Summary:
MROP is part of the U.S. Department of Housing and Urban Development's (HUD) development program for public housing, providing that up to 20 percent of development funds may be used for major reconstruction of obsolete public housing projects

Purpose:
MROP is a vehicle for grants to Public Housing Authorities (PHAs) to finance the capital cost of rehabilitation of old public housing to maintain or expand the supply of decent, safe, and sanitary housing for low-income families.

Type of Assistance:
Assistance is in the form of grants to PHAs. Contributions are made annually for up to 20 years for modernization projects approved before October 1, 1986, or up to 40 years for projects approved since that time.

Eligible Grantees:
PHAs whose plans are consistent with any applicable local housing assistance plan and responsive to local needs could apply for funding under MROP.

Eligible Customers:
The housing must benefit lower income families composed of citizens or eligible immigrants. Families are defined to include families with or without children, elderly families (head, spouse, or sole member 62 years old or older), near elderly families (head, spouse, or sole member at least 50 years old, but under 62), displaced families, the remaining member of a tenant family, a single person, or a person with disabilities.

Eligible Activities:
MROP could be used for major reconstruction of existing public housing or for purchase and rehabilitation of existing rental housing projects. The housing authority usually acts as the development manager for a HUD-funded housing projects, selecting and contracting with other participants, such as architects or private developers. MROP grants cover capital costs of a project and some operating subsidies.

Application:
Not applicable.

Funding Status:
No new development funding has been provided since 1994, although through 1997, Section 14(q) of the Housing Act of 1937, as amended, authorized use of modernization funds for development. However, projects formerly funded as MROP are now funded as modernization programs.

Technical Guidance:
Capital funding to develop and modernize public housing was authorized by the U.S. Housing Act of 1937, as amended, Public Law 93-383, 42 U.S.C. 1439. The 20 percent set aside for MROP was included in the Housing and Community Development Act of 1992. Regulations are found at 24 CFR Parts 904, 905, and 941. It is administered by HUD's Office of Public and Indian Housing.

For More Information:
Detailed information can be found in HUD Handbooks 7417.1 (Rev.-1) and 7465.1 Rev.

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