U.S. Department of Housing and Urban Development Secretary Shaun Donovan has awarded public housing authorities in Tennessee, $49,540,429, which will be used to make major large-scale improvements to their public housing units. The Grundy Housing authority will receive $126,620 for needed improvements.
The 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.”
“Housing authorities in Tennessee count on this funding to maintain and improve their public housing for many families, especially the most vulnerable – our seniors,” said Ed Jennings, Jr., HUD SE Regional Administrator. “HUD is currently taking bold steps to preserve this affordable housing.”
Capital Fund grants are awarded each year 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.
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.
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.