HUD Issues $98 Million in Grants to Redevelop Distressed Properties

U.S. Department of Housing & Urban Development (HUD) Secretary Marcia L. Fudge has announced “Supplemental Grant” awards for Choice Neighborhoods Implementation Grantees totaling more than $98 million. In addition, HUD is opening a notice of funding opportunity (NOFO) for $10 million to support local planning efforts.

Choice Neighborhoods Implementation Grants assist in the redevelopment of severely distressed HUD-assisted properties into mixed-income communities. The program has a three-pronged “Housing, People, and Neighborhood” approach that includes not only redevelopment of distressed properties, but also provides support to housing residents related to the health, education, and income, while simultaneously investing in neighborhood improvement projects which promote economic development and private investment. Since the program’s inception, the Choice Neighborhoods program has seen 11,000 new mixed-income units built across 44 cities. More than 32,000 units are planned.

“When it comes to Choice Neighborhoods, HUD is an invested partner at the table,” said Secretary Fudge. “Cities and public housing authorities are working tirelessly to address affordable housing shortages despite pandemic era construction cost increases. The additional Choice Neighborhoods funding represents HUD’s commitment to creating new housing for the communities that need it most. The Choice Neighborhoods approach is a comprehensive model that can be transformative for communities, and we invite more communities to consider tapping into it.”

HUD also announced the availability of $10 million in Choice Neighborhoods Planning Grants funding to support locally driven planning efforts. Choice Neighborhoods Planning Grants are two-year grants of up to $500,000 each that assist communities with severely distressed public housing or HUD-assisted housing in developing a comprehensive neighborhood transformation plan that meets the “Housing, People, and Neighborhood” goals of the program. Grant funds also support an early action activity to foster engagement and build the momentum necessary for that plan to be successfully implemented.  Public housing authorities, local governments, tribal entities, and nonprofits with distressed HUD-assisted housing are encouraged to apply.

“Choice Neighborhoods is breathing new life into communities with new housing, parks, grocery stores, jobs, and services,” said HUD Deputy Secretary Adrienne Todman. “These new opportunities would not happen without meaningful community engagement and community planning. Today’s Planning Grant funding announcement provides local communities with the tools they need to attract the partners and resources that communities deserve.”

HUD’s latest grant awards provide additional funds to 16 current Choice Neighborhoods Implementation Grantees to address pandemic-related disruptions. The Supplemental Grant funding for Implementation Grantees will be used to construct new, high-quality, mixed-income housing nationwide.

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