HUD Awards $175 Million in Choice Neighborhoods Grants to Rebuild Distressed Public Housing

WASHINGTON, DC — The United States Department of Housing and Urban Development (HUD) announced $175 million in Choice Neighborhoods Implementation Grant awards, delivering $35 million each to municipal housing authorities in Louisville, Birmingham, Omaha, Buffalo, and Chattanooga.

Transforming Distressed Public Housing into Thriving Mixed-Income Communities

The federal grants leverage over $1.5 billion in private and philanthropic capital to replace deteriorating mid-century public housing complexes with 2,400 modern, energy-efficient mixed-income townhomes, early childhood education centers, grocery stores, and public recreation parks. The Choice Neighborhoods initiative guarantees one-for-one unit replacement and provides comprehensive housing voucher and relocation protections for all existing public housing residents.

HUD leadership affirmed that revitalizing public housing creates neighborhoods of opportunity, ensuring working families and children have access to safe housing, good schools, and walkable amenities.

Municipal Mayors and Housing Authority Endorsements

Mayors across the five recipient cities celebrated the awards, emphasizing that neighborhood transformations stimulate local retail investment and create union construction jobs.

Public housing tenant resident councils participated directly in master architectural design planning.

Groundbreaking Milestones

Site demolition and utility infrastructure engineering across all five cities will begin in early 2027.