The request by the Meridian Housing Authority for $18 million to build a new development was denied by officials in Washington, D.C.
It was the housing authority's fourth try for financial assistance to build new and modern public housing where the now closed Victory Village stands.
Derwin Jackson, director of the Meridian Housing Authority, was disappointed.
"One thing about some of the scores that we scored high on last year, the requirements did not change and we pretty much submitted the same thing," said Jackson, "and we felt we should have gotten the same thing as those earlier, but we scored lower."
The housing authority did receive a grant last year of $1.1 million to tear down the existing Victory Village Apartments on 46th Avenue.
"That project is going to start in April," Jackson said. "We're in the process now of starting to tear those down. Matter of fact, we're going to start out getting rid of that asbestos removal first. But that will start in April."
Jackson said this rejection is not the end of his plan.
"It's going to have to be done in phases anyway," the director said.
"The first phase is to do what we have to do is to tear it down. I think within the next six or seven months that it's going to take us to do that we hopefully we're going to be able to get the resources we need to start on phase two. That we'll be trying to rebuild it. So I don't see us being still off target at this point on our plan to have it done within the next four to five years."