Secretary Donovan visits public housing in Pennsylvania, announces nearly $1 billion in Recovery Act funds to improve public housing


WASHINGTON, D.C. – May 18, 2009 – (RealEstateRama) — U.S. Department of Housing and Urban Development Secretary Donovan today announced that HUD is offering nearly $1 billion to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds being offered are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are designed to help public housing authorities improve the quality of their housing stock, promote energy efficiency and create jobs.

The announcement came during a visit to Marshall Lee Towers in Conshohocken, Pennsylvania, which is home to 91 elderly and disabled residents. Marshall Lee Towers is one of seven residential properties managed by the Montgomery County Housing Authority (MCHA), which has already received $1,141,093 in HUD Recovery Act Capital Fund dollars. Projects planned for Marshall Lee Towers with these funds include upgrades to facilities that will create a significant reduction in water and energy use. The Secretary highlighted MCHA as an example of how Recovery Act dollars are being used, not only to create jobs and jump start the nation’s economy, but also to reduce energy costs among public housing facilities. Montgomery County Housing Authority houses 1100 residents in 615 homes throughout the County.

“I am pleased to be at Marshall Lee Towers in Pennsylvania today to announce another substantial investment we are making to improve public housing in America, create jobs and grow local economies,” said Secretary Donovan. “The funding in the Recovery Act, signed by President Obama, will give local housing agencies the resources they need to provide quality housing, especially for the elderly and persons living with disabilities. These funds will also help to transform distressed public housing projects, improve energy efficiency and lower the operating costs for housing authorities.”

In March, 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 additional $1 billion announced today will be awarded competitively.

Public Housing Capital Funding will be awarded competitively through a Notice of Funding Availability (NOFA) that can be accessed on HUD’s Recovery Act website. HUD will accept applications from public housing authorities from June 1 until July 21, 2009 for the Energy Efficiency funding category and from June 1 until August 18, 2009 for the other three funding categories. HUD will review and award grants to PHAs that effectively address the requirements in the NOFA for the following four funding categories:

Energy Efficiency: $600 million is available for PHAs to create more energy efficient public housing units. Applications are due for this category on July 21, 2009.

Financing Stalled Projects: $200 million is available to allow PHAs to develop or renovate public housing projects stalled due to lack of resources.

Public Housing Transformation: $100 million is available to transform obsolete public housing projects into newly built or renovated developments.

Housing for the Elderly/Persons with Disabilities: $95 million is available to improve public housing units and create community facilities for the delivery of medical and other services to this vulnerable population.

HUD’s Public Housing 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.


HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at and


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