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HOPE VI in Wilmington 
 

The Hope VI Initiative in Northeast Wilmington
The HOPE VI program (for Revitalization of Severely Distressed Public Housing) was created to allow for "demolition of obsolete Public housing developments or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing units) on which such developments are located, replacement housing that will avoid or lessen concentrations of very low-income families, Section 8 tenant-based assistance, and for providing replacement housing and assisting tenants to be displaced by demolition." (Notices, Federal Register, v.62, # 71; 4/14/97.)

The Wilmington Housing Authority has successfully applied to make portions of the Eastlake development in Northeast Wilmington a Hope VI project. Of the 267 units in the project, some of which were built in 1942,

196 will be demolished and another 70 "partially demolished." On the new site will be 150 new townhouses and 45 renovated units, for a net loss of 72 units. Very low-income tenants will only make up a portion of the lower-density community there. 199 families will be relocated, some of whom may receive three-year Section 8 vouchers. Among the "self-sufficiency programs" referred to in the summary of the proposal is the state’s ABC program. The ultimate effect on the displaced families and its impact on worst-case housing needs in Delaware is unclear at best.

The Hope VI project in Delaware follows the national pattern, where 104 grantees have so far been awarded $3 billion. Its net effect will be a loss of 7600 units. 55, 986 units will be demolished, 33,009 constructed, 8,614 rehabilitated, an additional 15,404 constructed as market-rate housing or housing financed with the Low Income Housing Tax Credit.

A close look at the national numbers reveals the HOPE VI developments usually create fewer units than they tear down, and many of the new units aren’t within financial reach of families being displaced. Although many buildings being demolished have high vacancy rates, with many units in disrepair and boarded up – often by design so that the PHA can justify demolition – HOPE VI is still displacing more families than there are new units being built. Federal housing laws no longer require one-for-one replacement of units. HUD’s numbers indicate that the 1998 HOPE VI grant recipients will relocate 8,291 families, of which 3,976 will move back into the new public housing units. Another 3,607 households will receive Section 8 vouchers, and the rest ill be placed in other existing public housing units. (Winton Pitcoff, "New Hope for Public Housing?" Shelterforce, March/April 1999, pp. 19 - 20)

As with other demonstration programs, HOPE VI mandates significant resident participation, and, in the case of the Wilmington HOPE VI, the development of a resident management corporation is part of the overall plan. But the track record of past HOPE VI projects nationally has been one of perfunctory resident influence in the process. Sheila Crowley, President of the National Low-Income Housing Coalition (NLIHC) sums up the concerns surrounding HOPE VI, "The fundamental issue is, do you create communities by eliminating the weakest members, or by lifting everybody up?" (Ibid., p. 21) HOPE VI in Delaware bears watching by tenants and advocates.