HUD $370M Choice Neighborhoods Grants for Urban Renewal

A Major Urban Redevelopment Investment

On July 26, 2023, HUD Secretary Marcia Fudge announced a $370 million round of Choice Neighborhoods Implementation (CNI) grants, one of the largest HUD neighborhood revitalization investments in years. Eight communities each received grants to redevelop severely distressed HUD-assisted housing into mixed-income communities with improved infrastructure, services, and economic opportunity. The announcement was made in Birmingham, Alabama, one of the winning cities.

The Eight Awardees

The grants went to Atlanta, Georgia; Birmingham, Alabama; Lake Charles, Louisiana; Miami, Florida; Philadelphia, Pennsylvania; Pittsburgh, Pennsylvania; Tucson, Arizona; and Wilmington, Delaware. Each community received approximately $50 million, although specific amounts varied based on project scope. The Pittsburgh Housing Authority's grant, for example, is funding the redevelopment of Bedford Dwellings in the Hill District into more than 800 mixed-income units, and the Philadelphia Housing Authority received a $50 million grant for a similar effort.

How Choice Neighborhoods Works

Choice Neighborhoods is HUD's most intensive neighborhood revitalization program. The model follows a three-pronged approach known as 'Housing, People, and Neighborhood':

• Housing: Replace severely distressed public or HUD-assisted housing with high-quality, mixed-income developments that include one-for-one replacement units for existing residents.
• People: Support residents through case management, workforce development, health services, and educational programming so that existing residents can benefit from the redevelopment.
• Neighborhood: Invest in surrounding infrastructure, commercial corridors, parks, and public safety to transform the broader neighborhood, not just individual housing sites.

Choice Neighborhoods began in 2010 as a successor to the HOPE VI program, which was criticized for displacing residents and under-building replacement units. CNI explicitly requires one-for-one replacement and robust resident engagement to avoid those mistakes.

Local Planning and Partnerships

Each awardee reached the implementation phase only after completing a comprehensive local planning process, typically funded by a smaller Choice Neighborhoods Planning Grant. Plans are developed with heavy resident input and include commitments from public, private, and philanthropic partners. The federal grant is usually matched by multiples of private and philanthropic investment, turning the $370 million into several billion dollars in total neighborhood investment.

Why Urban Renewal Requires Care

Urban renewal has a complicated history. Mid-20th-century urban renewal programs destroyed many historically Black neighborhoods, displaced residents, and fueled decades of distrust. Choice Neighborhoods was built to avoid those errors by prioritizing existing residents' right to return, funding wraparound services, and requiring deep community engagement. In practice, the quality of community engagement varies by city, and watchdog groups monitor whether displacement occurs even under the CNI model.

Broader Funding Context

Alongside the $370 million in Implementation Grants, HUD also announced additional Choice Neighborhoods Planning Grants and accepted new Implementation Grant applications through December 2023. The agency has continued to make Choice Neighborhoods available in subsequent funding rounds, using the program as a tool for targeted reinvestment in communities with concentrated poverty and distressed housing.

What Residents Should Expect

In each awardee city, the CNI grant kicks off a multi-year redevelopment process that typically lasts 5 to 10 years. Residents are relocated during construction and have a legally enforceable right to return when new units open. During construction, residents may receive Housing Choice Vouchers or relocation to other public housing units. Services such as workforce development, case management, and academic enrichment are offered throughout the redevelopment process.

The Broader Significance

The $370 million round reinforced Choice Neighborhoods' role as one of the federal government's primary place-based strategies for addressing concentrated poverty and distressed housing. While CNI alone cannot solve the affordable housing crisis, paired with Low-Income Housing Tax Credits, state housing finance agency resources, and local investment, it has become a meaningful tool for neighborhood transformation.