Q: What exactly are PHAs converting? Their public housing developments?
Or the residents who live in those developments?
A: In this context,
conversion means the removal of public housing developments (or portions of developments)
from a PHA?s public housing inventory and ACC and the provision of tenant-based
or project-based assistance for the residents who lived in those developments.
Conversion does not require that the PHA convert the development to any
particular future use after conversion.
Q: Are PHAs required to
give tenant-based or project-based assistance to the residents of the developments
that they are converting?
A: This is usually the case. PHAs are
required to offer ?comparable housing? to the residents of the developments they
are converting as part of its relocation process. PHAs will usually offer residents
tenant-based or project-based assistance. This makes sense since the PHAs have
shown (as part of the conversion application process) that the costs of providing
residents with tenant-based assistance is less than the costs of providing residents
with public housing in their units. This also makes sense since HUD will do its
best to provide PHAs with tenant-protection vouchers for the families of the developments.
However, PHAs are not automatically required to offer its residents tenant-based
or project-based assistance and may choose to offer residents ACC units (in other
developments in their inventories) as a relocation resource.
Then what about the future use of the public housing property after a PHA converts
the units from its public housing inventory? Is a PHA required to convert the
property to any specific future use (like to project-based assistance)?
A: No. The conversion programs do not require a PHA to do anything
specific with the development that it is proposing to convert from public housing.
However, HUD will not approve a conversion plan unless the PHA describes in detail
its planned future use of the property and HUD finds that proposed future use
to be acceptable. Also, depending on the planned future use and the type of conversion,
Section 18 disposition/demolition requirements may apply.
PHAs to explore all options so that they can determine the optimal future use
of the development(s) they are planning to convert. In proposing a future use
to HUD, PHAs should consider the physical condition of the developments as well
as the economic and social conditions facing the PHA, its residents, and the community.
PHAs may propose to do a variety of things with the development after
- demolish the development;
the property to a third party to use the property as low-income housing;
sell the property to a third party for another use; or
the property to use as low-income housing