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August 8, 2013
By Donna White

HUD AWARDS $1.7 BILLION TO IMPROVE, PRESERVE PUBLIC HOUSING
Housing authorities across the U.S., territories use funding to maintain housing for families, seniors

WASHINGTON – U.S. Department of Housing and Urban Development Secretary Shaun Donovan today awarded $1.7 billion to public housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, to make major large-scale improvements to the nation’s 1.2 million public housing units.  View funding by public housing authority here.

Today’s grants are provided through HUD’s Capital Fund Program, which provides funding annually to all public housing authorities to build, repair, renovate and/or modernize the public housing in their communities.  The authorities use the funding to do large-scale improvements to the housing such as new roofs or to make energy-efficient upgrades to replace old plumbing and electrical systems.

“This funding is critical for housing authorities to maintain and improve public housing conditions for their residents,” said Donovan.  “However, with a significant repair backlog, I am encouraged by new, innovative long-term solutions HUD is exploring that can be combined with this funding to not only protect and preserve this housing for the next generation, but to also build the quality infrastructure necessary for families to thrive.”

Capital Fund grants are awarded annually to the nation’s approximately 3,100 public housing agencies through a formula that considers number, type and age of units in a community.  Eligible uses for this funding include development, financing and modernization of the public housing units as well as management improvements at the public housing authority.

Over the past 75 years, the federal government has been working and investing billions of dollars in developing and maintaining public and multifamily housing – including providing critical support through the Capital Fund grants announced today.  Still, the nation continues to lose approximately 10,000 public housing units annually, primarily due to disrepair.  In 2011, HUD released Capital Needs in the Public Housing Program, a study that estimated the capital needs in the public housing stock in the U.S.  The study found the nation’s 1.2 million public housing units are facing an estimated $25.6 billion in large-scale repairs.  Unlike routine maintenance, capital needs are extensive improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency.  

To help protect the considerable federal investment and respond to the growing demand for affordable rental housing, the Obama Administration proposed the Rental Assistance Demonstration (RAD), a comprehensive strategy that complements the Capital Fund Program and offers a long-term solution to preserve and enhance the country’s affordable housing stock, including leveraging public and private funding to make critically needed improvements.

Since Congress approved the demonstration, early results show it is already generating additional capital for public and assisted housing.  After opening RAD application periods last summer, HUD has approved or given initial approval to nearly 20,000 public and assisted housing units in 180 different projects across the country.  Through these awards, housing authorities have proposed to generate close to $816 million in private debt and equity investments to reduce the capital backlog in public housing properties, which will preserve or replace distressed units and support local jobs in their communities – all without additional federal resources.

HUD also recently issued new RAD guidance that expands the program’s flexibility that will benefit current and future applicants and participants.  

The FY2013 Public Housing Capital Funding by state: 

State

Amount

Alabama

52,519,473

Alaska

1,996,710

Arizona

7,463,449

Arkansas

16,801,739

California

69,368,607

Colorado

9,948,853

Connecticut

20,575,287

Delaware

3,580,287

District of Columbia

13,677,447

Florida

47,589,476

Georgia

62,681,434

Guam

1,089,579

Hawaii

9,066,970

Idaho

868,855

Illinois

119,818,353

Indiana

20,862,415

Iowa

4,530,750

Kansas

9,563,595

Kentucky

30,461,209

Louisiana

37,325,904

Maine

5,171,568

Maryland

25,773,863

Massachusetts

50,360,442

Michigan

30,044,397

Minnesota

27,386,413

Mississippi

19,248,499

Missouri

26,213,893

Montana

2,498,983

Nebraska

7,550,240

Nevada

5,191,721

New Hampshire

4,704,772

New Jersey

57,157,529

New Mexico

5,382,243

New York

307,029,645

North Carolina

48,626,554

North Dakota

2,000,584

Ohio

74,896,934

Oklahoma

14,420,904

Oregon

8,269,584

Pennsylvania

117,380,587

Puerto Rico

101,468,521

Rhode Island

11,724,298

South Carolina

19,177,868

South Dakota

1,565,032

Tennessee

49,540,429

Texas

71,408,057

Utah

2,245,973

Vermont

2,087,566

Virgin Islands

5,055,400

Virginia

27,695,820

Washington

26,083,288

West Virginia

7,838,109

Wisconsin

14,578,892

Wyoming

806,929

Total

1,720,375,929