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<classification authority="sudocs">GA 1.13:RCED-98-187</classification>
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 <subject>Housing repairs</subject>
 <subject>Urban planning</subject>
 <subject>Housing construction</subject>
 <subject>Community development programs</subject>
 <subject>Declining neighborhoods</subject>
 <subject>Federal aid for housing</subject>
 <subject>Human resources utilization</subject>
 <subject>Public housing</subject>
 <subject>Grant administration</subject>
 <identifier>HUD Hope VI Program</identifier>
 <identifier>Community Development Block Grant</identifier>
 <identifier>HUD 2020 Management Reform Plan</identifier>
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<titleInfo>
 <title>HOPE VI: Progress and Problems in Revitalizing Distressed Public Housing</title>
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<abstract>Pursuant to a legislative requirement, GAO reviewed the: (1) progress in
completing capital improvements and implementing community and support
services at HOPE VI sites; (2) primary reasons why progress at some HOPE
VI sites has been slow; (3) extent to which financial leveraging is used
at HOPE VI sites; and (4) Department of Housing and Urban Development&apos;s
(HUD) capacity to oversee the program.&lt;p/&gt;GAO noted that: (1) progress in completing capital improvements and
implementing community and support services varies at HOPE VI sites; (2)
overall, the rate of spending on capital improvements is increasing, but
the vast majority of the grant funds remain to be disbursed; (3)
although housing authorities could spend up to 20 percent of the grant
funds awarded in fiscal years 1993 through 1996 for community and
support services to help residents find jobs and become self-sufficient,
the average expenditure was about 12 percent; (4) to track the progress
of capital improvements and community and support services, HUD has
established measures of performance for capital improvements and has
hired a contractor to collect baseline data on community and support
services; (5) at the HOPE VI sites visited, progress in implementing
capital improvements and community and support services has varied with
structural, social, and management issues specific to each site; (6)
legal issues covering the preparation of grant agreements, legislative
and administrative changes in unit replacement and demolition policies,
and limited HUD staffing have also delayed progress at HOPE VI sites;
(7) more complex redevelopment plans have created major opposition among
groups of residents at several sites and produced delays; (8) using HOPE
VI grants to leverage funding from public and private sources has
introduced time-consuming requirements for coordinating the different
sources&apos; procedures and schedules; (9) financial leveraging has
increased over time, and this trend is expected to continue; (10) a 1998
HUD policy limiting a property&apos;s total development costs to industry
averages is also expected to encourage leveraging; (11) because HOPE VI
developments are more complex and costlier than most multi-family
housing developments, the new policy will require the use of leveraging
in the future; (12) reorganizing and downsizing have left HUD with fewer
resources for overseeing HOPE VI grants; (13) streamlining has also left
few employees in the field with knowledge of HOPE VI issues; (14) HUD
has hired contractors to provide some additional oversight and has
restored 11 positions to the HOPE VI program; and (15) although these
additions will offset some of the staffing cuts, the new staff will need
time to acquire expertise in the program.</abstract>
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<identifier type="preferred citation">GAO/RCED-98-187</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/RCED-98-187; HOPE VI: Progress and Problems in Revitalizing Distressed Public Housing;
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<subject>
 <topic>Housing repairs</topic>
 <topic>Urban planning</topic>
 <topic>Housing construction</topic>
 <topic>Community development programs</topic>
 <topic>Declining neighborhoods</topic>
 <topic>Federal aid for housing</topic>
 <topic>Human resources utilization</topic>
 <topic>Public housing</topic>
 <topic>Grant administration</topic>
 <topic>HUD Hope VI Program</topic>
 <topic>Community Development Block Grant</topic>
 <topic>HUD 2020 Management Reform Plan</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 65 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-65</identifier>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Senate Report 53 (105th Congress)</title>
</titleInfo>
 <identifier type="congressional report citation">S. Rept. 105-53</identifier>
</relatedItem>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States House Report 175 (105th Congress)</title>
</titleInfo>
 <identifier type="congressional report citation">H. Rept. 105-175</identifier>
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