News Release

HUD AWARDS $8.9 MILLION TO REVITALIZE A.L. KROHN HOMES PUBLIC HOUSING DEVELOPMENT IN PHOENIX
HOPE VI grant to replace A.L. Krohn Homes with new mixed-income neighborhood

PHOENIX – U.S. Housing and Urban Development Secretary Alphonso Jackson today awarded the City of Phoenix Housing Department nearly $8.9 million to support the redevelopment of A.L. Krohn Homes public housing complex into an attractive mixed-income community.

"This funding not only gives cities the resources to build quality affordable housing in these communities, it also improves the quality of life of the residents who live in the public housing," said Jackson. "I'm glad Phoenix will once again use HOPE VI funds to transform neighborhoods and lives."

A.L. Krohn Homes (also known as Krohn West) is a 76-unit development that was constructed in 1961. The development will be revitalized to include 42 public housing units, 25 affordable rental units and 40 affordable homes for purchase. The redevelopment plan also includes 16 market rate rental housing and 97 market rate homes for purchase.

The City of Phoenix Housing Department was selected from a pool of 29 applications HUD received from public housing authorities (PHAs) across the country. Including this grant, Phoenix has been awarded two HOPE VI Revitalization grants. Other grantees that received HOPE VI Revitalization for the 2007 funding round are housing authorities in Boston, Fayetteville, N.C., New Orleans, and Washington, D.C. Including these grants, HUD has awarded 242 HOPE VI Revitalization grants since 1993 to 128 PHAs that total approximately $5.9 billion.

The housing authority will pay relocation and reoccupancy costs for residents as needed. Affected residents can relocate to other public housing or receive a Housing Choice Voucher (Section 8) to subsidize their rent in privately owned housing. Relocated residents are given the opportunity to move back to the newly constructed units. Alternatively, if residents choose not to return to public housing, they may keep their voucher. In addition, relocated residents will get job training and other support services under the Community and Supportive Services component of the HOPE VI grant.

HUD's HOPE VI 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.

PHAs are competitively selected for HOPE VI grants based on many factors including the effectiveness and project readiness of their revitalization plans. HUD gives PHAs 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 developer 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; and the ability to provide supportive services to displaced residents.

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HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.