HUD Logo
USA%20Flag  
Site Map         A-Z Index         Text   A   A   A
HUD   >   Press Room   >   Press Releases   >   2012   >   HUDNo.12-025
HUD No. 12-025
Donna White
(202) 708-0685
FOR RELEASE
Friday
February 10, 2012

HUD AWARDS NEARLY $1.8 BILLION TO IMPROVE,
PRESERVE NATION’S PUBLIC HOUSING STOCK

Congress gives approval to test HUD comprehensive affordable housing preservation program

WASHINGTON – U.S. Department of Housing and Urban Development Secretary Shaun Donovan awarded today nearly $1.8 billion to public housing authorities in all 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.  The funds will allow these agencies to make major large-scale improvements to their public housing units.  View funding by public housing authority here.

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

“This funding will help housing authorities address long-standing capital improvements, but it only scratches the surface in addressing the deep backlog we’re seeing across the country,” said Donovan. “Today, we are closer to helping housing authorities and our private sector partners undertake their capital needs over the long haul. With the passage of HUD’s 2012 budget, Congress gave HUD the go-ahead for a new, comprehensive and critical demonstration tool that we believe will help preserve and enhance America’s affordable housing, including public housing.”

In November 2011, Congress gave HUD the approval to test a comprehensive tool to preserve public housing and other HUD-assistant housing. Congress authorized HUD to begin a Rental Assistance Demonstration (RAD) as part of the Obama Administration’s comprehensive strategy to keep these public and other HUD affordable homes on firm financial footing. Public housing authorities need nearly $26 billion to keep these homes safe and decent for families. But given our budget realities, HUD proposed this innovative way to confront the decline of the nation’s public and affordable housing stock.

In FY 2012, RAD will enable public housing authorities and owners to continue to make standard life-cycle improvements to their inventory and modernize or replace obsolete units to stem the loss of stock from private sector partners choosing to opt-out of affordable housing programs. The demonstration will bring more than 60,000 units into a reliable, long term, project-based rental assistance contract – and allow public housing authorities to raise more than $6.1 billion in private financing to reduce the large backlog of capital repair needs and in the process, support significant job creation in communities across the country.

Sandra B. Henriquez, HUD Assistant Secretary for Public and Indian Housing, added, “We see Congress’ decision to allow this demonstration to begin as a victory, not only for HUD, but for countless communities that desperately want to improve their public housing and other affordable housing, as well as a victory for families who need quality housing they can afford and who want more options on where they might choose to live.”

Last year, HUD released Capital Needs in the Public Housing Program, a study that updated the national estimate of 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 much-needed large scale repairs.  Unlike routine maintenance, capital needs are the large-scale improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency.  This study updates a 1998 analysis and includes costs to address overdue repairs, accessibility improvements for disabled residents, lead abatement, and water and energy conservation that would make the homes more cost effective and energy efficient.

Over the last 75 years, the federal government has invested billions in the development and maintenance of public and multifamily housing – including providing critical support through HUD’s Capital Fund, the grants announced today. Still, the nation continues to lose thousands of public housing units annually, primarily due to disrepair.  To protect the considerable federal investment and respond to the growing demand for affordable rental housing, the Obama Administration proposed RAD.  The details of the demonstration’s timeline and application are being prepared and HUD expects to issue a notice for public comment in the coming months.

The FY2012 Public Housing Capital Funding by state:

State

Amount

State

Amount

Alabama

$54,411,568

Nevada

$5,253,929

Alaska

$2,215,118

New Hampshire

$4,805,462

Arizona

$7,516,272

New Jersey

$61,937,486

Arkansas

$17,504,267

New Mexico

$5,567,987

California

$72,252,584

New York

$321,476,119

Colorado

$10,307,643

North Carolina

$48,137,960

Connecticut

$20,964,829

North Dakota

$2,073,197

Delaware

$3,986,200

Ohio

$77,937,803

Florida

$49,658,600

Oklahoma

$14,538,344

Georgia

$64,067,418

Oregon

$8,533,410

Hawaii

$9,454,397

Pennsylvania

$120,206,473

Idaho

$887,959

Rhode Island

$12,081,706

Illinois

$128,103,330

South Carolina

$20,297,831

Indiana

$21,570,606

South Dakota

$1,653,882

Iowa

$4,672,512

Tennessee

$50,216,600

Kansas

$9,880,896

Texas

$72,552,552

Kentucky

$31,838,124

Utah

$2,394,123

Louisiana

$43,544,357

Vermont

$1,948,080

Maine

$5,056,956

Virginia

$28,687,138

Maryland

$26,848,339

Washington

$26,602,619

Massachusetts

$52,240,068

West Virginia

$7,978,504

Michigan

$31,099,543

Wisconsin

$15,089,333

Minnesota

$28,166,333

Wyoming

$821,802

Mississippi

$20,313,957

District of Columbia

$14,193,015

Missouri

$27,595,445

Guam

$1,174,617

Montana

$2,574,655

Puerto Rico

$105,751,592

Nebraska

$8,023,289

US Virgin Islands

$5,389,187

 

 

TOTAL:

$1,792,056,016

 

###

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to
strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at
www.hud.gov and
http://espanol.hud.gov
. You can also follow HUD on twitter @HUDgov, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.