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HUD Secretary Marcia L. Fudge | HUD

Fudge: 'Choice Neighborhoods Implementation Grants are a powerful tool communities can use to revitalize neighborhoods'

The U.S. Department of Housing and Urban Development announced the availability of $256 million in Choice Neighborhoods Implementation Grants to communities nationwide. Public housing authorities, local governments and Tribal entities are eligible for these grants of up to $50 million each, which will transform public housing while investing in the surrounding neighborhood and resident services, according to a Sept. 6 news release.

"Choice Neighborhoods Implementation Grants are a powerful tool communities can use to revitalize neighborhoods, bringing much-needed housing, services and amenities to distressed areas," Secretary Marcia Fudge said in the release. "Today, we are pleased to invite public housing authorities, local governments and Tribal entities to join the program and build on successes we’ve seen across the country. These $50 million awards are a once-in-a-generation investment in the housing, neighborhoods and people that need it most."

HUD's Choice Neighborhoods program, designed to transform distressed neighborhoods into mixed-income communities, is expanding thanks to increased funding and a renewed national interest. While major cities like Los Angeles, Philadelphia and Phoenix have been awarded grants, smaller cities such as Flint, Mich.; Lewiston, Maine; and Tulsa, Okla., have also received funding, the release reported. 

This round of funding will result in six new Choice Neighborhoods Implementation Grants in 2024. These grants primarily support the redevelopment of severely distressed HUD properties into mixed-income communities. The program follows a holistic approach encompassing "Housing, People and Neighborhood," addressing not only property redevelopment but also residents' health, education and income, while simultaneously investing in economic development and neighborhood enhancement projects, the release said. 

Successful grantees are expected to leverage HUD funds with other public and private resources to achieve comprehensive revitalization, according to the release.

This announcement comes after HUD recently awarded $370 million in Choice Neighborhoods Implementation Grants to eight cities, including Atlanta, Ga.; Birmingham, Ala.; Lake Charles, La.; Miami, Fla.; Philadelphia, Pa.; Pittsburgh, Pa.; Tucson, Ariz.; and Wilmington, Del. These grants, amounting to $3 billion collectively, will be invested in distressed neighborhoods, resulting in the creation of more than 5,000 new housing units, the release said. 

The Choice Neighborhoods program plays a crucial role in preserving and expanding affordable housing options. Since its inception, the program has successfully completed 13,000 new mixed-income units across 52 cities, with plans for more than 37,000 additional units, the release reported. 

HUD has already awarded more than $1.7 billion in Implementation Grant funds, yielding remarkable results in recipient cities. For instance, Memphis, Tenn., is utilizing its grant to construct 712 new mixed-income housing units in the South City neighborhood, alongside improvements to neighboring homes and businesses, the release said.

Similarly, Louisville, Ky., is directing its grant toward building 620 new mixed-income housing units, leading to the introduction of new retail and quality childcare services in the Russell neighborhood, according to the release. 

In another success story, Norwalk, Conn., severely affected by Superstorm Sandy in 2012, employed its Choice Neighborhoods Implementation Grant to develop 273 housing units and transform an adjacent "brownfield" site into a beautiful neighborhood park, the release noted.

Overall, the Choice Neighborhoods program has contributed to the establishment of new businesses, parks and grocery stores, while significantly boosting resident incomes in most cities, sometimes even doubling them, the release reported. 

A recent study conducted by Case Western Reserve University on Chicago's Choice Neighborhood demonstrated that HUD's investment generated $400 million in public and private resources. Additionally, the study observed rising median household incomes, declining crime rates and increased home ownership rates, the release said.