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14.866 DEMOLITION AND REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING

(HOPE VI)

FEDERAL AGENCY
PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION
The funding authority for HOPE VI revitalization grants under the fiscal year 2008 HOPE VI NOFA is provided by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007) under the heading "Revitalization of Severely Distressed Public Housing (HOPE VI)." The program authority for the HOPE VI program is Section 24 of the 1937 Act, as amended by the Consolidated Appropriations Act, 2008 (Public Law 110-161, approved December 26, 2007).

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 obtain educational excellence, and the community to secure a desirable quality of life.

TYPES OF ASSISTANCE
Project Grants.

USES AND USE RESTRICTIONS
HOPE VI Revitalization grant funds may be used to fund the revitalization of severely distressed public housing developments. Such activities include the demolition of severely distressed public housing developments or portions thereof; relocation costs for affected residents; disposition activities; rehabilitation of existing public housing units and/or community facilities; development of new public and other housing units and community facilities; homeownership activities; acquisition activities; necessary management improvements and administrative costs; and community and supportive services. Up to 15 percent of a grant may be used for community and supportive services activities.

Applicant Eligibility
For HOPE VI Revitalization Grants, Public Housing Agencies (PHAs) operating public housing units are eligible to apply. Indian Housing Authorities and PHAs that only administer the Section 8 Program are not eligible to apply.

Beneficiary Eligibility
For HOPE VI Revitalization Grants, the ultimate beneficiaries are residents of the severely distressed public housing and residents of the revitalized development.

Credentials/Documentation
Eligibility requirements to apply for a HOPE VI grant are included in each year's Notice of Funding Availability (NOFA). This program is covered under OMB Circular No. A-87.

Preapplication Coordination
Applicants 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 and includes necessary application materials. The NOFA and all necessary application materials are made available on the Grants.gov website as well.

Award Procedure
HUD Headquarters reviews each eligible application for threshold compliance, assigns rating points to applications that pass all thresholds, and the highest-rated applications are notified that they have been selected to participate in the HOPE VI program. Funds are obligated when HUD and the applicant execute a form HUD-1044, "Assistance Award/Amendment."

Deadlines
The deadline for submitting an application for HOPE VI is published in each year's NOFA.

Range of Approval/Disapproval Time
Approximately 3 months from the application deadline date.

Appeals
Applicants are notified by HUD if an application is not approved.

Renewals
None.

Formula and Matching Requirements
Grantees must provide a 5 percent overall match. For HOPE VI Revitalization Grants, if more than 5 percent of the grant is used for Community and Supportive Services, any amount over that 5 percent must be matched (up to a maximum of 15 percent).

Length and Time Phasing of Assistance
Each year's grant agreement sets out the requirements regarding timetables and milestones.

Reports
Quarterly Progress Report, Quarterly Obligation and Expenditures Report, Closeout Report.

Audits
HOPE VI Revitalization grants are audited in conjunction with regular HUD or independent public accountant audits of PHA operations in accordance with 24 CFR 85.26, and after grant close-out.

Records
Copies of budgets and accumulative cost records through the grant period, and other records necessary to indicate compliance with the Grant Agreement.

Account Identification
86-0218-0-1-604.

Obligations
(Grants) FY 07 $97,020,000; FY 08 est $97,600,000; and FY 09 est $0.

Range and Average of Financial Assistance
The HOPE VI Revitalization Grants awarded in FY 2006 ranged from $11.9 to $20 million, with an average of $18 million. The maximum grant amount was set at $20 million. Fiscal year 2007 grants ranged from $8.855 to $20 million, with an average of $17.7 million. The maximum grant amount was set at $20 million. Fiscal year 2008 grants have not yet been awarded (application deadline is June 20, 2008).

PROGRAM ACCOMPLISHMENTS
Through fiscal year 1993 to 2007, PHAs received 35 planning, 242 revitalization, and 287 demolition-only grants and 9 HOPE VI Main Street. Fiscal year 2008 grants have not yet been awarded. Over 88,554 severely distressed public housing units have been demolished under the HOPE VI program. Over 67,332 new housing units have been developed.

REGULATIONS, GUIDELINES, AND LITERATURE
No regulations have been published. Each grant is subject to the terms of its NOFA and Grant Agreement, which is the contract signed by the Grantee and HUD. HUD posts guidance to its Home Page (http://www.hud.gov/offices/pih/programs/ph/hope6/) that provides Grantees with 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.

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. Applicants should contact the HUD Field Office listed on the internet at http://www.hud.gov/local/ that has jurisdiction for their area.

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. Telephone: (202) 401-8812.

Web Site Address
http://www.hud.gov/offices/pih/programs/ph/hope6/

RELATED PROGRAMS
14.850, Public and Indian Housing; 14.872, Public Housing Capital Fund.

EXAMPLES OF FUNDED PROJECTS
None.

CRITERIA FOR SELECTING PROPOSALS
As published in each NOFA.


General Services Administration
Office of Chief Acquisition Officer
Regulatory and Federal Assistance Division (VIR)