HOPE VI Program reauthorization

(a)

Findings

Congress finds that— (1)the HOPE VI program is one of the most significant and successful neighborhood reinvestment strategies implemented in recent years, having transformed dozens of distressed public housing developments into successful mixed-use and mixed-income communities of hope and opportunity and without which the physical and social revitalization of these neighborhoods would not have occurred; (2)HOPE VI has changed the face of public housing by seamlessly incorporating affordable housing opportunities in vital and sustainable market-based, mixed-income developments, thereby serving as a model for creativity and innovation in the delivery of affordable housing; (3)there are over 1,200,000 units of public housing, between 46,900 and 81,900 of which are considered to be severely distressed; (4)nationwide, the public housing inventory has an accumulated capital needs backlog of approximately $18,000,000,000, with an estimated additional $2,000,000,000 accruing each year; (5)HOPE VI funds have successfully leveraged substantial additional resources. From 1993 through 2001, the $4,500,000,000 in HOPE VI grants awarded was anticipated by Public Housing Authorities to leverage an additional $10,210,000,000 in other public and private investments. According to the Government Accountability Office, 59 percent of the total funds budgeted by fiscal year 2001 grantees for community and supportive services consisted of leveraged funds; (6)HOPE VI has resulted in the demolition of tens of thousands of severely distressed and often uninhabitable public housing units and, in their place, created affordable housing opportunities in healthy mixed-income communities in the form of both project-based housing and housing voucher assistance, giving existing public housing residents improved and meaningful housing choices; and (7)HOPE VI has fundamentally transformed the lives of thousands of public housing residents who have become self-sufficient through the required community and supportive services programs. (b)

Declaration of policy

Based on the findings set forth in subsection (a), Congress declares that it is the policy of the United States to reauthorize the HOPE VI program to— (1)end the practice of concentrating the poor in distressed, isolated neighborhoods as an underlying predicate for leaving no children behind; (2)create healthy communities using a holistic and comprehensive approach to assure long term marketability and sustainability of the community; (3)support excellent outcomes for families, especially children, with an emphasis on excellent— (A)high performing neighborhood schools; and (B)quality of life amenities, such as first class retail space and green space; (4)create mixed-income communities, with the goal of creating a market-rate community with a seamless affordable component; (5)develop such mixed-income communities through public-private partnerships using public and private sources of funding and market principles; and (6)support residents with adequate resources to assist them in achieving their life goals, focusing on self-sufficiency and educational advancement of children and their parents, thereby creating a culture of learning, education, and excellence, in which expectations and standards for personal responsibility are benchmarks for success. (c)

Purposes of HOPE VI Program

Section 24(a) of the United States Housing Act of 1937 (42 U.S.C. 1437v(a)) is amended— (1)in paragraph (3), by striking and at the end; (2)in paragraph (4), by striking the period at the end and inserting a semicolon; and (3)by adding at the end the following:

(5)promoting sustainable connections between the revitalization of public housing communities and local schools and institutions of higher learning, as a means of supporting educational achievement by children and adults as part of a comprehensive self-sufficiency strategy; and (6)reducing concentrations of poverty and promoting housing choice and self-sufficiency among low-income families by ensuring the successful temporary or permanent relocation of residents from severely distressed public housing projects through comprehensive counseling and supportive services that assist in selection of and success in lower poverty neighborhoods of such families by giving them the tools to achieve self sufficiency.

(d)

Education and relocation activities

Section 24(d) of the United States Housing Act of 1937 (42 U.S.C. 1437v(d)) is amended— (1)in paragraph (1)— (A)in subparagraph (K), by striking and at the end; (B)by striking subparagraph (L) and inserting the following:

(L)necessary comprehensive supportive services, including employment and vocational counseling, life skills training, and other human services; and (M)necessary costs of ensuring the effective temporary and permanent relocation of existing residents.

; and

(2)by adding at the end the following:

(3)

Linkages to education

(A)

In general

Each HOPE VI grant recipient shall establish, in partnership with the local schools and school superintendent, a comprehensive educational reform and achievement strategy for transforming the neighborhood schools that serve the revitalized HOPE VI sites into high-performing schools. (B)

Content of strategy

The strategy required by subparagraph (A) shall— (i)include the clear commitment of the neighborhood schools and institutions of higher learning, including the commitment of financial and other resources by local foundations and other public and private partners; (ii)include a detailed plan for reforming educational programming for pre-school and elementary school children; (iii)address educational reform for middle school and high school students; and (iv)provide means of encouraging adult continuing education. (C)

Timeline

The timeline for development and implementation of the strategy required by subparagraph (A) shall support and be consistent with the HOPE VI redevelopment schedule.

(e)

Grant award criteria

Section 24(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended to read as follows:

(2)

Grant award criteria

(A)

In general

The Secretary shall establish criteria for the award of grants under this section to ensure that performance standards are met by awarding funds to public housing agencies that— (i)demonstrate— (I)partnerships and collaboration between public and private sector partners; (II)a need for funding; and (III)a readiness and capacity to execute the proposed program; and (ii)propose measurable interim and long-term outcomes for achieving the purposes and goals of the program. (B)

Criteria requirements

In developing criteria under subparagraph (A), the Secretary shall consider— (i)the extent to which the proposal realistically addresses achievement of the purposes of the HOPE VI program described in subsection (a); (ii)the extent to which a proposal demonstrates a comprehensive strategy for educational achievement and for transforming the neighborhood schools that serve the revitalized HOPE IV site into high-performing schools and encourages the educational advancement of adults; (iii)the quality and sustainability of the physical redevelopment program and the offering of housing choice to residents, including multifamily rental housing and homeownership opportunities for households with a wide range of incomes and housing for seniors; (iv)the likely effectiveness of the plan for temporary and permanent relocation of existing residents, which shall ensure that residents are— (I)fully aware of their relocation choices; and (II)supported during the relocation process to assure a successful transition, including case management and the counseling and supportive services that the plan offers to such residents; (v)evidence that the subject project is severely distressed, which shall include a certification signed by an engineer or architect licensed by a State licensing board that the project meets the criteria for physical distress described in subsection (j)(2); (vi)the strength of local government support for the proposal, financial and otherwise, which shall require, at a minimum, a commitment evidenced by the signature of the chief executive of such local government of financial assistance equal to not less than 5 percent of the HOPE VI grant amount; (vii)the strength of evidence that the implementation team has the ability to perform under the HOPE VI program, including evidence as to the capabilities of both the public partners, including the public housing agency, and the proposed private development partners; (viii)the achievability of the timelines proposed for implementation of the revitalization plan, which must reflect the scope and scale of the project, while addressing the implementation timeline for each of the components individually; (ix)the extent to which the proposal will leverage other public or private funds or assets for the project in an amount that equal to not less than 2 times the amount of the HOPE VI grant; (x)the extent to which the applicant could undertake such activities without a grant under this section; (xi)the extent of involvement of residents, State and local governments, private service providers, financing entities, and developers, in the development and ongoing implementation of a revitalization program for the project, except that the Secretary may not award a grant under this section unless the applicant has involved affected public housing residents at the beginning and during the planning process for the revitalization program, prior to submission of an application; (xii)the need for affordable housing in the community; (xiii)the supply of other housing available and affordable to families receiving tenant-based assistance under section 8 of this title; (xiv)the strength and soundness of the proposal to assist residents in achieving self-sufficiency and personal responsibility; (xv)the extent to which — (I)the plan minimizes permanent displacement of current residents of the public housing site who— (aa)wish to return to the revitalized community; and (bb)meet the reoccupancy criteria (including all residents that were not evicted prior to the revitalization effort); (II)the plan provides for community and supportive services to residents prior to and during any relocation; and (III)reasonable and appropriate supportive services are offered to residents wishing to return to the revitalized site that will help them meet reoccupancy criteria; (xvi)the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public housing in markets where the plan shows there is demand for the maintenance or creation of such units; (xvii)the extent to which the proposal sets forth strategies and plans that assist residents displaced by the revitalization in utilizing tenant based vouchers to select housing opportunities, including in communities with a lower concentration of poverty that— (I)will not result in a financial burden to the family; and (II)will promote long-term housing stability; (xviii)the extent to which the proposal provides and ensures, as part of its revitalization program for the effective temporary and permanent relocation of existing residents, that— (I)residents are fully informed of relocation options, which include relocation to housing in a neighborhood with a lower concentration of poverty than their current residence, through workshops, site tours, case management, or other means, and are given the opportunity to make informed choices; (II)relocation milestones are established that ensure successful relocation in terms of timeliness and steps toward self-sufficiency; (III)the relocation plan does not result in increased concentrations of poverty in the communities to which residents are relocated; (IV)particular attention is paid to minimizing the impact of relocations on children, such as coordinating relocation moves with school calendars; (V)existing residents who are being temporarily or permanently relocated are offered and encouraged to participate in comprehensive community and supportive services over the period of the HOPE VI grant to facilitate their progress toward self-sufficiency whenever possible; and (VI)the proposed budget for relocation costs reflects the costs of effective relocation efforts, including moving expenses, counseling, case management, and other related costs, including payments required under the Uniform Relocation Act ; and (xix)such other factors as the Secretary considers appropriate.

(f)

Site visits

Section 24(e) of the United States Housing Act of 1937 (42 U.S.C. 1437v(e)), as amended by subsection (e) of this section, is amended by adding at the end the following:

(4)Notwithstanding any other provision of law, the Secretary may conduct site visits for HOPE VI applicants to assist in making funding decisions under this section.

(g)

HOPE VI performance benchmarks

Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) is amended— (1)by redesignating subsections (f) through (o) as subsections (g) through (p), respectively; and (2)by inserting after subsection (e) the following:

(f)

Performance benchmarks

(1)

In general

Public housing agencies, in consultation with the Secretary, shall set performance benchmarks for each component of their HOPE VI projects, including benchmarks for— (A)linkages with schools and other community partners; (B)effective temporary and permanent relocation of existing residents; (C)achievement of self-sufficiency by residents; (D)accomplishing key revitalization goals, taking into consideration the scope and scale of the revitalization plan; and (E)such other benchmarks as the Secretary determines appropriate. (2)

Failure to meet benchmarks

If a public housing agency fails to meet the performance benchmarks described under paragraph (1), the Secretary shall impose appropriate sanctions, including— (A)appointment of an alternative administrator for the HOPE VI project; (B)financial penalties; (C)withdrawal of funding under subsection (j); or (D)such other sanctions as the Secretary may deem necessary. (3)

Authority of Secretary

The Secretary shall determine the amount of each grant under this section and the closeout date for the grant, taking into consideration the scope, scale, and size of the revitalization plan.

(h)

Authorization of appropriations

Section 24(n)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437v(n)(1)), as redesignated by subsection (g) of this section, is amended by striking $574,000,000 for fiscal year 2003 and inserting $600,000,000 for each of fiscal years 2007 through 2011. (i)

Extension of program

Section 24(p) of the United States Housing Act of 1937 (42 U.S.C. 1437v(p)), as redesignated by subsection (g) of this section, is amended by striking September 30, 2006 and inserting September 30, 2011. (j)

Review

The Comptroller General of the United States shall— (1)conduct a review of tools utilized in HOPE VI revitalization efforts under section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) which may be transferable to other federally-assisted housing programs; and (2)make recommendations to the Congress on the tools reviewed under paragraph (1) not later than September 30, 2008.