[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR970.11]



[Page 539-542]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 970_PUBLIC HOUSING PROGRAM_DEMOLITION OR DISPOSITION OF PUBLIC 

HOUSING PROJECTS--Table of Contents

 

Sec.  970.11  Replacement housing plan.



    (a) One-for-one replacement. HUD may not approve an application or 

furnish assistance under this part unless the PHA submitting the 

application for demolition or disposition also submits a plan for the 

provision of an additional decent, safe, sanitary, and affordable rental 

dwelling unit (at rents no higher than permitted under the Act) for each 

public housing dwelling unit to be demolished or disposed of under the 

application, except as provided in paragraph (j) of this section. A 

replacement housing plan may provide for the location of the replacement 

housing outside the political boundaries of the locality of the PHA, 

provided all relevant program requirements are satisfied including the 

approval of the replacement housing plan by the unit of general local 

government in which the project being demolished or disposed is located. 

In order to assure that all program requirements are satisfied, the PHA 

must enter into any necessary agreements, including where applicable, 

the execution of a Cooperation Agreement between the PHA and the 

locality in which the replacement housing will be located, prior to 

submission of the replacement housing plan to HUD for approval. In 

addition, the PHA must ensure that such agreements provide that the 

families selected for occupancy in the replacement housing will be 

families who would have been eligible for occupancy in the replacement 

housing if it had been replaced in the same locality as the project 

being demolished or disposed. The plan must include any one or 

combination of the following:

    (1) The acquisition or development of additional public housing 

dwelling units;

    (2) The use of 15-year project-based assistance under section 8, 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 dwelling units in a development, the use of available project-based 

assistance under section 8 having a term of not less than 5 years;

    (3) 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 the demolition 

or disposition of 200 or more dwelling units in a development, the use 

of available project-based assistance under other Federal programs 

having a term of not less than 5 years. (NOTE: In the case of 15-year 

project based assistance under other Federal programs, the Department 

has determined that low-income housing credits under Section 42 of the 

Internal Revenue Service Code is a Federal program providing 15-year 

project-based assistance and, therefore, qualifies as a source of 

replacement housing. Any replacement housing plan proposing the use of 

these credits must assure that the low-income housing units in the low-

income housing credit project which are designated as replacement 

housing will be reserved for low-income families for the requisite 

period. Units which at the time of allocation of the credit are also 

receiving Federal assistance under Section 8 (except tenant-based 

assistance) or Section 23 of the Act, or Section 236, 221(d)(3) BMIR or 

Section 221(d)(5) of the National Housing Act (12 U.S.C. 1701 et seq.), 

or Section 101 of the Housing and Urban Development Act of 1965 (12 

U.S.C. 1701s), or other similar Federal program, are not eligible as 

replacement housing under paragraph (a)(3) of this section.);

    (4) The acquisition or development of dwelling units assisted under 

a State or local government program that provides for project-based 

rental assistance comparable in terms of eligibility,



[[Page 540]]



contribution to rent, and length of assistance contract (not less than 

15 years) to assistance under section (8)(b)(1) of the Act; or

    (5)(i) The use of 15-year tenant-based assistance under section 8 of 

the Act, (excluding rental vouchers under section 8(o)), under the 

conditions described in paragraph (b) of this section, to the extent 

available, or if such assistance is not available, in the case of an 

application proposing the demolition or disposition of 200 or more 

dwelling units in a development, the use of tenant-based assistance 

under section 8 (excluding rental vouchers under section 8(o)) having a 

term of not less than 5 years.

    (ii) However, in the case of an application proposing demolition or 

disposition of 200 or more units, not less than 50 percent of the 

dwelling units for replacement housing shall be provided through the 

acquisition or development of additional public housing dwelling units 

or through project-based assistance, and not more than 50 percent of the 

additional dwelling units shall be provided through tenant-based 

assistance under section 8 (excluding vouchers) having a term of not 

less than 5 years. The requirements of Sec.  970.11(b) do not apply to 

applications for demolition or disposition of 200 or more units that 

propose the use of tenant-based assistance under section 8 having a term 

of not less than 5 years for the replacement of not more than 50 percent 

of the units to be demolished or disposed of.

    (b) Conditions for use of tenant-based assistance. Fifteen-year 

tenant-based assistance under section 8 may be approved under the 

replacement plan only if provisions listed in paragraphs (b)(1) through 

(3) of this section are met.

    (1) There is a finding by HUD that replacement with project-based 

assistance (including public housing, as well as other types of project-

based assistance under paragraph (a) of this section) is not feasible 

under the feasibility standards established for project-based 

assistance; that the supply of private rental housing actually available 

to those who would receive tenant-based assistance under the plan is 

sufficient for the total number of rental certificates and rental 

vouchers available in the community after implementation of the plan; 

and that this available housing supply is likely to remain available for 

the full 15-year term of the assistance;

    (2) HUD's findings under paragraph (b)(1) of this section are based 

on objective information, which must include rates of participation by 

landlords in the Section 8 program; size, condition, and rent levels of 

available rental housing as compared to Section 8 standards; the supply 

of vacant existing housing meeting the Section 8 housing 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 8; the 

extent of discrimination practiced against the types of individuals or 

families to be served by the assistance; an assessment of compliance 

with civil rights laws and related program requirements; and such 

additional data as HUD may determine to be relevant in particular 

circumstances; and

    (3) To justify a finding under paragraph (b)(1) of this section, the 

PHA must provide sufficient information to support both parts of the 

finding--why project-based assistance is infeasible and how the 

conditions for tenant-based assistance will be met, based on the 

pertinent data from the local housing market, as prescribed in paragraph 

(b)(2) of this section. The determination as to the lack of feasibility 

of project-based assistance must be based on the standards for 

feasibility stated in the respective regulations which govern each type 

of eligible project-based program identified in paragraph (a) of this 

section, including public housing under paragraph (a)(1) of this section 

as well as the other types of eligible Federal, State and local programs 

of project-based assistance under paragraphs (a)(2) through (4) of this 

section. A finding of lack of feasibility may thus be made only if the 

applicable feasibility standards cannot be met under any of those 

project-based programs, or any combination of them. For example, with 

regard to additional public housing development, feasibility would be 

determined by reference to



[[Page 541]]



part 941 of this chapter and any other applicable regulations and 

requirements, to include consideration of such factors as local needs 

for new construction or rehabilitation, availability of suitable 

properties for acquisition or sites for construction, and HUD 

determinations under cost containment policies. With regard to Section 8 

programs involving rehabilitation, an example of a major feasibility 

factor would be the prospects for participation of private owners 

willing to meet the rehabilitation requirements.

    (c) Approval of unit of general local government. The plan must be 

approved by the unit of general local government in which the project 

proposed for demolition or disposition is located, which approval shall 

be provided by the chief executive officer (e.g., the mayor or the 

county executive).

    (d) Schedule for replacement housing plan. (1) The plan must include 

a schedule for carrying out all its terms within a period consistent 

with the size of the proposed demolition or disposition, except that the 

schedule for completing the plan shall in no event exceed 6 years from 

the date specified to begin plan implementation, which is the date of 

HUD approval of the demolition or disposition application.

    (2) Where demolition or disposition will occur in phases, the 

schedule shall provide for completing the plan within six years from the 

date of the HUD approval letter for a specific demolition or disposition 

action requested. ``Completion'' does not mean that the replacement 

housing must be built or rehabilitated within the six years. For 

replacement units developed under the public housing development 

program, the completion of the plan would be units that have reached the 

stage of notice to proceed for conventional units and contract of sale 

for Turnkey units.

    (e) Housing the same number of individuals and families. The plan 

must include a method which ensures that at least the same total number 

of individuals and families will be provided housing, allowing for 

replacement with units of different sizes to accommodate changes in 

local priority needs, as determined by the PHA and reviewed and approved 

by HUD as a part of the demolition or disposition application.

    (f) Relocation plan. Where existing occupants will be displaced, the 

plan must include a relocation plan in accordance with Sec. Sec.  970.5 

and 970.8(d).

    (g) Assurances regarding relocation. The plan must prevent the 

taking of any action to demolish or dispose of any unit until the tenant 

of the unit is relocated in accordance with Sec.  970.5. This does not 

preclude actions permitted under Sec.  970.12, actions required under 

this part for development and submission of the PHA's application for 

HUD approval of demolition or disposition, or actions required to carry 

out a relocation plan which has been approved by HUD in accordance with 

Sec. Sec.  970.5 and 970.8(d).

    (h) Site and neighborhood standards assessment. With respect to 

replacement housing, PHAs must comply with site and neighborhood 

standards, as follows:

    (1) If units under the Public Housing Development Program or the 

Section 8 project-based assistance program have been requested as 

replacement housing in the PHA's application, except when the PHA plans 

to build back on the same site, the site and neighborhood standards 

applicable for those programs will apply and be assessed at the 

appropriate time as required by that program rule or handbook and not at 

the time of the demolition or disposition application. The PHA must 

certify to HUD at the time of application for demolition or disposition, 

that once the site is identified, the PHA will comply with the site and 

neighborhood standards applicable for those programs.

    (2) If units under the Public Housing Development Program or the 

Section 8 project-based assistance program have been requested as 

replacement housing in the PHA's application and the PHA plans to build 

back on the same site, the PHA shall comply with the site and 

neighborhood standards applicable for those programs when the demolition 

or disposition application is submitted to HUD. A complete site and 

neighborhood standards review shall be done by HUD subsequent to the 

submission of the demolition or disposition application but prior to 

approval.



[[Page 542]]



    (3)(i) If the replacement housing units are to be provided under a 

State or local program, and the site is known (including building back 

on the same site), the PHA is required to comply with site and 

neighborhood standards comparable to part 882 of this title when the 

demolition or disposition application is submitted to HUD. A complete 

site and neighborhood standards review shall be done by HUD subsequent 

to the submission of the demolition or disposition application but prior 

to approval.

    (ii) However, if the site is not known, the PHA shall include in the 

application for demolition or disposition a certification that it will 

comply with site and neighborhood standards comparable to part 882 of 

this title once the site is known.

    (iii) In the case of replacement housing funded by State or local 

government funds, the PHAs must demonstrate in the application that it 

has a commitment for funding the replacement housing.

    (4)(i) If the replacement housing units are to be provided out of 

the proceeds of the disposition of public housing property, and the site 

is known (including building back on the same site), the PHA is required 

to comply with site and neighborhood standards comparable to part 941 of 

this chapter (or under part 882 of this title in the case of use of 

Section 8 assistance) when the demolition or disposition application is 

submitted to HUD. A complete site and neighborhood standards review 

shall be done by HUD subsequent to the submission of the demolition or 

disposition application but prior to approval.

    (ii) However, if the site is not known, the PHA shall include in the 

application for demolition or disposition a certification that it will 

comply with site and neighborhood standards comparable to part 941 of 

this chapter or under part 882 of this title once the site is known.

    (i) Assurances regarding accessibility. The plan must contain 

assurances that any replacement units acquired, newly constructed or 

rehabilitated will meet the applicable accessibility requirements set 

forth in Sec.  8.25 of this title.

    (j) Exception for replacement housing in cases of demolition. 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 public housing 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. If the 

PHA elects to use this exception, it shall meet all other requirements 

of this part except Sec.  970.11.



(Approved by the Office of Management and Budget under control number 

2577-0075)



[60 FR 3719, Jan. 18, 1995]