Section IV: Hope I, III, and III and Youthbuild Programs

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(Administered by the Office of Public and Indian Housing)

A. HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP
     (HOPE I)

An applicant for HOPE I grants may be any of the following entities representing the tenants of the project: PHA, resident management corporation (RMC), resident council (RC), cooperative association, public or private nonprofit organization, or public body (or an agency or instrumentality thereof).

Eligible families under the HOPE I program include (1) families or individuals who are tenants in the public or Indian housing project on the date HUD approves the implementation grant; (2) low-income families; and (3) families or individuals assisted under a HUD or Agriculture housing program, excluding any mortgage insurance program.

Legal Authority: Title III of the U.S. Housing Act of 1937 (42 U.S.C. 1437aaa et seq.).

Program Status: All funds have been awarded. No additional funding has been requested since FY 1995, and no future funding is anticipated. Most existing local implementation grant programs are still ongoing.

Beginning in FY 1998, the Indian component of the HOPE I program will be removed and folded into the Native American Housing Block Grant program (see Section XIV Part A of this document).

B. HOPE for HOMEOWNERSHIP of MULTIFAMILY UNITS (HOPE II)

HOPE II provides HOPE planning grants and implementation grants for providing homeownership opportunities, including rehabilitation, if necessary, in certain multifamily projects. Properties eligible for purchase under HOPE II include multifamily rental property either:

• owned or held by HUD;

• financed by a loan or mortgage held or insured by HUD;

• determined by HUD to have serious physical or financial problems under the terms of a HUD-administered insurance or loan program; or

• owned or held by Agriculture, RTC, FDIC, DOD, DOT, GSA, any other Federal agency, or a State or local government (or an agency or instrumentality thereof).

Eligible families under the HOPE II program are families or individuals who are tenants of an eligible property on the date HUD approves the implementation grant or whose incomes do not exceed 80% of the area median.

Legal Authority: Subtitle B of title IV of the National Affordable Housing Act (42 U.S.C. 12871 et seq.).

Program Status: From amounts originally appropriated for FY 1995 for the HOPE programs, the Department carried over $30M into FY 1996 and carried it over again into FY 1997. In FY 1996, the Department requested the transfer of this amount to the Drug Elimination Grant program, but the necessary legislation was not enacted. No decision has been made on how to use this amount in FY 1997. No additional funding has been requested since FY 1995, and no future funding is anticipated. Most existing local implementation grant programs are still ongoing.

C. HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES
(HOPE III)

HOPE III provides HOPE planning grants and implementation grants to provide homeownership opportunities through the transfer of ownership, and rehabilitation, if necessary, of publicly-held properties in Federal, State, and local inventories to low-income, first-time homebuyers. Properties eligible for purchase under HOPE III include single family homes (four units or fewer) owned by HUD, VA, RTC, FDIC, DOD, DOT, GSA, Agriculture, any other Federal agency, a State or local government, or a public or Indian housing authority (excluding public and Indian housing under the United States Housing Act of 1937 and including properties held by institutions within the jurisdiction of the RTC).

An applicant for a HOPE III grant may be a private nonprofit organization, a cooperative association, or a public agency (including an agency or instrumentality thereof) in cooperation with a private nonprofit organization.

Eligible families under the HOPE III program are defined as families or individuals whose incomes do not exceed 80% of median income and who are first-time homebuyers.

Legal Authority: Subtitle C of title IV of the National Affordable Housing Act (42 U.S.C. 12891 et seq.).

Program Status: All funds have been awarded. No additional funding has been requested since FY 1995, and no future funding is anticipated. Most existing local implementation grant programs are still ongoing.

D. YOUTHBUILD

The Youthbuild program provides economically disadvantaged young adults with opportunities to obtain education, employment skills and meaningful on-site work experience, and to expand the supply of affordable housing for homeless and low- and very low- income persons.

Public or private nonprofit agencies eligible to apply for Youthbuild grants include community-based organizations, administrative entities designated under the Job Training Partnership Act, community action agencies, State or local housing development agencies, community development corporations, State or local youth service and conservation corps, and any other entities eligible to provide education and employment training under other Federal employment training programs.

Eligible participants in the Youthbuild program include individuals ages 16 through 24, at least 75% of whom are either very low-income individuals or members of very low-income families, and who have dropped out of high school. Up to 25% of the participants need not meet the income or educational requirements, but must have educational needs despite having attained a high school diploma or its equivalent. Any individual selected for full-time participation in the program may be offered full-time participation for a period of not less than 6 months and not more than 24 months.

Eligible activities for Youthbuild Planning Grants include:

• feasibility studies of a Youthbuild program;

• establishment of a consortia between youth training and education programs and housing owners and developers;

• identification and selection of a site;

• preliminary architectural and engineering work;

• identification and training of staff;

• planning for education, job training, and other services that will be provided as part of the Youthbuild program;

• other planning, training, or technical assistance necessary before commencing a Youthbuild program; and

• preparation of Youthbuild Implementation Grant applications.

• architectural and engineering work;

• acquisition, rehabilitation, acquisition and rehabilitation, or construction of housing and related facilities to be used for the purposes of providing homeownership opportunities, or for the purposes of providing housing for low-income, very low-income, or homeless persons;

• administrative costs, not to exceed 15% of the assistance provided, or such higher percentage if deemed necessary by HUD;

• education and job training services and activities;

• wage stipends and benefits provided to participants;

• funding of operating expenses and replacement reserves of property covered by the Youthbuild program;

• legal fees; and

• defraying costs for the ongoing training and technical assistance needs of the recipient that are related to developing and carrying out the Youthbuild program.

Program Status: The FY 1997 appropriation for Youthbuild is $30 million. Both the FY 1996 and FY 1997 appropriations Acts provide that youthbuild program activities "shall be an eligible activity with respect to any funds made available under [the Community Planning and Development] heading."

Beginning in FY 1998, the Indian component of the Youthbuild program will be folded into the Native American Housing Block Grant program (see Section XIV Part A of this document).