The Housing Authority of the City of Fort Myers. Michigan Court - Family HOPE VI Revitalization Program QUESTIONS AND ANSWERS FACT SHEET

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1 The Housing Authority of the City of Fort Myers Michigan Court - Family HOPE VI Revitalization Program QUESTIONS AND ANSWERS FACT SHEET

2 The Housing Authority of the City of Fort Myers HOPE VI REVITALIZATION PROGRAM Questions and Answers about the HOPE VI Program Q: What is HOPE VI? A: HOPE VI is a federal grant program that provides assistance directly to housing authorities such as the Housing Authority of the City of Fort Myers. It is a highly competitive program and, on average, only one of every four public housing authorities who apply for HOPE VI funding are awarded a HOPE VI grant. This year there is nearly 574 million dollars available nationally for the HOPE VI Program. It is assumed that HUD will divide the dollars in the following manner: Type of Assistance Revitalization Grants Demolition Grants Allocation of Funds $492,485,000 $40,000,000 Neighborhood Network $5,000,000 Technical Assistance $6,250,000 Section 8 Assistance $30,000,000 Total $573,735,000 The HOPE VI Notice of Funding Availability (NOFA) is expected to be published within the next several weeks. Q: What does HOPE VI stand for? A: HOPE VI is an acronym meaning Homeownership Opportunities for People Everywhere. Q: To whom does HUD award HOPE VI Grant Assistance? A: Only public housing authorities may apply for and receive HOPE VI funding. HUD s HOPE VI assistance will be tailored to carry out plans developed by each grant recipient. Each recipient of HOPE VI develops its own revitalization program under a HUD policy that gives local housing authorities great flexibility to come up with plans to meet their own special needs.

3 Q: What are the objectives of HOPE VI? A: Historically, HUD and the Congress have stated four purposes of HOPE VI: Improve the living environment for public housing residents of severely distressed public housing projects through demolition, rehabilitation, reconfiguration, or replacement of obsolete public housing projects (or portions thereof); Revitalize sites on which severely distressed public housing projects are located and contribute to the improvement of the surrounding neighborhood; Provide housing that will avoid or decrease the concentration of very low-income families; and, Build sustainable communities. Additionally, the HOPE VI Program has six key objectives. Changing the physical shape of public housing by demolishing severely distressed projects and replacing them with garden-style apartments, townhouses, and single-family houses that become part of their surrounding communities. Reducing concentrations of poverty by encouraging a greater income mix among public housing residents and by encouraging working families to move into public housing and into new market-rate housing being built as part of the neighborhoods where public housing is located. Establishing strong supportive services - such as education and training programs, child care services, transportation services and counseling - to help public housing residents obtain and keep jobs. Establishing and enforcing high standards of personal and community responsibility. Forging broad-based partnerships to involve public housing residents, state and local government officials, the private sector, non-profit groups and the community at large in planning and implementing the new communities. Encouraging Homeownership. Q: How much HOPE VI money can the Housing Authority of the City of Fort Myers request? A: Because the current Administration is seeking to assist smaller housing authorities, a cap of 20 million dollars per grant award has been established by HUD. The actual amount of the grant that the Housing Authority of the City of Fort Myers will be seeking is yet to be determined and will be based upon the actual suitability of parcels of land where we may build the replacement housing and on the additional financing that is leveraged. However, it is our expectation that the application will seek a HOPE VI award in the million-dollar range. HOPE VI Question and Answer Fact Sheet 2

4 Q: May a Housing Authority submit more than one application for HOPE VI funding? A: No. Q: May a Housing Authority use HOPE VI funds to build market rate units? A: No. However, the Authority may use other non-public housing funds to build market rate units to assist with creating a mixed-income community. Q: What are the scoring criteria that HUD uses to evaluate each HOPE VI Grant Application? A: HUD evaluates every HOPE VI Application for revitalization using the same criteria: Criteria Points Capacity 21 Need 26 Leveraging Resources 17 Resident and Community Involvement 3 Community and Supportive Services (CSS) 6 Relocation 5 Fair Housing / Equal Opportunity (FHEO) 7 Mixed Income Communities 6 Overall Quality of Plan 23 Total 114 Points Q: Is there any provision to allocate monies for community support services or family selfsufficiency initiatives included in the HOPE VI Program? A: Yes. A housing authority may request an amount up to 15 percent of the total HOPE VI Grant (e.g., 15% of 20 million = 3 million) to pay the costs of Community Support Services activities. However, in order to score full points in this category, the housing authority must match each HOPE VI dollar over and above 5 percent of the total HOPE VI Grant (e.g., 5% of 20 million = 1 million) with a dollar for dollar match from non-hope VI sources. In addition to the match requirement, the authority must leverage substantial matching dollars in order to achieve a competitive score. Q: How does HUD control the costs of the HOPE VI construction? A: HUD imposes what is called a total development cost (TDC) cap for each proposed building type and bedroom distribution for the public housing replacement units. The TDC s are published each year by HUD. As a rule, construction costs must be under the TDC or HUD will reject the application. HOPE VI Question and Answer Fact Sheet 3

5 Q: Does HUD require a housing authority to select a developer prior to submission of the application for HOPE VI Revitalization Grant funding? A: Yes. However, if the housing authority by and of itself has the requisite development experience, it may certify that it will act as its own developer. Q: Does the HOPE VI Revitalization Plan have to be included or described in the Authority s Annual Agency Plan? A: Yes. Q: Can the Housing Authority use only HOPE VI dollars to finance the proposed revitalization? A: No. To be a successful applicant, a housing authority must raise ( leverage ) substantial other monies over and above the amount of the HOPE VI funding for the build out of the planned revitalization. Q: When does the Application have to be submitted to HUD? A: The due date will not be established until the Notice of Funding Availability (NOFA) is published in the Federal Register. It is expected that the NOFA will be issued during May and that the applications will be due in September. Q: When will the Housing Authority of the City of Fort Myers be notified if it has been selected by HUD for a HOPE VI award? A: Given the application period and at least days to evaluate and score the applications, the Housing Authority of the City of Fort Myers should know whether they have been selected sometime in December or January. HUD Secretary Mel Martinez will likely contact each individual awardee over a period of 30 days. HOPE VI Question and Answer Fact Sheet 4

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