Letter to Alphonso Jackson, Secretary of the Department of Housing and Urban Development, Re: Moving to Work Extension to Benefit Chicago's Plan for Transformation

Letter

Letter to Alphonso Jackson, Secretary of the Department of Housing and Urban Development, Re: Moving to Work Extension to Benefit Chicago's Plan for Transformation

Durbin Leads Illinois Delegation Members in Asking for Moving to Work Extension to Benefit Chicago's Plan for Transformation

U.S. Senator Dick Durbin (D-IL) led a bi-partisan group of Illinois Senators and Representatives today in sending a letter to Secretary Alphonso Jackson of the Department of Housing and Urban Development (HUD) asking for the immediate extension of its Moving to Work agreement with the Chicago Housing Authority (CHA) for a minimum of an additional five years. Illinois delegation members who have signed on to the letter include Senator Barack Obama (D-IL), Representatives Judy Biggert (R-IL), Danny Davis (D-IL), Rahm Emanuel (D-IL), Luis Gutierrez (D-IL), Jesse Jackson (D-IL), Peter Roskam (R-IL) and Jan Schakowsky (D-IL).

The Moving to Work agreement has allowed flexibility and funding for the CHA to implement its Plan for Transformation, a ten-year plan to revitalize public housing in Chicago and transition dilapidated homes and high-rises into sustainable mixed-income communities. A number of factors including shortfalls in promised funding and unforeseen growth in costs have forced the CHA to make adjustments to the project and extend the timeline for completion. The Plan for Transformation was approved by HUD in 2000 and was originally scheduled to be completed in 2010.

"[HUD]'s continued commitment to the project is critical to helping CHA move forward with the reconstruction of the 25,000 public housing units. An extension would also enable CHA to secure other sources of long-term funding for the project," the Illinois members wrote. "The Plan for Transformation is an important step forward in breaking the cycle of poverty and rebuilding the lives and communities in Chicago. We urge HUD to immediately extend the MTW agreement with CHA to at least 2015."

Text of the letter appears below:

December 11, 2007

The Honorable Alphonso Jackson
Secretary
U.S. Department of Housing and Urban Development
451 7th St., SW
Washington, DC 20410

Dear Secretary Jackson:

We write to urge the Department of Housing and Urban Development (HUD) to extend its 10-year Moving to Work (MTW) agreement with the Chicago Housing Authority (CHA) for a minimum of an additional five years. This agreement has been critical in providing CHA with the local flexibility and federal funding necessary to build new and better communities for Chicago's low-income families.

CHA provides assisted housing for more than 130,000 residents in approximately 67,000 homes, making it the third largest housing authority in the nation. Under the Plan for Transformation, a 10-year MTW agreement with HUD, CHA will construct or rehabilitate 25,000 units of public housing in Chicago as it revitalizes and transitions dilapidated homes and high-rises into sustainable mixed-income communities. This agreement is set to expire on January 6, 2010.

Unfortunately, a number of factors have changed the estimated completion date from 2010 to 2015. Cuts to the HUD budget have also led to shortfalls in promised funding. In 2007, only $118 million of the $139 million for capital secured under the MTW agreement was allocated to CHA, and only $153 million of the $183 million for operating costs. Meanwhile, changing quality standards for mixed-income developments have added to an unforeseen growth in construction and labor costs. These budgetary constraints have forced CHA to make adjustments to the project, including the timeline.

Although HUD has agreed in its meetings with CHA to extend the agreement, HUD has yet to do so. The agency's continued commitment to the project is critical to helping CHA move forward with the reconstruction of the 25,000 public housing units. An extension would also enable CHA to secure other sources of long-term funding for the project.

The Plan for Transformation is an important step forward in breaking the cycle of poverty and rebuilding the lives and communities in Chicago. We urge HUD to immediately extend the MTW agreement with CHA to at least 2015. Thank you for your attention to this matter.

Sincerely,

Dick Durbin
U.S. Senator

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