SVC refers to PHAs’ ability to voluntarily decide to remove their public housing units from a public housing Annual Contributions Contract (ACC), authorized under Section 22 of the U.S. Housing Act of 1937. Families residing in these units receive tenant-based vouchers.
Under SVC, PHAs are not required to complete the conversion assessment, notably, the cost-test proving that the conversion is cost-effective (see Section 22 of the 1937 Act and 24 CFR part 972, Subpart B). SVC authority gives small PHAs (with 250 or fewer public housing units) greater flexibility to respond to local needs, allows them to pursue private financing, and provides greater housing choice and mobility to assisted households.
SVC must principally benefit the residents of the units, the PHA, and the community; and must not adversely affect the availability of affordable housing in the community.
- HUD will Issue Tenant Protection Vouchers (TPVs) for any Unit Occupied within the Past 24 Months of Approval. Residents who receive the TPV will have the right to relocate to a private unit or remain in place (provided the former unit will be used for rental housing) with the tenant-based assistance. If the resident decides to relocate off-site, the PHA must pay for the moving expenses. In addition, SVC does not require that the PHA replace the public housing units with new hard low-income or affordable housing units. Provided there are sufficient units for tenants to use their tenant-based assistance to lease units in the private market with their tenant-based assistance, the PHA can structure its SVC plan to not re-use the public housing asset as affordable rental housing.
- Public Housing-Only PHAs must Partner with HCV Administrating Agency. If the PHA who is applying for SVC does not operate its own voucher program, then it must partner with a voucher agency that can administer the TPVs. HUD will not establish new voucher programs based on the TPV award
- Project-basing this assistance is permissible with tenant consent. If the PHA wants to use the TPVs to project-base assistance at the former public housing units, the PHA must receive the resident’s informed written consent. If a resident decides to stay at the property with tenant-based assistance, the PHA must exclude that unit from the PBV Housing Assistance Payment (HAP) Contract until the resident either voluntarily leaves the unit or consents to have their unit project-based. In addition, if a resident leaves with tenant-based assistance at the time of the conversion, the PHA can project-base that unit using its existing voucher resources.
- Plan for the Use of Any Remaining Public Housing Funds. A PHA may only spend public housing funds to support public housing units that are under a Declaration of Trust (DOT). PHAs may not spend public housing funds to rehabilitate/maintain or operate any units that have been removed from the public housing inventory, including through SVC. Consequently, a PHA should either plan to use those funds prior to conversion (on any eligible public housing activity) or a PHA should consider transferring such funds prior to close-out to another PHA (see PIH Notice 2014-24 on public housing transfers and consolidations).
- SVC requires a commitment to close-out the PHA’s public housing program. HUD will only approve an SVC application if it covers all the remaining public housing units at the PHA (up to 250 units). As part of the approval, the PHA must commit to closing out its public housing program by following the guidance in PIH Notice 2019-13.
APPLICATION SUBMISSION REQUIREMENTS
All requests for HUD's consent for a Streamlined Voluntary Conversion removal of public housing operated under an ACC with HUD 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). The cost methodology for Required Conversion is different than that for Voluntary Conversion.
Required Forms:
- HUD-52860;
- HUD-52860-E addendum;
- HUD-5837 form as SVC will close out the public housing unit portfolio. Closeout FAQs >
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