WASHINGTON D.C. - Senator Barbara A. Mikulski (D-MD) today introduced the HOPE VI Reauthorization bill, with a bipartisan group of her colleagues: Senator Kit Bond (R-MO), Senator Jack Reed (D-RI) and Senator Paul Sarbanes (D-MD). The bill builds on the past success of the HOPE VI program and makes several improvements to HOPE VI to ensure that grants are cost-efficient and effective at improving resident and community life.

At a press conference to announce the bills’ introduction, Senator Mikulski said, “HOPE VI has always been about creating new opportunities for residents of public housing, and new hope for the communities surrounding public housing. Today we are introducing legislation that integrates the lessons learned, both in terms of best practices and needed reforms.”

Senator Mikulski was also joined at today’s press conference by Renee Glover, Executive Director of the Atlanta Housing Authority; Jackie Massey, Resident Leader of Wheeler Creek HOPE VI in Washington DC; Richard Baron, President of McCormack Baron Salizar in St. Louis, MO and Brian Tracey, Senior Vice President of Community Development Banking, Bank of America.

HOPE VI was created by Senator Mikulski in 1992, with the aim of replacing dilapidated public housing with mixed-income developments connected to schools, retail and community services. Since the program started, over $5 billion has been appropriated for HOPE VI, and billions more have been leveraged from the private sector. This legislation incorporates lessons learned to ensure the future success of the program.

“Where HOPE VI has been most successful, it has transformed communities and lives,” said Senator Mikulski. “This reauthorization bill takes this program into the new century, reformed, refreshed and reinvigorated, by codifying best practices and correcting weaknesses.”

Specifically, the legislation:

1. Sets forth 5 clear goals for HOPE VI:
   • End concentration of the poor in distressed neighborhoods
   • Create healthy, sustainable communities with an emphasis on high performing schools
   • Create mixed-income communities
   • Develop communities though public private partnerships
   • Provide adequate supportive resources to help residents achieve self-sufficiency
2. Connects HOPE VI with local school revitalization.

   The bill requires that every HOPE VI grant recipient establish, in partnership with local schools and the school superintendent, a comprehensive education reform and achievement strategy to turn the school that serves the HOPE VI development into a high performing school.

3. Ensures that grantees make best use of federal dollars.

   Grant criteria now includes the strength of local government support for the HOPE VI proposal, including, at a minimum, the signature of the locality’s chief executive and financial assistance of at least 5 percent of the HOPE VI grant. This allows Department of Housing and Urban Development to conduct site visits to HOPE VI applicants to assist in making funding decisions and requires that Public Housing Authorities (PHA’s) set new performance benchmarks for each component of their HOPE VI project, including benchmarks for linkages with schools, relocation of residents and achievement of self-sufficiency. Failure to meet benchmarks will result in the Secretary imposing appropriate sanctions, such as the appointment of alternative administrators, imposition of financial penalties, or withdrawal of funding.

4. Improves relocation and supportive services for residents.

   HOPE VI applications are selected in part based on the effectiveness of the plan for temporary and permanent relocation of existing residents, making sure that residents are fully aware of their relocation choices and are supported throughout the process with case management and counseling. Applicants are judged on the extent to which their HOPE VI proposal provides effective relocation of existing residents, meaning residents are fully informed of their choices, and are given the choice to relocate to an area with a lower concentration of poverty, residents are offered comprehensive and ongoing supportive services to achieve a successful relocation and self-sufficiency, residents are offered the option to return to the newly revitalized HOPE VI development, minimal impact is had on children and relocation is coordinated with school calendars.

5. Reauthorizes the program through 2011 (5 years) at $600 million.

The bill will now be referred to the Banking, Housing, and Urban Affairs Committee for review. Senator Sarbanes is the Senior Democrat on the Committee. Senator Reed is the Senior Democrat on the Housing Subcommittee.

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