Demolition Justification<\/strong><\/p>\n\n\n\n

In most instances, HUD approval is required for a demolition of a public housing property. If a demolition is to occur after a disposition (e.g., in a Low-Income Housing Tax Credit transaction), the HUD approval is not required, though disposition requirements must still be met. The Department may approve demolition in the following circumstances:<\/p>\n\n\n\n

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• Justification Criteria<\/strong> \u2013 a project may be demolished if 1) the project or portion of it is \u201cobsolete as to physical condition, location, or other factors, making it unsuitable for housing purposes\u201d and rehabilitation is not cost-effective; and 2) if the demolition of a part of a project will help to ensure the viability of the remaining portion of the project;
  • Physical Condition<\/strong> \u2013 the PHA must demonstrate substantial physical issues with the buildings that cannot be corrected in a cost-effective manner, must submit certification of physical obsolescence through certain HUD forms, and may submit a physical needs assessment and certain other supporting documentation subject to certain requirements;<\/li><\/ul>
    • Location<\/strong> \u2013 the PHA must demonstrate that the location of the units cause obsolescence, including the following: \u201cphysical deterioration of the neighborhood; change in neighborhood from residential to industrial or commercial; or [poor] environmental conditions . . .\u201d; or<\/li><\/ul>\n
      \n
      • Other Factors<\/strong> \u2013 the demonstrates factors that seriously impede operations for residential use supported by third-party documentation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • De Minimis Demolition<\/strong> \u2013 in any five year period, a PHA may demolish the lesser of five dwelling units or five percent of its public housing dwelling units without HUD approval, subject to certain conditions.<\/li>\n<\/ul>\n\n\n\n

        Eligibility for Tenant-Protection Vouchers (TPVs)<\/strong><\/p>\n\n\n\n

        A housing agency may be eligible for TPVs from HUD after the approval of a SAC application. The issuance of TPVs does not occur automatically with SAC approval of an application. The SAC approval letter will detail the application process.<\/p>\n\n\n\n

        The Department will determine a PHA\u2019s TPV award based on appropriations and other HUD-issued guidance. The SAC approval indicates the maximum level of relocation and replacement TPVs that a PHA may receive. The Department is limiting the maximum TPV awards to 25% of the units occupied in the last 24 months at the development under the improved efficiency or effectiveness rationales for disposition. Even if a PHA is not eligible to receive TPVs in a SAC-approved removal, the PHA must still comply with relocation requirements.<\/p>\n\n\n\n

        Other Requirements<\/strong><\/p>\n\n\n\n

        The notice discusses certain other requirements on topics including existing financial transactions, operating fund accuracy and updating days to relocation, re-occupying units proposed for demolition or disposition, reporting requirements, false certifications and HUD enforcement, and certain civil rights requirements.<\/p>\n\n\n\n

        Relocation of Residents<\/strong><\/p>\n\n\n\n

        The notice clarifies certain relocation requirements. It states that displaced residents must be offered comparable housing that meets housing quality standards and is located in an area that is \u201cgenerally not less desirable the location of the displaced persons.\u201d If the residents are given Housing Choice Voucher assistance and the owner does not meet housing quality standards for the unit, then the PHA must take enforcement action. The Department also recommends that PHAs give the residents who are relocated the first right to occupy the new replacement units. Finally, the PHA must provide any necessary counseling for residents that are displaced.<\/p>\n\n\n\n

        The full notice can be found here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

        By: Tushar Gurjal, Senior Policy Manager In December, HUD published a notice titled \u201cDemolition and\/or disposition of public housing property, eligibility for tenant-protection vouchers, and associated requirements\u201d [PIH 2024-40 (HA)]. […]<\/p>\n","protected":false},"featured_media":0,"template":"","categories":[24,51,649,69,669,650,81],"tags":[],"news_type":[646,124],"class_list":["post-45486","news","type-news","status-publish","hentry","category-affordable-housing","category-hud","category-policy","category-public-housing","category-rad","category-section-8","category-section-8-housing-choice-vouchers","news_type-blog-news","news_type-featured"],"yoast_head":"\n