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For Immediate Release
Wednesday, September 19, 2018
HUD’s Rental Assistance Demonstration Program is a Proven Means of Securing the Future of the Nation’s Public Housing Stock
Washington, D.C. – Today, U.S. Department of Housing and Urban Development Secretary Ben Carson and Federal Housing Commissioner Brian Montgomery joined the Housing Authority of the City of Austin, its development partners Atlantic | Pacific Communities and Madhouse Development Services, and the Austin community to celebrate the groundbreaking of HACA’s most recent redevelopment of one of its public housing properties, Goodrich Place, which also represents the 100,000th public housing unit being converted through HUD’s Rental Assistance Demonstration program.
In recognition of this important milestone, Sunia Zaterman, Executive Director of the Council of Large Public Housing Authorities and Patrick Costigan, Strategic Advisor to the RAD Collaborative, issued the following statement:
Today we are celebrating an important milestone addressing the critical need for affordable housing by enabling housing authorities to convert public housing to more stable long-term Section 8 based contracts that will serve PHAs and residents for years to come.
Through the Rental Assistance Demonstration program, agencies across the country can leverage private financing to complete capital improvements needed to preserve and improve the public housing stock, without giving up control of the asset. RAD engenders creative local partnerships, stimulates ongoing economic activity, and leads to improved housing quality for low-income seniors and families.
As we celebrate the 100,000th RAD unit, it’s clear that we have proof of concept. To give PHAs greater certainty, HUD’s program should be permanent with unlimited opportunity for conversions to agencies meeting the requirements.
Congratulations to HUD at this significant juncture, and to HACA and the residents of Goodrich Place who will soon have access to improved units in one of Austin’s highest opportunity neighborhoods.
About the Council of Large Public Housing Authorities
The Council of Large Public Housing Authorities is a national non-profit organization that works to preserve and improve public and affordable housing through advocacy, research, policy analysis and public education. CLPHA’s 70 members represent virtually every major metropolitan area in the country. Together they manage 40 percent of the nation’s public housing program; administer 26 percent of the Housing Choice Voucher program; and operate a wide array of other housing programs. Learn more at clpha.org and on Twitter @CLPHA.
About the RAD Collaborative
The Council of Large Public Housing Authorities (CLPHA)—with the support of the National Equity Fund (NEF), HAI Group, Reno & Cavanaugh, and CF Housing Group—organized the RAD Collaborative for interested Public Housing Authorities, their partners and residents using the Rental Assistance Demonstration to preserve and revitalize public housing properties. Our focus also includes extending RAD to multifamily housing at risk of being lost from the affordable inventory--including Rent Supp, RAP, Mod Rehab and Section 202 PRAC properties. Learn more at radcollaborative.org and on Twitter @SucceedwithRAD.
Statement From Council of Large Public Housing
Authorities Executive Director Sunia Zaterman
Washington, DC – “The Council of Large Public Housing Authorities (CLPHA), representing more than 70 of the country’s largest and most innovative housing authorities, is calling on Congress to reject the Trump Administration’s FY18 budget, which proposes to slash $6.2 billion in funding to the Department of Housing and Urban Development (HUD), including $2 billion in cuts to public housing. If realized, the draconian cuts included in this budget would not only have severe and cumulative effects on public and affordable housing programs across the country, but it would also shred the safety net of other public assistance programs on which many low-income Americans rely.
“The Trump Administration’s full FY18 budget proposal, released today, Tuesday, May 23, would devastate HUD programs that are currently helping over 1.2 million households that reside in public housing, including families, seniors, persons with disabilities, and close to 800,000 children. The budget targets America’s most vulnerable citizens with drastic cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and Temporary Assistance for Needy Families (TANF), while also slashing disability benefits and student loan and education programs, thereby crippling essential support systems affecting many of the residents we serve in low-income housing.
“The Administration’s dramatic HUD reductions come at a time when the federal government should actually be investing in public housing as part of the nation’s infrastructure, as such investment generates economic growth, creates jobs, bolsters productivity, and generates tax revenue for localities.
“The budget proposes $628 million for the Public Housing Capital Fund compared to $1.942 billion in FY17; $3.9 billion for the Public Housing Operating Fund compared to $4.4 billion in FY17; $17.584 billion for Section 8 voucher renewals compared to $18.355 billion in FY17; and $1.55 billion for administrative fees compared to $1.65 billion in FY17.
“Everyone should be alarmed by the magnitude of these proposed cuts -- the Public Housing Capital Fund alone sustains a cut of over 67 percent. The irony of this particular cut is that it not only undermines basic health and safety improvements, it also makes it virtually impossible to leverage private investment, which HUD claims is a major policy priority.
“Another example is the proposed $771 million reduction to the Housing Choice Voucher program, which provides housing vouchers to needy families. These budget reductions, coupled with rising rents and inflation, will result in the loss of hundreds of thousands of vouchers and threaten currently-housed families with homelessness.
“CLPHA and the nation’s largest public housing authorities are asking members of Congress to reject the cuts proposed by the Trump Administration, as they will significantly harm our most vulnerable citizens and undermine our already significant public investment in this affordable housing stock.”
The Council of Large Public Housing Authorities (CLPHA), representing more than 70 of the country’s largest and most innovative housing authorities, calls on the Administration and Congress to reject the draconian proposal to slash more than $6 billion in funding to the Department of Housing and Urban Development (HUD), including $2 billion in cuts to public housing.
There are over 1.2 million households currently residing in public housing. Seniors and persons with disabilities constitute over half of all residents, and there are over 600,000 children residing in public housing. Public housing cuts will fall directly on the shoulders of residents currently residing in public housing and reduce opportunities for millions of families languishing on waiting lists across the country.
The public housing capital fund provides modernization and rehabilitation funding for the 1.2 million unit public housing portfolio. The reported cut to the capital fund of $1.3 billion represents close to a 70% reduction from last year’s funding level. These proposed cuts will dramatically accelerate the current estimated loss of 10,000 to 12,000 public housing units already lost annually due to chronic underfunding.
The public housing operating fund covers day-to-day operational and maintenance expenses not covered by resident rents. The reported cut to the operating fund of $600 million is a 13% percent reduction from last year, and approximately 72% of what is needed. This funding level will have a devastating impact on the ability to operate and maintain this housing and severely endanger the health, wellbeing, and safety of our most vulnerable children, families, and seniors reliant on housing assistance.
These cuts directly contradict the findings of the congressionally-mandated 2010 HUD study on the backlog of public housing capital repair needs estimated at $26 billion and annual accruing capital needs estimated at $3.4 billion. HUD’s budget does not come close to meeting the annual need and contributes to the growing backlog need.
The tenant based rental assistance program which provides housing vouchers to needy families will also experience a $300 million reduction according to the reports on the budget. This cut coupled with rising rents and inflation will result in the loss of hundreds of thousands of vouchers and threaten currently housed families with homelessness.
We call on the Administration and Congress to reject these draconian cuts that will harm our most vulnerable citizens and undermine our already significant public investment in this affordable housing stock.
From HACP's press release:
The Housing Authority of the City of Pittsburgh’s (HACP) and the City of Pittsburgh are proud to announce that it has been approved to receive a $50 million Choice Neighborhoods Initiative Grant, provided by the US Department of Housing and Urban Development (HUD). The announcement sets the stage for the complete redevelopment and revitalization of the Bedford Dwellings housing community.
The approval of the CNI funding marks a significant step toward the transformation of Bedford Dwellings - the oldest occupied public housing community in Pennsylvania. Bedford Dwellings, situated in Pittsburgh’s Hill District, holds the distinction of being the oldest public housing site in the City of Pittsburgh, comprising 411 units. The community was one of seven New Deal Era public housing communities built in Pittsburgh between 1939 and 1944.
“We are extremely happy for the residents of Bedford Dwellings. They have been patient and engaged throughout the planning process and we’re at this point due to their persistent efforts. Additionally, there are a host of partner organizations that have dedicated significant resources toward preparing for this moment,” said Caster Binion, HACP Executive Director. “The time is now for Bedford Dwellings and the Greater Hill District community. This effort is going to produce generational change, serving as a catalyst for neighborhood revitalization.”
HUD’s Choice Neighborhood Initiative (CNI) plays a vital role in community transformation by revitalizing distressed public and assisted housing while also igniting essential improvements. Their primary objective is to facilitate the creation of favorable conditions that attract public and private reinvestment in distressed neighborhoods by concentrating on the core focal points of: Housing, Neighborhood and People.
This involves providing assets and amenities that residents desire, including spaces for youth activities after school, versatile indoor and outdoor areas for gatherings and special events, as well as the integration of small play and seating areas throughout the site. The overall aim is to enhance the overall quality of life for the residents and make these neighborhoods more vibrant and attractive places to live.
The HACP sought a FY2022 Choice Neighborhood Implementation Grant from HUD. This grant will serve as crucial assistance for the initiation of the redevelopment and enhancement process for Bedford Dwellings. The entire investment for the transformation of Bedford Dwellings will amount to more than $400 million over the next seven years, and it is anticipated to be fully completed by the year 2030. Additionally, the project is anticipated to generate more than 200 new employment opportunities, with the bulk of the jobs expected to be filled by residents of the surrounding neighborhoods.
The CNI Grant requires one-for-one replacement of housing in order to avoid any potential displacement of existing residents. HACP’s plan for Bedford Dwellings, however, calls for a substantial increase in affordable units. In all, the total redevelopment initiative will produce over 800 units of new housing in the next seven years, consisting of: 411 replacement units (Project Based Voucher, affordable housing), 210 additional affordable housing units, and 202 market rate units for a grand total of 823 housing units.
Critical to HACP’s redevelopment plan is our new relocation strategy, known as “build first and move once.” Under this plan, residents will have several options, including choosing a replacement unit in the Choice Neighborhood, receiving a tenant protection voucher, relocating to another low income housing community, and, where applicable, exploring homeownership opportunities. To ensure residents are well-informed, HACP will conduct meetings and consultations with them, as well as issue notices to clarify their rights throughout the process.
Other critical community improvements encompass various aspects to uplift the neighborhood. Street level activation involves initiatives to make public spaces more accessible, vibrant and engaging, encouraging pedestrian activity. Homeownership assistance, including acquisition and rehabilitation, supports residents in becoming homeowners, thereby promoting stability and investment in the community. These measures combine to create a positive and thriving environment, fostering a sustainable and inclusive community for its residents.
Residents of the impacted area will be provided with robust, onsite supportive services as part of the “People” pillar of the CNI Program. This component of the Bedford Dwellings/ Hill District CNI Program will be led by the Allegheny County Department of Human Services with support from Macedonia Face, the Community Enrichment Center and the Neighborhood Resilience Project. This will ensure that residents are provided with supportive services for the duration of the initiative.
The transformation of Bedford Dwellings under the CNI grant involves a significant number of partnerships, each contributing to the success of the project. These key partners include:
- Housing Authority of the City of Pittsburgh (HACP) - Lead Grantee
- City of Pittsburgh - Co-Grantee
- Urban Redevelopment Authority of Pittsburgh (URA)
- Allegheny County Department of Human Services (DHS)
- Allies & Ross Management and Development Corporation (ARMDC)
- Midpoint Group of Companies
- Trek Development Group
- Hill District Community Development Corporation
- Hill District Consensus Group
Birmingham, Atlanta, Pittsburgh, and Wilmington, DE Housing Authorities Will Use Choice Neighborhoods Implementation Awards of up to $50 Million Each to Transform Low-Income Neighborhoods and Improve Residents’ Lives
CLPHA is pleased to announce that yesterday four CLPHA members received FY22 HUD Choice Neighborhoods Implementation awards! CLPHA congratulates our members on their grants:
Housing Authority of Birmingham District: $50 million for HABD’s Smithfield Court and Birmingham’s Smithfield, College Hill, and Graymont neighborhoods
Atlanta Housing: $40 million for AH’s Bowen Homes and Atlanta’s Bowen neighborhood
Housing Authority of the City of Pittsburgh: $50 million for HACP’s Bedford Dwellings and Pittsburgh’s Hill District neighborhood
Wilmington, DE Housing Authority: $50 million for WHA’s Riverside community and Wilmington’s Northeast neighborhood
HUD awarded a total of eight CNI grants totaling $370 million. A summary of each award is available here. Communities that received funding have completed the planning process and will use these Choice Neighborhoods funds to implement their plan. These eight new awards have leveraged an additional $3 billion in public and private commitments.
Congratulations to HABD, AH, HACP, and WHA on these prestigious awards! They join a long list of CLPHA members who have leveraged, or are currently leveraging, CNI funds to redevelop their public housing communities, transform the neighborhoods around them, and improve life outcomes for the low-income residents they serve.
From the New Haven Independent:
Pre-approve certain building plans. Eliminate parking minimums. Support single-room apartments. Implement a land tax.
The Housing Authority of New Haven and its nonprofit affiliates recommended those city-level policies and others while delivering a message to City Hall: when it comes to the housing crisis, “we can’t count on the state.”
Elm City Communities, an umbrella group including the city’s public housing agency and its nonprofit development and property management arms, released a new report on affordable housing titled “Breaking Ground” on Monday morning.
The report culminates a series of community conversations hosted by Elm City Communities (ECC) on the affordable housing crisis, strategizing with NYU Furman Center’s Housing Solutions Lab, and research by ECC’s policy director Will Viederman. (Read the full report here.)
At a press conference outside the agency’s headquarters at 360 Orange St. on Monday, ECC President Karen DuBois-Walton said that though ECC is New Haven’s largest provider of deeply affordable housing, there are 30,000 households on the waitlist for the public housing apartments and federal Housing Choice Vouchers that the Housing Authority administers.
“Every night, I go to bed concerned about the thousands of voucher holders who are looking for quality housing in a place of their choice, a unit that they can afford, and who are struggling,” said DuBois Walton. “Probably even more concerning are the families we are not reaching” — families who are homeless or living in unsafe or unaffordable housing.
While much of ECC’s policy advocacy has related to statewide initiatives to develop more affordable housing in neighboring towns, the Breaking Ground report focuses on zoning reforms and other policies that the city of New Haven can enact on its own.
“Our state legislature and our governor failed to pass meaningful reforms” on housing this year, Viederman said. “We can’t count on the state. It’s not enough [for New Haven] to say, ‘It’s not our fault and our neighbors should act.’ ”
Read the New Haven Independent's article "Housing Authority Details Path To More Housing."
From NY1 Spectrum News:
A program launching this fall aims to replace thousands of gas cooking stoves in NYCHA-owned buildings with new electric induction stoves.
NYCHA is teaming up with the New York State Energy Research and Development Authority and the New York Power Authority on an initiative called the "Induction Stove Challenge," the agencies said in a news release Monday.
As part of the "challenge," NYPA will issue a request for proposals seeking manufacturers who can create “energy-efficient, electric cooking systems” that will work in older NYCHA buildings, according to the release.
Once NYPA selects its proposals, NYSERDA will buy 100 stoves, and install and test them in 100 NYCHA apartments, authorities said.
Eventually, NYCHA will purchase at least 10,000 electric induction stoves and install them in additional apartments "with the goal of fully displacing gas cooking stoves in NYCHA-owned buildings," the release said.
According to the New York State Energy Research and Development Authority, induction stoves heat pots and pans by generating an electromagnetic current within the cookware itself. Most pans currently sold are compatible with induction stoves, according to the NYSERDA.
The transition to induction stoves will avoid "costly electrical upgrades" for stove replacements in the selected buildings, the release added.
Read NY1 Spectrum News' article "NYCHA program aims to replace gas stoves with induction stoves."
From WLWT 5 Cincinnati:
A massive renovation is underway for two historic apartment buildings in East Walnut Hills.
The $38 million project will upgrade more than 100 units throughout the Riverview and San Marco.
The renovations will include new flooring, appliances and renovated bathrooms and kitchens, all while remaining affordable.
The Riverview is a nine-floor building built in 1902 with 110 units. San Marco, in the heart of the East Walnut Hills business district, was built as a seven-floor hotel in 1930 and converted to 30 residential units in the 1960s.
Cincinnati Metropolitan Housing Authority will begin construction in August.
"Closing on this latest Rental Assistance Demonstration (RAD) project continues our commitment to invest one billion dollars in our affordable housing portfolio," says Gregory D. Johnson, CMHA's chief executive officer. "Residents of Hamilton County deserve quality affordable housing, and we're delivering."
Read WLWT 5 Cincinnati's article "Massive renovation underway for two historic apartment buildings in East Walnut Hills," featuring the Cincinnati Metropolitan Housing Authority.