[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: 24CFR972.127]



[Page 557]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 972_CONVERSION OF PUBLIC HOUSING TO TENANT-BASED ASSISTANCE--Table 

of Contents

 

      Subpart A_Required Conversion of Public Housing Developments

 

Sec.  972.127  Standards for determining whether a property is viable 

in the long term.



    In order for a property to meet the standard of long-term viability, 

as discussed in Sec.  972.124, the following criteria must be met:

    (a) The investment to be made in the development is reasonable. (1) 

Proposed revitalization costs for viability must be reasonable. Such 

costs must not exceed, and ordinarily would be substantially less than, 

90 percent of HUD's total development cost (TDC) limit for the units 

proposed to be revitalized (100 percent of the total development cost 

limit for any ``infill'' new construction subject to this regulation). 

The revitalization cost estimate used in the PHA's most recent Annual 

Plan or 5-Year Plan is to be used for this purpose, unless the PHA 

demonstrates, or HUD determines, that another cost estimate is clearly 

more realistic to ensure viability and to sustain the operating costs 

that are described in paragraph (a)(2) of this section.

    (2) The overall projected cost of the revitalized development must 

not exceed the Section 8 cost under the method contained in the Appendix 

to this part, even if the cost of revitalization is a lower percentage 

of the TDC than the limits stated in paragraph (a)(1) of this section.

    (3) The source of funding for such a revitalization program must be 

identified and available. In addition to other resources already 

available to the PHA, it may assume that future formula funds provided 

through the Capital Fund over five years are available for this purpose.

    (b) Appropriate density is achieved. The resulting public housing 

development must have a density which is comparable to that which 

prevails in or is appropriate for assisted rental housing or for other 

similar types of housing in the community (typically family).

    (c) A greater income mix can be achieved. (1) Measures generally 

will be required to broaden the range of resident incomes over time to 

include a significant mix of households with at least one full-time 

worker. Measures to achieve a broader range of household incomes must be 

realistic in view of the site's location. Appropriate evidence typically 

would include census or other recent statistical evidence demonstrating 

some mix of incomes of other households located in the same census tract 

or neighborhood, or unique advantages of the public housing site.

    (2) For purposes of judging appropriateness of density reduction and 

broader range of income measures, overall size of the public housing 

site and its number of dwelling units will be considered. The concerns 

these measures would address generally are greater as the site's size 

and number of dwelling units increase.



                            Conversion Plans