Section 33 of the United States Housing Act of 1937 requires PHAs to identify developments (or parts of developments) that must be removed from the stock of public housing operated under an Annual Contributions Contract (ACC) with HUD. This is known as Required Conversion. HUD’s rule implementing Section 33 was published in the Federal Register on September 17, 2003, with an effective date of March 15, 2004 as 24 CFR Part 972, Subpart A. HUD published a PIH notice further implementing the Required Conversion program on April 30, 2019 as PIH Notice 2019-10.

The cost methodology that PHAs must use to compare the cost of continuing to operate developments as public housing to the cost of providing tenant-based assistance was subsequently published as an appendix to the final rule on March 21, 2006, with an effective date of April 20, 2006.

The cost methodology for Required Conversion is different than that for Voluntary Conversion.

• Calculator Rule 24 CFR 972 (Adobe PDF) 
• Cost Comparison Spreadsheet (MS-Excel) 

A sample of a completed spreadsheet has been included as well.

• Sample completed Cost Comparison Spreadsheet (MS-Excel)

Feedback and questions should be directed to SAC management.