HUD, Cohen Announce $22 Million for Memphis Housing Authority

“The HOPE VI Program has done an outstanding job over the years to improve housing conditions for countless low-income communities and this year, we took it a step further,” Bostic said. “As we start to broaden the scope of our efforts through the Choice Neighborhoods pilot program – linking housing to schools and early education programs, public transportation, grocery stores, health clinics and community centers – this year, HUD encouraged housing authorities for the first time to incorporate early childhood education components in their revitalization plans. I applaud the Memphis Housing Authority for stepping up to that challenge in an extraordinary way.”

Joining Assistant Secretary Bostic today was U.S. Representative Steven Cohen, other elected officials and Robert Lipscomb, Executive Director of the Memphis Housing Authority.

"Increasing access to quality, affordable housing during these tough economic times is vital for Memphis," said Congressman Cohen. "This new federal funding will help revitalize the neighborhood, create jobs, and help children get the education they need to successfully compete in a 21st Century economy."

In addition to the Memphis Housing Authority, yesterday HUD announced that the following housing authorities will also receive grants through HUD’s FY 2009 HOPE VI Revitalization award process:

• Housing Authority of the City of Charlotte (NC) will receive $20,900,000 to revitalize the Boulevard Homes public housing development.
• Housing Authority of Covington (KY) will receive $17,000,000 to revitalize the Jacob Price public housing development.
• Housing Authority of the City of Dallas (TX) will receive $22,000,000 to revitalize the Turner Courts public housing development.
• Housing Authority of the City of Jersey City (NJ) will receive $9,700,000 to revitalize the A. Harry Moore public housing development.
• Housing Authority of the City of Trenton (NJ) will receive $22,000,000 to revitalize the Miller Homes public housing development.

Including the grants announced today, there have been 254 HOPE VI Revitalization grants awarded to 132 housing authorities since 1993 – totaling more than $6.1 billion.

The six housing authorities were selected from among 44 agencies from across the country that applied for HOPE VI Revitalization Program funding. For the first time since the inception of the program, applicants for FY 2009 HOPE VI Revitalization funding were encouraged to include plans in their applications to connect the redevelopment effort with early childhood education programs. The HOPE VI Program aims not only to transform the physical condition of a public housing community, but also to positively impact the lives of the residents. As one way to encourage that objective, housing authorities were given additional points in the application scoring process for demonstrating commitments and plans related to early childhood education, such as having a partnership with an institution that implements a comprehensive, high-quality, results-oriented early childhood education program that promotes best practices.

The early childhood education component encouraged through this grant round challenged housing authorities to extend neighborhood transformation efforts beyond public housing to link housing intervention with education. The Obama Administration upholds this challenge in Choice Neighborhoods, a pilot program that is currently under development. Choice Neighborhoods, which Congress approved with HUD’s FY 2010 budget, aims to build upon the achievements and lessons learned of HOPE VI by employing a comprehensive approach to community development centered on housing development. Choice Neighborhoods aims to transform neighborhoods of poverty into viable mixed-income neighborhoods with access to economic opportunities by revitalization of severely distressed public and assisted housing by investing and leveraging in well-functioning services, effective schools and education programs, public assets, public transportation and improved access to jobs. A pre-notice concerning Choice Neighborhoods was recently issued by the Department and is posted on the HUD website.

Since 1993, HUD has awarded HOPE VI grants to public housing authorities to encourage public-private partnerships to transform severely distressed public housing into mixed-income communities that assist residents in becoming self-sufficient. The program was created in 1992 following a report by the National Commission on Severely Distressed Public Housing, which concluded that approximately 86,000 public housing units in the U.S. needed revitalization.

HOPE VI Revitalization grant funds are 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; costs for mobility counseling and relocation; and community and supportive service programs for residents, including those relocated as a result of revitalization efforts.

Housing authorities are competitively selected for HOPE VI grants based on many factors including the effectiveness and project readiness of their revitalization plans. HUD gives recipients the flexibility to develop revitalization plans that meet their local needs. Among other criteria, grantees are also awarded funds based on the capacity of the housing authority and its development team to administer and manage completion of the revitalization effort; the severity of physical distress of the development; the ability of the housing authority to supplement the HOPE VI grant with funding from other sources, private, state or local government; the ability to provide supportive services to displaced residents; and the proposed green development and energy efficiency strategies.

Grant Summary:

Memphis, TN- Cleaborn Homes

The Memphis Housing Authority (MHA) will receive a FY 2009 HOPE VI Revitalization grant in the amount of $22 million, which will enable the Housing Authority to revitalize the Cleaborn Homes public housing development. This would be the MHA’s fifth HOPE VI Revitalization grant. The revitalization project is currently comprised of 460 distressed units, all of which will be demolished. Cleaborn Homes will be replaced with a total of 400 units. Of this total, there will be 140 units of public housing/Low-Income Housing Tax Credit (LIHTC) rental units, 110 LIHTC-only rental units, 40 project based voucher units, and 110 market rate rental units. Of these units, 301 will be on-site and 99 will be off-site. Community and Supportive Services (CSS) will also be provided to all impacted families. MHA has executed a Memorandum of Understanding with the Shelby County Government Head Start program to enroll current and future CSS-eligible families in both the Head Start and Early Head Start. In addition, the Head Start program has partnered with Porter Leath, a United Way agency, which will provide home visitation services to support residents who are pregnant.