedite the demolition of obsolete and/or severely distressed public housing units. Any subsequent new construction or revitalization of any remaining units must be funded from other resources.

TYPES OF ASSISTANCE:

Project Grants.
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USES AND USE RESTRICTIONS:

HOPE VI grant funds may be used to fund demolition of severely distressed public housing developments or portions thereof, revitalization (where appropriate) of sites on which such developments are located, and replacement housing that will avoid or lessen concentrations of very low-income families. Up to 15 percent of a grant may be used for Community and Supportive Services programs.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Public Housing Agencies (PHAs) operating public housing units. Indian Housing Authorities and PHAs that only administer the Section 8 Program are not eligible to apply.

Beneficiary Eligibility:   The ultimate beneficiaries are former residents of the severely distressed public housing and residents of the revitalized units.

Credentials/Documentation:   Eligibility requirements to apply for a HOPE VI grant are included in each year's NOFA. This program is covered under OMB Circular No. A-87.

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APPLICATION AND AWARD PROCESS:
Pre-application Coordination:   PHAs 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 Procedure:   A NOFA is published in the Federal Register announcing the availability of funds. An Application Kit is also published, which contains the text of the NOFA, forms required for the application, and guidance. A copy of the Application Kit is mailed to each eligible PHA.

Award Procedure:   HUD Headquarters reviews each eligible application, assigns rating points, and the highest-rated complete applications are notified that they have been selected to participate in the HOPE VI program. Funds are obligated when HUD executes a Grant Agreement.

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

Range of Approval/Disapproval Time:   Approximately 3 months from the application deadline date.

Appeals:   PHAs are notified by HUD if an application is not approved.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Funds are provided to PHAs to cover the capital cost of a project. PHAs use operating subsidies to operate the project upon completion. FY 1993-1995 grantees are required to provide contributions from the City for supportive services in an amount equal to 15 percent of the HOPE VI grant for supportive services. Starting in FY 1999, Grantees must provide a 5 percent overall match, and if more than 5 percent of the grant is used for Community and Supportive Services, any amount over that 5 percent must be matched.

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 is audited in conjunction with regular HUD or independent public accountant audits of PHA operations in accordance with 24 CFR 85.26.

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

FINANCIAL INFORMATION:

Account Identification:   86-0218-0-1-604.

Obligations:   (Project Grants) FY 15 $0; FY 16 est $0; and FY 17 est $0 - This program is no longer active and has $0 funding.

Range and Average of Financial Assistance:   However (for historical purposes only) In FY 01 Revitalization Grants have ranged from $10.9 to $35 million, with an average of $30.7 million; the maximum grant was set at $35 million. Demolition-only grants range from $35,000 to $13 million, with an average of $1.7 million; demolition grants have no maximum.

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PROGRAM ACCOMPLISHMENTS:
Through fiscal year 2001, PHAs received 35 planning, 165 implementation, and 177 demolition-only grants, with a total of 377 grants providing almost $4.9 billion in funding.

REGULATIONS, GUIDELINES, AND LITERATURE:

No regulations have been published. Each grant is subject to the terms of its Grant Agreement, which is the contract signed by the Grantee and HUD. HUD posts guidance to its Home Page (http://www.hud.gov/hopevi) 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:   None. 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:   Leigh vain Rij, 451 7th Street, S.W., Room 4130, Washington, District of Columbia 20410 Email: leigh.e.vanrij@hud.gov Phone: (202) 402-5788.

Web Site Address:  
http://www.hud.gov/offices/pih/programs/ph/hope6/

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

As published in each NOFA.

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