Have you Considered RAD?
HUD strongly encourages PHAs contemplating demolition/disposition applications for their public housing units to consider HUD’s Rental Assistance Demonstration (RAD) program. In accordance with PIH Notice 2012-7, PHAs generally need to evidence public housing units are obsolete in order to receive HUD demolition/disposition approval under Section 18 of the U.S. Housing Act of 1937. On the other hand, public housing units with various capital needs can qualify for conversion to a Section 8 project-based platform under RAD. In addition, RAD offers various advantages to residents and PHAs over Section 18 such as resident protections, extensive waivers of statutes and regulations to enable long-term preservation (e.g. ability to retain reserves at the project), and FY2012 HAP rents. Accordingly, prior to submitting a demolition or disposition application, HUD strongly encourages PHAs to complete the RAD Inventory Assessment Tool to make a first-level assessment (as potential RAD candidates) of all units they are considering for demolition or disposition. HUD staff (at the SAC and the RAD team) are available to assist PHAs in completing this assessment tool. In addition, HUD staff are available to provide PHAs with technical assistance on the best HUD tool for repositioning their particular housing units. PHAs should contact email@example.com to request such technical assistance. See also RAD Conversion Guide for PHAs.
Already have an approved CHAP under RAD? Instructions for submitting a removal application via IMS/PIC are available here.
What We Do
The Special Applications Center (SAC) enables the Office of Public and Indian Housing to assist Housing Authorities in their efforts to efficiently and effectively meet the housing needs of their communities through the specialized review and approval of non-funded, non-competitive applications, related to:
- Demolition/Disposition - removal of public housing units from the public housing stock by razing, sale or lease (in whole or part).
- Eminent Domain - the taking of public housing property for a public use.
- Homeownership - sale of public housing units to public housing residents or public housing eligible residents.
- Section 202 Conversion - the conversion of public housing development to Section 8.
- Conversion - the conversion of a development to tenant-based assistance.
Helpful Tools and Resources
- Impact on Operating Funds & Asset Repositioning Fee: Units and other property removed from the PHA’s public housing stock are no longer eligible to receive Operating Funds assistance, but the PHA may be eligible to receive an asset-repositioning fee pursuant to 24 CFR 990.190. See Notice PIH 2011-18 for detailed guidance on the Asset-Repositioning Fee pursuant to 24 CFR § 990.190(h) and Guidance on Re-occupying Public Housing Units Proposed or Approved for Demolition, Disposition, or Transition to Homeownership.
- Impact on Capital Funds and Replacement Factor Funds: Units and other property removed from the PHA’s public housing stock are no longer eligible to receive standard Capital Funds assistance, but the PHA may be eligible to receive replacement housing factor (RHF) funds pursuant to 24 CFR § 905.10(i). RHF funds are Capital Fund Grants that are awarded to PHAs that have removed units from their public housing inventories. HUD provides RHF funds to PHAs for the sole purpose of developing new public housing units.
- Tenant-Protection Vouchers: PHAs may apply to HUD for housing choice vouchers for certain (occupied) units that have been approved by HUD for removal (e.g. disposition, demolition, homeownership, conversion) in accordance with PIH Notice 2013-12. PHAs interested in applying for these vouchers should submit application to their local HUD Offices of Public Housing after receiving a HUD approval of the removal action, in accordance with the requirements of HUD-52515.
- Declaration of Trust (DOT) and Annual Contributions Contract (ACC) requirements: HUD requires that all public housing property have a current Declaration of Trust (DOT) of record and requires all public housing property to be under an Annual Contributions Contact (ACC) with HUD. PIH Notice 2011-61 indefinitely extended PIH Notice 2010-44 provides detailed guidance to PHAs and HUD Field Offices of Public Housing and Field Counsel on DOTs and adding and removing units from the ACC (and PIC) based on HUD approvals. See also Terminating Developments under IMS/PIC Inventory Removals on this page.
IMS/PIC Inventory Removals
Correspondences between HUD Secretary Shaun Donovan and Congress Members on Demolitions/Dispositions
- June 15, 2009 letter to HUD Secretary Shaun Donovan from Congressman Barney Frank and Congresswoman Maxine Waters regarding demolitions and dispositions.
- August 7, 2009 letter to Congressman Barney Frank and Congresswoman Maxine Waters from HUD Secretary Shaun Donovan regarding demolitions and dispositions.
Correspondences between HUD PIH Assistant Secretary Henriquez and the Housing Justice Network (HJN) on Demolitions/Dispositions.