Receiverships

There are two basic types of receiverships: administrative and judicial. Administrative receiverships can be further divided into ordinary administrative receiverships, PHAs under Settlement Agreements, and PHAs under Cooperative Endeavor Agreements.

Administrative Receivership is a process whereby HUD declares a PHA in substantial default of its Annual Contributions Contract, and takes control of the PHA under the powers granted to the HUD Secretary under the Housing Act of 1937, as amended. HUD appoints one or more HUD staff to work on-site at the PHA and manage and operate the PHA's housing operations and conduct the affairs of the PHA. HUD provides oversight in a manner consistent with the statutory, regulatory, and contractual obligations of the PHA, and in accordance with additional terms and conditions as set forth by the Secretary.

A PHA under a Settlement Agreement operates under a court-directed and approved agreement between HUD and the troubled PHA that defines the terms, conditions, and duration of the administrative receivership. A Settlement Agreement is accompanied by a court-approved Work Plan that lists specific tasks to be accomplished by the HUD receivership team.

A PHA under a Cooperative Endeavor Agreement operates under a voluntary agreement between HUD and the troubled PHA or the local municipal government that defines the terms, conditions, and duration of the administrative receivership. A Cooperative Endeavor Agreement facilitates cooperation and coordination between the HUD receivership team and the local municipal government during the term of the receivership.

Judicial receiverships are established, monitored and supervised by federal courts. A District Court appoints a receiver to conduct the affairs of the PHA in a manner consistent with statutory, regulatory, and contractual obligations of the PHA and in accordance with such additional terms and conditions that the court may provide and with Section 6(j)(3)(c) of the Housing Act of 1937, as amended.

There are three public housing authorities under HUD administrative receivership. 

Receiverships

Name Locale Start Date
Administrative    
Housing Authority of City of Gray Gary, IN
July 2013
Housing Authority of Alexander County Cairo, IL
February 2016