HUD, Mayor Bing Announce "Transition Plan" to Return Detroit Housing Commission to Local Control

DHC makes strides since 2005 Federal takeover, HUD outlines steps before return    

DETROIT, Jan. 25, 2012 /PRNewswire-USNewswire/ -- U.S. Housing and Urban Development Assistant Secretary Sandra B. Henriquez today joined Detroit Mayor Dave Bing to announce a transition plan to return the Detroit Housing Commission to local control.  HUD assumed control of the agency in 2005.

"The Detroit Housing Commission made significant progress since 2005 and we believe it's time to begin the process to return it to local control," said Henriquez.  "We want to ensure we're giving Mayor Bing, and this city, an agency that is solvent and able to meet the needs of Detroit families."

"With this transition, Detroit once again takes control of our destiny," said Bing. "In the spirit of collaboration with HUD, the City of Detroit is taking a significant step towards returning the Detroit Housing Commission to local governance."

After a tour of new public housing units at Emerald Springs public housing development, formerly Charles Terrace, Henriquez announced the DHC Transition Plan, which lays out the plan for transition back to local control.

The objectives of the plan are:

• Sustainable Governance:  The city to finalize DHC Board appointments, ensuring they are consistent with applicable law and requirements.  Appointed board will also have to complete training and certification prior to completion of transition. 
• Sustainable Performance:  The city, HUD and DHC to execute an Oversight Agreement to address monitoring and oversight and outline actions that need to be taken to ensure progress and performance can be maintained into the future. 

During the period of Transition, the mayoral appointed board will serve in an advisory capacity with HUD remaining in control of the commission's assets, including properties, and programs.  

HUD assumed control of DHC in 2005, citing serious administrative, financial and management shortfalls.  Both the city and HUD agreed the agency had been troubled for more than a decade and required extraordinary attention to improve the quality of life for Detroit's public housing and Housing Choice Voucher residents. HUD entered into a Cooperative Endeavor Agreement with the city to begin improving the Commission's management and financial operations.

As operations improved, HUD determined the agency was ready for stable leadership and in January 2008, selected Eugene Jones to lead DHC's day-to-day operations, with HUD maintaining control through a HUD-appointed representative serving as Board of Commissioners.  From the beginning, HUD took aggressive steps to spur development of DHC's three HOPE VI grants, which languished for years because of numerous management changes at the Commission. Today, all three grants are underway, including Jeffries Homes and Parkside Homes. Through HUD's receivership, DHC has made significant progress in redeveloping both low-income and affordable housing in the city.

The site of the announcement today, Emerald Springs, will have more than 200 public and affordable housing units, and 83 new market rate units when completed. The community will also have a new community center, where residents can hold meetings and educational and employment services.  Development is expected to be completed 2014.  The DHC leveraged nearly $35 million in both public and private funding to construct the new community.

Detroit is also one of seven cities selected for the HUD pilot program Strong Cities, Strong Communities. This White House-led, interagency program focuses on retooling and rebuilding the capacity of cities facing long-term economic challenges

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and  transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov.  You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv

HUD No. 12-012 

SOURCE HUD