[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: 24CFR972.218]



[Page 562]

 

                 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 B_Voluntary Conversion of Public Housing Developments

 

Sec.  972.218  Conversion assessment components.



    The conversion assessment contains five elements, as described 

below:

    (a) Cost analysis. A PHA must conduct a cost analysis comparing the 

cost of providing Section 8 tenant-based assistance with the cost of 

continuing to operate the development as public housing for the 

remainder of its useful life. The cost methodology necessary to conduct 

the cost comparisons for voluntary conversions has not yet been 

finalized. PHAs may not undertake conversions under this subpart until 

the effective date of the cost methodology, which will be announced in 

the Federal Register. Once effective, the cost methodology will be 

codified as an appendix to this part.

    (b) Analysis of the market value. (1) A PHA must have an independent 

appraisal conducted to compare the market value of the development 

before and after rehabilitation. In both cases, the market value must be 

based on the use of the development as public housing.

    (2) In addition, the appraisal must compare:

    (i) The market value of the development before rehabilitation, based 

on the use of the development as public housing, with the market value 

of the development after conversion; with

    (ii) The market value of the development after rehabilitation, based 

on the use of the development as public housing, with the market value 

of the development after conversion.

    (3) A copy of the appraisal findings and the analysis of market 

value of the development in the conversion assessment must be provided 

in the conversion assessment.

    (c) Analysis of rental market conditions. (1) A PHA must conduct an 

analysis of the likely success of using tenant-based assistance for the 

residents of the public housing development. This analysis must include 

an assessment of the availability of decent, safe, and sanitary dwelling 

units rented at or below the applicable Section 8 payment standard 

established for the jurisdiction or designated part of the FMR area in 

which the development is located.

    (2) In conducting this assessment, a PHA must take into account:

    (i) Its overall use of rental certificates or vouchers under lease 

and the success rates of using Section 8 tenant-based assistance in the 

community for the appropriate bedroom sizes, including recent success 

rates for units renting at or below the established payment standard; 

and

    (ii) Any particular characteristics of the specific residents of the 

public housing which may affect their ability to be housed (such as 

large household size or the presence of an elderly or disabled family 

member).

    (d) Impact analysis. A PHA must describe the likely impact of 

conversion of the public housing development on the neighborhood in 

which the public housing is located. This must include:

    (1) The impact on the availability of affordable housing in the 

neighborhood;

    (2) The impact on the concentration of poverty in the neighborhood; 

and

    (3) Other substantial impacts on the neighborhood.

    (e) Conversion implementation. If a PHA intends to convert the 

development (or a portion of it) to tenant-based assistance, the 

conversion assessment must include a description of any actions the PHA 

plans to take in converting the development. This must include a general 

description of the planned future uses of the development, and the means 

and timetable for accomplishing such uses.