Grant Community.com

Catalog of Federal Domestic Assistance

Program Descriptions

14.866:  Demolition and Revitalization of Severely Distressed Public Housing

Popular Name:  HOPE VI

Objectives:  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 severely distressed public housing units. Any subsequent new construction or revitalization of any remaining units must be funded from other sources.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

14.866 ELIGIBILITY REQUIREMENTS:

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 A-87.

14.866 APPLICATION AND AWARD PROCESS:

Preapplication 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:  About two months from the application deadline date.

Appeals:  PHAs are notified by HUD if an application is not approved. If an application is found to have been rejected erroneously, it will be funded as more funds become available.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  As published in each NOFA.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Revitalization Grants range from $7.5 to $50 million, with an average of $27 million; grants are now limited to $35 million. Demolition-only grants range from $109,550 to $10 million, with an average of $1.6 million.

14.866 RELATED PROGRAMS:

• 14.850 Public and Indian Housing.

14.866 PROGRAM ACCOMPLISHMENTS:

14.866 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Project Grants.

Obligations:  (Grants) FY 99 $577,089,747; FY 00 est $1,254,682,097; and FY 01 est 625,000,000.

Budget Account Number:  86-0218-0-1-604.

Authorization:  U.S. Housing Act of 1937, Section 24, 42 U.S.C. 1437v; Quality Housing and Work Responsibility Act of 1998, Public Law 105-276, 112 Stat. 2461.

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 publishes a HOPE VI Guidebook for Grantees which provides 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.

14.866 INFO 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.

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. Phone: (202) 708-2822.

(See Appendix IV for more contact info.)

14.866 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. 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:  Grantees must enter into a binding Development Agreement within 12 months from the date of HUD's written approval of the Revitalization Plan or 24 months from the date of execution of the Grant Agreement. This time period may not exceed 18 months from the date the Grant Agreement is executed. Construction must be completed within 48 months from the date of HUD's written approval of the Revitalization Plan. This time period for completion may not exceed 54 months from the date the Grant Agreement is executed.

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.

14.866 POST ASSISTANCE REQUIREMENTS:

Reports:  Quarterly Report, Quarterly Obligation Amount, 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.