HUD Releases Notice on Removal of Public Housing Units

On December 7, HUD released Notice PIH 2016-23 (HA). The Notice, titled “Requirements for PHAs removing all public housing units and guidance on either the termination of the ACC or the continuation of the public housing program,” provides information and guidance regarding program activities that Public Housing Agencies (PHAs) must complete regarding the removal of the last of their public housing dwelling units from their public housing inventory. This includes public housing removed through Section 18 (demo/dispo), Section 22 (voluntary conversions to tenant-based rental assistance), Section 32 (resident homeownership programs), Section 33 (required conversion of distressed public housing to tenant-based rental assistance), Section 24 (HOPE VI and Choice Neighborhoods demolitions), eminent domain, RAD transactions, and any other HUD approved action that results in the removal of public housing units from the PHA inventory.

Regardless of the removal mechanism chosen, the process to remove public housing units and other public housing real and personal property from a PHA’s inventory by releasing it from either a Declaration of Trust (DOT) or a Declaration of Restrictive Covenant (DORC) and removing it from the Annual Contributions Contract (ACC) results in a status change in IMS/PIC to “Removed from Inventory.” Prior to removal, PHAs must operate and maintain all public housing, including dwelling and non-dwelling property, in accordance with all applicable public housing requirements (and must only use such property for public housing purposes).

The Notice provides guidance on the notification submission to HUD for removing PHA’s final public housing unit, funding considerations for closeout activities, and closeout activities.  The notice also provides guidance on post-closeout activities, including the PHA Board resolution, the termination of the public housing ACC, and PHA record-keeping and post ACC termination responsibilities.