Gary, Indiana receives HUD grant to rebuild distressed areas

GARY, Ind. (WLS) -- The city of Gary has been selected for a federal grant to help rebuild distressed communities.

Mayor Karen Freeman-Wilson made the announcement Friday along with the U.S. Department of Housing and Urban Development.

The city will receive $500,000 to help transform the struggling University Park East neighborhood.

The area continues to lose population and has a long-term vacancy rate of nearly 40 percent.

The neighborhood's one elementary school was closed in 2008 and the violent crime rate is nearly three times the city's average.