During the 1990s, the federal government dramatically changed its policy on housing the poor. Under the HOPE VI (Housing Opportunities for People Everywhere) Program, the U.S. Department of Housing and Urban Development intended to address the concentration of troubled low-income households in public housing by moving away from its reliance on project-based assistance and promoting instead the construction of mixed-income housing and the use of housing subsidies.This article presents important evidence from two systematic, multicity studies on how the original residents of HOPE VI developments have been affected by this radical new approach to public housing. While many residents have clearly benefited, the findings raise critical questions about whether the transformation of public housing will achieve its potential as a powerful force for improving the lives of low-income families.

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When the Chicago Housing Authority (CHA) launched its ambitious Plan for Transformation in 1999, it faced enormous challenges. For decades, the agency had failed to meet even its most basic responsibilities as the city's largest landlord. By the 1990s, a combination of failed federal policies, managerial incompetence, financial malfeasance, basic neglect, and a troubled resident population had left developments in a state of decay (Popkin et al. 2000). CHA families lived in a hazardous environment, exposed to lead paint, mold, cockroaches, rats and mice, broken plumbing, exposed radiators, and broken light fixtures. The developments and surrounding neighborhoods were extremely poor, had few amenities, and were beset with crime and violence. Within the buildings, residents had to cope with broken elevators and darkened stairwells that put them at risk for injury or assault.

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