The contents of this FAQ webpage, except when based on statutory or regulatory authority or law, does not have the force and effect of law and is not meant to bind the public in any way. These FAQs are intended only to provide clarity to the public regarding existing requirements under the law or agency policies.
Q. Can PHAs reposition public housing under the Choice Neighborhood Program?
Yes, PHAs can reposition under Choice Neighborhood Program. Units must be severely distressed and awarded a grant through the competitive NOFA process. Choice requires one-for-one replacement (i.e., RAD, PBV, or Public Housing ACC). Under Choice, public housing removals are removed under 24 CFR 970 in IMS/PIC that SAC oversees, Choice requires being selected under NOFA planning and implementation grants, learn more.
- How are my Op and Cap funds affected by repositioning?
- How do I spend Op and Cap during the repositioning? See below.
- DDTF and ARF Summary
This chart explains some of the key elements of Demolition Disposition Transition Fees (DDTF) and Asset Repositioning Fees (ARF).
- Repositioning and Public Housing Funds (Updated)
This document provides answers to frequently asked questions regarding the use of Public Housing Funds for repositioning.
These Guides review the different options and associated planning considerations, available to PHAs as they consider the long-term future of their portfolios, with a focus on converting public housing properties and/or assistance to the Section 8 Program platform. The Guides present repositioning options (specific to the PHA size) in an accessible format to PHAs and their Governing Bodies, their staff, residents, and community members. Each Guide addresses the unique characteristics and opportunities most appropriate to PHAs of the respective size grouping.
- Repositioning Options: Summary of Key Characteristics (Revised)
This chart compares the key program characteristics of each main repositioning option, from eligibility for TPVs to impact on Faircloth.
- Choice Neighborhoods: Repositioning & Beyond
This document provides information about developing mixed-income housing through Choice Neighborhoods grants.
- Common Repositioning Financing Sources
This document provides a list of common financing sources that PHAs may want to consider when conducting rehabilitation or new development.
- Community Supportive Services (CSS) Programs and Repositioning
This chart provides information about the impact various repositioning strategies have on CSS programs and participants.
- Determining Capital Needs (NEW)
This document is intended to help PHA understand the differences between a RAD Capital Needs Assessment and a Section 18 Physical Needs Assessment.
- Environmental Reviews for Non-RAD Repositioning
This document provides an introduction to the environmental review requirements for non-RAD repositioning.
- Establishing an Owner Entity
This document provides information on establishing a separate legal entity (owner entity) to further a PHA’s repositioning goals.
- Faircloth FAQs
This document provides answers to frequently asked questions regarding PHA’s Faircloth Limit.
- How PHAs Can Leverage Partnerships with Housing Finance Agencies
This memo encourages PHAs to engage with their state HFAs.
- Pensions and Administrative Considerations
This document provides tips for PHAs to consider when analyzing their pension and administrative costs as part of their repositioning strategy.
- Repositioning for Residents (NEW)
This document provides answers to frequently asked questions that Public Housing residents may have regarding repositioning.
Q. How does repositioning public housing affect Operating Funds? What are the Implications of “Days to Relocation” in SAC Application on Operating Fund?
See HUD resources: Implications of “Days to Relocation” in SAC Application on Operating Fund.
Q. What impact does public housing repositioning have on Capital Funds and Demolition and Disposition Transitional Funding (DDTF)?
Units 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. See DDTF and ARF Summary Handout.
Q. If HUD approval for de minimis demolitions is not required, why does the PHA need to make a submission to HUD about its proposed de minimis demolition prior to commencing the demolition?
24 CFR 970.7(a)(13) requires that PHAs submit information related to environmental review requirements prior to commencing a de minimis demolition. In addition, 24 CFR 970.27 requires PHAs to submit the information required by §§ 970.7(a)(1), (2), (12), (13), and (14) for record-keeping and inventory management purposes. These requirements are to assure that public housing unit counts in IMS/PIC are correct, which assures that HUD is not providing Operating and/or Capital Funds on a public housing unit that has been demolished. In addition, HUD needs the PHA’s certification on file (prior to commencement) that the demolition meets the requirements of Section 18 of the 1937 Act. De Minimis demolition should be used as a last resort by PHAs.
Q. What does “beyond repair” mean?
HUD defers to each PHA’s discretion to determine if a unit is beyond repair. The PHA should use the demolition criteria at 24 CFR 970.15 as a guide. HUD will accept a certification from the PHA that the units proposed for de minimis demolition meet one of two threshold criteria (units are beyond repair or will be used for resident needs) unless HUD has information that is contrary to that certification.
Q. My PHA partially demolished a public housing unit that was damaged by fire, to the extent necessary to eliminate an exigent hazard and maintain their public housing unit in a safe condition (as permitted by Sections 4 and 13 of the Annual Contributions Contract-ACC). My PHA has determined the unit is beyond repair and would now like to fully demolish this unit using the de minimis exception to demolition requirements. If my PHA otherwise qualifies to demolish units under this de minimis exception (e.g., unit count), can it submit a de minimis demolition certification for this unit, certifying that it has met all applicable criteria?
Yes. Provided it meets all other applicable criteria, the PHA may fully demolish this unit using the de minimis exception to demolition requirements.
Q. My PHA demolished no units in 2012. My PHA demolished 50 units on January 1, 2013 under 24 CFR 970.15. My PHA demolished 50 more units on January 1, 2014 under 24 CFR 970.15. My PHA demolished no units in 2015. My PHA demolished 50 more units on January 1, 2016 under 24 CFR 970.15. Is my PHA prohibited from demolishing units under the de minimis exception in 2017? In other words, does the 24 CFR 970.15 demolition of 150 units (between January 1, 2013 and January 1, 2016) count against the maximum number of units my PHA can demolish under the de minimis exception (i.e., the lesser of 5 units or 5 percent of public housing inventory in any 5 years)?
No. The PHA is still eligible to demolish units under the de minimis exception in 2017 because it did not demolish any units through the de minimis exception within a 5-year period (i.e., five years counting backward from the date of the proposed de minimis demolition). De minimis demolitions under 24 CFR 970.27 operate outside of the 24 CFR 970.15 demolition approval process. Only demolitions done under de minimis exception count against the maximum number of units a PHA can demolish under 24 CFR 970.27.
Q. What is an example of how a PHA could demolish units under the de minimis exception in order to use the space occupied by the unit(s) for meeting the service or other needs of the residents?
PHA could use the land as a playground, parking or a community garden. A PHA could also develop the land with a community building or with new public housing units, provided the HA submits and HUD approves a development proposal under 24 CFR 905.604 or 24 CFR 905.606 (which would be done through a separate and subsequent process from the SAC application). If the units are within a building that will not be wholly demolished, the former units could be used for various non-dwelling services, such as administrative offices, elevator/laundry/trash space, or utility/boiler upgrades.
Q. After the demolition, my PHA wants to sell the vacant land at public bid and use the proceeds for eligible purposes under Section 18 of the 1937 Act. Is this allowable?
The PHA must certify to HUD that the unit is beyond repair or the demolition will allow the space to meet the service or other needs of public housing residents. In this case, the PHA would not be using the unit to meet the service or other needs of public housing residents, so it would need to certify to HUD that the unit is “beyond repair”. Assuming the unit meets the “beyond repair” criteria, after demolition, the PHA could submit a disposition application for the (then) vacant land.
Q. Are units demolished under de minimis demolition eligible for tenant protection vouchers (TPVs)?
Yes. PIH Notice 2016-04 specifically states that PHAs may be eligible to receive TPVs if residents are displaced due to demolition of their units under the de minimis demolition exception. However, all other applicable provisions of PIH Notice 2016-04 apply. Specifically, PHAs will only be eligible to receive TPVs for these units if they units are occupied on the day they submit their TPV application to HUD (which can’t occur until after the PHA receives written HUD acceptance of the demolition action). In addition, if a PHA plans to develop new public housing units back on site (in accordance with 24 CFR part 905), it will only be eligible to receive Relocation TPVs, not Replacement TPVs (see PIH Notice 2017-10).
Q. Are units that PHAs demolish through de minimis eligible for Demolition and Disposition Transitional Funding (DDTF)?
Yes, provided the units and PHAs meet the eligibility requirements of 24 CFR 905.400(j).
Q. Are units eligible for an asset repositioning fee (ARF) under 24 CFR 990.190?
Yes. In accordance with PIH Notice 2011-18, units “approved” by HUD for demolition (including units accepted by HUD for de minimis demolition) are eligible for an ARF provided they constitute an entire building in a project. Individual units within a multi-unit building are not eligible for ARF (see PIH Notice 2011-18).
Q. What funds can be used to pay for demolitions undertaken under this de minimis exception?
PHAs can use public housing Capital Funds (in accordance with 24 CFR 905.200(b)(9)) or any other eligible and available federal or non-federal funds to pay for the demolition.
24 CFR 970.27 states that PHAs must comply with the requirements of 24 CFR 8.23 if applicable. 24 CFR 8.23 governs the alterations of existing housing facilities. Can you provide an example of how this could be applicable to demolitions undertaken under this de minimis exception
24 CFR 8.23 requires that PHAs undertake alterations to public housing units, to the maximum extent feasible, in a way that allows units to be readily accessible to and usable by individuals with handicaps. 24 CFR 8.23 generally requires at least five percent of the dwelling units in a project to be readily accessible to and usable by individuals with mobility impairments. If a PHA proposes to demolish accessible units under this part, it may be required, pursuant to 24 CFR 8.23, to undertake alterations of other units at the project in order to make those units accessible.
Q. Can you give some examples of how the 5-year period works?
See below; also see 24 CFR 970.27(b).
- EXAMPLE #1. A PHA that owns 1,000 housing units wishes to demolish units under this de minimis provision on July 1, 2004, and previously demolished two units under this provision on September 1, 2000, and two more units on July 1, 2001, the PHA would be able to demolish one additional unit for a total of five in the preceding 5 years.
- EXAMPLE #2. A PHA that owns 60 housing units as of July 1, 2004, had demolished two units on September 1, 2000, and one unit on July 1, 2001, that PHA would not be able to demolish any further units under this de minimis provision until after September 1, 2005, because it would have already demolished 5 percent of its total.
Q. How long does Environmental Review take?
A minimum of 30 days, there are two required 15-day public comment periods. Therefore, an environmental review period will be no lesser than 30 days.
Q. Does every amendment application to the SAC that is over 5 years old need to have a new environmental review completed? Or are there any exceptions, if the original approval was for several phases and now, the PHA is completing one of these later phases?
No exceptions. PHA needs to reach out to their responsible entity to have them review whether the Part 58 needs updating (same goes for Part 50 but with HUD review instead). The PHA should contact the responsible entity, make the request for a review and have the local Field Office informed of the results. The SAC will reach out to the Field Office to see if they have concurred.
Q. When a PHA has a property damaged by fire (or some other natural disaster) and wishes to obtain approval to demolish the remaining part of the property, does the PHA need to do a Part 58?
The demolition or disposition of public housing always requires an environmental review. There are some flexibilities in 24 CFR §58.34(a)(10) that allow exemptions for “Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair, or restoration activities necessary only to control or arrest the effects from disasters or imminent threats to public safety including those resulting from physical deterioration” and this is explained a bit more in this memo. >
Q. Who is required to sign the LOS?
The LOS must be signed by the highest elected official or Chief Executive Officer of local government. The highest elected official is usually a mayor or county/township chair/president.
Q. When does the LOS have to be signed?
There is no requirement that a LOS has to be recently executed. The letter must demonstrate the official is supporting the proposed action. The LOS can be signed after government consultation, resident consultation and Board Resolution.
Q. What are Homeownership programs that PHAs can participate in? See guidance below.
Q. Are you thinking of buying a home? See resource below.
Q. What is the HCV Homeownership Program? See resource below.
The Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses. Learn more about the HCV homeownership Program here.
Q. Can TPVs be project-based after repositioning? See resource below.
Learn more about PBV and Public Housing Repositioning FAQs.
Q. Can a PHA use proceeds for a local homeownership program (not Section 8 or 9 recipients)?
It depends. Proceeds are meant for uses approved under the 1937 Act. The SAC cannot approve the use of proceeds for a local homeownership program, but it might be feasible to do a Section 32 program, where the PHA could purchase homes and fix them up for low-income residents. There may be other ways to use the proceeds in the Section 8 program, and that can be discussed on a case-by-case basis with the SAC.
Q. When is resident consultation required?
Resident Consultation is always required with very few exceptions. Pursuant of 24 CFR 970.9(a), PHAs must consult with residents who will be affected by the proposed action with respect to all demolition or disposition applications. The PHA must provide with its application evidence that the application was developed in consultation with residents who will be affected by the proposed action, any resident organizations for the development, PHA-wide resident organizations that will be affected by the demolition or disposition, and the Resident Advisory Board (RAB). The PHA must also submit copies of any written comments submitted to the PHA and any evaluation that the PHA has made of the comments.
Q. Why did HUD issue PIH Notice 2016-20?
HUD issued this notice to provide PHAs with another tool for making inventory decisions about certain public housing real property. HUD recognizes PHAs may have good reasons to retain this public housing real property outside of public housing use restrictions. Additionally, 2 CFR 200.311(c) states that “When real property is no longer needed for the originally authorized purpose, the non-Federal entity must obtain disposition instructions from the Federal awarding agency or pass-through entity.”
Q. Can PHAs apply under this notice to retain public housing dwelling units?
No. This notice has limited applicability and applies only to public housing real property that is no longer or was never used for public housing dwelling purposes. This notice does not apply to public housing dwelling units that are currently under an Annual Contributions Contract (ACC) or are receiving assistance under Section 9 of the 1937 Act. HUD Examples of public housing real property that are eligible for retention under this notice include, but are not limited to: non-dwelling buildings, vacant land, and property that once comprised public housing dwelling units but is now vacant and no longer receiving the benefit of any Section 9 assistance.
Q. Is this notice providing a new retention tool or were PHAs already able to request this kind of retention outside of this Notice?
Prior to the issuance of this notice, PHAs were able to request retentions through 2 CFR 200.311(c)(1) (and previously through 24 CFR 85.31(c)(1)). However, PHAs were required to request “disposition instructions” from HUD and HUD would provide instructions on a case-by-case basis. This notice provides clear and consistent “disposition instructions” to PHAs who may be considering a retention request.
Q. Are there any limits on when a PHA may apply for a retention action under this notice? For instance, does a PHA need to be pursuing RAD or a Section 18 demolition/disposition action? Or removing all of its public housing units from its ACC?
No. All PHAs may apply for retention actions under this notice if a retention meets its local goals and the real property otherwise meets the requirements of the notice (e.g. the property) is no longer needed for the originally authorized purpose). Often, these retention actions may be in conjunction with another removal action, but that is not required. For instance, a PHA that has never removed a public housing unit from its ACC may still apply under this notice to retain a parcel of excess land adjoining one of its public housing projects so that it can develop new affordable housing on that parcel outside of public housing program.
Q. How does this notice relate to public housing program close-out requirements (as more fully described in PIH Notice 2016-23) that apply to PHAs that are removing all of their public housing units from ACC (through RAD, Section 18 demo/dispo or another program)?
The ACC dictates that all public housing property will facilitate the PHA’s operation of public housing units. When a PHA removes all of its public housing units from ACC and does not intend to build new public housing units, any remaining non-dwelling public housing property (e.g. administrative buildings, central warehouses, garages, community buildings) no longer supports the public housing units. Accordingly, PHAs are required to remove this property from ACC and DOT public housing restrictions. One of the available tools for removing this property from public housing restrictions is a retention action under this notice.
Q. My PHA has a non-dwelling community building that it is not recorded in IMS/PIC. It is on a site that does not include units. The property has a DOT recorded against it and our records indicate that the property was acquired with Section 9 funds. My PHA would like to operate this building for purposes other than public housing. Does my PHA need to apply for retention under this notice?
Yes. PHAs are required to ensure that all of their public housing property is uploaded in HUD’s IMS/PIC system and has a valid DOT recorded against it. Even if a PHA is not in compliance with these requirements, HUD requirements still apply to the use, retention, or disposition of that public housing property. The PHA must work with its local HUD Office of Public Housing to bring the property into compliance with all applicable IMS/PIC and DOT requirements.
Q. My PHA wants to develop some vacant excess public housing property as new affordable low-income housing tax credit (LIHTC) units. Can my PHA propose to retain property under this notice and then ground lease it to single-asset LIHTC entity (that my PHA controls)?
No. Because the ground lease involves a transfer of property interest to another entity (LIHTC entity) and thus constitutes a disposition under 24 CFR part 970, the PHA must apply for disposition under Section 18 of the 1937 Act and 24 CFR part 970.
Q. Why is it necessary to obtain environmental clearance for retention applications under 2 CFR 200.311(c)(1)?
Because the retention involves a removing the federal use restrictions from the property, HUD requires environmental clearance.
Q. When will HUD require a PHA to execute and record a new use restriction against a former public housing property as part of a retention approval under 2 CFR 200.311(c)(1)?
A 30-year use restriction is generally required when HUD approves a PHA’s request for an exception to the compensation requirement of 2 CFR 200.311(c)(1).
Q. The notice states that HUD may consider certain factors in determining whether to allow for a shorter use restriction period than 30 years. Can you elaborate on those factors?
HUD may consider the following:
- Estimated FMV of the public housing real property. If a property has a low FMV (e.g. less than $5000), and the PHA is requesting that the use restriction only encumber the property for 5 or 10 years (instead of 30), HUD could take into consideration the low value of the property as a factor in granting the shorter use restriction term. Conversely, HUD would be much less willing to allow for a use restriction term of less than 30-years if the property was worth several million dollars.
- Amount of time the public housing real property would be required to be under DOT/DORC. This factor “looks backward”. For instance, if the PHA has not spent any Capital or Operating Funds at the property for the past 18 years, and there is only 2 years remaining under the DOT/DORC use restriction (until they would expire), HUD may take that into consideration in reviewing a PHA’s request for a use restriction period of less than 30-years.
- Proposed future use of the property. This factor “looks forward”. For instance, if a PHA is proposing to use property as supportive housing for homeless families but the use will only last 15 years because that’s the amount of time required by a state grant (that is providing the supportive service funding), HUD may take this into consideration, along with other factors, in reviewing a PHA’s request for a use restriction period of only 15-years.
Q. Are there certain fund sources my PHA cannot use to compensate HUD for the value of the property?
PHAs may use any available non-1937 Act funds, which may, depending on the circumstances, include available program income, Central Office Cost Center (COCC) funds, or other non-restricted funds.
Q. My PHA has been approached by a major telecommunication company that identified a portion of vacant public housing property as an ideal location to construct a cell tower. This property is excess to the needs of the adjoining project. Instead of selling this property to Sprint, my PHA would like to retain the property as a local asset. If my PHA fully compensates HUD for this property in accordance with this notice and complies with all notice requirements (including environmental clearances), after HUD releases the DOT, are there any limitations or restrictions on the income my PHA may generate from the property? In other words, could my PHA rent this property to Sprint and keep all rental income as local funds?
Yes. If the PHA fully compensates HUD in accordance with this notice, after HUD releases the DOT based on an approval under this notice, there are no restrictions on the use of the property and/or the income the PHA may generate from that property.
Q. My PHA has been approached by a day-care provider that wants to rent one of our vacant non-dwelling community building that my PHA no longer uses. Can I apply to retain the property under this notice and then rent the property out to the day-care provider?
It depends. If the PHA fully compensates HUD in accordance with this notice, after HUD releases the DOT under 2 CFR 200.311(c)(1) there are no restrictions on the use of the property and/or the income the PHA may generate from that property. Therefore, in this instance, the PHA could rent the property to the day-care provider and retain all rental income as local funds. However, if the PHA is requesting an exception from the compensation requirement, HUD generally will impose use restrictions. In this instance, the PHA would need to fully disclose to HUD its plan to rent the property out to the day-care provider (along with any expected rental income) and HUD would take all of this into account in determining whether the proposed future of renting out the property to a day-care provider qualified for an exception to the compensation requirement.
For answers to all these questions below see Tenant Protection Vouchers for Public Housing Actions resource document.
Q. Does a PHA have to submit and complete an application to get emergency TPVs?
A PHA must submit an application to get emergency TPVs, the application does not have to be complete but needs to at least have enough info on the emergency and future use. It's really important to understand the future use to see if redevelopment of the structure is possible or not to see if we issue Replacement or Relocation Vouchers.
Q. What are TPVs for Public Housing Actions?
Tenant Protection Vouchers (TPVs) are Section 8 Housing Choice Vouchers (HCVs) that HUD provides to Public Housing Agencies (PHAs) that administer an HCV program. Although HUD also provides TPVs to PHAs to protect HUD-assisted
families from hardship as the result of certain Multifamily Housing transactions, this document addresses TPVs only for HUD’s Public Housing (Low Rent) portfolio. In addition to assisting individual families, replacement TPVs, described in more detail below, mitigate the loss of Public Housing units in the community because these TPVs become part of the PHA’s HCV program and may be reissued to families on a PHA’s waiting list upon turnover. There are two types of TPVs that HUD may issue for Public Housing actions: relocation TPVs and replacement TPVs.
Q. What is the difference between Relocation and Replacement TPVs?
Relocation TPVs are provided in cases where the PHA is replacing the Public Housing units removed through the Public Housing action with other Public Housing units. As such, relocation TPVs are provided as a temporary resource to the PHA to assist only the individual families who are being displaced by a Public Housing action. Once HUD provides a PHA with relocation TPVs, those TPVs can only be issued to families who will be displaced by a Public Housing action. If a family opts to relocate to another Public Housing unit, the PHA is not eligible to receive a relocation TPV for that unit. Once a family uses a relocation TPV to lease a unit, it becomes traditional HCV tenant-based assistance for the family and the family cannot be required to give up such assistance and move into a replacement Public Housing Unit (once developed and ready for occupancy). However, such families may voluntarily exit the HCV program to move into a replacement Public Housing unit. Relocation TPVs “sunset” upon turnover, which means that the PHA cannot reissue the HCV assistance from the relocation TPV when the family exits the HCV program. When a family exits the HCV program, HUD will reduce the PHA’s HCV assistance to account for the removal of that relocation TPV assistance from the PHA’s HCV baseline inventory.
Replacement TPVs are provided in cases where the PHA is not replacing the Public Housing units removed through the Public Housing action with other Public Housing units. As such, replacement TPVs are provided as a permanent resource to the PHA and are intended to assist the individual families who are being displaced by the Public Housing action. After the initial family ends its participation in the voucher program, the associated voucher funding remains in the voucher agency’s baseline funding and the voucher is available to serve other low-income families in the community. Under current HUD policy, replacement TPVs are also provided for vacant units that were occupied by an assisted family in the previous 24 months.
Q. How will HUD determine if a PHA is eligible to receive relocation or replacement TPVs?
HUD will make the determination as part of its review of the triggering event that makes the PHA eligible to receive the TPVs, typically the application that the PHA submits to HUD’s Special Applications Center (SAC) via IMS/PIC (HUD-52860) (4/2018) (SAC application). In reviewing the SAC application, HUD will determine if the PHA is proposing to develop Public Housing units in connection with the Public Housing action. For instance, HUD may determine relocation TPVs are appropriate if a PHA proposes a Section 18 demolition and/or disposition in order to develop the same site with new replacement public housing units (including through mixed-finance development), or if a PHA proposes to dispose of valuable Public Housing units in order to develop more efficient/effective off-site new Public Housing units. However, if a PHA has no firm plans to develop replacement Public Housing units in connection with a Public Housing action, then HUD will generally determine the PHA is eligible to receive replacement TPVs. However, if a PHA’s redevelopment plans change and the PHA receives an amendment to a HUD approval that reflects the development of replacement Public Housing units, HUD will adjust the TPV accordingly.
Q. What Public Housing actions are eligible for TPVs?
Subject to the qualifications noted below,
PHAs are eligible to receive TPVs after they receive HUD approval for the following Public Housing actions:
- Demolitions and/or dispositions approved under Section 18
- Demolitions authorized under de minimis authority of Section 18
- Required conversions approved under Section 33
- Voluntary conversions approved under Section 22
- Homeownership plans approved under Section 32
- Removals authorized under Choice Neighborhoods and/or HOPE VI grants
HUD does not award TPVs for Public Housing units converted under HUD’s Rental Assistance Demonstration (RAD) program. RAD units are funded through the direct conversion of subsidy. PHAs should also note that if they receive a TPV for a Public Housing action, those units are no longer eligible to be converted under RAD, even if the PHA has not yet removed the units from its Public Housing inventory.
In addition, in instances of imminent health and safety, a PHA may be eligible to receive TPVs after it submits a SAC application to HUD but prior to receiving HUD approval of that Public Housing Action. See additional guidance
Q. How many TPVs is a PHA eligible to receive?
This depends on several factors, including:
- Occupancy of Units. The 2019 Appropriations Act limits TPVs to units occupied within the previous 24 months that cease to be available as assisted housing, to the extent funding is available. Current HUD policy is to provide relocation TPVs for units occupied by an assisted family at the time of the TPV application. Replacement TPVs are issued for units occupied by an assisted family at the time of the SAC/Choice Neighborhoods Initiative approval and for vacant units that were occupied by an assisted family within 24-months of the time of SAC/Choice Neighborhoods Initiative approval. See PIH Notice 2019-08.
- Assisted Housing. HUD considers a unit occupied by an assisted family if the family’s occupancy is authorized by the 1937 U.S. Housing Act (1937 Act). Accordingly, HUD’s approvals will reflect the following:
- Eligible for TPVs. Units that are occupied by assisted families, over-income families, and/or law enforcement and security personnel in accordance with the 1937 Act (42 USC 1437(cc)). While a PHA is eligible to receive a TPV for a unit occupied by an over-income family, the family is not eligible to receive the TPV because they don’t independently qualify for the TPV under HCV program requirements (see Question 6).
- Not Eligible for TPVs. Vacant units, NON-DWELLING units, units occupied by PHA EMPLOYEES, and other units occupied by OTHER NON-ASSISTED FAMILIES (i.e. for designated MTW activities) unless the units have been occupied by assisted families (as defined above) within the past 24-months.
- HUD uses the unit designations in IMS/PIC to determine a PHA’s TPV eligibility. See Appendix B for more information concerning assisted units.
- Sufficient TPV funding at the time the PHA submits the TPV request;
- Certain Disposition Justifications--Improved efficiency or effectiveness. PIH Notice 2018- 04, limits a PHA’s TPV award to 25 percent of the units approved for disposition at the project for dispositions based on improved efficiency or effectiveness under Section 3(A)(2) or 3(A)(3)(d) of the notice.
- Other HUD-issued guidance and/or the terms of HUD’s approval documents authorizing the action that makes the PHA eligible to receive the TPVs.
- PHA’s request. A PHA may request fewer TPVs than it is eligible to receive (e.g. because families have expressed a preference to be relocated to available Public Housing units; or a PHA has sufficient existing HCV resources to relocate families with a HCV without a TPV award).
See Appendix A for a chart that illustrates TPV eligibility under existing guidance.
Q. Must the family impacted by the conversion be eligible under HCV requirements in order to qualify for TPV?
Yes. The family must independently meet HCV eligibility requirements for admission to the HCV program, including income eligibility, to qualify for the TPV. Very low-income families (i.e., annual income at or below 50% of the median family income for the area, as determined by HUD) are income-eligible for a TPV. In certain cases, as defined in regulations at 24 CFR §982.201(b), a low-income family (i.e., annual income at or below 80% of the median family income for the area, as determined by HUD) may also be income-eligible for the TPV. For example, a low-income family that is “continually assisted” is income-eligible for the TPV. Continually assisted means that the family is already receiving assistance under any 1937 Housing Act program when they are admitted to the voucher program. The PHA must establish policies concerning whether and to what extent a brief interruption between assistance under one of these programs and admission to the voucher program will be considered to break continuity of assistance under the 1937 Housing Act. See 24 CFR §982.201(d).
Q. How does HUD determine a replacement TPV award when a PHA is doing a phased Public Housing action and removing public housing units over a 5-10 year period?
A PHA’s maximum replacement TPV award is based on occupancy of units as explained in Question 5 above. This policy enables a PHA to “lock-in” a replacement TPV award, notwithstanding its plan to do a phased disposition. For example, if a PHA received a Section 18 approval to dispose of 500 Public Housing units, and is planning on implementing the relocation in 5-phases (100 units per phase over a 10-year period), the PHA is eligible to receive replacement TPVs based on occupancy (including the 24-month look-back) at the time of the HUD approval, regardless of the occupancy at the time the PHA submits a TPV request to HUD for a particular phase. This will allow a PHA to vacate units at turnover, in future phases, without losing any replacement TPV award eligibility.
Q. How does Congress fund TPVs?
Congress funds TPVs as part of annual Appropriations Act. In 2019, the final Appropriations Act included $85M for TPVs. This amount, combined with available carryover, was anticipated to support approximately 17,000 families. HUD implements HCV funding policies, including those for TPVs, in annual funding implementation notices. The latest funding implementation notice is PIH 2018-09 and 2019-08 for Calendar Years (CY) 2018 and 2019, respectively. Such notices are posted on HUD’s website at: https://www.hud.gov/program_offices/public_indian_housing/publications/notices
Q. How does HUD fund TPVs?
HUD issues TPVs based on the average Per Unit Cost (PUC) in the PHA’s HCV program. However, if a PHA has concerns regarding the sufficiency of the funding based on PUC, the PHA can request higher TPV funding. HUD will be issuing additional guidance on how PHAs make requests for higher TPV funding. Inquiries about TPVs’ PUC should be directed to the Office of Housing Voucher Programs’ Financial Management Division at PIH_Conversion_Actions@hud.gov.
Q. Do TPVs increase a PHAs HCV renewal?
Yes—both relocation and replacement TPVs will have the effect of increasing a PHA’s HCV renewals, to the extent they remain under lease and costs are reported in VMS. However, once the relocation TPVs sunset, by definition, they will not be reissued, and HUD will reduce them from the PHA’s ACC. Therefore, they will have partial to no effect in the PHA’s future HCV renewals.
Q. How does a PHA know that there will be sufficient TPV funding when it applies for it?
HUD currently issues TPVs for eligible Public Housing actions on a first-come, first-serve basis. In recent years, there has been sufficient TPV funding to fund all eligible Public Housing actions. Should the demand for TPV funding require that HUD needs to conserve TPV resources, HUD may issue guidance that describes how it will manage the TPV account, including prioritizing the circumstances or condition warranting TPV issuance. Such guidance may place constraints on certain Public Housing actions, which may include prioritizing the order in which HUD approves certain Public Housing actions, limiting the number of units that HUD approves for certain Public Housing actions in a fiscal year, or temporarily suspending approvals for certain Public Housing actions until TPV resources are determined to be sufficient to meet the demand for tenant protection actions. PHAs and Field Office Public Housing Representatives can reach out to the Housing Voucher Financial Management Division (FMD) to confirm whether there is sufficient TPV funding. Nonetheless, the FMD will always announce to all PHAs and stakeholders when funding for a specific CY is insufficient to fund vouchers for 12 months and what would be the effect in renewals for these vouchers.
Q. Once a PHA receives TPVs are the TPVs treated different from other HCVs?
Generally, not for Public Housing actions. Once a PHA receives a TPV award, all applicable HCV requirements apply to HCV funds that the PHA receives through that TPV award. However, certain TPV-specific requirements and conditions apply—including the sunset provision of relocation TPVs (i.e. the voucher cannot be reissued upon turnover), the requirement to first offer the TPV to the impacted family, and the special admissions authorization for TPVs.
Q. Can a PHA project-base a TPV award that it receives for a Public Housing action?
Relocation TPVs – No. PHAs cannot project-base relocation TPVs since they are provided as a temporary resource and “sunset” with families to whom they are issued.
Replacement TPVs – Yes, as further described in this response. In all cases where the TPV may be project-based, the PHA must comply, independently, with all requirements related to project-base vouchers (see PIH Notice 2017-21, 24 CFR part 983, and related guidance). Additionally, the PHA must also comply with any requirements of the SAC approval. For example, if the SAC approves a disposition at below fair market value, and the property being disposed of will continue to be used as affordable housing, then the SAC is likely to require recordation of a use restriction. Even though recordation of a use restriction is not a PBV program requirement, it will be required if the PHA project-bases TPVs at the property.
Some of the other differences among the removal tools are summarized below:
Section 18 Demolition/Disposition. Section 18 of the 1937 Act, which requires a PHA to provide a family with “comparable housing,” does not impose limitations (in contrast with Section 22 of the Act, for example) on a PHA’s authority, under Section 8(o)(13) of the Act, to project-base HCV assistance awarded in connection with the Section 18 action. Therefore, a PHA may project-base the TPV assistance at a former public housing unit if the unit complies with PBV program requirements (for example, the unit must meet HUD’s Housing Quality Standards (HQS) at HAP contract execution). In this case, the PHA may project-base the TPV assistance without the family’s consent to relinquish the TPV assistance in favor of a PBV-assisted unit. The PHA must, however, offer the family the opportunity to reside in the PBV unit funded through the TPV.
Section 22 Streamlined Voluntary Conversion. The statute and HUD regulations provide that if a project (or portion of a project) will be used as rental housing following a Section 22 approval, then each family residing in the project may remain in its dwelling unit with tenant-based assistance (e.g., tenant-based TPV assistance). The unit must still independently meet applicable HCV requirements for a family to be able to use the tenant-based voucher in the family’s current unit. Additionally, based on this tenant-based provision, there is no statutory or regulatory right to provide PBV assistance to the project. However, per PIH 2019-05, if a PHA wishes to project-base the TPVs at a project that has been approved for a Section 22 SVC, then the PHA must first obtain the informed written consent of each family to relinquish its tenant-based TPV in order to be assisted in a unit under a PBV HAP contract at the project.
Section 33 Required Conversions. The statute and HUD regulations provide that if a project (or portion of a project) will be used as rental housing following a Section 33 approval, then each family residing in the project may remain in its dwelling unit with tenant-based assistance (e.g., tenant-based TPV assistance). The unit must still independently meet applicable HCV requirements for a family to be able to use the tenant-based voucher in the family’s current unit. Given this tenant-based provision, there is no statutory or regulatory right to provide PBV assistance to the project and HUD determined, in PIH 2019-10, that it would be inappropriate for a PHA to enter into a long-term PBV HAP contract at a project that has met the regulatory and statutory criteria of 24 C.F.R. Part 972 and Section 33 of the 1937 Act for severely distressed housing. A PHA may project-base the assistance on the same site only if current buildings are demolished and new housing is constructed, and then only if the site complies with all PBV program requirements, including the new construction site and neighborhood standards.
Q. Can a PHA use a Replacement TPV to temporarily relocate a family, then require the family to move back to a PBV unit after rehab?
No. Once a tenant receives a replacement TPV and leases a unit with tenant-based assistance, it is considered permanent assistance. The PHA cannot require the tenant to turn-in that tenant-based assistance and return to the former public housing site after it is redeveloped with project-based voucher (PBV) assistance.
Q. Does a family’s written consent to relinquish its tenant-base assistance in connection with a voluntary conversion replace the required 90-day notice of displacement?
No. After receiving HUD approval of the Voluntary Conversion plan, the PHA must provide families with not less than 90-day notice of when it plans to convert their public housing assistance to tenant-based or PBV assistance. If the family has not voluntarily consented to PBV assistance, the 90-day notice must provide that the PHA is providing the family with tenant-based assistance, which the family can use off-site or in its current unit (if the project will be used as rental housing) and the PHA will pay for any actual and reasonable moving expenses.
Q. What happens if a PHA does not have an HCV program (i.e., currently operates only a Public Housing program) and receives HUD approval to dispose of units under Section 18 or for another Public Housing action that is eligible for TPVs?
HUD does not allow Public Housing only PHAs to create Section 8 HCV programs based solely on TPV eligibility. Therefore, if the PHA that received HUD approval of the Public Housing action is a Public Housing only agency (and therefore cannot receive or administer TPVs), the PHA must partner with another PHA (that has an HCV program) to administer the TPVs. The administering HCV PHA must have jurisdictional authority to administer its program in the PH project’s geographic area under state and local law, and the administrative capacity to administer the TPVs. The HCV PHA may have authority to administer its HCV program in the Public Housing PHA’s jurisdiction through the HCV PHA’s enabling legislation or through a jurisdictional agreement or MOU with the Public Housing only PHA, if allowed under state and local law. The partnering arrangement must be identified in the SAC application and approved by HUD’s local Office of Public Housing. PHAs with HCV programs can also partner with another HCV agency for the administration of the TPVs, with HUD approval.
Q. How does a PHA notify HUD that it wants to receive TPVs based on a Public Housing action? Does HUD automatically provide TPVs as part of its approval of a Public Housing action?
The issuance of TPVs to a PHA does not occur automatically with HUD approval of an application. Instead, the PHA must apply separately for TPVs in accordance with the current PIH funding notice for the HCV program.
A PHA should not submit a TPV request until it needs the TPVs for purposes of relocating the families who will be displaced (generally no sooner than 30-60 days from the planned start of relocation).
As part of its TPV request, the PHA submits the following to its Field Office:
A. The name and IMS/PIC number of the project approved for removal;
B. The number of TPVs requested:
- Replacement TPVs. Maximum TPV award based on units occupied within 24 months of the HUD approval
- Relocation TPVs. Maximum TPV award based on units occupied at time of TPV application plus family relocation preference for HCV tenant-based assistance (i.e. PHA is not eligible to receive a relocation TPV if family will be relocated to a public housing unit);
C. Form HUD-52515 (Voucher Funding Application). If lease-up will cover more than one calendar year, the PHA must submit a separate Form HUD-52515 for each calendar year. NOTE: HUD recently published a new HUD-52515 (7/2019). PHAs applying for TPVs for public housing action only need to complete Fields A, B, C, and D of the new HUD52515. On Field C, the number of TPVs requested by PHAs must not exceed the maximum number TPVs authorized in the HUD approval (unless HUD was only funding TPVs for occupied units at the time of the approval, then the PHA may request Replacement TPVs for units that were occupied within the previous 24-months of HUD approval.
D. A leasing schedule that identifies the number of TPVs that will be leased on a month-to-month basis. If lease-up will cover more than one calendar year, the PHA must submit a separate schedule for each year; and
E. Either a copy of HUD’s approval that makes the PHA eligible for the TPVs (i.e. SAC application) or a reference to the SAC application (DDA) number and date of that approval.
Q. Is there a connection between the timing of a PHA’s request to HUD for TPVs and the timetable in the SAC application that indicates the PHA’s planned start of relocation?
Yes. Although the timelines impact different things (i.e., the timetable in the SAC application impacts the start of the PHA’s asset-repositioning fee (ARF) under 24 CFR 990.190 and the TPV request impacts when the PHA receives the TPV award), these timelines should be consistent. For instance, if the timetable in a SAC application indicates that a PHA will start relocating families 180-days after HUD approval of the SAC application, it should generally request the TPVs approximately 30-60 days before this date.
Q. Can a family use the TPV to lease a unit anywhere in the country where there is a PHA that administers an HCV program?
Generally, yes, if the TPV is provided as tenant-based assistance and the head of household or spouse has legal residence, at the time of issuance of the TPV, in the jurisdiction of the PHA administering the TPV. If the family does not have legal residence in the PHA’s jurisdiction, the PHA may limit a family’s ability to move with a voucher outside of its jurisdiction during the first 12 months of assistance.
Additionally, under limited circumstances, a PHA may deny a family’s request to move outside of its jurisdiction, such as when the PHA would have insufficient funding to support the move. More information, including fair housing requirements, may be found in Notice PIH 2016-09 and in the HCV Guidebook, Moves and Portability chapter.
Q. How do PHAs report TPVs in HUD’s Voucher Management System (VMS)?
Replacement and relocation TPVs are reported under the “Tenant Protection” field for as long as they are used by the family to which the assistance was initially provided. Replacement TPVs are reported in VMS under the “All Other Voucher” field if the original family exits the program and the voucher is reissued to another family. Relocation TPVs are no longer reported in VMS when the family to which assistance was initially provided leaves the HCV Program. Additional information concerning VMS reporting may be found in the VMS User’s Manual.