HUD awards $20 million to revitalize public housing in Texarkana

WASHINGTON – September 22, 2008 – (RealEstateRama) — U.S. Housing and Urban Development Secretary Steven Preston today awarded the Housing Authority of the City of Texarkana (HATT), Texas a $20 million grant to support the revitalization of three public housing developments in the historic Rosehill neighborhood.

“This HOPE VI Program will allow Texarkana to encourage other public and private investment in bringing quality affordable housing to Rosehill,” said Preston. “I’m proud that HUD can be a partner in breathing new life into this neighborhood and transform the lives of its residents.”

“I am pleased that HUD is taking action to encourage investment in these Texarkana neighborhoods,” said U.S. Senator Kay Bailey Hutchison. “This grant will help provide quality public housing in Texarkana and spur economic development in the area.”

“This funding is an important move forward in ensuring Texarkana receives the support and necessary resources to bolster development and improve the quality of life in the area,” said U.S. Senator John Cornyn. “The comprehensive redevelopment effort will address and correct deficiencies with regard to public housing, infrastructure, neighboring schools, and social services. This is good news for the city and I look forward to seeing the redevelopment effort put in place so all Texarkana residents can benefit.”

HUD’s HOPE VI Revitalization grant will allow HATT to redevelop the public housing at Covington Homes, Griff King Homes and Stevens Courts. In creating new mixed-income communities, HATT plans to replace 372 severely distressed public housing units with 554 new housing opportunities for families. The new housing will include 92 new public housing units; 437 affordable rental units; and 25 affordable homeownership units. HATT will also use private funding to build a community center for each new development.

HATT was selected among 24 public housing authorities across the country. HATT will pay relocation and re-occupancy 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. The HOPE VI grant will also give relocated families access to support services such as career training and employment programs for adults; educational programs for children and youth; and homeownership counseling programs.

The funding announced today comes from HUD’s HOPE VI Revitalization Program that awards funding to public housing authorities and encourages public, private partnerships to transform severely distressed public housing into mixed-income communities that empower former residents. 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. Since 1993, HUD has awarded 248 HOPE VI Revitalization grants totaling approximately $6 billion to 130 local housing authorities.

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; 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.