Section 8 Community Investment Demonstration Program

Through a national competition in 1994, the HIT was selected by the U.S. Department of Housing and Urban Development (HUD) to participate in the congressionally enacted Community Investment Demonstration Program. The HIT was HUD’s largest partner in the five-year demonstration. HUD awarded HIT $115 million in Section 8 project-based rental assistance in 1994 and 1995, and HIT used the rental assistance – plus over $64 million of its own financing – to leverage more than $130 million of additional financing for the development of 18 affordable housing projects across the country. These projects created 1,970 housing units for low- and moderate-income households.

The HIT conducted a national competition to identify housing projects to be included in the demonstration. The total development costs of these projects exceeded $240 million, representing more than 2 million hours of union construction work.

The scope and variety of the 18 projects are indicative of the HIT’s success in meeting the affordable housing needs of diverse communities, while continuing to provide secure, productive investments. Examples include:

Texas Border Housing: To help relieve the substandard housing conditions on the Texas border with Mexico, the HIT provided financing to build two apartment developments: Corona del Valle in El Paso and El Azteca in Laredo. Together, these projects created 150 units of affordable housing, providing an attractive alternative to the housing in poor condition in many neighborhoods along the border. The combined development costs of the two projects exceeded $10.3 million, and the HIT’s financing totaled $4 million.

New Jersey AIDS Scattered Site Housing: Through this innovative housing project, the HIT was able to improve the quality of life for low-income persons with HIV/AIDS by rehabilitating 64 HUD inventory properties in seven New Jersey cities. The project was recognized as the first of its kind in the United States to create Section 8 housing at scattered sites so families with members having HIV/AIDS could live in their communities. The HIT provided $3.6 million in financing for the rehabilitation of these homes and directed another $8.4 million to the project through HUD’s Section 8 assistance.

Imperial Hotel, Atlanta: The HIT helped transform Atlanta’s historic Imperial Hotel into service-enriched housing for 120 low and very low-income persons through a $9.5 million gut-rehabilitation. The HIT provided $1.7 million in financing for the project and $7.1 million in Section 8 assistance. Among the HIT’s partners in this project were the Georgia Housing Finance Authority and other public agencies and nonprofit groups. The Corporation for Supportive Housing assisted in creating on-site social services for the building’s residents.

Umoja Apartments, Los Angeles: Following the civil disturbances in South Central Los Angeles in 1992, many investors shunned redevelopment opportunities in that impoverished neighborhood. The HIT, however, reached out to local labor, government, community groups and nonprofit organizations to develop a plan to help the community rebuild. The Umoja apartment complex grew out of those efforts, providing housing and on-site social services to foster self-sufficiency for 30 South Central families with children who were homeless or at risk of homelessness. The HIT provided $1 million in permanent financing for the development of this $6.5 million project as well as $3 million in Section 8 assistance.

Anna Bissonnette Apartments, Boston: The $5.9 million conversion and expansion of an abandoned industrial warehouse in Boston’s South End has created new homes for elderly persons who were formerly homeless. The HIT provided $500,000 in permanent financing and $4.6 million in Section 8 budget authority for the project. Skilled staff is available on-site to assist residents with impairments and promote maximum independence, and residents receive a range of social services including counseling and appropriate referrals on issues such as health care, nutrition, substance abuse, and others.


Affordable Housing Financed by HIT through the Section 8 Community Investment Demonstration Program
Project Location Total Development Cost ($ Millions) HIT Loans ($Millions) Section 8 Budget Authority ($Millions) Total Units Section 8
Androscoggin Village Auburn, ME
$3.0
$1.7
$3.4
70
55
New Jersey AIDS I 4 cities in NJ
$5.7
$1.0
$4.5
34
34
Woodland Springs District Heights, MD
$34.8
$11.0
$16.9
506
121
Imperial Hotel Atlanta, GA
$9.5
$1.7
$7.1
120
73
Market Heights San Francisco, CA
$10.0
$2.3
$3.6
46
22
Rio Vista Village Los Angeles, CA
$16.7
$1.2
$2.9
75
18
Umoja Apartments Los Angeles, CA
$6.5
$1.0
$3.0
30
30
West End Plaza Boston, MA
$31.7
$11.0
$7.0
183
58
Corona del Valle El Paso, TX
$6.8
$2.8
$8.9
100
80
El Azteca Housing Laredo, TX
$3.4
$1.1
$4.9
50
50
Bernal Gateway San Francisco, CA
$14.4
$6.5
$3.6
55
18
Anna Bissonnette Boston, MA
$5.9
$.5
$4.6
41
40
Daly Avenue Apartments Bronx, NY
$15.9
$2.9
$6.7
84
42
Carl Mackley Apartments Philadelphia, PA
$20.9
$5.0
$12.7
184
92
Heritage Homes San Francisco, CA
$28.0
$7.4
$6.9
148
33
Jefferson Place Apartments Marrero, LA
$7.4
$2.5
$8.5
112
77
NJ AIDS Housing II Four cities in NJ
$6.1
$.8
$3.9
30
30
New Pennley Place Pittsburgh, PA
$15.0
$3.6
$3.5
102
38
Total  
$241.8
$64.1
$115.6
1,970
911