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How does the proposed demo/dispo rule affect PHAs? Part I

On October 16, 2014, HUD published in the Federal Register a proposed rule on the demolition and disposition of public housing projects, and the conversion of public housing to tenant-based assistance.

The rule has been in the works for quite some time, with the goal of finally bringing the regulations up-to-date with sweeping changes mandated by the Housing and Economic Recovery Act of 2008 (HERA).

Additionally, the proposed rule offers several clarifications and additions regarding resident consultation, application processing, conversion, and other requirements that until now have not made it into regulation.

What precisely do the changes entail, and what does this mean for PHAs?

Specifically, the rule proposes the following changes:

  • Revising and updating HUD demo/dispo regulations and increasing the oversight of demo/dispo by requiring PHAs to submit more detailed justifications supporting such certifications
  • Clarifying and providing more detail regarding resident relocation, fair housing, and civil rights compliance
  • Dividing 24 CFR part 970 into two subparts:
    • Subpart A, which would comprise the current regulations applicable to demolition and disposition
    • Subpart B, which would provide the requirements applicable to real property transactions and retention of projects by PHAs
  • Issuing a clarification to 24 CFR part 972 on conversion of assistance

Kaylene Holvenstot has been a technical writer at NMA since 2008. She contributes to and edits NMA Master Books and model policies while researching and analyzing the latest HUD guidance to ensure that all course material is always up to date and fully accurate.