In 1997, KCDC received a $22 million HOPE VI federal grant to revitalize Mechanicsville public housing and the surrounding neighborhood. The agency replaced outdated apartments with single-family and duplex homes designed to complement structures in the surrounding neighborhood along with new streets, sidewalks and alleys to provide rear access to the homes.

Updates in 2017 included interior renovations; new HVAC units; updated lighting, cabinets, appliances, interior doors and flooring; and repaved parking.