HUD

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro joined U.S. Department of Agriculture Secretary Tom Vilsack, U.S. Department of Transportation Secretary Anthony Foxx, and Education Secretary Arne Duncan to announce a competition to designate a new round of Promise Zones. These Promise Zones are part of the President's plan to create a new pathway to the middle class by partnering with local communities and businesses to create jobs, increase economic security, improve educational opportunities, and reduce violent crime.

Urban, rural, and tribal communities nationwide will be invited to put forward a plan to partner with local business and community leaders to make evidence-based investments that reward hard work and expand opportunity. In exchange, these designees will receive priority access to federal investments that further their strategic plans, federal staff on the ground to help them implement their goals, and five full-time AmeriCorps VISTA members to recruit and manage volunteers and strengthen the capacity of the Promise Zone initiatives.

"As a former mayor of an urban Promise Zone community, I have a unique appreciation for the talent, passion and the vision that local leaders offer when working to turn their communities around," said HUD Secretary Julián Castro. "Promise Zones are about giving folks who have been underserved for far too long the opportunity to build stronger neighborhoods and more prosperous lives. At HUD, we're honored to give other communities the opportunity to transform their futures so this work can continue across the country."

"The Promise Zones initiative allows us to work directly with local leaders and organizations to meet a community's specific needs," said Agriculture Secretary Tom Vilsack. "In the current Promise Zones, especially in rural and tribal areas, we are seeing how effective it can be when we work in a coordinated way to address economic and social challenges. We've seen economic recovery strategies like this create jobs and opportunity through USDA's community-based StrikeForce Initiative and Promise Zones build on this success."

"As a former mayor, I know the difference that can be made when federal agencies work together to cut through red tape and deliver strategic solutions that address a community's needs," said Transportation Secretary Anthony Foxx. "The Department of Transportation is proud to work alongside other agencies to make sure communities not only offer good homes, thriving businesses and a clean environment, but an efficient transportation system so its people can enjoy them all, too."

Education Secretary Arne Duncan added, "At the heart of every strong community is a great school, but schools can't do it alone - it takes the whole community to help improve outcomes for students in school and in life. Promise Zones create real pathways to success for families in our most impoverished communities across the country by attracting private investment, increasing affordable housing, improving educational opportunities and assisting local leaders in cutting through red tape. I am excited to join our interagency partners in announcing this new opportunity for communities to become a Promise Zone."

Each Promise Zone selected will have demonstrated that local leaders, business leaders, state, tribal and local officials; faith-based and non-profit organizations; children and parents are collaborating effectively to ensure that hard work leads to a decent living for every American, in every community.

In 2009, after a generation of sometimes counterproductive and often contradictory federal engagement that was creating obstacles to greater shared prosperity, local communities across the country demanded a more effective and responsive federal government partner to create new pathways to the middle class. To meet this demand, the Obama Administration adopted a variety of unprecedented place-based efforts to promote economic opportunity and accelerate economic growth by explicitly connecting key federal programs that support such growth, such as education, housing, economic development, and infrastructure, with locally-devised strategies for broadly shared regional growth.

In January of this year, President Obama announced the first five Promise Zones: San Antonio, TX, Los Angeles, CA, Philadelphia, PA, Southeastern Kentucky Highlands and the Choctaw Nation of Oklahoma. The work being done in these communities is already helping to move the needle in key areas. For example, graduation rates have reached 90 percent in the San Antonio Promise Zone; 2,000 kids in Los Angeles were able to find a summer job through a youth employment initiative; 900 unemployed people in Southeastern Kentucky have been connected to a job; and over 700 households and 50 businesses in remote southeast Oklahoma will soon have access to clean, safe drinking water for the first time. Today's announcement of a new Promise Zone competition will help bring similar success to high-poverty communities across the country.

Any community meeting the qualifying criteria can apply for a designation, regardless of whether it has a previous federal grant. HUD and USDA will designate at least 8 Promise Zones across urban, rural and tribal communities. The deadline for submitting Promise Zone applications is November 21, 2014.

HUD in close collaboration with USDA will convene three distinct webcasts for urban, rural, and tribal to discuss the second round of the Promise Zone Initiative with interested communities.

Washington, DC – The Obama Administration announced an almost $17 billion global settlement with Bank of America. $1 billion of the total settlement amount resolves claims arising from allegations of fraud involving certain Federal Housing Administration (FHA)-insured single-family mortgage loans and a failure to perform under its servicing contract with the Government National Mortgage Association (Ginnie Mae).

Under the terms of the settlement, Bank of America will pay $800 million to resolve the claims relating to FHA and $200 million to Ginnie Mae. The remaining nearly $16 billion of the total settlement amount resolves fraud claims involving the pooling of residential mortgage backed securities, collateralized debt obligations, and other claims by the United States, along with the States of California, Delaware, Illinois, Maryland, New York, and the Commonwealth of Kentucky, and includes $7 billion in consumer relief with a focus on borrowers that were in the hardest-hit areas during the housing crisis.

"Today’s settlement with Bank of America is another important step in the Obama Administration’s efforts to provide relief to American homeowners who were hurt during the housing crisis,” said U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro. “This global settlement will strengthen the FHA fund and Ginnie Mae, and it will provide $7 billion in consumer relief with a focus on helping borrowers in areas that were the hardest hit during the crisis.  HUD will continue working with the Department of Justice, state attorneys general, and other partners to take appropriate action to hold financial institutions accountable for their misconduct and provide consumers with the relief they need to stay in their homes. HUD remains committed to solidifying the housing recovery and creating more opportunities for Americans to succeed.”

This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group.

Working with the Department of Justice, HUD’s Office of General Counsel, Office of Housing, and Office of the Inspector General worked extensively on the fraud investigation involving FHA-insured single-family mortgage loans that were underwritten by Bank of America during the period from May 1, 2009, to April 1, 2011. HUD also provided assistance with respect to a breach of contract claim involving Bank of America’s role as one of two master subservicers for Ginnie Mae’s portfolio of defaulted single-family mortgages.

The $7 billion in consumer relief will focus on areas that were hardest hit during the housing crisis. Consumer relief will take various forms including loan modification for distressed borrowers, including FHA-insured borrowers, and new loans to credit worthy borrowers struggling to get a loan in hardest hit areas, borrowers who lost homes to foreclosure or short sales, and moderate income first-time homebuyers. Bank of America will also make donations to community development funds, legal aid organizations, and housing counseling agencies to assist individuals with foreclosure prevention and to support community reinvestment and neighborhood stabilization. They will also provide financing for affordable rental housing with a focus on family housing in high-cost areas.  An independent monitor will be appointed to ensure compliance with the terms of the agreement.

WASHINGTON, DC – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) today announced $7 million to 24 local public housing agencies across the country to help nearly 1,000 homeless Veterans find permanent housing.  The supportive housing assistance announced today is provided through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) Program which combines rental assistance from HUD with case management and clinical services provided by VA (see chart below).

Later this year, HUD anticipates awarding approximately 10,000 new HUD-VASH vouchers to build upon significant progress toward ending Veteran homelessness.  Since 2008, more than 59,000 vouchers have been awarded and 43,371 formerly homeless Veterans are currently in homes of their own because of HUD-VASH.  Rental assistance and support services provided through HUD-VASH are a critical resource for local communities in ending homelessness among our nation’s Veterans.

“We have made great progress, reducing homelessness among Veterans by 24 percent in just three years,” said HUD SecretaryJulián Castro.  “These vouchers will help communities build on these gains, providing targeted assistance to reach those in need. Ending homelessness is a top priority for me, and HUD looks forward to working with the Department of Veterans Affairs to ensure that every Veteran has a place to call home in the country they risked everything to protect.”

“VA, HUD and our federal, state and local partners should take pride in the progress made to reduce Veterans’ homelessness by 24 percent since 2010, but so long as there remains a Veteran that lives on our streets, we have more work to do,” said Carolyn M. Clancy, MD, Interim Under Secretary for Health. “These HUD-VASH vouchers are a vital tool in our effort to provide our Veterans with the earned care and benefits that help them live productive, meaningful lives.”

HUD-VASH is a critical part of the Obama Administration’s commitment to end Veteran homelessness by 2015.  Opening Doors: Federal Strategic Plan to Prevent and End Homelessness serves as a roadmap for how the federal government will work with state and local communities to confront the root causes of homelessness, especially among former servicemen and women.

As the former mayor of San Antonio, Secretary Castro was among the growing ranks of more than 180 mayors who joined the Mayors Challenge to End Veteran Homelessness by the end of 2015 by using federal, local, and nonprofit resources.  Since 2010, the Obama Administration has reduced veteran homelessness by 24 percent. And while ending veteran homelessness by the end of 2015 is within reach, continued use of tools like HUD-VASH are central to reaching that goal.

In the HUD-VASH program, VA Medical Centers (VAMCs) work closely with homeless veterans before referring them to local housing agencies for these vouchers. Decisions are based on a variety of factors, most importantly the duration of the homelessness and the need for longer term, more intensive support in obtaining and maintaining permanent housing.  The HUD-VASH program includes both the rental assistance the voucher provides and the comprehensive case management that VAMC staff offers.

Veterans participating in the HUD-VASH program rent privately owned housing and generally contribute no more than 30 percent of their income toward rent.  VA offers eligible homeless Veterans clinical and supportive services through its medical centers across the U.S., Guam and Puerto Rico.

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FY 2013 Project-based HUD-VASH voucher awards


 

State

Public Housing Authority

City

Partnering VA Medical Facility

# of Vouchers

Amount

AlabamaTuscaloosa Housing AuthorityTuscaloosaTuscaloosa DVAMC

50

$232,044

CaliforniaSan FranciscoSan FranciscoSan Francisco VAMC

75

$885,294

 Housing Authority County Of Los AngelesAlhambraDVA Los Angeles

38

$323,085

 Housing Authority City Of Los AngelesLos AngelesDVA Los Angeles

75

$715,770

 City Of San BuenaventuraVenturaDVA Los Angeles

4

$36,203

 Alameda CountyHaywardPalo Alto HCS

25

$264,327

 City Of Long BeachLong BeachDVA Long Beach

75

$640,764

FloridaJacksonville Housing AuthorityJacksonvilleN FL/S GA VAMC

75

$407,637

 Pinellas CountyLargoBay Pines VA HCS

16

$111,093

GeorgiaNW Georgia Housing AuthorityRomeDuluth DVA

25

$125,805

HawaiiHawaii Public Housing AuthorityHonoluluPacific Islands HCS

45

$396,641

IllinoisChicago Housing AuthorityChicagoJesse Brown VAMC

48

$417,669

 Cook CountyChicagoEdward Hines DVA

72

$563,708

MassachusettsNorthamptom Housing AuthorityNorthamptonVA Central Western MA

36

$187,078

MinnesotaMetropolitan Council HraSt. PaulMinneapolis DVAMC

20

$139,774

MissouriCity Of ColumbiaColumbiaHarry S. Truman DVA

25

$100,932

MontanaMontana DOC Public Housing AuthorityHelenaMontana HCS

40

$208,939

North CarolinaChatham CountySiler CityDurham VAMC

10

$62,323

New YorkNYC Dept. of Housing Preservation & DevelopmentNew York CityJames J. Peters VAMC

58

$503,208

OhioChillicothe Metro Housing AuthorityChillicotheChicolte DVAMC

31

$128,980

 Fairfield Metro Housing AuthorityLancasterChicolte DVAMC

5

$24,142

OregonDouglas CountyRoseburgRoseburg VAMC

54

$178,803

TennesseeMetropolitan DevelopmentNashvilleTennessee Valley DVA

32

$158,028

TexasHouston Housing AuthorityHoustonMichael E. DeBakey VAMC

22

$132,156

TOTAL

956

$6,944,403

DENVER, CO - U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced the State of Colorado will receive an additional $58.2 million to help communities recover from last September's severe storms that produced devastating floods and mudslides. The recovery funds are provided through HUD's Community Development Block Grant - Disaster Recovery (CDBG-DR) Program to support long-term disaster recovery efforts in areas with the greatest extent of 'unmet need', primarily in Boulder, Weld and Larimer Counties.

HUD previously allocated $262.1 million to assist recovery efforts in Colorado. The funds announced today bring HUD’s total CDBG-DR investment to $320 million.

Grantee

Grant Announced Today

Previous Grants

Total

Colorado

$58,246,000

$262,100,000

$320,346,000

"After visiting Lyons and Evans last year, I promised HUD would remain committed to making sure the state has the resources they need to recover from unprecedented flooding and mudslides,” said Donovan. "This additional money will fund a local vision to rebuild homes and businesses, repair badly damaged roads and bridges, and spur economic development. HUD will continue working with officials in Colorado to rebuild more resilient and better prepared for future storms."

“It has been almost ten months since the flood struck last fall, and our federal partners have provided extraordinary resources to help our state recover,” said Governor John Hickenlooper. “This third round of funding of CDBG-DR funds will help our communities grow stronger and more resilient as they recover over the long term. Families, businesses and local economies in disaster-impacted communities will never be made whole. But this funding will provide critical support for Colorado’s future.”

"The September 2013 flood and destructive government shutdown left Colorado hobbled. Since then I have been proud to work collaboratively with the U.S. Department Housing and Urban Development to ensure Colorado communities have the resources they need to rebuild and protect Coloradans and businesses from future floods," U.S. Senator Mark Udall said. "This latest allocation is welcome news for Colorado and underscores the critical role HUD has played and will continue to play in helping us to rebuild smarter and stronger."

“We knew we’d have a long road to recovery, and we’re making tremendous progress,” Senator Michael Bennet said. “These resources from HUD are particularly critical because they will us help continue to recover in a variety of ways, from repairing homes and businesses, to restoring local infrastructure, supporting the long term economic recovery of these communities, and mitigating future damage. We’ll continue to work with HUD and other federal agencies along with the state to ensure every community has what it needs to recover during this long process.”

A minimum of 80 percent of the funds awarded will be targeted in Boulder, Weld, and Larimer Counties where approximately 2,800 homes incurred major or severe damage.

The Disaster Relief Appropriations Act of 2013, signed into law by President Obama on January 29th, included $16 billion in CDBG-DR funding. The legislation specifies these funds are to be used "for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster."

HUD’s CDBG-DR grants are intended to confront housing, business and infrastructure needs beyond those addressed by other forms of public and private assistance. Using a combination of data from the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA), HUD identified particular counties in Colorado with the greatest extent of damage to housing, businesses and infrastructure.

HUD will shortly publish a Notice that will regulate the use of the funds announced today. The State of Colorado will then finalize disaster 'action plans' describing how it intends to expend these funds to support disaster recovery and HUD will quickly review them.

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WASHINGTON, DC – U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced the allocation of more than $31 million to the City of Chicago, Cook County, and DuPage County to help these communities recover from devastating storms, strong winds and flooding.  These grants are provided through HUD’s Community Development Block Grant-Disaster Recovery (CDBG-DR) Program to support long-term disaster recovery efforts in areas with the greatest extent of ‘unmet need.’

The City of Chicago will receive $11 million; Cook County will receive $14.8 million; and DuPage County will receive $5.6 million to support local recovery efforts following powerful storms and flooding that occurred from April 16 through May 5 of 2013. To date, HUD has allocated more than $188 million to support long-term disaster recovery in some of Illinois’ hardest-hit communities:

Grantee

Grants Announced Today

Previous Grants

Total

Chicago

$11,075,000

$52,000,000

$63,075,000

Cook County

$14,816,000

$68,800,000

$83,616,000

DuPage County

$5,626,000

$25,900,000

$31,526,000

State of Illinois

$10,400,000

$10,400,000

TOTAL

$31,517,000

$157,100,000

$188,617,000

“Since Illinois was struck by severe storms last year, HUD has worked closely with local officials to ensure they have the resources they need to help the hardest-hit communities recover,” said Donovan.  “HUD will continue working with state and local leaders as they rebuild homes and businesses to be more resilient and better prepared for future storms.”

The Disaster Relief Appropriations Act of 2013, signed into law by President Obama on January 29th, included $16 billion in CDBG-DR funding. The legislation specifies these funds are to be used "for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster."

HUD’s CDBG-DR grants are intended to confront housing, business and infrastructure needs beyond those addressed by other forms of public and private assistance. Using a combination of data from the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA), HUD identified particular counties in Colorado with the greatest extent of damage to housing, businesses and infrastructure.

HUD will shortly publish a Notice that will regulate the use of the funds announced today. The grantees will then finalize disaster 'action plans' describing how they intend to expend these funds to support disaster recovery and HUD will quickly review them.

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan traveled to Columbus, Ohio today to announce that four communities will receive a combined $119.7 million to redevelop severely distressed public or HUD-assisted housing and bring comprehensive neighborhood revitalization to blighted areas. HUD is awarding Choice Neighborhoods Initiativeimplementation grants to stakeholder groups in Columbus, Ohio; Norwalk, Connecticut; Philadelphia, Pennsylvania; and Pittsburgh Pennsylvania in order to begin the process of transforming, rehabilitating and preserving public housing and privately owned HUD-assisted housing.

As part of HUD's overall plan for revitalizing neighborhoods of concentrated poverty, Choice Neighborhoods funds are intended to transform distressed public and assisted housing into sustainable, mixed-income housing with connection to key assets and services and to support positive outcomes for families living in the development and in the neighborhood.

"HUD's Choice Neighborhoods Initiative supports local visions for how to transform high-poverty, distressed communities into neighborhoods of opportunity," said Donovan. "By working together, with local and state partners we will show why neighborhoods should always be defined by their potential - not their problems. Together, we will work to ensure that no child's future is determined by their zip code and expand opportunity for all."

HUD received 44 applications for implementation grants. The following applicants will receive a combined total of nearly $120 million in award from the FY13 competition funds (read a complete summary of each grant):

StateAwardee/Co-AwardeeCityAmount
OhioColumbus Metropolitan Housing AuthorityColumbus$29,700,000
ConnecticutHousing Authority of the City of Norwalk/Norwalk Redevelopment AgencyNorwalk$30,000,000
PennsylvaniaCity of Philadelphia, Office of Housing & Community Development/Philadelphia Housing AuthorityPhiladelphia$30,000,000
PennsylvaniaHousing Authority of the City of Pittsburgh/City of PittsburghPittsburgh$30,000,000

Building on the successes of HUD's HOPE VI Program, Choice Neighborhoods links housing improvements with a wide variety of public services and neighborhood improvements to create neighborhoods of opportunity.

HUD's Choice Neighborhoods Initiative is one of the signature programs of the White House Neighborhood Revitalization Initiative, which supports innovative and inclusive strategies that bring public and private partners together to help break the cycle of intergenerational poverty. It encourages collaboration between HUD and the Departments of Education, Justice, Treasury and Health and Human Services to support local solutions for sustainable, mixed-income neighborhoods with the affordable housing, safe streets and good schools all families need. Choice Neighborhoods also contributes to the President's Promise Zones initiative, which will revitalize up to 20 of America's highest-poverty communities by creating jobs, attracting private investment, increasing economic activity, expanding educational opportunity, and reducing violent crime.

Congress approved the Choice Neighborhoods Initiative with the passage of HUD's Fiscal Year 2010 budget. Funding is provided through two separate programs - Implementation Grants and Planning Grants. In 2011, HUD awarded its first Choice Implementation grants for Chicago, Boston, New Orleans, San Francisco and Seattle, a combined $122.27 million investment to bring comprehensive neighborhood revitalization to blighted areas in these cities. With today's announcement, HUD has awarded more than $350 million in Choice Implementation Grants since 2011.