A bill to authorize the Department of Housing and Urban Development to transform neighborhoods of extreme poverty into sustainable, mixed-income neighborhoods with access to economic opportunities, by revitalizing severely distressed housing, and investing and leveraging investments in well-functioning services, education opportunities, public assets, public transportation, and improved access to jobs. 2013-03-04 Introduced in Senate Choice Neighborhoods Initiative Act of 2013 - Requires the Secretary of Housing and Urban Development (HUD) to make competitive grants to local governments, public housing agencies (PHAs), community development corporations, assisted housing owners, and other for-profit and nonprofit entities to implement transformational programs in eligible neighborhoods with a concentration of extreme poverty, severely distressed housing, and a potential for long-term viability, once certain key problems are addressed.

Requires such programs to include neighborhoods with characteristics such as proximity to educational institutions, medical centers, central business districts, major employers, effective transportation alternatives (including public transit, walking, and bicycling), and low poverty neighborhoods.

Prohibits the use of such grants for construction or rehabilitation of a K-12 school building or a higher educational institution. Limits the use of grants for certain non-housing activities and supportive services. Authorizes the Secretary to waive such limitations.

Exempts from specified requirements of the United States Housing Act of 1937 the demolition and disposition of severely distressed public and assisted housing pursuant to a transformation plan.

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