HUD announces $300 million in Recovery Act grants to create green public housing

$3,341,584 to Chesapeake, Virginia will increase energy efficiency, reduce costs of public housing while creating green jobs

DENVER, CO – September 18, 2009 – (RealEstateRama) — U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced $300 million in Recovery Act competitive grants today that will allow public housing authorities across the U.S. to utilize green materials and technology to create public housing that conserves energy and encourages more healthy lifestyles. 

Donovan announced the Denver Housing Authority would receive $10 million of the Public Housing Capital Funds announced today to continue its redevelopment of South Lincoln Park Homes, a public housing development the housing authority is currently redeveloping into a mixed-use, mixed-income transit oriented community.

During the visit, which was part of the White House Urban Listening Tour, the Secretary was joined by White House Office of Urban Affairs Director Adolfo Carrion, Transportation Secretary Ray LaHood and Environmental Protection Administrator Lisa Jackson.

“The grants being awarded today are a perfect example of using the Recovery Act to rebuild the economy stronger and wiser by investing in new and emerging sustainable industries,” said Donovan. “This Recovery Act funding will not only reduce energy costs for public housing authorities and mitigate negative environmental impacts, but will also create much-needed ‘green’ jobs right here in Denver and across the country.”

The Public Housing Capital Funds being awarded today are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are specifically designated for the creation of energy efficient communities through substantial rehabilitation or new construction of public housing developments. Activities include, but are not limited to, development of connections to neighborhoods and green space; site improvements that provide surface water management techniques that capture, retain, infiltrate and/or harvest rainfall; water conservation through the use of water-conserving appliances, fixtures and efficient irrigation; energy efficiency that meets Energy Star standards for new construction; and use of renewable energy resources. These transformational activities will substantially increase energy efficiency and environmental performance of public housing properties. The funding will reduce energy costs, generate resident and housing authority energy savings, and reduce greenhouse gas emissions attributable to energy consumption.

In February, just eight days after President Obama signed the Recovery Act into law, HUD allocated nearly $3 billion in Recovery Act funding to more than 3,100 public housing authorities across the U.S. Distributed by formula, that funding is already being put to work to improve public housing and create safer, more livable environments for lower income residents.

The funding being announced today is part of an additional $1 billion in Public Housing Capital Funds designated by the Recovery Act to be awarded competitively. HUD accepted applications under this program from public housing authorities between June 22 and August 18. Grants under the program are now being awarded to public housing authorities that effectively addressed the requirements in the Notice of Funding Availability (NOFA) under the following four funding categories:

• Category 1, Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities: $95 million will soon be awarded to improve public housing units and create community facilities for the delivery of supportive services to this vulnerable population.
                    
• Category 2, Public Housing Transformation: $96 million out of $100 million has been awarded to transform public housing projects that are distressed and a blighting influence on the surrounding community into newly built or renovated developments.
                    
• Category 3, Gap Financing for Projects that are Stalled Due to Financing Issues: $200 million will soon be awarded to allow PHAs to develop or renovate public housing projects stalled due to lack of resources.
                    
• Category 4, Creation of Energy Efficient, Green Communities: $600 million is being awarded for public housing authorities to create more energy efficient public housing units. Applications were due for this category on July 21, 2009. Within this category, applicants could apply under Option 1 for substantial rehabilitation or new construction or Option 2 for moderate rehabilitation. The grants being awarded today fall under this category, Option 1. HUD will award Option 2 grantees in the coming weeks.

The remaining Public Housing Capital Fund competitive grants will be awarded in the coming weeks under the housing for the elderly/persons with disabilities, gap financing for stalled projects and energy efficiency funding categories.

HUD’s Capital Fund Program provides annual funding to public housing authorities to develop, finance and/or modernize the public housing in their communities. This funding can be used to make large-scale improvements such as new roofs and for the replacement of plumbing and electrical systems to increase energy efficiency.