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Title 42 — The Public Health and Welfare

Chapter 8 — Low-Income Housing

§ 1437t. Authority to convert public housing to vouchers

Statutory text

(a)

Authority

A public housing agency may convert any public housing project (or portion thereof) owned by the public housing agency to tenant-based assistance, but only in accordance with the requirements of this section.

(b)

Conversion assessment

(1)

In general

To convert public housing under this section, a public housing agency shall conduct an assessment of the public housing that includes—

(A)

a cost analysis that demonstrates whether or not the cost (both on a net present value basis and in terms of new budget authority requirements) of providing tenant-based assistance under section 1437f of this title for the same families in substantially similar dwellings over the same period of time is less expensive than continuing public housing assistance in the public housing project for the remaining useful life of the project;

(B)

an analysis of the market value of the public housing project both before and after rehabilitation, and before and after conversion;

(C)

an analysis of the rental market conditions with respect to the likely success of the use of tenant-based assistance under section 1437f of this title in that market for the specific residents of the public housing project, including an assessment of the availability of decent and safe dwellings renting at or below the payment standard established for tenant-based assistance under section 1437f of this title by the agency;

(D)

the impact of the conversion to tenant-based assistance under this section on the neighborhood in which the public housing project is located; and

(E)

a plan that identifies actions, if any, that the public housing agency would take with regard to converting any public housing project or projects (or portions thereof) of the public housing agency to tenant-based assistance.

(2)

Timing

Not later than 2 years after the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, each public housing agency shall conduct an assessment under paragraph (1) or (3) of the status of each public housing project owned by such agency and shall submit to the Secretary such assessment. A public housing agency may otherwise undertake an assessment under this subsection at any time and for any public housing project (or portion thereof) owned by the agency. A public housing agency may update a previously conducted assessment for a project (or portion thereof) for purposes of compliance with the one-year limitation under subsection (c).

(3)

Streamlined assessment

At the discretion of the Secretary or at the request of a public housing agency, the Secretary may waive any or all of the requirements of paragraph (1) or (3) or otherwise require a streamlined assessment with respect to any public housing project or class of public housing projects.

(c)

Criteria for implementation of conversion plan

A public housing agency may convert a public housing project (or portion thereof) owned by the agency to tenant-based assistance only pursuant to a conversion assessment under subsection (b) that one year 1 and that demonstrates that the conversion—

(1)

will not be more expensive than continuing to operate the public housing project (or portion thereof) as public housing;

(2)

will principally benefit the residents of the public housing project (or portion thereof) to be converted, the public housing agency, and the community; and

(3)

will not adversely affect the availability of affordable housing in such community.

(d)

Conversion plan requirement

A public housing project may be converted under this section to tenant-based assistance only as provided in a conversion plan under this subsection, which has not been disapproved by the Secretary pursuant to subsection (e). Each conversion plan shall—

(1)

be developed by the public housing agency, in consultation with the appropriate public officials, with significant participation by the residents of the project (or portion thereof) to be converted;

(2)

be consistent with and part of the public housing agency plan;

(3)

describe the conversion and future use or disposition of the project (or portion thereof) and include an impact analysis on the affected community;

(4)

provide that the public housing agency shall—

(A)

notify each family residing in a public housing project (or portion) to be converted under the plan 90 days prior to the displacement date except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—

(i)

the public housing project (or portion) will be removed from the inventory of the public housing agency; and

(ii)

each family displaced by such action will be offered comparable housing—

(I)

that meets housing quality standards;

(II)

that is located in an area that is generally not less desirable than the location of the displaced person’s housing; and

(III)

which may include—

(aa)

tenant-based assistance, except that the requirement under this clause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such family into such housing;

(bb)

project-based assistance; or

(cc)

occupancy in a unit operated or assisted by the public housing agency at a rental rate paid by the family that is comparable to the rental rate applicable to the unit from which the family is vacated;

(B)

provide any necessary counseling for families displaced by such action;

(C)

ensure that, if the project (or portion) converted is used as housing after such conversion, each resident may choose to remain in their dwelling unit in the project and use the tenant-based assistance toward rent for that unit; and

(D)

provide any actual and reasonable relocation expenses for families displaced by the conversion; and

(5)

provide that any proceeds to the agency from the conversion will be used subject to the limitations that are applicable under section 1437p(a)(5) of this title to proceeds resulting from the disposition or demolition of public housing.

(e)

Review and approval of conversion plans

The Secretary shall disapprove a conversion plan only if—

(1)

the plan is plainly inconsistent with the conversion assessment for the agency developed under subsection (b);

(2)

there is reliable information and data available to the Secretary that contradicts that conversion assessment; or

(3)

the plan otherwise fails to meet the requirements of this section.

(f)

Tenant-based assistance

To the extent approved by the Secretary, the funds used by the public housing agency to provide tenant-based assistance under section 1437f of this title shall be added to the annual contribution contract administered by the public housing agency.

Footnotes

  1. 1 So in original.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Cranston-Gonzalez National Affordable Housing Act

    Pub. L. 101–625 title V § 515(a) · 104 Stat. 4079

    Enacted · 42 U.S.C. § 1437t

    Sept. 1, 1937, ch. 896, title I, § 22, as added Pub. L. 101–625, title V, § 515(a), Nov. 28, 1990, 104 Stat. 4196

    Source evidence

    Code source credit
    Sept. 1, 1937, ch. 896, title I, § 22, as added Pub. L. 101–625, title V, § 515(a), Nov. 28, 1990, 104 Stat. 4196

    Enacted provision · exact public law section
    (a) In General.— Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following new section: “Sec. 22. “family investment centers (a) Purpose.— The purpose of this section is to provide families living in public housing with better access to educational and employment opportunities to achieve self-sufficiency and independence by— “(1) developing facilities in or near public housing for training and support services; “(2) mobilizing public and private resources to expand and improve the delivery of such services; “(3) providing funding for such essential training and support services that cannot otherwise be funded; and “(4) improving the capacity of management to assess the training and service needs of families with children, coordinate the provision of training and services that meet such needs, and ensure the longterm provision of such training and services. “(b) Grant Authority.— “(1) In general.— The Secretary may make grants to public housing agencies to adapt public housing to help families living in the public housing gain better access to educational and job opportunities to achieve self-sufficiency and independence. Assistance under this section may be made available only to public housing agencies that demonstrate to the satisfaction of the Secretary that supportive services (as such term is defined under subsection (j)) will be made available. Facilities assisted under this section shall be in or near the premises of public housing. “(2) Supplemental grant set-aside.— The Secretary may reserve not more than 5 percent of the amounts available in each fiscal year under this section to supplement grants awarded to public housing agencies under this section when, in the determination of the Secretary, such supplemental adjustments are required to maintain adequate levels of services to eligible residents. “(c) Use of Amounts.— Amounts received from a grant under this section may only be used for— “(1) the renovation, conversion, or combination of vacant dwelling units in a public housing project to create common areas to accommodate the provision of supportive services; “(2) the renovation of existing common areas in a public housing project to accommodate the provision of supportive services; “(3) the renovation of facilities located near the premises of 1 or more public housing projects to accommodate the provision of supportive services; “(4) the provision of not more than 15 percent of the cost of any supportive services (which may be provided directly to eligible residents by the public housing agency or by contract or lease through other appropriate agencies or providers) only if the public housing agency demonstrates to the satisfaction of the Secretary that— “(A) the supportive services are appropriate to improve the access of eligible residents to employment and educational opportunities; and “(B) the public housing agency has made diligent efforts to use or obtain other available resources to fund or provide such services; and “(5) the employment of service coordinators subject to such minimum qualifications and standards that the Secretary may establish to ensure sound management, who may be responsible for— “(A) assessing the training and service needs of eligible residents; “(B) working with service providers to coordinate the provision of services and tailor such services to the needs and characteristics of eligible residents; “(C) mobilizing public and private resources to ensure that the supportive services identified pursuant to subsection (e)(1) can be funded over the time period identified under such subsection; “(B) monitoring and evaluating the impact and effectiveness of any supportive service program receiving capital or operating assistance under this section; and “(V) performing such other duties and functions that the Secretary determines are appropriate to provide families living in public housing with better access to educational and employment opportunities. “(d) Allocation of Grant Amounts.— Assistance under this section shall be allocated by the Secretary among approvable applications submitted by public housing agencies. “(e) Applications.— Applications for assistance under this section shall be submitted in such form and in accordance with such procedures as the Secretary shall establish. Each application for assistance shall contain— “(1) a description of the supportive services that are to be provided over a 5-year period (or such longer period that the Secretary determines to be appropriate if assistance is provided for activities under subsection (c) that involve substantial rehabilitation); “(2) a firm commitment of assistance from 1 or more sources ensuring that the supportive services will be provided for not less than 1 year following the completion of activities assisted under subsection (c); “(3) a description of public or private sources of assistance that can reasonably be expected to fund or provide supportive services for the entire period specified under paragraph (1), including evidence of any intention to provide assistance expressed by State and local governments, private foundations, and other organizations (including profit and nonprofit organizations); “(4) certification from the appropriate State or local agency (as determined by the Secretary) that— “(A) the provision of supportive services described in paragraph (1) is well designed to provide resident families better access to educational and employment opportunities; and “(B) there is a reasonable likelihood that such services will be funded or provided for the entire period specified in paragraph (1); “(5) a description of assistance for which the public housing agency is applying under this section; and “(6) any other information or certifications that the Secretary determines are necessary or appropriate to achieve the purposes of this section. “(f) Selection.— The Secretary shall establish selection criteria for grants under this section, which shall take into account— “(1) the ability of the public housing agency or a designated service provider to provide the supportive services identified under subsection (e)(1); “(2) the need for such services in the public housing project; “(3) the extent to which the envisioned renovation, conversion, and combination activities are appropriate to facilitate the provision of such services; “(4) the extent to which the public housing agency has demonstrated that such services will be provided for the period identified under subsection (e)(1); “(5) the extent to which the public housing agency has a good record of maintaining and operating public housing; and “(6) any other factors that the Secretary determines to be appropriate to ensure that amounts made available under this section are used effectively. “(g) Reports.— “(1) To secretary.— Each public housing agency receiving a grant under this section shall submit to the Secretary, in such form and at such time as the Secretary shall prescribe, an annual progress report describing and evaluating the use of grant amounts received under this section. “(2) To congress.— The Secretary shall submit to the Congress annually, as a part of the report of the Secretary under section 8 of the Department of Housing and Urban Development Act, an evaluation of the effectiveness of activities carried out with grants under this section in such fiscal year. Such report shall summarize the progress reports submitted pursuant to paragraph (1). “(h) Employment of Public Housing Residents.— Each public housing agency shall, to the maximum extent practicable, employ public housing residents to provide the services assisted under this section or from other sources. Such persons shall be paid at a rate not less than the highest of— “(1) the minimum wage that would be applicable to the employee under the Fair Labor Standards Act of 1938, if section 6(a)(1) of such Act applied to the resident and if the resident were not exempt under section 13 of such Act; “(2) the State or local minimum wage for the most nearly comparable covered employment; or “(3) the prevailing rates of pay for persons employed in similar public occupations by the same employer. “(i) Treatment of Income.— No service provided to a public housing resident under this section may be treated as income for the purpose of any other program or provision of State or Federal law. “(j) Definition of Supportive Services.— For purpose of this section, the term ‘supportive services’ means new or significantly expanded services that the Secretary determines are essential to providing families living with children in public housing with better access to educational and employment opportunities. Such services may include— “(1) child care; “(2) employment training and counseling; “(3) literacy training; “(4) computer skills training; “(5) assistance in the attainment of certificates of high school equivalency; and “(6) other appropriate services. “(k) Authorization of appropriations.— There are authorized to be appropriated to carry out this section $25,000,000 in fiscal year 1991, and $26,100,000 in fiscal year 1992.”.

  2. Housing and Community Development Act of 1992

    Pub. L. 102–550 title I § 119 · 106 Stat. 3672

    1. Amended · 42 U.S.C. § 1437t(k)

      Pub. L. 102–550 amended subsec. (k) generally

    2. Substituted · 42 U.S.C. § 1437t(k)

      Pub. L. 102–550 substituting present provisions for provisions authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in fiscal year 1992

    Source evidence

    Code amendment note
    Subsec. (k). Pub. L. 102–550 amended subsec. (k) generally, substituting present provisions for provisions authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in fiscal year 1992.

    Enacted provision · exact public law section
    SEC. 119. PUBLIC HOUSING FAMILY INVESTMENT CENTERS. Section 22(k) of the United States Housing Act of 1937 (42 U.S.C. 1437t(k)) is amended to read as follows: “(k) Authorization of Appropriations.— There are authorized to be appropriated to carry out this section $25,000,000 for fiscal year 1993 and $26,050,000 for fiscal year 1994”.

  3. Pub. L. 105–276 title V § 533(a) · 112 Stat. 2461

    Amended · 42 U.S.C. § 1437t

    Pub. L. 105–276 amended section generally. Prior to amendment, section related to award of grants to public housing agencies to adapt public housing to help families gain better access to educational and job opportunities, use of funds for supportive services, development of facilities to accommodate them, and employment of service coordinators, applications, selection for grants, reports to Secretary and Congress, and appropriations for fiscal years 1993 and 1994

    Source evidence

    Code amendment note
    Pub. L. 105–276 amended section generally. Prior to amendment, section related to award of grants to public housing agencies to adapt public housing to help families gain better access to educational and job opportunities, use of funds for supportive services, development of facilities to accommodate them, and employment of service coordinators, applications, selection for grants, reports to Secretary and Congress, and appropriations for fiscal years 1993 and 1994.

    Enacted provision · exact public law section
    (a) In General.— Section 22 of the United States Housing Act of 1937 (42 U.S.C. 1437t) is amended to read as follows: “SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS. “(a) Authority.— A public housing agency may convert any public housing project (or portion thereof) owned by the public housing agency to tenant-based assistance, but only in accordance with the requirements of this section. “(b) Conversion Assessment.— “(1) In general.— To convert public housing under this section, a public housing agency shall conduct an assessment of the public housing that includes— “(A) a cost analysis that demonstrates whether or not the cost (both on a net present value basis and in terms of new budget authority requirements) of providing tenant-based assistance under section 8 for the same families in substantially similar dwellings over the same period of time is less expensive than continuing public housing assistance in the public housing project for the remaining useful life of the project; “(B) an analysis of the market value of the public housing project both before and after rehabilitation, and before and after conversion; “(C) an analysis of the rental market conditions with respect to the likely success of the use of tenant-based assistance under section 8 in that market for the specific residents of the public housing project, including an assessment of the availability of decent and safe dwellings renting at or below the payment standard established for tenant-based assistance under section 8 by the agency; “(D) the impact of the conversion to tenant-based assistance under this section on the neighborhood in which the public housing project is located; and “(E) a plan that identifies actions, if any, that the public housing agency would take with regard to converting any public housing project or projects (or portions thereof) of the public housing agency to tenant-based assistance. “(2) Timing.— Not later than 2 years after the effective Deadline. date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, each public housing agency shall conduct an assessment under paragraph (1) or (3) of the status of each public housing project owned by such agency and shall submit to the Secretary such assessment. A public housing agency may otherwise undertake an assessment under this subsection at any time and for any public housing project (or portion thereof) owned by the agency. A public housing agency may update a previously conducted assessment for a project (or portion thereof) for purposes of compliance with the one-year limitation under subsection (c). “(3) Streamlined Assessment.— At the discretion of the Secretary or at the request of a public housing agency, the Secretary may waive any or all of the requirements of paragraph (1) or (3) or otherwise require a streamlined assessment with respect to any public housing project or class of public housing projects. “(c) Criteria for Implementation of Conversion Plan.— A public housing agency may convert a public housing project (or portion thereof) owned by the agency to tenant-based assistance only pursuant to a conversion assessment under subsection (b) that one year and that demonstrates that the conversion— “(1) will not be more expensive than continuing to operate the public housing project (or portion thereof) as public housing; “(2) will principally benefit the residents of the public housing project (or portion thereof) to be converted, the public housing agency, and the community; and “(3) will not adversely affect the availability of affordable housing in such community. “(d) Conversion Plan Requirement.— A public housing project may be converted under this section to tenant-based assistance only as provided in a conversion plan under this subsection, which has not been disapproved by the Secretary pursuant to subsection (e). Each conversion plan shall— “(1) be developed by the public housing agency, in consultation with the appropriate public officials, with significant participation by the residents of the project (or portion thereof) to be converted; “(2) be consistent with and part of the public housing agency plan; “(3) describe the conversion and future use or disposition of the project (or portion thereof) and include an impact analysis on the affected community; “(4) provide that the public housing agency shall— “(A) Notification. notify each family residing in a public housing project (or portion) to be converted under the plan 90 days prior to the displacement date except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that— “(i) the public housing project (or portion) will be removed from the inventory of the public housing agency; and “(ii) each family displaced by such action will be offered comparable housing“ “(I) that meets housing quality standards; “(II) that is located in an area that is generally not less desirable than the location of the displaced person’s housing; and “(III) which may include— “(aa) tenant-based assistance, except that the requirement under this clause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such family into such housing; “(bb) project-based assistance; or “(cc) occupancy in a unit operated or assisted by the public housing agency at a rental rate paid by the family that is comparable to the rental rate applicable to the unit from which the family is vacated; “(B) provide any necessary counseling for families displaced by such action; “(C) ensure that, if the project (or portion) converted is used as housing after such conversion, each resident may choose to remain in their dwelling unit in the project and use the tenant-based assistance toward rent for that unit; and “(D) provide any actual and reasonable relocation expenses for families displaced by the conversion; and “(5) provide that any proceeds to the agency from the conversion will be used subject to the limitations that are applicable under section 18(a)(5) to proceeds resulting from the disposition or demolition of public housing. “(e) Review and Approval of Conversion Plans.— The Secretary shall disapprove a conversion plan only if— “(1) the plan is plainly inconsistent with the conversion assessment for the agency developed under subsection (b); “(2) there is reliable information and data available to the Secretary that contradicts that conversion assessment; or “(3) the plan otherwise fails to meet the requirements of this section. “(f) Tenant-Based Assistance.— To the extent approved by the Secretary, the funds used by the public housing agency to provide tenant-based assistance under section 8 shall be added to the annual contribution contract administered by the public housing agency.”.

    Effective date note
    Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title.

4 of 4 references resolved to an enrolled provision

Editorial Notes

References in Text

Section 503(a) of the Quality Housing and Work Responsibility Act of 1998, referred to in subsec. (b)(2), is section 503(a) of Pub. L. 105–276, which is set out as an Effective Date of 1998 Amendment note under section 1437 of this title.

Amendments1992–1998 · 2 rounds

1998

Pub. L. 105–276 amended section generally. Prior to amendment, section related to award of grants to public housing agencies to adapt public housing to help families gain better access to educational and job opportunities, use of funds for supportive services, development of facilities to accommodate them, and employment of service coordinators, applications, selection for grants, reports to Secretary and Congress, and appropriations for fiscal years 1993 and 1994.

1992

Subsec. (k). Pub. L. 102–550 amended subsec. (k) generally, substituting present provisions for provisions authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in fiscal year 1992.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon , except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title.

Savings Provision

Pub. L. 105–276, title V, § 533(b), , 112 Stat. 2578, provided that: “The amendment made by subsection (a) [amending this section] shall not affect any contract or other agreement entered into under section 22 of the United States Housing Act of 1937 [42 U.S.C. 1437t], as such section existed immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998 [Pub. L. 105–276, set out as an Effective Date of 1998 Amendment note under section 1437 of this title].”

Public Housing One-Stop Perinatal Services Demonstration

Pub. L. 101–625, title V, § 521, , 104 Stat. 4205, as amended by Pub. L. 102–550, title I, § 125, , 106 Stat. 3710, which directed Secretary of Housing and Urban Development to carry out program to demonstrate effectiveness of providing grants to public housing agencies to assist such agencies in providing facilities for making one-stop perinatal services programs available for pregnant women residing in public housing, set forth preferences, limitation on grant amount, and program requirements, and required report to Congress not later than 1 year after amounts were first made available setting forth findings and conclusions and including recommendations with respect to establishment of permanent program, was repealed by Pub. L. 105–276, title V, § 582(a)(9), , 112 Stat. 2644.

Credits

1937–1998 · 3 acts
  1. 1937Sept. 1, 1937, ch. 896, title I, § 22, as added Pub. L. 101–625, title V, § 515(a), , 104 Stat. 4196
  2. 1992amended Pub. L. 102–550, title I, § 119, , 106 Stat. 3695
  3. 1998Pub. L. 105–276, title V, § 533(a), , 112 Stat. 2576.
Show as published

(Sept. 1, 1937, ch. 896, title I, § 22, as added Pub. L. 101–625, title V, § 515(a), , 104 Stat. 4196; amended Pub. L. 102–550, title I, § 119, , 106 Stat. 3695; Pub. L. 105–276, title V, § 533(a), , 112 Stat. 2576.)

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