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Demolition and Disposition/h1>Periodically, LHAs may determine that some units must be removed from inventory. Public housing may be torn down or sold, but because of its public investment, there are specific rules (section 18 of the 1937 Act, section 531 of QHWRA) guiding how these activities occur. A process must be followed to remove units from the annual contributions contract (ACC), as this affects the amount of assistance an agency receives from HUD. Both capital and operating subsidy formulas include a mechanism to slowly reduce subsidy for units removed from the ACC. Consultation with the residents living in the subject development(s) is required. All activities must be authorized in the LHA's annual agency plan, but the actual applications are sent to HUD's Special Applications Center in Chicago. A relocation plan covering all families in residence is required. There is no separate funding for the relocation program. Instead, agencies may allot some portion of their capital funds for the activity, or use HOPE VI funds, or some other source of funds. Units under HOPE VI or the mandatory conversion provision are not subject to section 18 requirements. The Uniform Relocation Act (URA) and Real Property Acquisition Policies Act of 1970 does not apply to section 18; however, the language in statute is very similar to the URA requirements. Public housing, either an entire development or part of one, can be demolished if it conforms to these three criteria:
For disposition, an application must meet either one of these two criteria:
Alternatively, for disposition, the agency may determine that the disposition is appropriate because it is in the best interest of the residents and the agency, and is consistent with the goals of the agency plan. If the property in question is not dwelling units, the agency must show that it is excess to the agency's needs, and the property is incidental to or will not interfere with the agency's ongoing operations. Agencies are required to consult with residents and prepare a relocation plan that provides alternative housing choices to residents that are as much as possible similar in type and cost to their current dwelling. This may be a project-based unit or a tenant-based voucher, or another public housing unit, or a similar suitable unit. If the property in question has a duly elected resident council, that council must be offered the opportunity to purchase the property only in the case of disposition. Detailed rules of how the offer is made and the timeframe for responding are included in 24 CFR part 970.13. For more information, please contact Christine Siksa, Policy Analyst for Housing, at 202-289-3500, ext. 252 or by e-mail at csiksa@nahro.org.
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