HOPE VI

Summary

Since 1993, HOPE VI has been the engine driving the revitalization of the Nation's most distressed public housing developments by providing grants and unprecedented flexibility to address the housing and social service needs of their residents.

Purpose

The HOPE VI program was developed as a result of recommendations by the National Commission on Severely Distressed Public Housing, which was charged with proposing a National Action Plan to eradicate severely distressed public housing. The Commission recommended revitalization in three general areas: physical improvements, management improvements, and social and community services to address resident needs.

Type of Assistance

HOPE VI funds Revitalization grants.

Eligible Grantees

Any public housing authority (PHA) that operates public housing units is eligible to apply for HOPE VI grants. Indian Housing Authorities and Section 8-only Authorities are not eligible to apply for HOPE VI funding.

Eligible Customers

HOPE VI programs benefit current public housing residents, residents of the revitalized public housing units, and communities surrounding the revitalized sites.

Eligible Activities

HOPE VI permits expenditures for the capital costs of demolition, construction, rehabilitation and other physical improvements, development of replacement housing, and community & supportive services. It encourages PHAs to seek new partnerships with private entities to create mixed-finance and mixed-income affordable housing that is radically different from traditional public housing "projects." PHAs administer the program, and can use the grants in conjunction with modernization funds or other HUD funds, as well as municipal and State contributions, public and private loans, and low-income tax credit equity. While most of the funds are to be used for capital costs, a portion of the grant may be used for community and supportive services.

Application

Appropriations are distributed through an annual national competition. PHAs respond to a Notice of Funding Availability (NOFA) published in the Federal Register by submitting an application to HUD. Each year's NOFA and application kit are automatically mailed to each eligible PHA upon publication. The NOFA can also be found on the HOPE VI website.

Funding Status

On average, approximately $115 million has been appropriated for HOPE VI grants each year since fiscal year (FY) 2004.

Technical Guidance

No regulations have been published for the HOPE VI Program. Each Grantee is subject to the terms of its Grant Agreement, which is the contract signed by the Grantee and HUD. HUD posts program guidance to the HOPE VI web site (http://www.hud.gov/hopevi). This guidance includes information on timelines, budgets, financial instructions, and self-sufficiency programs. HUD also publishes a Mixed Finance Guidebook that is available by calling 800-955-2232.

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