Public Housing: Status of the HOPE VI Demonstration Program (Letter
Report, 02/25/97, GAO/RCED-97-44).

Pursuant to a congressional request, GAO reviewed the status of the
Department of Housing and Urban Development's (HUD) HOPE VI-Urban
Revitalization Demonstration Program, focusing on: (1) the expenditures
and activities for HOPE VI projects funded with appropriations for
fiscal years 1993-1995; (2) whether HUD has identified innovative or
successful approaches taken by housing authorities to implement their
HOPE VI projects; and (3) HUD's strategy for evaluating the HOPE VI
program's outcomes.

GAO found that: (1) of the $1.58 billion that Congress appropriated for
the HOPE VI program for fiscal years 1993-95, HUD had awarded $1.54
billion for capital improvements and community and supportive services
as of September 30, 1996; (2) in addition, Congress earmarked $5 million
of the appropriation for HUD to provide technical assistance to housing
authorities; (3) the awards, which fund 39 HOPE VI projects at 32 public
housing authorities, range in size from $7.5 million to $50 million and
averaging about $39 million; (4) these funds have been used primarily
for capital improvements to the housing stock, for which housing
authorities have budgeted an average of 87 percent of their grants; (5)
the participating authorities, as of September 30, 1996, had: (a)
demolished 6,538 housing units out of a planned total of 22,573 units;
(b) rehabilitated 705 units out of a planned total of 5,407 units; (c)
constructed 419 new units out of a planned 15,299 units; and (d)
provided housing vouchers to 1,639 families displaced by the demolition
or rehabilitation; (6) HUD has identified several innovative approaches
used by HOPE VI grantees to implement their projects; (7) these
approaches, which could serve as models for other housing authorities,
include Cleveland's concept of centralizing its social services,
Milwaukee's street layout to reduce density and enhance the
neighborhood's security and cohesiveness, and Atlanta's use of private
investors to help finance its improvements; (8) to assist other HOPE VI
grantees, HUD has disseminated information about these and other
approaches; (9) to evaluate the long-term effectiveness of the HOPE VI
program, HUD is conducting a phased 10-year evaluation; (10) in August
1996, HUD completed a baseline study of 15 HOPE VI grantees' distressed
housing and early revitalization activities; (11) HUD plans 5- and
10-year follow-up evaluations of these activities; (12) according to
HUD, an evaluation at this time of the HOPE VI program's progress to
date could be premature because several significant housing policies and
regulatory ground rules changed after the program started; and (13)
these changes resulted, in turn, in changes to the implementation plans
for many HOPE VI projects and in delays in meeting initial milestones.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-97-44
     TITLE:  Public Housing: Status of the HOPE VI Demonstration Program
      DATE:  02/25/97
   SUBJECT:  Interagency relations
             Housing repairs
             Urban planning
             Housing construction
             Community development programs
             Declining neighborhoods
             Federal aid for housing
             Appropriated funds
             Public housing
             Technical assistance
IDENTIFIER:  HUD Section 8 Certificate Program
             HUD Public Housing Management Assessment Program
             HUD Homeownership Opportunities for People Everywhere 
             Program
             HUD HOPE VI Program
             HUD Section 8 Voucher Program
             Volunteers in Service to America Program
             HUD Revitalization Plan
             Cleveland (OH)
             Milwaukee (WI)
             Atlanta (GA)
             
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Cover
================================================================ COVER


Report to the Subcommittee on VA, HUD, and Independent Agencies,
Committee on Appropriations, House of Representatives

February 1997

PUBLIC HOUSING - STATUS OF THE
HOPE VI DEMONSTRATION PROGRAM

GAO/RCED-97-44

HOPE VI Demonstration

(385642)


Abbreviations
=============================================================== ABBREV

  CNS - Corporation for National Service
  GED - general equivalency diploma
  HAKC - Housing Authority for Kansas City
  - HOPE VI
  HRF - Housing Research Foundation
  HUD - Department of Housing and Urban Development
  PHA - public housing authority
  TA - technical assistance
  RSVP -
  SOZA -
  VISTA - Volunteers in Service to America

Letter
=============================================================== LETTER


B-275785

February 25, 1997

The Honorable Jerry Lewis
Chairman
The Honorable Louis Stokes
Ranking Minority Member
Subcommittee on VA, HUD,
 and Independent Agencies
Committee on Appropriations
House of Representatives

In its final report dated August 1992, the National Commission on
Severely Distressed Public Housing found that severely distressed
public housing was a national problem.\1 According to the Commission,
86,000 (or 6 percent) of the nation's public housing units, located
primarily in deteriorating neighborhoods of large urban communities,
were plagued by crime, unemployment, and deteriorated physical
conditions.  Moreover, the Commission maintained, the traditional
approaches to address these problems were not working.  Responding to
the Commission's findings, the Congress created the HOPE VI-Urban
Revitalization Demonstration Program\2 in October 1992 to help public
housing authorities revitalize severely distressed housing
developments.  As a demonstration program, HOPE VI was to foster
innovative approaches to revitalization and to encourage housing
authorities, residents, and local communities to work together with
the Department of Housing and Urban Development (HUD) in transforming
distressed areas into productive residential and commercial centers. 

For fiscal years 1993-95, the Congress appropriated $1.58 billion\3
for the HOPE VI program.  Because of this significant level of
funding, the Subcommittee asked us, in its June 18, 1996, report
accompanying the fiscal year 1997 VA, HUD, and Independent Agencies
appropriations bill, and as agreed with Subcommittee staff, to

  -- provide information on the expenditures and activities for HOPE
     VI projects funded with appropriations for fiscal years 1993-95,

  -- determine whether HUD has identified innovative or successful
     approaches taken by housing authorities to implement their HOPE
     VI projects, and

  -- describe HUD's strategy for evaluating the HOPE VI program's
     outcomes. 

To answer these questions, we relied heavily on data from HUD, public
housing authorities, and HUD contractors.  We also obtained detailed
information about HOPE VI projects at five housing authorities. 


--------------------
\1 The Final Report of the National Commission on Severely Distressed
Public Housing (Washington, D.C., Aug.  1992). 

\2 HOPE VI is the most recent of a series of Homeownership and
Opportunity for People Everywhere (HOPE) programs created by the
Congress and administered by the Department of Housing and Urban
Development to address specific housing needs. 

\3 Although the Congress appropriated funds for the HOPE VI program
for fiscal years 1996 and 1997, fiscal year 1996 funds were not
available to public housing authorities until October 1996, and HUD
does not expect to make fiscal year 1997 funds available until March
1997.  Because we limited our review to the expenditures received
through the end of fiscal year 1996, this report focuses primarily on
the uses of the funds appropriated for the program for fiscal years
1993-95. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

Of the $1.58 billion that the Congress appropriated for the HOPE VI
program for fiscal years 1993-95, HUD had awarded $1.54 billion for
capital improvements and community and supportive services as of
September 30, 1996.  In addition, the Congress earmarked $5 million
of the appropriation for HUD to provide technical assistance to
housing authorities.  The awards, which fund 39 HOPE VI projects at
32 public housing authorities (7 housing authorities received two
grants), range in size from $7.5 million to $50 million and averaging
about $39 million.\4 These funds have been used primarily for capital
improvements to the housing stock, for which housing authorities have
budgeted an average of 87 percent of their grants.  The participating
authorities, as of September 30, 1996, had

  -- demolished 6,538 housing units out of a planned total of 22,573
     units,

  -- rehabilitated 705 units out of a planned total of 5,407 units,

  -- constructed 419 new units out of a planned 15,299 units, and

  -- provided housing vouchers to 1,639 families displaced by the
     demolition or rehabilitation. 

HUD has identified several innovative approaches used by HOPE VI
grantees to implement their projects.  These approaches, which could
serve as models for other housing authorities, include Cleveland's
concept of centralizing its social services, Milwaukee's street
layout to reduce density and enhance the neighborhood's security and
cohesiveness, and Atlanta's use of private investors to help finance
its improvements.  To assist other HOPE VI grantees, HUD has
disseminated information about these and other approaches. 

To evaluate the long-term effectiveness of the HOPE VI program, HUD
is conducting a phased 10-year evaluation.  In August 1996, HUD
completed a baseline study of 15 HOPE VI grantees' distressed housing
and early revitalization activities.  HUD plans 5- and 10-year
follow-up evaluations of these activities.  According to HUD, an
evaluation at this time of the HOPE VI program's progress to date
could be premature because several significant housing policies and
regulatory ground rules changed after the program started.  These
changes resulted, in turn, in changes to the implementation plans for
many HOPE VI projects and in delays in meeting initial milestones. 


--------------------
\4 In addition to the $1.54 billion awarded to fund 39 projects and
the $5 million in technical assistance, HUD set aside, per
congressional mandate, $20 million for youth training and
apprenticeship programs in the construction field and awarded $14.45
million for 35 planning grants.  Planning grants could be used to
plan for the revitalization projects and could not be more than
$500,000 each.  HUD carried over into fiscal year 1996 approximately
$1.4 million that was not awarded in previous years. 


   BACKGROUND
------------------------------------------------------------ Letter :2

In 1989, the Congress established the National Commission on Severely
Distressed Public Housing to identify the nation's worst public
housing and propose a national action plan to eradicate this housing
by the year 2000.  In 1992, the Commission reported that
approximately 86,000 units, or 6 percent, of public housing could be
considered severely distressed and that the traditional approaches to
revitalizing this housing had not been effective.  Physically
deteriorated buildings were but one aspect of severely distressed
public housing; the Commission also observed two other conditions: 
(1) the residents were living in despair and needed high levels of
social and support services and (2) the surrounding communities were
economically and socially distressed.  The symptoms of these
conditions include the absence of economic resources, high rates of
crime and unemployment, lack of opportunity for training and
education, and barriers to effective management, such as high vacancy
rates.  The Commission recommended that funds be made available to
address all three conditions and that these funds be added to the
amounts traditionally appropriated for modernizing public housing. 

In response to the Commission's report, the Congress created the HOPE
VI program to address these three conditions and incorporated many of
the Commission's recommendations.  By making HOPE VI a demonstration
program, the Congress made the program more comprehensive and
flexible than previous approaches to revitalizing public housing. 
The program's flexibility enabled public housing authorities (PHA) to
take advantage of the developments in national public housing policy,
such as the suspension of the one-for-one replacement requirement\5
and the introduction of private-public financing for constructing
public housing units. 

To obtain HOPE VI grants, PHAs must submit competitive applications
to HUD's Office of Urban Revitalization.  The Congress stipulated
that the PHAs applying for these funds during the first 3 years must
be located in the 40 most populous U.S.  cities, based on 1990 Census
data, or included on HUD's list of troubled housing authorities\6 as
of March 31, 1992.\7 HUD awarded successful applicants grants of up
to $50 million for each HOPE VI project, and some PHAs have received
more than one grant.  HUD withholds most of the grant from the PHA
until it approves the authority's "revitalization plan," which
includes the budget to implement HOPE VI.  The revitalization plan is
the housing authority's blueprint and schedule for implementing its
HOPE VI project and specifies its goals and budget.\8 Once HUD
approves the plan, it authorizes, or makes available, funding in
accounts corresponding to the amounts that the housing authority has
budgeted for the project.  HUD disburses funds from the accounts at
the request of the PHAs and allows them to draw down no more than 5
percent of their authorized amounts per month to pay for goods and
services received.  The withholding of funds may also occur after the
funds are authorized as a result of concerns, such as whether a PHA
has the ability to successfully manage a HOPE VI project, that HUD
may have about the HOPE VI project. 


--------------------
\5 In place since 1988, this requirement provided that PHAs must
replace every housing unit that they take out of service with another
unit of public housing or housing assistance under HUD's project- or
tenant-based housing assistance program.  The HOPE VI appropriations
acts permitted PHAs with HOPE VI awards to request section 8
certificates for up to one-third of the one-for-one replacements. 
The Congress suspended this requirement in July 1995. 

\6 HUD maintains a list of troubled PHAs based on their annual
performance score in the Public Housing Management Assessment
Program.  HUD uses the assessment program to measure PHAs' compliance
against standard property management criteria.  PHAs receiving scores
under 60 out of a possible 100 are designated as "troubled."

\7 The Congress removed this criterion in the fiscal year 1996
appropriations for HOPE VI. 

\8 In addition to the budget, HUD requires that the revitalization
plan include a community service plan that outlines how residents and
local service agencies will contribute to the revitalization of their
neighborhood.  The revitalization plan may also consist of plans for
other major activities as appropriate, such as demolition,
replacement housing, resident relocation, and management. 


   MOST HOPE VI FUNDING IS FOR
   CAPITAL IMPROVEMENTS
------------------------------------------------------------ Letter :3

Thirty-two housing authorities have budgeted an average of 87 percent
of the $1.54 billion they have received in awards, or $1.33 billion,
to fund capital activities for the 39 HOPE VI projects,\9 according
to an analysis conducted by HUD.  The awards fund 39 HOPE VI projects
ranging in size from $7.5 million to $50 million and averaging about
$39 million.  Capital activities include demolition, rehabilitation,
and new construction as well as the expenses associated with
relocating residents who have been displaced to accommodate capital
activities.  While no PHA has completed its capital improvements,
construction is under way at 20 of the 39 sites.  As figure 1 shows,
the PHAs have budgeted the remaining $200 million, or 13 percent, for
community and supportive services. 

   Figure 1:  Planned Expenditures
   for the 39 HOPE VI Projects

   (See figure in printed
   edition.)

Note:  This analysis does not include $5.2 million that, in late
1996, HUD awarded as additional, or amendment, funds to six HOPE VI
projects.  Therefore, these funds have not been factored into the
projects' budgets. 

Source:  HUD's analysis of the budgets for the 39 HOPEVI projects'
revitalization plans. 


--------------------
\9 As of December 13, 1996, HUD had approved 31 of the 39 budgets
received from PHAs for their revitalization plans.  HUD does not
anticipate significant changes in the budgeted amounts for capital
activities for the remaining eight HOPE VI projects.  Thus, our
summary includes the plans of all 39 HOPE VI projects. 


      CAPITAL IMPROVEMENTS UNDER
      HOPE VI
---------------------------------------------------------- Letter :3.1

The HOPE VI program allows a PHA to determine through a
revitalization plan which capital improvements would be the most
effective for its community and in the best interests of its
residents.  The PHA must work with its residents and local government
to ensure that their concerns are addressed by the proposed capital
improvements.  Most projects fund demolition, rehabilitation, and/or
new construction.  The PHA may also use section 8 certificates\10 to
house displaced residents. 

Capital improvement activities are time-consuming and complex, as the
experience of other public housing programs has shown.  In the HOPE
VI program, the authority must consult with its residents before the
project can move forward.  However, at several project sites,
disagreement between the residents and the authority has impeded the
decision-making on which activities to fund.  In addition, the PHAs
must obtain HUD's approval of their plans and comply with the
program's requirements and many other applicable regulations, such as
those dealing with environmental reviews, historic preservation, and
the federal procurement process.  Only then can ground-breaking
activities occur. 

Funding status.  As of the end of fiscal year 1996, HUD had
authorized $653 million for HOPE VI capital improvement activities
and disbursed $127 million to the PHAs.  This authorization is about
half of the $1.33 billion that is budgeted for activities associated
with capital improvements.  HUD has not authorized more funds because
only about two-thirds of the projects have begun or are ready to
begin capital activities.  As of December 13, 1996, HUD had not
approved the revitalization plans for eight HOPE VI projects. 
Nevertheless, HUD does not anticipate that there will be significant
changes in the average percentages for funding capital activities and
community and supportive services once the other eight budgets are
approved. 

Activities completed or under way.  Officials in HUD's Office of
Urban Revitalization told us that HUD does not currently maintain a
centralized database to track all HOPE VI activities, including those
associated with improving the housing stock.  However, HUD recently
contracted with the Housing Research Foundation (HRF), a nonprofit
organization, to conduct a survey, the results of which are entered
into a database that can be updated.  According to the survey, as of
September 30, 1996, the 32 PHAs, in accomplishing their capital
improvement activities, had

  -- demolished 6,538 units, or 29 percent of the 22,573 units
     currently planned for demolition;

  -- rehabilitated 705 units, or 13 percent of the 5,407 units that
     are scheduled for rehabilitation or reconfiguration; and

  -- constructed 419 new units, or 3 percent of the 15,299 proposed
     new units. 

Using data from the HRF survey, figure 2 compares the 39 HOPE VI
projects' completed and planned capital activities.  Because some
PHAs are using their HOPE VI funding as leverage to attract funds
from other investors, they may be accomplishing more than they could
with HOPE VI funds alone.  According to the HRF survey, 15,004 of the
20,706 planned rehabilitated and newly constructed units reported are
HOPE VI units, meaning that they are to be funded solely with HOPE VI
funds.  Furthermore, because of the flexibility of the HOPE VI
program, the PHAs' plans for capital activities are subject to
change. 

   Figure 2:  Status of HOPE VI
   Projects' Capital Improvements
   as of September 30, 1996

   (See figure in printed
   edition.)

Source:  HRF's September 1996 survey. 

In addition, HUD had provided 3,194 certificates and vouchers to the
housing authorities to be used to house relocated residents. 
However, HUD's section 8 certificate and voucher program funds this
housing assistance, not the HOPE VI program.  The PHAs have reported
to HUD that 1,639 families have been assisted through the section 8
program.  According to HUD, no HOPE VI project had completed all of
its capital activities as of the end of calendar year 1996.  However,
26 HOPE VI projects had started demolition and 20 projects had begun
construction by the end of 1996. 


--------------------
\10 HUD's section 8 certificate and voucher programs are designed to
allow lower-income households to live in decent and affordable
private rental housing of their choice. 


      TECHNICAL ASSISTANCE
      SUPPORTS REVITALIZATION
---------------------------------------------------------- Letter :3.2

During the first 3 years of HOPE VI, the Congress appropriated $5
million for HUD to use in providing technical assistance to HOPE VI
projects.  The Congress appropriated an additional $3.22 million for
HUD's use during fiscal year 1996, bringing the total for fiscal
years 1993 through 1996 to $8.22 million, or about 0.4 percent of the
total HOPE VI appropriations for that time period.\11 In providing
technical assistance, HUD's contractors have assisted the PHAs and
their residents by, for example, assessing the needs for resident
services and planning for community and economic development.  On the
local level, HUD, when concerned about the housing authorities'
management capability, has planned for contractors to assist the PHAs
in planning and managing their projects and is planning for
contractors to assist as needed in managing revitalized properties. 
HUD staff also assist PHAs and residents as part of their
responsibility for managing HOPE VI grants. 

Funding status.  As table 1 shows, for each year except fiscal year
1993, the Congress has set aside from the HOPE VI appropriation an
amount for technical assistance.  The services that HUD has procured
with these funds have assisted the PHAs in establishing their HOPE VI
project community and supportive service activities, among others. 
As of the end of fiscal year 1996, HUD had contracted for technical
assistance costing approximately $4.35 million (53 percent of
technical assistance appropriations), and of that amount, HUD had
paid out nearly $2.02 million (25 percent) to contractors. 
Approximately 39 percent, or $3.22 million, of the total funding set
aside for technical assistance through fiscal year 1996 was not
available to HUD to use until May 1996 because of the delayed
enactment and signing of the fiscal year 1996 appropriations act. 
(App.  II contains a breakdown of total funds set aside for each HUD
contractor, the services provided, and the funds paid out to these
contractors as of September 30, 1996.)



                                Table 1
                
                 HOPE VI Appropriations Designated for
                Technical Assistance, Fiscal Years 1993-
                                   96

                                Total HOPE     Technical    Percent of
                                        VI    assistance         total
                              appropriatio  appropriatio  appropriatio
Fiscal year                             ns            ns             n
----------------------------  ------------  ------------  ------------
1993                          $300,000,000            $0             0
1994                           778,240,000     2,500,000           0.3
1995                           500,000,000     2,500,000           0.5
1996                           480,000,000     3,216,000           0.6
======================================================================
Total                         $2,058,240,0    $8,216,000           0.4
                                        00
----------------------------------------------------------------------
Assistance completed or under way.  As defined broadly by HOPE VI
program officials, technical assistance is any kind of support that
helps a housing authority carry out its project.  At the national
level, HUD has procured the following kinds of services from
contractors with the funds set aside from the HOPE VI appropriation: 

  -- Developing and approving community service plans:  The
     Corporation for National Service (CNS) provided assistance with
     community and supportive service planning and plan approvals for
     implementation grants.\12

  -- Project assessment:  Through on-site visits to HOPE VI projects,
     HRF is assessing the capability and performance of HOPE VI
     grantees.  It is also assessing technical assistance needs as
     well as recommending corrective action and technical assistance
     contractors.  HRF is also providing appropriate training for PHA
     and HOPE VI project staff.  To date, HRF has completed formal
     assessments for 11 HOPE VI projects and expects to complete
     additional assessments in the future. 

  -- Information exchange:  HRF established a computerized
     communication system that is available to all HOPE VI PHAs. 
     Twenty-seven PHAs have chosen to participate, of which 21 are
     currently on-line and another 6 are in the process of getting
     on-line.  Furthermore, HRF provides informational services to
     HOPE VI PHAs, including (1) an extensive library of program
     documents both in printed and electronic formats and (2) a
     monthly newsletter distributed to all grantees, consultants, and
     interested parties, and has assisted HUD to provide three
     national technical assistance conferences.  To make HOPE VI
     information more widely available, HRF recently integrated its
     Lotus Notes system with the Internet. 

  -- Community building/Campus of Learners technical assistance:  Two
     HUD contractors, Aspen Systems and the Urban Institute, will
     provide 18 months of technical assistance in developing
     community-building programs, including a Campus of Learners
     educational component, to nine HOPE VI projects selected to
     date. 

  -- HOPE VI database:  HRF is developing a HOPE VI database to track
     and store information on all aspects of the program.  Under
     contract to HUD, HRF continues to collect these data and will
     keep them current for monitoring, reporting, and policy
     development purposes.  As discussed earlier, HRF provided HUD
     with program data as of the end of September 1996. 

Locally, contractors also provide technical assistance, including
project management, to HOPE VI PHAs.  HUD has required 11 PHAs to
hire private-sector management professionals to manage their HOPE VI
projects.  Eight other PHAs either have decided on their own to hire
such managers or were advised by HUD to do so.  Like other
revitalization efforts, HOPE VI projects also procure technical
design assistance from architectural and engineering firms. 
Furthermore, HUD recognizes the importance of effectively managing a
development after it has been revitalized.  The director of HUD's
Office of Urban Revitalization told us that HUD looks closely at a
PHA's HOPE VI management plans and, after assessing the PHA's
management capability, often requires or recommends management
reforms.  As a result, HUD has required one PHA to hire a private
contractor to manage the revitalized property.  Four other PHAs plan
to do so as a result of HUD's advice.  In total, HRF's database shows
that 16 HOPE VI projects will have private property managers.  The
PHAs use HOPE VI grant funds or other resources to pay for project
and property management contractors. 

HUD's field and headquarters staff also provide technical assistance
to PHAs and their residents, according to HUD's program guidelines. 
HOPE VI grantees told us that both HUD headquarters and field staff
have provided helpful assistance, including useful advice about
project design, allowable expenses, HUD's regulations, and cutting
the Department's red tape, when appropriate.  The costs for these
services are not identified separately within HUD's overall personnel
expenditures. 


--------------------
\11 While this report focuses primarily on the activities funded with
fiscal years 1993-95 HOPE VI program appropriations, it also includes
a discussion of fiscal year 1996 appropriations set aside for
HUD-contracted technical assistance.  These funds were made available
for use by HUD in May 1996. 

\12 The Congress mandated that CNS define the community service
programs allowable in the HOPE VI program and approve all projects'
community service plans.  CNS is a congressionally established
organization that administers national service programs that provide
community services. 


      COMMUNITY AND SUPPORTIVE
      SERVICES ADDRESS RESIDENTS'
      NEEDS
---------------------------------------------------------- Letter :3.3

By funding community and supportive services, HOPE VI is addressing
the conditions prevalent in public housing, such as severely
dysfunctional families, residents' distrust of PHAs, a lack of
employment opportunities, limited economic development in the local
community, and generational cycles of poverty.  Community services
are defined as services that public housing residents provide
voluntarily.  Residents may, for example, volunteer with the
Volunteers in Service to America (VISTA),\13 in battered women's
shelters, on community newsletters, and with residents' organizations
and recreational centers for community youth.  In contrast,
supportive services are provided by social service agencies and
nonprofit groups to help residents become more self-sufficient.  The
supportive services currently offered include day care, basic
education in areas such as mathematics and verbal skills, health care
services, and counseling on family coping skills or substance abuse
prevention. 

For the most part, HOPE VI projects--with their dual focus on
addressing capital and human needs--resemble successful community
development programs that we reviewed in an earlier 1995 study.\14 In
that study, we reported that significant neighborhood revitalization
may take a generation or longer to achieve.  We found that programs
with the greatest chances for success are generally community-based,
focusing on a specific geographic area and actively involving the
residents.  Successful programs also confront the multiple needs
facing communities and are frequently initiated and sustained through
collaboration with many organizations. 

Funding status.  The HOPE VI guidelines allow PHAs to spend up to 20
percent of their grant on community and supportive services.  But
obtaining expenditure data is difficult because HUD does not collect
or centrally maintain the data on expenditures by HOPE VI projects
for community and supportive services.  Budget data are available,
however, from the projects' plans, and according to an analysis done
by HUD in December 1996, housing authorities have budgeted an average
of 13 percent of their HOPE VI grants, or about $5.1 million, for
community and supportive services.  Currently, 11 of the 39 HOPE VI
projects have budgeted 19 percent or more of their implementation
grant for these services, while 3 projects have budgeted less than 4
percent of their grants. 

Activities completed or under way.  In September 1996, HRF surveyed
the HOPE VI projects to determine the extent and type of community
and supportive services planned or provided and whether the plans for
such services had been approved so that activities could begin.  The
survey reported that since January 1996, an overall increase had
occurred in the delivery of community and supportive services, as
well as an increase in the number and variety of the partners and
existing community resources now being used to provide support for
the residents.  HRF also reported that nearly 76 percent of the plans
for community and supportive services had been approved, 81 percent
of the sites were delivering supportive services, and 73 percent of
the sites were providing community services (some service activities
had been on-going long before the HOPE VI project was proposed). 
(See app.  III for a list of the community and supportive services
planned for selected HOPE VI projects.)

In general, community and supportive services promote self-
sufficiency through education, training, mentoring, and counseling. 
As the following examples show, PHAs can adopt varying approaches,
depending on the services deemed best for their residents, to
providing community and supportive services. 

Cuyahoga Metropolitan Housing Authority (Cleveland).  At its HOPE VI
project located at the Outhwaite Homes/King Kennedy development,
Cuyahoga provides community and supportive services through a
"village concept" where services are centrally located.  Cuyahoga
budgeted $8 million of its $50 million HOPE VI award for this
project's community and supportive service activities.  In a
converted high-rise, senior-citizens building, Cuyahoga has opened a
multistoried social services mall that features a variety of
community and supportive services.  Its supportive services include a
Montessori school and day care facility, health care services, and
family self-sufficiency programs, such as employment and vocational
training.  Also available are leadership and entrepreneurship
training programs, transitional housing services for homeless men,
and a drug rehabilitation residence for mothers in public housing. 
The community services include the Boys and Girls Club, which is
staffed by both professionals and resident volunteers and offers a
variety of services and activities for children, and a mentorship
program offered through Cleveland State University. 

Housing Authority of the City of Milwaukee.  Milwaukee has budgeted
$3.8 million of its $45 million award for the community and
supportive services for its HOPE VI project at Hillside Terrace. 
Milwaukee has used its HOPE VI funds to reinforce and expand existing
partnerships, such as a Boys and Girls Club.  The supportive services
include on-site health care and alcohol/drug prevention services, day
care, and classes in child development, parenting, and nutrition. 
Some of the public housing residents are being trained for future
jobs by rehabilitating vacant units and working in the construction
trades.  In the community services area, Milwaukee has a
micro-neighborhood mentoring program, a block watch program, and
volunteer opportunities, including the Boys and Girls Club. 

Community partnerships are critical to the effective delivery and
continued viability of services.  HOPE VI project officials told us
that their partnerships with social service and nonprofit agencies
are keys to effectively delivering services to their residents.  The
partners include local elected officials, colleges and universities,
social service providers, nonprofit groups, and national groups such
as CNS and the Child Welfare League of America.  By partnering with
the local social service agencies and nonprofit foundations, some
HOPE VI projects are able to provide early expanded job readiness
programs, educational programs, and family self-sufficiency programs,
such as health clinics for the residents.  The existing community
partners provide services to supplement the HOPE VI efforts. 


--------------------
\13 The VISTA program, administered by CNS, recruits volunteers to
serve full time for 1 to 5 years in poverty and poverty-related
projects. 

\14 Comprehensive Approaches Address Multiple Needs but Are
Challenging to Implement (GAO/RCED/HEHS-95-69, Feb.  8, 1995). 


   PHAS' HOPE VI APPROACHES ARE
   BEING IDENTIFIED AND
   DISSEMINATED, BUT THEY MAY TAKE
   TIME TO BE PROVEN SUCCESSFUL
------------------------------------------------------------ Letter :4

As part of the HOPE VI program, HUD is identifying the innovative or
particularly promising approaches used by PHAs to implement the
components of their HOPE VI projects.  These approaches, if proven
successful, could become models for use in other distressed housing
redevelopment efforts across the entire public housing program.  HUD
and HRF are providing information to PHAs on potentially effective
approaches through conferences, newsletters, and an electronic
communication system.  HUD officials caution, however, that such
housing redevelopment methods may not be proven to be fully
successful for 7 to 10 years. 


      SUCCESS OF IDENTIFIED
      APPROACHES MAY TAKE TIME TO
      PROVE
---------------------------------------------------------- Letter :4.1

Table 2 shows four examples of approaches that HUD, HRF, and other
officials identified as being potentially successful and applicable
to other PHAs' redevelopment efforts. 



                                Table 2
                
                     Potentially Successful HOPE VI
                        Redevelopment Approaches

Location of PHA                     Description of approach\a
----------------------------------  ----------------------------------
Atlanta, GA                         Leverage HOPE VI grant with low-
(Housing Authority of the City of   income housing tax credits and
Atlanta)                            funds from private and other
                                    investors to demolish and
                                    construct over 1,000 units--twice
                                    what could have been accomplished
                                    with HOPE VI funds alone--of
                                    assisted and affordable housing.

Cleveland, OH (Cuyahoga             Create a "social service mall" in
Metropolitan Housing Authority)     a converted mid-rise building.
                                    Twenty different social service
                                    agencies offer services that range
                                    from graduate-equivalent diploma
                                    classes to AIDS counseling and day
                                    care.

Milwaukee                           Create less dense and less
(Housing Authority of the City of   isolated "micro-neighborhoods" by
Milwaukee)                          demolishing deteriorated housing
                                    and constructing streets that
                                    cross through the development. In
                                    addition, the housing authority
                                    created early and strong
                                    partnerships with the local social
                                    service agencies and nonprofit
                                    foundations to bring
                                    apprenticeship programs, job
                                    readiness programs, and a family
                                    health clinic to its residents.

Seattle, WA                         Redevelop the community to end the
(Seattle Housing Authority)         separation of residents from the
                                    surrounding neighborhood and to
                                    involve a variety of cultures
                                    represented by the residents.
                                    Develop housing to match the
                                    appearance of the neighborhood and
                                    connect the development's streets
                                    to community roads. Since nine
                                    major languages are spoken at the
                                    HOPE VI project, the PHA provides
                                    translations for meetings,
                                    training, and surveys to increase
                                    participation and serve the entire
                                    population.
----------------------------------------------------------------------
\a HUD, CNS, and/or HRF identified these approaches. 

Officials from HUD and other organizations associated with HOPE VI
agree that proving that an approach is successful and determining the
sustainability of its outcome could take years--as long as 7 to 10
years, according to HUD's Deputy Assistant Secretary for Public
Housing Investments, who oversees the HOPE VI program.  Yet HUD's
Director of the Office of Urban Revitalization, CNS' HOPE VI
Director, and HRF's HOPE VI Director stated that aspects of a
redevelopment effort's success may be proved before this time passes. 
According to CNS' HOPE VI Director, the amount of time needed to
demonstrate the success of an approach depends on the goal the PHA is
trying to accomplish.  He said, for example, that if a PHA's approach
involves improving the lives of children, 7 to 10 years may be
necessary to demonstrate the approach's impact on the children. 
Alternatively, if a PHA's goal is to develop neighborhood watches,
this approach's success can be measured in a few months by counting
the number of watches established. 


      HRF AND HUD PROVIDE
      INFORMATION ON APPROACHES
---------------------------------------------------------- Letter :4.2

HRF provides information to HOPE VI PHAs on potentially successful
approaches by publishing a monthly newsletter, managing an electronic
communication system, and giving the PHAs access to documents such as
the contracts used by PHAs, the PHAs' HOPE VI plans, and HUD's
guidance.  HRF's monthly newsletter contains descriptions of the
PHAs' approaches to implementing the HOPE VI program, contacts at the
PHAs for more information, updates on the status of regulations and
other issues affecting the HOPE VI program, and information on events
such as conferences and training sessions.  HRF's electronic
communication system provides information and allows the PHAs to send
messages to each other and discuss such issues as real estate
development and finance, economic development, services, and general
housing topics.  HRF also maintains a collection of contracts used by
HOPE VI PHAs, HUD documents and guidance, and profiles of PHAs and
descriptions of their HOPE VI programs that can be accessed via the
electronic system. 

With conferences and samples of the documents that PHAs are currently
using, HUD informs other PHAs of potentially successful HOPE VI
redevelopment approaches.  Since the program's inception, HUD has
held nine conferences on implementing the HOPE VI program and
operating newly revitalized housing developments.  During these
conferences, HOPE VI managers presented information on the approaches
they have used at their developments.  In addition, on request HUD
provides PHAs with examples and documents detailing how other housing
authorities have successfully implemented the components of the
program. 


   HUD IS CONDUCTING A PHASED,
   LONG-TERM EVALUATION OF THE
   HOPE VI PROGRAM
------------------------------------------------------------ Letter :5

To assess the long-term effectiveness of the HOPE VI program, HUD has
completed the initial phase of a multistage evaluation.  HUD
officials told us that short-term evaluations of HOPE VI projects may
be premature because time is needed for the projects to achieve their
intended outcomes on revitalized physical structures, PHAs'
management improvements, and the well-being of residents, including
job training and family self-sufficiency. 

HUD's Office of Policy Development and Research is conducting a
three-phase, 10-year evaluation of the conditions at HOPE VI sites. 
The first phase, completed in August 1996, was a baseline study of 15
HOPE VI grantees.  The second and third phases will be 5- and 10-year
evaluations of the activities and outcomes of the HOPE VI projects at
the 15 sites.  The baseline study contained historical descriptions
of the distressed housing and planned revitalization activities of
the 15 HOPE VI grantees that were chosen on the basis of their
location, development type, types of distress, and proposed
approaches.  The study documented that although most of 23 sampled
developments (within the 15 PHAs) were rated as having "poor" or
"very poor" physical conditions and overall maintenance, their
vacancy rates were nevertheless very low.  In addition, most of the
15 sampled PHAs planned to reduce the number of units in their HOPE
VI project portfolio and create mixed-income communities. 

According to HUD's Deputy Assistant Secretary for Public Housing
Investments, it may take 7 to 10 years before revitalization efforts
at a HOPE VI development could be determined as successful.  He told
us that short-term evaluations may be premature because the
measurable outcomes have been limited in part because of several
factors, including delays in PHAs' development of approvable plans. 
According to HUD, many PHAs revised their revitalization plans to
take advantage of the expanded opportunities that became available as
the HOPE VI program evolved. 

As a demonstration program, HOPE VI offered new opportunities, both
to the PHAs and their communities, and these opportunities have
expanded since the program began.  For example, in mid-1994, HUD
began encouraging the PHAs to demolish rather than attempt to repair
obsolete housing, leverage HOPE VI dollars with other funding sources
such as low-income housing tax credits and state funds, and partner
with the private sector to develop mixed-income housing and encourage
neighborhood development.  HUD also encouraged the PHAs to partner
with organizations such as social service agencies and nonprofit
corporations to provide services to the residents of HOPE VI
communities.  In 1995, the Congress suspended the one-for-one
replacement rule for demolished units, thereby further expanding the
PHAs' revitalization options by allowing the PHAs to remove housing
units without replacing them.  Reacting to these opportunities, many
PHAs changed their plans and thus delayed the implementation of their
HOPE VI projects to incorporate these new opportunities into their
plans.  Meanwhile, some PHAs encountered delays while attempting to
reach agreement with their residents or local communities on their
revitalization plans.  In fact, the HOPE VI program's guidelines
urged the PHAs to involve residents and local communities in the
planning process.  Also, HOPE VI legislation prohibited the PHAs from
receiving funds until CNS approved their community and social
services plans. 

HUD expects the implementation of HOPE VI projects to last an average
of 4 to 5 years, but to date no project has reached this milestone. 
In addition to HUD's evaluation, some PHAs are evaluating their own
HOPE VI programs.  For instance, four of the five PHAs--Cuyahoga,
Kansas City, Milwaukee, and Oakland--we spoke with already have
contracted with local groups to conduct evaluations of their HOPE VI
projects. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :6

We provided a draft of this report to HUD and the Housing Research
Foundation (HRF) for their review and comment.  We discussed the
draft report with HUD's Deputy Assistant Secretary for Public Housing
Investments, the Director of the Office of Urban Revitalization, and
HRF's HOPE VI Project Director.  HUD officials found the report to be
a good, fair, and useful summary of the HOPE VI program.  Other
comments by HUD and HRF pertained primarily to the data that were
cited in our report.  HUD and HRF had conflicting data pertaining to
the number of demolished units as of September 30, 1996, and the
number of HOPE VI projects that had started demolition and
construction in calendar year 1996.  After discussions with both HUD
and HRF, we agreed to use HRF's data for total demolished units and
HUD's data for demolition and construction start dates.  We
incorporated these and other clarifying comments into the report, as
appropriate. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :7

For information on the HOPE VI program and the expenditures and
activities of the grants, we collected data from many sources.  We
reviewed HUD's program guidelines, project files for the grants, and
status reports.  We also reviewed the correspondence and the required
quarterly reports from the participating PHAs.  We interviewed
officials from HUD, CNS, and HUD contractors, including HRF and the
Urban Institute.  Our work also benefitted from HRF's September 1996
survey of HOPE VI grantees to collect detailed information about the
status and accomplishments of their projects.  At our request, HRF
incorporated a number of our suggestions and questions into their
survey, the results of which were released in November 1996. 

We also contacted five HOPE VI projects that are at varying stages of
implementation:  (1) the Housing Authority of the City of Milwaukee,
(2) the Cuyahoga Metropolitan Housing Authority, (3) the Kansas City
Housing Authority, (4) the Oakland Housing Authority, and (5) the
Chicago Housing Authority.  We obtained information about the results
and status of their HOPE VI projects to determine the details of
their progress and the uniqueness of their implementation approach. 
We did not, however, verify the accuracy of this information as it
was provided by HUD, its contractors, or the PHAs we contacted.  We
also did not evaluate the pace at which these PHAs are implementing
their projects nor compare their results with each other.  We
conducted our work from July 1996 through December 1996 in accordance
with generally accepted government auditing standards. 

As arranged with your offices, unless you publicly announce its
contents earlier, we plan no further distribution of this report
until 14 days after the date of this letter.  At that time, we will
send copies of this report to appropriate Senate and House
committees; the Secretary of HUD; and the Director, Office of
Management and Budget.  We will make copies available to others on
request. 

Please call me at (202) 512-7631 if you or your staff have any
questions about the material in this report.  Major contributors to
this report are listed in appendix IV. 

Judy A.  England-Joseph
Director, Housing and Community
 Development Issues


CAPITAL IMPROVEMENTS TO DISTRESSED
HOUSING IN HOPE VI DEVELOPMENTS
=========================================================== Appendix I

                                                           (Data as of September 30, 1996)

                                                                                                                                   Total      Total
                                                                                                  Units                          rehabbed &  rehabbed
                                                               Units       Units       Units     rehabbed     New        New        new       & new
                                                             demol.\c     demol.\c   rehabbed\c     \c      units\c    units\c    units\c    units\c
                                                            -----------  ----------  ----------  --------  ----------  --------  ----------  --------
                                    Fiscal
PHA           HOPE VI project         year    Award amount    (Planned)    (Actual)   (Planned)  (Actual)   (Planned)  (Actual)   (Planned)  (Actual)
------------  ------------------  --------  --------------  -----------  ----------  ----------  --------  ----------  --------  ----------  --------
Atlanta       Techwood/Clark          1993  $42,562,635 \b        1,067         747          14         0       1,166       233       1,180       233
               Howell
Baltimore     Lafayette Courts        1994     $49,663,600          807         771           0         0         771         0         771         0
Baltimore     Lexington               1995     $22,702,000          677         677           0         0         591         0         591         0
               Terrace\a
Boston        Mission Main            1993     $49,992,350          822          90           0         0         585         0         585         0
Boston        Orchard Park\a          1995     $30,000,000          585           0         126        26         509         0         635        26
Camden        McGuire Gardens         1994     $42,177,229            0           0         367         0           0         0         367         0
Charlotte     Earle Village           1993   $41,740,155\b          386           0          23         0         239       155         262       155
Chicago       Cabrini Homes           1994     $50,000,000          660         330          65         0         493         0         558         0
               Extension
Cuyahoga/     Ouithwaite/King         1993     $50,000,000            0           0         693       312           0         0         693       312
 Cleveland     Kennedy
Cuyahoga/     Carver Park\a           1995     $21,000,000        TBD\d           0       TBD\d         0       TBD\d         0       TBD\d         0
 Cleveland
Columbus      Windsor Terrace         1994   $42,053,408\b          442         265           0         0         372         0         372         0
Dallas        Lakewest                1994     $26,600,000        3,462       2,112           0         0       1,285         0       1,285         0
Denver        Quigg Newton Homes      1994   $26,489,288\b           20           0         380        11          20         0         400        11
Detroit       Jeffries Homes          1994     $39,807,342        1,438           0         480         0         370         0         850         0
Detroit       Parkside Homes          1995     $47,620,227          565         424         501         0         162         0         663         0
El Paso       Kennedy Brothers        1995   $36,224,644\b          124          42         240         7         174         0         414         7
               Memorial Apts.
Houston       Allen Parkway           1993     $36,602,761          677          12         286         0         314         0         600         0
               Village
Indianapolis  Concord Village/        1995     $29,999,010          310         140          14         0         206         0         220         0
               Eagle Creek
Kansas City   Guinotte Manor          1993     $47,579,800          196           0         216         0         232         0         448         0
Los Angeles   Pico Gardens/           1993     $50,000,000          577           0           0         0         440         0         440         0
               Aliso North &
               South
Memphis       LeMoyne Gardens         1995     $47,281,182          758           0          84         8         556         0         640         8
Milwaukee     Hillside Terrace        1993   $45,689,446\b          119         119         477       239          79        24         556       263
Newark        Walsh Homes             1994     $49,996,000          630           0           0         0         498         0         498         0
New Haven     Elm Haven               1993     $45,331,593          462           0           0         0         395         0         395         0
New Orleans   Desire                  1994     $44,255,908        1,832         256           0         0         800         0         800         0
New York      Beach 41st Street       1995     $47,700,952        TBD\d           0       TBD\d         0       TBD\d         0       TBD\d         0
 City          Houses
Oakland       Lockwood/               1994   $26,510,020\b           21           8         417         0          21         0         438         0
               Coliseum/Lower
               Fruitvale
Philadelphia  Richard Allen           1993     $50,000,000          129           0         562         0         149         0         711         0
               Homes
Pittsburgh    Allequippa Terrace      1993     $31,564,190        1,652           0         102       102       1,235         0       1,337       102
Pittsburgh    Manchester\a            1995      $7,500,000          102          51           0         0         144         7         144         7
Puerto Rico   Crisantemos I/          1994     $50,000,000          264         224         360         0         120         0         480         0
               Manual A. Perez
St. Louis     Darst-Webbe             1995     $46,771,000          758           0           0         0         525         0         525         0
San Antonio   Spring View Apts.       1994     $48,810,294          421          97           0         0         545         0         545         0
San Antonio   Mirasol Homes           1995     $48,285,500          500           0           0         0         596         0         596         0
San           Bernal Dwellings/       1993     $49,992,377          484           0           0         0         353         0         353         0
 Francisco     Yerba Buena Homes
San           Hayes Valley\a          1995     $22,055,000           \e          \e          \e        \e          \e        \e          \e        \e
 Francisco
Seattle       Holly Park Apts.        1995   $48,116,503\b          893           0           0         0       1,200         0       1,200         0
Springfield   John Hay Homes          1994     $19,775,000          599          39       TBD\d         0       TBD\d         0       TBD\d         0
Washington,   Ellen Wilson            1993   $25,075,956\b          134         134           0         0         154         0         154         0
 DC            Dwellings
-----------------------------------------------------------------------------------------------------------------------------------------------------
\a These HOPE VI projects include leveraged financing. 

\b These HOPE VI projects received additional funding, known as
amendment funds, subsequent to their original awards.  The amendment
funds are included in these figures. 

\c Data reported may also include units funded with funds other than
HOPE VI. 

\d TBD = To be determined by PHA. 

\e Did not respond to HRF's survey. 

Source:  HUD and HRF's survey. 


SUMMARY OF THE HOPE VI PROGRAM'S
TECHNICAL ASSISTANCE BUDGET
ACTIVITY
========================================================== Appendix II

                                    Technical
                                    assistance (TA)                       Funds disbursed
Fiscal year       Contractor        activity             Funds reserved     as of 9/30/96
----------------  ----------------  -----------------  ----------------  ----------------
1994              Corporation for   Community service          $150,000          $150,000
                  National Service  planning TA and
                  (CNS)             plan approvals\a

1994                                Travel                      126,000           126,000

1995              Corporation for   Community service           540,811           540,811
                  National Service  planning TA and
                                    plan approvals\a

1995              Housing Research  Needs assessment          1,500,000           780,000
                  Foundation        and information
                                    sharing network

1995              Aspen Systems     Resident                     30,000            30,000
                  Corporation       initiatives
                                    information
                                    dissemination

1995              Aspen Systems     Community                   984,492           148,078
                  Corporation       building and
                                    Campus of
                                    Learners TA

1995                                Travel                      126,000           126,000

1996              Innovative        Satellite TV                 36,660            28,567
                  Technologies      training

1996              Center for        For Houston                  56,000             5,600
                  Community Change  Housing
                                    Authority,
                                    Resident Council
                                    TA

1996              Video Software    Satellite                     7,428             7,428
                  Associates        training

1996              Aspen Systems     Community                    46,324                --
                  Corporation       building and
                                    Campus of
                                    Learners TA

1996              Abt Associates    TA for                      277,007                --
                                    Springfield
                                    Housing Authority

1996              Abt Associates    Economic Lift               300,000                --
                                    Program

1996                                Travel                       73,000            73,000

1996              SOZA              HOPE VI                     100,000                --
                  International,    conference
                  Ltd

=========================================================================================
Total                                                        $4,353,722        $2,015,484
-----------------------------------------------------------------------------------------
\a In the fiscal year 1993 appropriations act, the Congress
stipulated that CNS define community service programs and approve
such plans for all HOPE VI projects. 


SELECTED HOPE VI PROJECTS'
COMMUNITY AND SUPPORTIVE SERVICES
========================================================= Appendix III

Housing authority          Community services         Supportive services
-------------------------  -------------------------  --------------------------
Cuyahoga Metropolitan Housing Authority (Cleveland)
--------------------------------------------------------------------------------
Cuyahoga's plan for        Over the next 3 years,     Residents will be provided
community and supportive   residents will have        with business training to
services, called Central   opportunities to earn      operate a food cooperative
Vision: Community Is       stipends as full time      in the Carl B. Stokes
Action, is intended to     VISTA community service    Social Service Mall.
address unmet needs for    volunteers.
human services, public                                The Youth Enhancement
safety, education, and     The Cleveland              Service will train
environmental care.        Conservation Corps will    residents to operate
                           employ 56 young men and    family day care homes to
Cuyahoga provides its      women in a "work-earn-     provide respite care for
community and supportive   learn" program for 6       public housing parents.
services through a         months before they become
"village" where services   apprentices in the         More than 20 social
are centrally located.     Laborers International     service agencies and
The village center model   Union.                     programs will be housed in
will assist residents in                              the Carl B. Stokes Social
obtaining their general    Through a pilot project    Service Mall to provide a
equivalency diploma        with the Department of     range of services and
(GED), starting a          Social Work at Cleveland   opportunities for
business, or owning a      State University, 12       residents.
home.                      undergraduate and
                           graduate students will     Through HUD's Supportive
Cuyahoga's community and   provide mentoring,         Housing Program, 40
supportive services are    tutoring, and case         homeless men will receive
directly linked. For       management services to     transitional housing
example, Cuyahoga asked    residents.                 services at the social
all supportive service                                service mall.
providers to hire          The Health Services
resident volunteers.       Corps, in partnership      Cleveland State University
                           with Case Western Reserve  will link 160 residents
                           University, will provide   electronically with local
                           opportunities for medical  community and support
                           students to provide a      service providers for a 1-
                           variety of services to     year demonstration. On-
                           residents.                 line services may include
                                                      job postings for youth and
                           To be reintegrated into    adults, information on
                           the community, ex-         family services and senior
                           offenders will act as      events, and games for the
                           escorts for seniors,       young.
                           disabled residents, and
                           single women in the        Twenty youth will
                           community.                 participate in Stock
                                                      Market Clubs to learn
                           Intergenerational          about the economy and
                           programs will link         compete with other stock
                           elementary aged youth in   market investment clubs in
                           two schools with tutoring  the state. Youth will
                           by 10 senior citizens      select their stocks and be
                           working through the RSVP   evaluated on the stocks'
                           program.                   returns on investment.

                                                      Cuyahoga is developing a
                                                      foster home and daycare
                                                      homes at the developments
                                                      for child care.


Housing Authority of Kansas City, Missouri
--------------------------------------------------------------------------------
The Guinotte Manor         Residents will be trained  HAKC has partnered with
development of the         as Senior Companions to    the Kansas City Full
Housing Authority of       assist frail, homebound    Employment Council and the
Kansas City (HAKC) spans   seniors to maintain        Missouri Department of
25 acres of land and       independent living.        Family Services to provide
contains 412 row dwelling                             residents access to GED
units of public housing.   HAKC has partnered with    classes, job readiness,
The development and the    the Kansas City Police     training, and placement
surrounding neighborhood   Department to set up a     services.
are characterized by poor  public safety program
physical conditions,       aimed at increasing the    A Family Self Sufficiency
densely concentrated       level of community         program is established to
residences, lack of open   policing services to       help residents identify
space, insufficient        Guinotte and supporting    and achieve self-
street and security        residents' involvement in  sufficiency goals.
lighting, and isolation    crime prevention.
from commercial and                                   A Family Development and
retail services. High      An AmeriCorps VISTA        Learning Center is under
rates of crime and         volunteer worked with the  development; it will have
unemployment also          authority and the          conference and training
characterize the area.     Guinotte Manor Tenants     rooms, a computer lab,
The community is           Association on outreach    child care facilities, a
currently comprised of 45  and educational            resource room, and other
percent African-           activities, including      facilities.
American, 43 percent       providing information on
Asian, and 12 percent      welfare reform and other   The Full Employment
Hispanic residents. A 13-  relevant issues.           Council is providing
member task force                                     construction training to
consisting of community    Residents received         young adult residents so
residents actively         training to encourage the  that they can participate
participates in the HOPE   development of small       in the construction jobs
VI process and provides    businesses and to build    generated by the HOPE VI
input on all proposed      expertise in the creation  project.
services to HAKC's court-  of business plans.
appointed Receiver.                                   The Francis Child
                                                      Development Center trained
                                                      residents to qualify them
                                                      to be child care workers.

                                                      A revolving loan fund is
                                                      under development to
                                                      provide start-up and
                                                      expansion capital for
                                                      neighborhood-based small
                                                      businesses.

                                                      The University of Kansas
                                                      will provide reading
                                                      literacy training for up
                                                      to 45 Guinotte residents
                                                      as part of an overall job
                                                      readiness strategy.

                                                      HAKC has partnered with
                                                      the Child Welfare League
                                                      of America to increase
                                                      health services on site,
                                                      explore the feasibility of
                                                      establishing a primary
                                                      health care facility, and
                                                      increase resident access
                                                      to entry level health care
                                                      jobs.


Housing Authority of the City of Milwaukee
--------------------------------------------------------------------------------
The HOPE VI site in        The Youth Scholarship      On-site health care
Milwaukee is a 496-unit    Fund will create           services are provided by
family development named   opportunities for          the Black Health
Hillside Terrace that is   community service and      Coalition.
located within the city's  scholarships for youth
Community Development      between the ages of 14     The on-site Boys and Girls
Block Grant area and       and 21. The scholarships   Club includes a full-size
Enterprise Community. The  would be awarded annually  gym, game room, and
community's HOPE VI        to 10 to 15 Hillside       computer center and offers
service plan is designed   Terrace residents who had  recreation, education,
to promote self-           completed 500 hours of     employment, and social
sufficiency by linking     community service. The     service programs.
opportunities for service  fund will be administered
to job training,           by the Boys and Girls      Child care and Head Start
permanent jobs, and        Club of Greater Milwaukee  are provided on-site.
educational awards.        and compliments the
                           Milwaukee Guarantee,       The University of
According to the           which provides up to       Wisconsin extension offers
Executive Director of the  $3,250 per year in         classes on-site in child
Milwaukee Housing          college expenses for low-  development, nutrition and
Authority, Wisconsin's     income high school         parenting.
Welfare Reform Initiative  graduates who graduate
is stricter than the       from high school with at   Milwaukee Area Technical
recently passed federal    least a 2.5 grade point    College provided GED
welfare reform             average, demonstrate       classes.
legislation. Milwaukee     financial need, and are
had to curtail some of     interested in attending a  Students from two nursing
its plans for community    local college,             schools offer on-site
and supportive services.   university, or technical   health screening, home
At least half of the       school.                    visits, and health
residents are not                                     classes.
available during the day   The Community Enrichment
due to required            Program will create        The Housing Authority
attendance at job          opportunities for adult    Board approved a contract
training or jobs.          residents to earn 1 or 2   with the University of
Services are now offered   months' rent by            Wisconsin-Extension to
primarily on the weekend   performing community       coordinate an educational
or in the evening.         service. Interested        enrichment center for the
                           residents will sign a      residents of Hillside
                           partnership agreement      Terrace. The Hillside
                           identifying the agencies   Educational Enrichment
                           at which they will         Center is a year-round
                           perform service.           site for enrichment
                           Residents can earn (a) 1   classes where the entire
                           month's rent by            family can develop life-
                           completing 240 hours of    long learning skills. This
                           service and attending 6    center includes computers
                           resident council meetings  for residents' use and
                           and (b) 2 month's rent by  classrooms where staff
                           completing 400 hours of    will coordinate job
                           service and attending all  readiness and world-of-
                           resident council           work classes. There will
                           meetings. The program is   also be a small community-
                           intended to build the      based reference library on
                           capacity of the Hillside   personal enrichment and
                           Resident Council, develop  employment topics.
                           future leaders, and
                           broaden residents'
                           representation in
                           decision-making.

                           Under the Micro-
                           Neighborhood Program, new
                           residents moving into the
                           development will be
                           mentored by families
                           currently living in the
                           area. Mentors, who also
                           serve as neighborhood
                           leaders, will receive
                           stipends for their
                           services.


Oakland Housing Authority
--------------------------------------------------------------------------------
The Oakland Housing        La Clinica de la Raza is   A community center is
Authority has targeted     implementing an "It        under construction in
two locations, East        Starts Now" program,       Lockwood Gardens to house
Oakland and Lower          which is designed to       a wide range of support
Fruitvale, for             offer the youth of the     services for residents.
revitalization. The        Fruitvale area the         The authority is also
authority has broad-       opportunity to become      forming a Youth Advisory
based community support,   directly involved in the   Board to encourage youth
including the support of   renovation of their        to become involved in the
the Mayor's office as      neighborhoods.             various programs offered
well as numerous local                                through HOPE VI.
and community-based        The Fruitvale Community
organizations.             Collaborative is           Several partners currently
                           conducting community       provide small business
                           organizing in the          development training,
                           Fruitvale area.            technical assistance, job
                                                      and entrepreneurship
                           The Spanish Speaking       training, and health
                           Unity Council is           services. They include the
                           facilitating conflict      following:
                           resolution workshops for
                           residents and              East Bay Conservation
                           nonresidents.              Corps for basic literary
                                                      and numeracy services, GED
                           The Bay Area Urban League  preparation, and pre-
                           has hired one resident to  vocational skills
                           assist with community      training.
                           organizing in Coliseum
                           Gardens. The League is     East Bay Small Business
                           conducting door-to-door    Development Center for
                           outreach in the community  providing technical
                           and assisting the          assistance and training in
                           residents in identifying   self-employment and small
                           projects for the           business development.
                           utilization of resident-
                           designated funds.          Spanish Speaking Unity
                                                      Council for providing
                                                      self-employment and
                                                      business development
                                                      assistance in the
                                                      Fruitvale area.

                                                      Asian Community Mental
                                                      Health Services for
                                                      providing outreach,
                                                      education and citizenship
                                                      classes, translation
                                                      services, and assistance
                                                      with employment
                                                      opportunities.

                                                      Boys and Girls Club for
                                                      recreational activities,
                                                      academic services, and
                                                      antidrug education.


Chicago Housing Authority
--------------------------------------------------------------------------------
Chicago's HOPE VI plan     Cabrini Alive: Resident    Substance abuse prevention
relies on citywide         volunteers will renovate   is part of all HOPE VI
collaboration to           vacant units in one        program orientations and
revitalize the             building and determine     is included as part of the
community. The plan        what social services       Family Assessments
focuses on families, not   would be most appropriate  process.
just individuals. The      for them. This program,
mayor's office has         which the authority hopes  The Chicago Works program
brought schools, parks,    to expand to other         is the primary placement
the Chicago Housing        buildings affected by      program for residents in
Authority, the Department  HOPE VI, is designed to    both construction and
of Housing, and planners   help residents adjust and  nonconstruction job areas,
together to develop a      prepare for all the        with emphasis on skill
comprehensive plan to      redevelopment activities   assessment and job
leverage other resources   that are occurring as a    linkages with area
and integrate public       result of HOPE VI.         industrial businesses.
housing residents into
the community.             Project Peace: This is a   Job opportunities in child
                           peer mentoring program     care will be provided.
                           that will train students   Subsidized child care
                           in violence prevention     services will be available
                           and conflict resolution    for those residents
                           through peer mediation.    enrolled in training and
                                                      job development/placement
                           Cabrini Green Youth        programs.
                           Corps: A local service
                           provider has been          Alternative education is
                           contracted to work with    provided to "at-risk"
                           the youth and help them    youth and "potential drop-
                           identify their social      outs." Each youth will be
                           needs and get involved in  matched with a "career
                           serving their community.   mentor."

                           Tenant Patrol: This        The authority will provide
                           project helps to train     small grants to help
                           and engage residents in    groups of residents
                           anticrime strategies. The  implement small-scale
                           project's goals include    activities that would
                           the development of a       improve their quality of
                           tenant patrol in each      life. Also, an
                           building.                  entrepreneurship revolving
                                                      loan fund will be made
                                                      available to residents.
--------------------------------------------------------------------------------

MAJOR CONTRIBUTORS TO THIS REPORT
========================================================== Appendix IV

RESOURCES, COMMUNITY, AND ECONOMIC
DEVELOPMENT DIVISION

Larry Dyckman, Associate Director
Eric A.  Marts, Assistant Director
Martha Chow, Evaluator-in-Charge
Gwenetta Blackwell, Chicago/Detroit Field Office
Angela Crump-Volcy
Stephen Jones
William Sparling


*** End of document. ***