[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: 24CFR972.224]



[Page 563]

 

                 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.  972.224  Necessary conditions for HUD approval of conversion.



    (a) Conditions. In order to convert a public housing development, 

the PHA must conduct a conversion assessment that demonstrates that the 

conversion of the development:

    (1) Will not be more expensive than continuing to operate the 

development (or portion of it) as public housing;

    (2) Will principally benefit the residents of the public housing 

development (or portion thereof) to be converted, the PHA, and the 

community; and

    (3) Will not adversely affect the availability of affordable housing 

in the community.

    (b) Evidence--(1) Relative expense. The relative expense of 

continuing operation as public housing or conversion to tenant-based 

assistance may be demonstrated by the cost analysis and market value 

analysis.

    (2) Benefit to residents, PHA, and the community. (i) The benefit to 

residents, the PHA, and the community may be demonstrated in the rental 

market analysis, the analysis of the impact on the neighborhood, the 

market value analysis, and the proposed future use of the development. 

In determining whether a conversion will principally benefit residents, 

the PHA, and the community, HUD will consider whether the conversion 

will conflict with any litigation settlement agreements, voluntary 

compliance agreements, or other remedial agreements signed by the PHA 

with HUD.

    (ii) In making the determination of whether a conversion would 

principally benefit residents, the PHA, and the community, the PHA must 

consider such factors as the availability of landlords providing tenant-

based assistance, as well as access to schools, jobs, and 

transportation.

    (iii) To determine the benefit to residents, the PHA must hold at 

least one public meeting with residents of the affected site (including 

the duly elected Resident Council, if any, that covers the development 

in question). At the meeting, the PHA must:

    (A) Explain the requirements of section 22 of the United States 

Housing Act of 1937 and these regulations, especially as they apply to 

residents of affected developments;

    (B) Provide draft copies of the conversion assessment to the 

residents; and

    (C) Provide the residents with a reasonable period of time to submit 

comments on the draft conversion assessment.

    (iv) The conversion assessment submitted to HUD must contain a 

summary of the resident comments, and the PHA responses to any 

significant issues raised by the commenters.

    (3) Impact on affordable housing. The impact on affordable housing 

may be demonstrated in the rental market analysis and the analysis of 

the impact of conversion on the neighborhood.



                            Conversion Plans