42 U.S.C. § 1437p : US Code - Section 1437P: Demolition and disposition of public housing

Search 42 U.S.C. § 1437p : US Code - Section 1437P: Demolition and disposition of public housing

(a) Applications for demolition and disposition
Except as provided in subsection (b) of this section, upon
receiving an application by a public housing agency for
authorization, with or without financial assistance under this
subchapter, to demolish or dispose of a public housing project or a
portion of a public housing project (including any transfer to a
resident-supported nonprofit entity), the Secretary shall approve
the application, if the public housing agency certifies -
(1) in the case of -
(A) an application proposing demolition of a public housing
project or a portion of a public housing project, that -
(i) the project or portion of the public housing project is
obsolete as to physical condition, location, or other
factors, making it unsuitable for housing purposes; and
(ii) no reasonable program of modifications is cost-
effective to return the public housing project or portion of
the project to useful life; and
(B) an application proposing the demolition of only a portion
of a public housing project, that the demolition will help to
ensure the viability of the remaining portion of the project;
(2) in the case of an application proposing disposition by sale
or other transfer of a public housing project or other real
property subject to this subchapter -
(A) the retention of the property is not in the best
interests of the residents or the public housing agency because
-
(i) conditions in the area surrounding the public housing
project adversely affect the health or safety of the
residents or the feasible operation of the project by the
public housing agency; or
(ii) disposition allows the acquisition, development, or
rehabilitation of other properties that will be more
efficiently or effectively operated as low-income housing;
(B) the public housing agency has otherwise determined the
disposition to be appropriate for reasons that are -
(i) in the best interests of the residents and the public
housing agency;
(ii) consistent with the goals of the public housing agency
and the public housing agency plan; and
(iii) otherwise consistent with this subchapter; or
(C) for property other than dwelling units, the property is
excess to the needs of a public housing project or the
disposition is incidental to, or does not interfere with,
continued operation of a public housing project;
(3) that the public housing agency has specifically authorized
the demolition or disposition in the public housing agency plan,
and has certified that the actions contemplated in the public
housing agency plan comply with this section;
(4) that the public housing agency -
(A) will notify each family residing in a project subject to
demolition or disposition 90 days prior to the displacement
date, except in cases of imminent threat to health or safety,
consistent with any guidelines issued by the Secretary
governing such notifications, that -
(i) the public housing project will be demolished or
disposed of;
(ii) the demolition of the building in which the family
resides will not commence until each resident of the building
is relocated; and
(iii) each family displaced by such action will be offered
comparable housing -
(I) that meets housing quality standards;
(II) that is located in an area that is generally not
less desirable than the location of the displaced person's
housing; and
(III) which may include -
(aa) tenant-based assistance, except that the
requirement under this clause regarding offering of
comparable housing shall be fulfilled by use of tenant-
based assistance only upon the relocation of such family
into such housing;
(bb) project-based assistance; or
(cc) occupancy in a unit operated or assisted by the
public housing agency at a rental rate paid by the family
that is comparable to the rental rate applicable to the
unit from which the family is vacated;
(B) will provide for the payment of the actual and reasonable
relocation expenses of each resident to be displaced;
(C) will ensure that each displaced resident is offered
comparable housing in accordance with the notice under
subparagraph (A); and (!1)
(D) will provide any necessary counseling for residents who
are displaced; and
(E) will not commence demolition or complete disposition
until all residents residing in the building are relocated;
(5) that the net proceeds of any disposition will be used -
(A) unless waived by the Secretary, for the retirement of
outstanding obligations issued to finance the original public
housing project or modernization of the project; and
(B) to the extent that any proceeds remain after the
application of proceeds in accordance with subparagraph (A),
for -
(i) the provision of low-income housing or to benefit the
residents of the public housing agency; or
(ii) leveraging amounts for securing commercial
enterprises, on-site in public housing projects of the public
housing agency, appropriate to serve the needs of the
residents; and
(6) that the public housing agency has complied with subsection
(c) of this section.
(b) Disapproval of applications
The Secretary shall disapprove an application submitted under
subsection (a) of this section if the Secretary determines that -
(1) any certification made by the public housing agency under
that subsection is clearly inconsistent with information and data
available to the Secretary or information or data requested by
the Secretary; or
(2) the application was not developed in consultation with -
(A) residents who will be affected by the proposed demolition
or disposition;
(B) each resident advisory board and resident council, if
any, of the project (or portion thereof) that will be affected
by the proposed demolition or disposition; and
(C) appropriate government officials.
(c) Resident opportunity to purchase in case of proposed
disposition
(1) In general
In the case of a proposed disposition of a public housing
project or portion of a project, the public housing agency shall,
in appropriate circumstances, as determined by the Secretary,
initially offer the property to any eligible resident
organization, eligible resident management corporation, or
nonprofit organization acting on behalf of the residents, if that
entity has expressed an interest, in writing, to the public
housing agency in a timely manner, in purchasing the property for
continued use as low-income housing.
(2) Timing
(A) Expression of interest
A resident organization, resident management corporation, or
other resident-supported nonprofit entity referred to in
paragraph (1) may express interest in purchasing property that
is the subject of a disposition, as described in paragraph (1),
during the 30-day period beginning on the date of notification
of a proposed sale of the property.
(B) Opportunity to arrange purchase
If an entity expresses written interest in purchasing a
property, as provided in subparagraph (A), no disposition of
the property shall occur during the 60-day period beginning on
the date of receipt of that written notice (other than to the
entity providing the notice), during which time that entity
shall be given the opportunity to obtain a firm commitment for
financing the purchase of the property.
(d) Replacement units
Notwithstanding any other provision of law, replacement public
housing units for public housing units demolished in accordance
with this section may be built on the original public housing
location or in the same neighborhood as the original public housing
location if the number of the replacement public housing units is
significantly fewer than the number of units demolished.
(e) Consolidation of occupancy within or among buildings
Nothing in this section may be construed to prevent a public
housing agency from consolidating occupancy within or among
buildings of a public housing project, or among projects, or with
other housing for the purpose of improving living conditions of, or
providing more efficient services to, residents.
(f) De minimis exception to demolition requirements
Notwithstanding any other provision of this section, in any 5-
year period a public housing agency may demolish not more than the
lesser of 5 dwelling units or 5 percent of the total dwelling units
owned by the public housing agency, 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.
(g) Uniform Relocation and Real Property Acquisition Act
The Uniform Relocation and Real Property Acquisition Policies Act
of 1970 [42 U.S.C. 4601 et seq.] shall not apply to activities
under this section.
(h) Relocation and replacement
Of the amounts appropriated for tenant-based assistance under
section 1437f of this title in any fiscal year, the Secretary may
use such sums as are necessary for relocation and replacement
housing for dwelling units that are demolished and disposed of from
the public housing inventory (in addition to other amounts that may
be available for such purposes).