Special Application Center

Homeownership (Section 32)

The sale of public housing units to qualifying families is authorized under Section 32 of the Housing Act of 1937 (the Act), as amended. The final rule for Section 32 Homeownership was published March 11, 2003, and became effective April 10, 2003.*


Homeownership (Section 32)

The demolition and disposition of public housing is authorized under Section 18 of the Housing Act of 1937 (the Act), as amended. The implementing regulation, 24 CFR part 970, was published in the Federal Register on October 24, 2006, and took effect on November 24, 2006. Minor corrections to the regulation were published in the Federal Register on January 23, 2008. HUD reviews these applications in accordance with the guidance in PIH Notice 2021-07


*Homeownership programs approved before April 10, 2003, will continue to operate under the previous Section 5(h) rule. Please note that both regulations have the same number, 24 CFR 906, and are accessible from this site.



The Quality Housing and Work Responsibility Act (QHWRA) permits PHAs, through Section 32 of the U.S. Housing Act of 1937, to make public housing dwelling units available for purchase by low-income families as their principal residence. Under Section 32, a PHA may do any of the following:

Public Housing Sold to Residents 

The sale of an existing or newly acquired public housing unit to eligible public housing or non-public housing resident.

Financing Only Homeownership Plan

Homeownership Plan would approve a PHA's use of Capital Funds to assist public housing families in purchasing a home.

Homes Sold to Low-Income Families

Provide Capital Fund assistance to acquire homes that will be sold to eligible low-income families.







In order to participate in Section 32, a PHA must create a Section 32 Homeownership Plan. This plan is then submitted to the SAC along with all applicable materials, see application submission requirements below. The specific requirements for the preparation of a homeownership plan are found in the Section 32 Desk Guide.



All requests for HUD's consent for demolition and/or disposition must be made electronically through PIC. The PHA must complete the applicable sections of the HUD-52860 (see Detail Matrix on page 9 of HUD-52860).

Required Forms:

See Section 32 Homeownership checklist >

See Section 32 Homeownership Order Of Operations >

About SAC

Special Applications Center • US Department of Housing and Urban Development
77 W. Jackson Blvd., Room 2401, Chicago, IL 60604-3507
Phone: 312-353-6236  • Email: SACTA@HUD.gov  • Fax: 312-913-8892  • Staff Directory