PH.Conversions_v062520

  • Repositioning Financing Sources This document provides a description of the common types of funding sources used to pay for these repositioning costs, whether through the Rental Assistance Demonstration (RAD) program, Section 18, or Streamlined Voluntary Conversion (SVC). The list is only intended to highlight common financing sources, it does not recommend a specific source or include all potential sources a PHA may utilize. PHAs should be aware that each program has regulations or requirements that apply and may affect the ability to combine sources of funding. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies

Conversion_v070220

  • Asset Management Models for Public Housing HUD revised the Public Housing Operating Fund Program; Final Rule (The Final Rule) on 10/24/2005. This amended 24 CFR 990 which governs the Operating Fund formula. The revisions to 24 CFR 990 established the asset management and property management norms for public housing that are consistent with multifamily housing industry. For more information, please refer to Accounting Brief #16

  • 24 CFR 905.604 regulation on converting public housing units or project to a mixed finance type housing
  • Mixed Finance Resources resources for PHAs converting their PH project to other affordable rental housing types for residents with wide range of incomes and are designed to fit the surrounding community

  • Moving To Work (MTW) Program all MTW PHAs must submit their financial data (unaudited/audited) to HUD

  • Rental Assistance Demonstration (RAD) Program (Oct 2014) Under the Consolidated and Further Continuing Appropriations Act of 2012, the U.S. Department of Housing and Urban Development (HUD) is authorized to implement the Rental Assistance Demonstration (RAD) program. RAD allows public housing agencies (PHAs) to convert projects currently funded under the Public Housing program to one of the following long-term, project-based Section 8 rental assistance programs: project-based vouchers (PBV) or project-based rental assistance (PBRA). Please seeAccounting Brief #22
  • RAD Resource Page information for PHAs converting to RAD

  • Why Convert to RAD? reasons to convert RAD and the contact in RAD for questions and more information

  • PIC RAD Relationship understanding the impact in PIC for the project's converting to RAD

  • RAD Section 18 Closeout FAQ Section 3.A.3.b of PIH 2018-04 (HA) allows a PHA to justify the disposition of its remaining public housing ACC units through Section 18 if the PHA has 50 or fewer units. If a PHA has more than 50 units, it may remove other public housing units from its inventory through other Section 18 or RAD Applications that would result in the PHA having 50 or fewer units and then subsequently submit a final disposition application to the SAC under the “50 or fewer” option. Alternatively, if the units are in the same project, the PHA can simultaneously convert enough public housing units under RAD that would result in the PHA having 50 or fewer units and utilize the 50 or fewer option in conjunction with the RAD conversion, rather than as separate transactions. This arrangement is also referred to as the “RAD/Section 18 Close-out Blend.


  • De Minimis Demolition (Demo/Dispo) in any 5-year period PHA may demolish not more than the lesser of 5 dwelling units or 5 percent of the total public housing dwelling units owned by the PHA, but only if the space occupied by the demolished unit is used for meeting the service or other needs of public housing residents or the demolished unit was beyond repair.  HUD’s implementing regulations at 24 CFR 970.27 state the requirements a PHA must meet to engage in a de minimis demolition without the need to submit an application
  • Section 18 Demolition/Disposition PHAs may choose to exercise this option for a variety of reasons: poor physical condition (obsolescence) of the units, unsuitable location (health or safety risks to residents), unsustainable scattered-site units, very small PHAs (50 units and under), or combining Section 18 disposition with a RAD transaction. Families residing in units that receive Section 18 approval are protected with comparable housing resources (generally Section 8 assistance through an award of Tenant Protection Vouchers)
  • Section 22 or Voluntary Conversion voluntary removal of PHAs public housing units from a public housing Annual Contributions Contract (ACC), authorized under Section 22 of the U.S. Housing Act of 1937
  • Section 24 Demolition Demolition, Site Revitalization, Replacement Housing, and Tenant-Based Assistance Grants for Projects under Choice Neighborhood Program
  • Streamlined Conversion small PHAs with 250 or fewer public housing units may convert to tenant-based housing choice voucher (HCV) assistance through streamlined authority. PHAs are not required to complete the cost-test or to evidence that the conversion is cost-effective. Streamlined Voluntary Conversion authority gives small PHAs greater flexibility to respond to local needs, allows them to pursue private financing, and provides greater housing choice and mobility to assisted households. Streamlined Voluntary Conversions 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
  • Section 33 or Required Conversion PHAs are required 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 applies to all public housing agencies (PHAs) that administer a public housing program with developments of 250 public housing units or more, including PHAs participating in the Moving to Work (MTW) demonstration. For more information, please see 24 CFR Part 972, Subpart A and PIH Notice 2019-10
  • Eminent Domain or Involuntary Conversion is an exercise of the power of government or quasi-government agencies (such as airport authorities, highway commissions, community development agencies, and utility companies) to take private property for public use. Sometimes these entities may propose to use their eminent domain authority to take public housing property. Eminent domain takings are exempt from the requirements of Section 18 of the U.S. Housing Act of 1937 and 24 CFR 970. However, because of the federal government interest in public housing property, HUD's consent to the taking of public housing property is necessary

Proceeds_v070220

  • ACC Termination and PHA Closeout This notice outlines requirements what public housing agencies (PHAs) must complete when proposing to remove their remaining public housing units from the public housing program and requirements related to the termination of the public housing Annual Contribution Contract (ACC). ACC termination follows the removal of all public housing units and other public housing property from the public housing inventory. ACC termination is also known as PHA closeout
  • Declaration of Trust or Restrictive Covenants (DOT/DORC) The Declaration of Trust and Declaration of Restrictive Covenants (DOT/DORC) are legal instruments granting HUD an interest in public housing property. They provide public notice that the public housing property must be operated in accordance with all federal public housing requirements, including the requirement not to convey or otherwise encumber the public housing property unless expressly authorized by federal law and/or HUD. See 24 CFR 905.108. The DOT/DORC takes priority over all other liens and property rights by being recorded on the property in “first position.” See 24 CFR 905.505(c)(4) and 905.600(c)(3).
  • Project/Inventory Removal in PIC an overview of how PHAs must use IMS/PIC to apply to HUD in order to remove public housing property (buildings, units, and vacant land) from their inventories