§1437p. Demolition and disposition of public housing

(a) Obsolescence; best-interests transfers; use of proceeds

The Secretary may not approve an application by a public housing agency for permission, with or without financial assistance under this chapter, to demolish or dispose of a public housing project or a portion of a public housing project unless the Secretary has determined that-

(1) in the case of an application proposing demolition of a public housing project or a portion of a public housing project, the project or portion of the project is obsolete as to physical condition, location, or other factors, making it unusable for housing purposes, and no reasonable program of modifications is feasible to return the project or portion of the project to useful life; or in the case of an application proposing the demolition of only a portion of a project, the demolition will help to assure the useful life of the remaining portion of the project;

(2) in the case of an application proposing disposition of real property of a public housing agency by sale or other transfer-

(A)(i) the property's retention is not in the best interests of the tenants or the public housing agency because developmental changes in the area surrounding the project adversely affect the health or safety of the tenants or the feasible operation of the project by the public housing agency, because disposition allows the acquisition, development, or rehabilitation of other properties which will be more efficiently or effectively operated as low-income housing projects and which will preserve the total amount of low-income housing stock available in the community, or because of other factors which the Secretary determines are consistent with the best interests of the tenants and public housing agency and which are not inconsistent with other provisions of this chapter; and

(ii) for property other than dwelling units, the property is excess to the needs of a project or the disposition is incidental to, or does not interfere with, continued operation of a project; and

(B) the net proceeds of the disposition will be used for (i) the payment of development cost for the project and for the retirement of outstanding obligations issued to finance original development or modernization of the project, which, in the case of scattered-site housing of a public housing agency, shall be in an amount that bears the same ratio to the total of such costs and obligations as the number of units disposed of bears to the total number of units of the project at the time of disposition, and (ii) to the extent that any proceeds remain after the application of proceeds in accordance with clause (i), the provision of housing assistance for low-income families through such measures as modernization of low-income housing, or the acquisition, development, or rehabilitation of other properties to operate as low-income housing; or

(3) in the case of an application proposing demolition or disposition of any portion of a public housing project, assisted at any time under section 1437c(j)(2) of this title-

(A) such assistance has not been provided for the portion of the project to be demolished or disposed within the 10-year period ending upon submission of the application; or

(B) the property's retention is not in the best interest of the tenants or the public housing agency because of extraordinary changes in the area surrounding the project or other extraordinary circumstances of the project.

(b) Consultation with tenants and tenant councils; opportunity to purchase; relocation assistance; replacement housing plan

The Secretary may not approve an application or furnish assistance under this section or under this chapter unless-

(1) the application from the public housing agency has been developed in consultation with tenants and tenant councils, if any, who will be affected by the demolition or disposition, and the tenant councils, resident management corporation, and tenant cooperative of the project or portion of the project covered by the application, if any, have been given appropriate opportunities to purchase the project or portion of the project covered by the application, and contains a certification by appropriate local government officials that the proposed activity is consistent with the applicable housing assistance plan;

(2) all tenants to be displaced as a result of the demolition or disposition will be given assistance by the public housing agency and are relocated to other decent, safe, sanitary, and affordable housing, which is, to the maximum extent practicable, housing of their choice, including housing assisted under section 1437f of this title; and

(3) the public housing agency has developed a plan for the provision of an additional decent, safe, sanitary, and affordable dwelling unit for each public housing dwelling unit to be demolished or disposed under such application, which plan-

(A) provides for the provision of such additional dwelling units through-

(i) the acquisition or development of additional public housing dwelling units;

(ii) the use of 15-year project-based assistance under section 1437f of this title to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of available project-based assistance under section 1437f of this title having a term of not less than 5 years;

(iii) the use of not less than 15-year project-based assistance under other Federal programs to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of available project-based assistance under other Federal programs having a term of not less than 5 years;

(iv) the acquisition or development of dwelling units assisted under a State or local government program that provides for project-based assistance comparable in terms of eligibility, contribution to rent, and length of assistance contract (not less than 15 years) to assistance under section 1437f(b)(1) of this title;

(v) the use of 15-year tenant-based assistance under section 1437f of this title (excluding vouchers under section 1437f(o) of this title) to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of tenant-based assistance under section 1437f of this title (excluding vouchers under section 1437f(o) of this title) having a term of not less than 5 years; or

(vi) any combination of such methods;

(B) in the case of an application proposing demolition or disposition of 200 or more units, shall provide that (notwithstanding the limitation under section 1437f(d)(2)(A) of this title on the amount of project-based assistance provided by an agency)-

(i) not less than 50 percent of such additional dwelling units shall be provided through the acquisition or development of additional public housing dwelling units or through project-based assistance; and

(ii) not more than 50 percent of such additional dwelling units shall be provided through tenant-based assistance under section 1437f of this title (excluding vouchers under section 1437f(o) of this title) having a term of not less than 5 years;

(C) if it provides for the use of tenant-based assistance under section 1437f of this title, may be approved-

(i) only after a finding by the Secretary that replacement with project-based assistance is not feasible, and the supply of private rental housing actually available to those who would receive such assistance under the plan is sufficient for the total number of certificates and vouchers available in the community after implementation of the plan and that such supply is likely to remain available for the full 15-year term of the assistance; and

(ii) only if such finding is based on objective information, which shall include rates of participation by landlords in the section 8 [42 U.S.C. 1437f] program, size, conditions and rent levels of available rental housing as compared to section 8 [42 U.S.C. 1437f] standards, the supply of vacant existing housing meeting the section 8 [42 U.S.C. 1437f] quality standards with rents at or below the fair market rent or the likelihood of adjusting the fair market rent, the number of eligible families waiting for public housing or housing assistance under section 1437f of this title, and the extent of discrimination against the types of individuals or families to be served by the assistance;

(D) is approved by the unit of general local government in which the project is located;

(E) includes a schedule for completing the plan within a period consistent with the size of the proposed demolition or disposition, except that the schedule shall in no event exceed 6 years;

(F) includes a method of ensuring that the same number of individuals and families will be provided housing;

(G) provides for the payment of the relocation expenses of each tenant to be displaced and ensures that the rent paid by the tenant following relocation will not exceed the amount permitted under this chapter; and

(H) prevents the taking of any action to demolish or dispose of any unit until the tenant of the unit is relocated to decent, safe, sanitary, and affordable housing that is, to the extent practicable, of the tenant's choice;

except that, in any 5-year period, a public housing agency may demolish not more than the lesser of 5 dwelling units or 5 percent of the total dwelling units owned and operated by the public housing agency, without providing an additional dwelling unit for each such public housing dwelling unit to be demolished, but only if the space occupied by the demolished unit is used for meeting the service or other needs of public housing residents.

(c) Financial assistance; contributions; funding of replacement housing plan

(1) Notwithstanding any other provision of law, the Secretary is authorized to make available financial assistance for applications approved under this section using available contributions authorized under section 1437c of this title.

(2) The Secretary shall, upon approving a plan under subsection (b)(3) of this section, agree to commit (subject to the availability of future appropriations) the funds necessary to carry out the plan over the approved schedule of the plan. As part of each annual budget request for the Department of Housing and Urban Development, the Secretary shall submit to the Congress a report-

(A) outlining the commitments the Secretary entered into during the preceding year to fund plans approved under subsection (b)(3) of this section; and

(B) specifying, by fiscal year, the budget authority required to carry out the commitments specified in subparagraph (A).

(d) Conditions for agency action

A public housing agency shall not take any action to demolish or dispose of a public housing project or a portion of a public housing project without obtaining the approval of the Secretary and satisfying the conditions specified in subsections (a) and (b) of this section.

(e) Set-asides for replacement housing

(1) In each of fiscal years 1993 and 1994, the Secretary may reserve from any budget authority appropriated for such year for assistance under section 1437f of this title that is available for families not currently receiving such assistance not more than 10 percent of such budget authority for providing replacement housing under subsection (b)(3)(A) of this section for units demolished or disposed of pursuant to this section.

(2) In each of fiscal years 1993 and 1994, the Secretary may reserve from any budget authority appropriated for such year for development of public housing under section 1437c(a)(2) of this title not more than the lesser of 30 percent of such budget authorization or $150,000,000, for providing replacement housing under subsection (b)(3)(A) of this section for units demolished or disposed of pursuant to this section.

(f) Applicability to disposition of public housing project in accordance with approved homeownership program

The provisions of this section shall not apply to the disposition of a public housing project in accordance with an approved homeownership program under subchapter II–A of this chapter.

(Sept. 1, 1937, ch. 896, title I, §18, as added Nov. 30, 1983, Pub. L. 98–181, title II, §214(a), 97 Stat. 1184 ; amended Feb. 5, 1988, Pub. L. 100–242, title I, §§112(b)(9), 121, 170(f), 101 Stat. 1824 , 1837, 1867; renumbered title I, June 29, 1988, Pub. L. 100–358, §5, 102 Stat. 681 ; Nov. 28, 1990, Pub. L. 101–625, title IV, §412, title V, §§512(a), 513(b), (c), 572, 104 Stat. 4159 , 4194-4196, 4236; Oct. 28, 1992, Pub. L. 102–550, title I, §§111(b)(2), 116(a)–(c), 106 Stat. 3688 , 3693, 3694.)

Amendments

1992-Subsec. (a)(3). Pub. L. 102–550, §111(b)(2), added par. (3).

Subsec. (b)(1). Pub. L. 102–550, §116(a), inserted "of the project or portion of the project covered by the application" after "tenant cooperative".

Subsec. (b)(3). Pub. L. 102–550, §116(b)(5), inserted at end "except that, in any 5-year period, a public housing agency may demolish not more than the lesser of 5 dwelling units or 5 percent of the total dwelling units owned and operated by the public housing agency, without providing an additional dwelling unit for each such public housing dwelling unit to be demolished, but only if the space occupied by the demolished unit is used for meeting the service or other needs of public housing residents."

Subsec. (b)(3)(A)(ii). Pub. L. 102–550, §116(b)(1)(A), inserted before semicolon at end "to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of available project-based assistance under section 1437f of this title having a term of not less than 5 years".

Subsec. (b)(3)(A)(iii). Pub. L. 102–550, §116(b)(1)(B), inserted before semicolon at end "to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of available project-based assistance under other Federal programs having a term of not less than 5 years".

Subsec. (b)(3)(A)(v). Pub. L. 102–550, §116(b)(1)(C), inserted before semicolon "to the extent available; or if such assistance is not available, in the case of an application proposing demolition or disposition of 200 or more units, the use of tenant-based assistance under section 1437f of this title (excluding vouchers under section 1437f(o) of this title) having a term of not less than 5 years".

Subsec. (b)(3)(B). Pub. L. 102–550, §116(b)(4), added subpar. (B). Former subpar. (B) redesignated (C).

Subsec. (b)(3)(C) to (F). Pub. L. 102–550, §116(b)(3), redesignated subpars. (B) to (E) as (C) to (F), respectively. Former subpar. (F) redesignated (G).

Subsec. (b)(3)(G). Pub. L. 102–550, §116(b)(3), redesignated subpar. (F) as (G). Former subpar. (G) redesignated (H).

Pub. L. 102–550, §116(b)(2), substituted "tenant's choice;" for "tenant's choice."

Subsec. (b)(3)(H). Pub. L. 102–550, §116(b)(3), redesignated subpar. (G) as (H).

Subsecs. (e), (f). Pub. L. 102–550, §116(c), added subsec. (e) and redesignated former subsec. (e) as (f).

1990-Subsec. (a)(2)(A)(i). Pub. L. 101–625, §572(2), substituted "low-income housing" for "lower income housing" wherever appearing.

Subsec. (a)(2)(B). Pub. L. 101–625, §572, substituted "low-income families" for "lower income families" and "low-income housing" for "lower income housing" wherever appearing.

Pub. L. 101–625, §512(a), inserted before first comma ", which, in the case of scattered-site housing of a public housing agency, shall be in an amount that bears the same ratio to the total of such costs and obligations as the number of units disposed of bears to the total number of units of the project at the time of disposition".

Subsec. (b)(1). Pub. L. 101–625, §412(a), substituted "disposition, and the tenant councils, resident management corporation, and tenant cooperative, if any, have been given appropriate opportunities to purchase the project or portion of the project covered by the application," for "disposition".

Subsec. (c)(2). Pub. L. 101–625, §513(b), inserted at end "As part of each annual budget request for the Department of Housing and Urban Development, the Secretary shall submit to the Congress a report-", and added subpars. (A) and (B).

Subsec. (c)(3). Pub. L. 101–625, §513(c), struck out par. (3) which read as follows: "The Secretary shall, in allocating assistance for the acquisition or development of public housing or for moderate rehabilitation under section 1437f(e)(2) of this title, give consideration to housing that replaces demolished public housing units in accordance with a plan under subsection (b)(3) of this section."

Subsec. (e). Pub. L. 101–625, §412(b), added subsec. (e).

1988-Subsec. (a)(1). Pub. L. 100–242, §121(a), substituted "and" for "or" after "purposes,".

Subsec. (b). Pub. L. 100–242, §170(f), inserted "or" after "under this section".

Subsec. (b)(3). Pub. L. 100–242, §121(b), added par. (3).

Subsec. (c). Pub. L. 100–242, §121(c), designated existing provisions as par. (1) and added pars. (2) and (3).

Pub. L. 100–242, §112(b)(9), substituted "contributions authorized under section 1437c" for "annual contributions authorized under section 1437c(c)".

Subsec. (d). Pub. L. 100–242, §121(d), added subsec. (d) and struck out former subsec. (d) which read as follows: "The provisions of this section shall not apply to the conveyance of units in a public housing project for the purpose of providing homeownership opportunities for lower income families capable of assuming the responsibilities of homeownership."

Effective Date of 1990 Amendment

Section 512(b) of Pub. L. 101–625 provided that: "The amendment made by this section [amending this section] shall apply to any scattered-site public housing project or portion of such project disposed of after the date of the enactment of this Act [Nov. 28, 1990]."

Replacement Housing Demonstration Program

Section 513(a) of Pub. L. 101–625 directed Secretary of Housing and Urban Development to carry out a program to demonstrate the effectiveness of replacing public housing dwelling units eligible for demolition or disposition with 5-year certificate assistance provided under 42 U.S.C. 1437f, with Secretary to carry out the demonstration only with respect to public housing dwelling units owned or operated by the public housing authority for Saint Louis, Missouri, that before the termination of the demonstration program under this subsection are approved for demolition or disposition, and with the demonstration program to terminate at end of Sept. 30, 1992.