Press Release

For Immediate Release: September 26, 2007

Financial Services Committee Passes HOPE VI Improvement and Reauthorization Act

Washington, DC - The House Financial Services Committee today passed H.R. 3524, the Hope VI Improvement and Reauthorization Act of 2007.  The legislation reauthorizes and makes a number of changes to the HOPE VI public housing revitalization program to provide for the retention of public housing units, prevent re-screening of returning residents, protect residents from disruptions resulting from the grant, increase resident involvement, improve the efficiency and expediency of HOPE VI construction, and to achieve green developments.

“Since its creation in 1992, the HOPE VI program has provided resources for public housing agencies to revitalize public housing units that are desperately needed by America’s poor families, including the elderly and persons with disabilities,” said Rep. Maxine Waters, Chairwoman of the Subcommittee on Housing and Community Opportunity. “I applaud the passage of H.R. 3524 as it will bring “hope” back to the HOPE VI program.”

Rep. Ed Perlmutter stated, “As chair of the Energy Efficiency Task Force within the Financial Services Committee, I am pleased to see important provisions included in the HOPE VI legislation requiring public housing authorities to institute Green/LEED or similar approved energy standards in all new public housing developments.  The Energy Efficiency Task Force has been working throughout the summer to develop ways to promote energy efficiency throughout the financial services and housing sectors encouraging individuals to buy and build in an energy efficient manner.  Quite simply, instituting these principles in all facets of our lives is good for national security, good for the climate and good for jobs.”

H.R. 3524 will include the following provisions:

• One-for-One Replacement. The bill requires that all public housing units proposed for demolition be replaced on a one-for-one basis.
   
• On-Site Mixed-Income Housing. The bill requires public housing agencies to provide a mixed-income housing development on the site of the original public housing location in a manner resulting in a decrease in the concentration of poverty. One-third of the units in that development must be public housing units. Public housing agencies can build additional units on the site in consultation with residents, community leaders, and local government officials. In addition, public housing agencies must ensure that the additional units are provided in a manner that affirmatively furthers fair housing. The bill provides limited exceptions from the on-site building requirement.
   
• Off-Site Mixed-Income Housing. The bill requires remaining replacement units to be built in areas with low concentrations of poverty in the jurisdiction of the public housing agency and in a manner that affirmatively furthers fair housing. These units must be comparable to public housing units in terms of long-term affordability, tenant eligibility, and income determination.
   
• Limitation on Exclusion. The bill prohibits housing authorities or resident advisory boards from implementing strict re-entry standards, including credit checks, for returning residents.
   
• Tenant Protections. The bill requires public housing agencies to monitor and track all households affected by the HOPE VI revitalization plan. In addition, public housing agencies must develop a relocation plan that provides comparable housing for all relocated residents, protects residents in transitioning to the private rental market with housing choice vouchers, provides for housing opportunities in neighborhoods with lower concentrations of poverty, and provides a public housing unit or an extended search time in the event residents are unable to lease up their voucher within 150 days. The bill contains administrative enforcement provisions, providing an administrative recourse for adversely affected residents. The bill also allows up to 25 percent of grant funds to be used for community and supportive services and provides these activities to all residents affected by the HOPE VI grant.
   
• Resident Involvement. The bill provides for the active involvement and participation of residents in the grant planning process, including public hearings and four notices to residents on a) the intent to apply for a HOPE VI grant, b) grant award and relocation options, c) grant agreement and relocation options, and d) replacement housing.
   
• Improvements to Grant Implementation. The bill includes several provisions designed to increase the rate at which HOPE VI developments are constructed. The bill requires all new housing to be rebuilt within 12 months of any demolition or disposition. The bill does not penalize housing authorities in states with limited tax credit allocations. The bill waives the grant matching requirement for HOPE VI applicants in areas recovering from natural disasters or emergencies. The bill also provides penalties for grantees that do not meet performance benchmarks. The bill provides additional consideration for applications that are realistic and achievable.
   
• Green Housing. The bill requires all replacement housing and other structures part of the HOPE VI development to be built in accordance with green building standards.