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Demolition-Disposition Application Processing Criteria

In accordance with PIH Notice 2012-7, prior to submitting an application for the demolition and/or disposition of public housing, PHAs shall ensure that the application is complete and includes all information and documentation required by 24 CFR Part 970 and the HUD-52860 form (as explained and detailed in the instructions to the form).

The following application processing criteria applies to demolition and/or disposition applications submitted to HUD on or after October 17, 2011.

Process for Substantially Incomplete or Deficient Applications

HUD’s Special Application Center (SAC) will reject and not process an application that it finds to be substantially incomplete or otherwise deficient on a substantial item including but not limited to the following:

  • 24 CFR § 970.7(a)(1): Action is not in PHA Plan or Significant Amendment to Plan;
  • 24 CFR § 970.7(a)(2): Application does not identify development name/number or dwelling units proposed for demo/disposition;
  • 24 CFR § 970.7(a)(3): Application does not identify the specific  action proposed (e.g. demo and/or disposition;
  • 24 CFR § 970.7(a)(3): If disposition, application does not identify the following aspects of the specific  method of disposition (e.g. ground lease or sale; fair market value (FMV) or below FMV;  if below FMV, an acceptable proposed commensurate public benefit);
  • 24 CFR § 970.7(a)(4):Application does not include a general proposed timetable for the proposed action(s), including the date the PHA expects to begin relocation, the initial contract for demolition, the actual demolition, and, if applicable, the closing of sale or other form of disposition;
  • 24 CFR § 970.7(a)(5): Application does not include a statement (acceptable to HUD) justifying the proposed demolition and/or disposition under the applicable criteria of §§ 970.15 or 970.1724 § 970.7(a)(6) and § 970.7(a)(11):  If applicable, application does not include the relocation plan information requested by the HUD-form, including:
    • Form of comparable housing that will be offered to residents;
    • Description of counseling and advising services;
    • Estimated costs of moving expenses and counseling/advising services ;
    • Source of funds for moving expense;
    • Relocation timetable as prescribed in § 970.21; and
    • A certification that the PHA will comply with the relocation requirements of 24 CFR Part 970
  • 24 CFR § 970.7(a)(7): Application does not evidence the resident consultation, including:
    • description of the PHA's consultations with residents, any resident organizations, and the RAB;
    • Supporting evidence of consultation (e.g. sign in sheets from meetings);
    • Comments received from residents (if any) and PHA’s responses to those comments;
  • 24 CFR § 970.7(a)(8):  In the case of disposition, application does not include sufficient evidence of compliance with the offering to resident organizations, as required under § 970.9, or reason application meets an exception to this requirement;
  • 24 CFR § 970.7(a)(9): In the case of disposition, application does not include an estimate of the FMV of the property established on the basis of one independent appraisal (or tax assessor opinion, if applicable);
  • 24 CFR § 970.7(a)(10): In the case of disposition, application does not include:
    • estimates of the gross and net proceeds to be realized,
    • an itemization of estimated costs to be paid out of gross proceeds (e.g. relocation, closing costs)
    • proposed use of any net proceeds (for a use acceptable to HUD) in accordance with § 970.19;
  • 24 CFR § 970.7(a)(12): Where the PHA is requesting a waiver of the requirement of the application of proceeds for repayment of outstanding debt, the PHA must request such a waiver in its application, along with the description of the proposed use of the proceeds;
  • 24 CFR § 970.7(a)(13): Application does not include a PHA board resolution approving the specific demolition and/or disposition application;
  • 24 CFR § 970.7(a)(14): Application does not include evidence that the application was developed in consultation with appropriate government officials as defined in § 970.5, including a signed and dated letter in support of the application from the chief executive officer of the unit of local government;
  • 24 CFR § 970.7(a)(15): Application is submitted before an environmental review of the proposed demo and/or disposition action has been done in accordance with 24 CFR parts 50 or 58;
  • 24 CFR§ 970.7(a)(16): Application does not include a certification that the demolition and/or disposition application does not violate any remedial civil rights order or agreement, voluntary compliance agreement, final judgment, consent decree, settlement agreement, or other court order or agreement;
  • 24 CFR § 970.7(a)(17): For PHAs with approved CFFP agreements, application does not include a certification that the demolition and/or disposition action will not impact their CFFP commitments. 

If a PHA submits an application that the SAC determines to be substantially incomplete or deficient, SAC staff will stop its review and HUD will reject the application.  SAC staff will change the status of the application to INACTIVE in the Inventory Management System (IMS)/PIH Information Center (PIC) (IMS/PIC) and will not allow the resubmission of the application for reprocessing.  HUD will notify the PHA of the specific reason for rejecting the application in a formal letter.

Process for Application with Missing Information

HUD will continue to process an application (and allow the PHA to submit clarifying or missing information) whenever it deems the missing information to be minor or insubstantial.  Any supporting information required under 24 CFR Part 970.7(a)(1) - (17) will not be deemed minor or insubstantial.

Process for Submitting a New Application

A PHA may submit a new application for the same demolition or disposition that HUD has rejected under a new application number in IMS/PIC.  HUD reviews the new application pursuant to the requirements of 24 CFR part 970.  After it is has rejected an application, HUD will not allow a PHA to submit the missing items or correct deficiencies in that rejected application. 

HUD Review Criteria for Complete Applications

When an application is complete, HUD will consider review based on the criteria in 24 CFR §970.7 and §970.15 (demolition criteria) or §970.17 (disposition criteria).

HUD Criteria for Disapproval of Complete Applications

HUD may disapprove an application even when complete based on the criteria of 24 CFR § 970.29.  Specifically, HUD shall disapprove an application if it finds that: (1) a certification from a PHA (regarding its complete application) is clearly inconsistent with the PHA plan, and/or any information and data available to or requested by HUD related to the requirements of 24 CFR Part 970; or (2) that the application was not developed in consultation with the residents and resident groups as required in 24 CFR § 970.9. 

HUD Technical Assistance Available

SAC management is available to provide technical assistance and consultation to PHAs on their proposed applications, so long as it occurs prior to the PHA’s submission of the application in PIC.  To request technical assistance on a draft application, contact the SAC at 312-353-6236 or send an email to