How does the proposed demo/dispo rule affect PHAs? Part III
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.
- Part I: What precisely do the changes entail, and what does this mean for PHAs?
- Part II: Demolition and disposition
- Part III: Conversion
Conversion
In addition to regulatory changes for the demolition and disposition of public housing, clarifications brought about by the proposed rule regarding conversion are of particular importance to PHAs. Among these clarifications, HUD is proposing to revise the definition of conversion in 24 CFR part 972 that covers both voluntary and required conversion of public housing to tenant-based assistance. The purpose of this would be to more accurately reflect what conversion means in the relevant statutory sections.
The regulations at 24 CFR 972.103 and 972.203 (for voluntary and required conversion, respectively) define conversion as the removal of public housing units from the inventory of a PHA, and the provision of tenant-based or project-based assistance for the residents of the PHA. While under statute the residents of a project undergoing conversion may be provided with alternate housing, including project-based assistance, the statute provides that the “conversion” itself refers only to conversion from public housing to tenant-based assistance. It is for this reason that HUD is proposing to revise these definitions accordingly to remove the reference to project-based assistance.
We hope that this series has been helpful in furthering your understanding of HUD’s proposed rule on the demolition, disposition, and conversion of public housing. For further details, you can find the rule here, in the Federal Register.
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.