Read the Impacts of Coronavirus on Resident and Local Government Consultation Requirements for Section 18 Demo/Dispo and Section 22 Voluntary Conversion
Repositioning Public Housing
HUD has various repositioning strategies available to public housing agencies (PHAs) to provide thousands of families across the country with better-maintained units while creating opportunities to leverage public and private resources, easing administration, and preserving affordable housing. Repositioning from a public housing platform to other forms of HUD rental assistance can help PHAs address rehabilitation and physical needs, as well as place properties on a more stable financial foundation. The Department’s repositioning efforts will provide communities with additional flexibilities to better meet local needs and funding options to achieve long-term viability for their affordable housing. Click here to explore this website.
Already have an approved CHAP under RAD? Instructions for submitting a removal application via IMS/PIC are available here. Read the explanation of property in RAD PIC application (MS-Word).
What We Do
The Special Applications Center (SAC) enables the Office of Public and Indian Housing to assist Housing Authorities in their efforts to efficiently and effectively meet the housing needs of their communities through the specialized review and approval of non-funded, non-competitive applications, related to:
- Demolition/Disposition - removal of public housing units from the public housing stock by razing, sale or lease (in whole or part).
- De Minimis Demolition - demolition of not more than the lesser of 5 dwelling units or 5 percent of a PHA’s total public housing dwelling units in a 5-year period (no HUD approval required).
- Eminent Domain - the taking of public housing property for a public use.
- Homeownership - sale of public housing units to public housing residents or public housing eligible residents.
- Conversion - the conversion of a development to tenant-based assistance.
- Retentions - the ability of PHAs to retain certain public housing property free from public housing use restrictions in accordance with the requirements of 2 CFR part 200.
- PIH 2021-07 (HA) - Demolition and/or disposition of public housing property, eligibility for tenant-protection vouchers, and associated requirements
- PIH Notice 2020-23: Use of Proceeds under Section 18 Disposition or Section 22 Voluntary Conversion
- PIH Notice 2019-10: Required Conversion Notice
- PIH 2019-05: Streamlined Voluntary Conversion Notice
- PIH Notice 2017-24: Guidance on Third-Party Agreements Encumbering Public Housing Property
- PIH Notice 2016-20: Requirements Related to Retaining Public Housing Property under 2 CFR part 200
- PIH Notice 2012-8: Eminent Domain Requirements
- PIH Notice 2020-19: Rent Reasonableness—Defining Assisted Units for the Housing Choice Voucher and Project-Based Voucher Programs
- PIH 2022-14 and PIH 2018-09: Fiscal Year HCV Funding Provisions. Explains requirements related to Section 8 housing choice vouchers (known as Tenant Protection Vouchers (TPVs) which PHAs may be eligible to receive based on certain unit removals processed by the SAC
- See also TPV Repositioning FAQS (June 2020)
- See also Project Based Voucher (PBV) and Repositioning FAQs
- PIH 2019-23, H 2019-09 REV-4: Rental Assistance Demonstration – Final Implementation, Revision 4
- PIH 2019-14 (HA): Declaration of Trust (DOT) and Annual Contributions Contract (ACC) requirements.
- PIH 2019-13: Explains Public Housing Closeout Requirements
- PIH Notice 2016-22: Environmental Review Requirements for PHAs
- PIH 2017-21: Implementation Guidance: Housing Opportunity Through Modernization Act of 2016 (HOTMA) - Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) Provisions
- PIH 2021-37: Guidance on Eligibility for Asset-Repositioning Fee (ARF)
(NEW) You Have SAC Approval - What Now? (Webinar)
SAC Actions and Environmental Reviews
All SAC actions (Section 18, Section 22, Section 33, Section 32, Part 200 retentions, and Settlement Agreements for Eminent Domain) require environmental clearance through an environmental reviews (ER) before HUD will approve the action and release the Declaration of Trust (DOT).
• Environmental clearance means HUD’s provision of an Authority to Use Grant Funds (AUGF) following approval by the Responsible Entity (RE) of an ER conducted under 24 CFR part 58 and submission of a Request for Release of Funds/Certification (RROF/C), or final approval from a HUD Approving Official of an ER conducted under 24 CFR part 50. (See PIH Notice 2016-22.) PHAs are responsible for providing the RE or local Office of Public Housing (Field Office) with a full description of the activities in connection with the demolition and/or disposition (including relocation, known future use of the site, use of disposition proceeds) to comply with aggregation requirements. The site re-use is not limited to future actions by the PHA, but includes any future known re-use by future owners.
• ERs must be conducted within the past five years and must contemplate the same project description and scope as proposed as the future use in the SAC application. However, SAC strongly encourages PHAs to have the ER conducted within one year prior to submission of the SAC application, to ensure it fully captures the planned future use and current condition of the property.
• The ER must be completed PRIOR to the submission of the SAC application in IMS/PIC unless the demolition or disposition meets the emergency requirements stated in 58.33 (i.e., there is a Presidentially or locally declared disaster and an immediate need for the proposed action to protect the public safety). In this instance, 24 CFR 58.33 allows for a Notice of Intent to Request Release of Funds (NOI-RROF) and FONSI to be published simultaneously with the submission of the RROF/C 7015.15 to HUD. If the project meets requirements of 24 CFR 58.33, the public comment period and objection period can be held concurrently over one 15-day period. The public notice must state that the public comment and objection periods have been combined. All comments must be submitted to both the RE and HUD. In this case, the RE publishes the public notice AND submits the RROF/C simultaneously. Then the 15-day comment and objection periods are held concurrently, followed by HUD’s approval of the RROF (by issuing the AUGF)(added this to stay consistent with the description above). On a case-by-case basis, if there are timing issues related to the need to obtain HUD approval of the SAC application (i.e., LIHTC closing deadline), SAC may allow a PHA to submit a SAC application during the public comment for the FONSI notice, so that SAC can begin its review of the application. SAC may also allow a PHA to submit an (incomplete) SAC application (i.e., an application without completion of the ER) in order to secure Emergency Tenant Protection Vouchers (TPVs) and issue the families tenant-based HCV assistance. (See Appropriations language for TPVs in PIH Notice 2021-10.) Please contact SACTA@hud.gov.
If, after SAC approval, a PHA’s plans changes and it would like to dispose of the property for a different future use, PHA is required to request that the SAC approval. If the different use is substantially different from the project scope reflected in Environmental Review (ER) that was done pursuant to 24 CFR 970.13 under 24 CFR part 58, PHA must inform the Responsibility Entity (RE) and permit the RE to re-evaluate the ER. If the ER was done under part 50, PHA must inform HUD. It is up to the RE (or HUD) to make a determination as to whether the ER will be updated or a new ER is required (based on the updated project description, project scope, and environmental conditions) (refer to 24 CFR 58.47 for a complete description of the re-evaluation criteria). If a new ER is required, the RE (or HUD) may choose to use the past ER to guide completion of the new ER. If the PHA delays the approved Section 18 demolition or disposition and continues to operate a public housing project, the project is subject to the normal environmental requirements for public housing property. (See PIH Notice 2022-14.) Please contact SACTA@hud.gov.
Note also that if the property will be operated as a federally assisted project (e.g., PBV) following disposition, that would generally require a separate ER (unless both the disposition and PBV use are contemplated in the same ER and the ER completed satisfies the requirements of both programs).
See also “ Public Housing Repositioning: Wednesday Webinar Series - Environmental Review Procedures”
Public Housing Repositioning: Wednesday Webinar Series
February 15, 2023 (1-3 PM ET). How to Prepare and Submit a SAC Application. Read more...
PHA Asset Repositioning Post-Closing How-To Videos
HUD has a series of How-To videos to assist PHAs in operating project-based voucher (PBV) projects after a public housing repositioning through RAD, Section 18, or Section 22. Read more...
- RAD/Section 18 Blends
- New Demolition/Disposition Notice (PIH Notice 2021-7)--with new RAD/Section 18 blends criteria
- SVC Overview
- PIH Notice 2020-23 (Use of Proceeds under Section 18 Disposition or Section 22 Voluntary Conversion)
- Tenant Protection Vouchers for Public Housing Actions (FAQs)
- Section 18 Application Checklist
- Streamlined Voluntary Conversion Checklist
- Streamlined Voluntary Conversion Order of Operations
Have you considered RAD?
RAD can help owners rehabilitate properties and avoid demolition or disposition.
- About the SAC- an overview of the SAC and access to our staff directory.
- SAC 20th Anniversary (YouTube Video)
- Inventory Removals Application Forms (HUD-52860)(4-2018). New HUD forms on demolition/disposition and other inventory removals.
- Requesting Technical Assistance: PHAs may request technical assistance (TA) and consultation from the SAC on their proposed applications, so long as the requests occur prior to a PHA’s submission of an application to HUD. TA and consultation is also available to residents, their representatives, and the public. To request technical assistance, contact the SAC at 312-353-6236 or send an email to SACTA@hud.gov.
- Total Development Cost (TDC) Information
- Qualified PHAs under HERA: PHA Plan Requirements
- Public Housing Property Damaged or Destroyed by Casualty Loss or Natural Disaster
- PHAs should note the Implications of "Days to Relocation" in SAC Application on Operating Fund
- Impact on Capital Funds and Demolition Transitional Funding (DDTF): nits and other property removed from the PHA’s public housing stock are no longer eligible to receive standard Capital Funds assistance, but the PHA may be eligible to receive DDTF pursuant to 24 CFR § 905.326(j). DDTF funds are Capital Fund Grants that are awarded to PHAs that have removed units from their public housing inventories.
- IMS/PIC Inventory Removal Submodule User Manuals (HUD and PHA): See “Inventory Removals” under “Housing Inventory”.