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The HOPE VI program strives to improve neighborhood living conditions in some of the nation's most distressed public housing developments by revitalizing the site and by helping residents move to less distressed neighborhoods. This brief examines HOPE IV's progress, two years after the start of relocation at the five HOPE VI panel study sites, in "improving the living environment for residents of severely distressed public housing" and "providing housing that will avoid or decrease the concentration of very low-income families." We find that neighborhood conditions have greatly improved for relocatees, particularly those who now live in private housing.