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DeconcentrationEnabling Legislation QHWRA legislation established mechanisms to deconcentrate poverty and promote income-mixing in public housing such that low-income households are not concentrated in certain developments or buildings within a development. The Act established incentives to eligible higher-income families to reside in units predominantly occupied by relatively lower-income families and for the occupancy of predominantly higher-income occupied units by lower income families. NAHRO Policy Position On December 22, 2000, HUD issued its final rule, amending the deconcentration provision of a HUD regulation on Public Housing Agency Plans issued on October 21, 1999. The new regulations (24 CFR Part 903, Subpart A) were issued as the “Rule to Deconcentrate Poverty and Promote Integration in Public Housing; Final Rule” and took effect on January 22, 2001. Beginning with October 2001 PHAs, agencies must follow the final rule when submitting their PHA Plan. HUD’s deconcentration rule attempts to break down concentrations of public housing residents by race and income. NAHRO supports the concept of deconcentration and the spirit of the rule issued by HUD. NAHRO policy position is that implementation of deconcentration strategies should be left to local decision-making. Consistent recommendations made by NAHRO and other groups representing LHAs, HUD issued its final rule on deconcentration of public housing. In keeping with NAHRO’s deconcentration policy position, HUD’s final rule
As advocated by NAHRO and others, the final deconcentration rule also allows LHAs the option of determining the LHA-wide median income rather than average income, and to factor in unit size of each development, before determining and Established Income Range (EIR) of 85 - 115% of the LHA-wide median or average income. Finally, the rule moved away from an assumption that most developments are concentrations of relatively lower-income or higher-income tenants within LHAs’ public housing portfolios, and recognized that most developments represent a reasonable level of income ranges. Pending Issues HUDs final deconcentration rule published on December 22, 2001, left a number of implementation issues undefined. In an attempt to clarify implementation issues in the final deconcentration rule, HUD issued PIH Notice 2001-4 on January 19, 2001. Both HUD’s final deconcentration rule as well as the attendant
PIH Notice 2001-4, may be subject to further changes. However, we
would advise PHAs with FY October 2001 PHA Agency Plans, to follow
the steps outlined in the deconcentration rule. Please be advised
that further information on the status of its implementation will
likely be forthcoming. There are a number of other issues that remain
unanswered by PIH Notice 2001-4, but are issues on which NAHRO is
seeking further clarification from HUD. For more information, contact: Jonathan Zimmerman Link to:
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