HUD PIH Notice § 2014-14

                             U.S. Department of Housing and Urban Development
                             Office of Public and Indian Housing




SPECIAL ATTENTION OF:                                NOTICE PIH 2014-14 (HA)

Regional Managers; Office of Public Housing          Issued: June 18, 2014
Directors; Program Center Coordinators;              This notice remains in effect until amended,
Public Housing Agencies; Resident                    superseded, or rescinded
Management Corporations
                                                     Cross-references: 24 CFR Part 972, subpart B,
                                                     Notice PIH 2014–5




Subject: Voluntary conversion assessment for public housing agencies (PHAs) with fewer than
250 public housing units
1) Purpose. To offer small PHAs a streamlined cost analysis and process for the voluntary
   conversion of public housing to Housing Choice Vouchers (HCVs) under the authority
   provided at section 22(b)(3) of the United States Housing Act of 1937 (42 U.S.C.
   1437t(b)(3)) (1937 Act), and to clarify the applicable conversion implementation
   requirements of 24 CFR part 972.
2) Background. Under section 22(b)(3) of the 1937 Act (voluntary conversion of public
   housing), a PHA may convert any public housing project (or portion thereof) to HCVs if the
   cost of conversion will be no greater than the cost of continuing to operate the units as public
   housing. The PHA must conduct a “conversion assessment” that includes a cost analysis, an
   analysis of the market value of the public housing project, an analysis of rental market
   conditions, and an impact analysis. The statute allows HUD to waive the conversion
   assessment, however, or to require a streamlined conversion assessment for “any public
   housing project or class of public housing projects.” Out of a recognition that the regulatory
   burden on small PHAs is out of proportion to the federal resources available to them, the
   Department is making available via this Notice a conversion assessment that streamlines the
   cost analysis for small PHAs.
3) Eligibility Criteria. A public housing project is eligible for the conversion under this Notice
   if it meets the criteria listed below.
   A) It is owned by a PHA that operates fewer than 250 public housing units; conversion of
      the project or projects will result in the conversion of all public housing units owned by
      the PHA; and the level of HCV housing assistance provided to the PHA that will
      administer such assistance will not exceed the level of public housing assistance provided
      to units in the project.


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          i)      HUD is exercising its statutory authority to waive the cost analysis described
                  at 42 U.S.C. 1437t(b)(1)(A) and has adopted the methodology described in
                  Appendix A to determine which projects are eligible for conversion under this
                  Notice; Appendix A lists these eligible projects. A PHA that wishes to convert
                  an eligible project listed in Appendix A will not be required to prepare the
                  cost analysis described at 24 CFR 972.218(a).
          ii)     HUD will consider a request for a reexamination of eligibility from a PHA
                  that believes it was excluded from the list in Appendix A due to a technical
                  error (i.e., number of units) in HUD’s PIH Information Center (PIC). Contact
                  SACTA@hud.gov to initiate such a request.
   B) In order for its application for conversion to be considered and reviewed, the applicant
      PHA and voucher PHA (if applicable — see paragraph (5) of this Notice) must be in
      compliance with all fair housing and civil rights requirements at 24 CFR 5.105(a) and
      may not have an outstanding charge, cause determination, lawsuit, or finding of
      noncompliance with such requirements that is not the subject of a voluntary compliance
      agreement, settlement agreement, consent order, or other remedial agreement to which
      the PHA is a party. Furthermore, neither the applicant PHA nor the voucher PHA (if
      applicable) may be in breach of any such agreement or order.
   C) A PHA that wishes to convert a project eligible under this Notice must provide evidence
      that conversion will principally benefit residents, the PHA, and the community. The PHA
      may demonstrate that conversion will meet this requirement by means of an analysis of
      rental market conditions, in accordance with 24 CFR 972.218(c).
   D) If a PHA that wishes to convert a project eligible under this Notice intends to dispose of
      the project to another entity via public bid at Fair Market Value (FMV) with no
      requirement that the project be maintained as rental housing for low-income families,
      then the PHA must provide evidence to demonstrate that conversion (and subsequent
      disposition as described) will not adversely affect the availability of affordable housing in
      the community, in accordance with 24 CFR 972.218(d).
4) Availability of Tenant Protection Vouchers. Pursuant to 24 CFR 972.212(a), PHAs
   applying for conversion may be given priority for receiving tenant-based assistance. PHAs
   should apply for tenant protection vouchers (TPVs) from their local HUD Field Office of
   Public Housing in accordance with the requirements of Notice PIH 2014–5 and Form HUD-
   52515. For FY14, the Department is making available up to 1,000 TPVs to fund conversions
   under this Notice, subject to the availability of appropriations.
5) PHAs that Do Not Administer HCV Assistance. An applicant PHA that does not
   administer HCV assistance is ineligible to convert a project under this Notice unless it
   obtains a written commitment from a voucher PHA to administer the HCV assistance (tenant
   protection vouchers), pursuant to HUD’s approval of the conversion plan.
6) Conversion Implementation Requirements. Appendix B consists of a chart that identifies
   the requirements of 24 CFR Part 972, Subpart B, that apply under this Notice. Generally,
   PHAs must conduct a conversion assessment consistent with HUD’s regulations at 24 CFR
   972.218, except that they do not need to conduct a cost analysis (24 CFR 972.218(a)),
   because HUD has already performed such an analysis, nor do they need to conduct an



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    analysis of market value (24 CFR 972.218(b)). An applicant PHA shall submit to HUD a
    written summary based on its analysis of rental market conditions (24 CFR 972.218(c)) and
    an impact analysis (24 CFR 972.218(d)).1
    Applicant PHAs are reminded to review 24 CFR 972.224(a)(2) (”Benefit to residents, PHA,
    and the community”) in the conduct of the impact analysis. In determining whether a
    conversion will principally benefit residents, the PHA, and the community, HUD will
    consider whether the conversion will conflict with any litigation settlement agreements,
    voluntary compliance agreements, or other remedial agreements signed by the PHA and
    HUD. The applicant PHA will therefore identify to HUD any agreement and indicate any
    conflicts. The applicant PHA may propose modifications to remedial agreements as a
    component of its conversion plan.
7) PHA Plan Requirements. For PHAs required to prepare and submit an annual PHA plan to
   HUD, proposed conversion under this Notice must be identified in the PHA Annual Plan or
   in a significant amendment to the PHA plan. Pursuant to 24 CFR 972.209, the PHA must
   submit both the conversion assessment (as modified by the Notice) and conversion plan to
   HUD as part of its PHA Annual Plan (or significant amendment to that plan). PHAs are
   reminded that, in accordance with 24 CFR 903.15, a PHA plan or significant amendment to
   the PHA plan must contain a certification of consistency with the Consolidated Plan for the
   jurisdiction in which the PHA is located.
    Qualified PHAs, as defined in the Housing and Economic Recovery Act, no longer submit
    PHA Annual Plans to HUD but are still required to hold an annual public hearing on their
    public housing activities (or a subsequent public hearing that would be similar to a significant
    amendment), including any and all planned conversions.
    In addition, all PHAs, including Qualified PHAs, must continue annually to submit the HUD-
    50077-CR to HUD along with any other required civil rights compliance certifications
    required under applicable PHA plan requirements.
    An applicant PHA must include the following information about the proposed conversion in
    its annual PHA plan/significant amendment submission or public hearing (in the case of a
    Qualified PHA):
    A) A description of the building or buildings that the PHA plans to convert to tenant-based
       assistance.
    B) A description of the intended plans for the converted public housing project(s), including
       any demolition or disposition, provision of financing, rehabilitation, or modernization of
       the property and the impact on affordable housing in the community. If tenants will be


1
 The impact analysis shall describe the conversion’s likely impact on the availability of affordable housing in the
neighborhood, the concentration of poverty in the neighborhood, and other substantial matters in the neighborhood,
as described at 24 CFR 972.218(d). In particular, the impact analysis shall address how the proposed conversion will
contribute (or not contribute) to the diversification of available housing opportunities (types; number of affordable
and market-rate rental units, including accessible units; and prices) within the community; whether rents and
housing prices will be affordable to the displaced families; whether the relocated residents will have easy access to
public and private facilities and services, such as retail establishments, parks, public transportation, employment,
and schools; whether the unique needs of special household groups will be considered and how; and whether there
will be a concentration of poverty in the neighborhood(s) to which the residents will be relocating.


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         displaced as a result of these future activities, then the PHA’s relocation plan must be
         included.
    C) The name of the PHA that will administer the HCVs, if different from the converting
       PHA.
    D) A description of the PHA’s outreach to families on its public housing waiting list. Such
       outreach must notify families that they must apply to the HCV program of the PHA that
       will administer the HCV assistance following conversion, which may be different from
       the applicant PHA. Pursuant to Title VI, a PHA must, among other things, take
       reasonable steps that ensure meaningful access to programs and activities by persons
       who, as a result of national origin, have limited English proficiency (LEP).2 The outreach
       materials must be made available in formats accessible to persons with disabilities and in
       languages spoken by limited English proficient persons on the waiting list. Information in
       languages other than English may be made available orally or in writing, depending on
       whether each language represents a significant portion of the people on the waiting list.
       The outreach must make clear the specific steps families must follow in order to apply to
       the HCV program of the PHA that will administer assistance following conversion.3
    E) A description of any procedures that will change when the public housing units are
       converted to HCV assistance, which shall cover at least:
            i.        Changes in termination and grievance procedures upon conversion from
                      public housing to HCV.
           ii.        Changes in rent determinations, including the impact on rental payments (e.g.,
                      non-disabled tenants will no longer receive the Earned Income Disregard).
          iii.        Explanation of a resident’s right to remain in the project(s) when converting
                      under section 22 of the 1937 Act.
          iv.         Any differences in the treatment of resident organizations and protected
                      activities impacted by the conversion to HCV.
           v.         Any changes in administration of the PHA’s public housing FSS, ROSS, or
                      CFCF programs (see paragraph (9) of this Notice).
          vi.         Changes in admissions or occupancy procedures.
         vii.         Changes to any remedial civil rights order or agreement, voluntary
                      compliance agreement, final judgment, consent decree, settlement agreement,
                      or other court order or agreement, in accordance with the terms of such

2
  For more information on complying with this requirement, consult the Final Guidance to Federal Financial
Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited
English Proficient Persons, which HUD published in the Federal Register on January 22, 2007 (72 FR 2732).
3
  When owners provide written or verbal communication to applicants or tenants, they must take steps to ensure
effective communication with applicants, residents, and members of the public. HUD’s regulation on effective
communication with persons with disabilities is found at 24 CFR 8.6. Effective communications may include, but
are not limited to, conducting outreach in a manner that will reach persons with disabilities, such as by working with
State and local organizations that serve or represent persons with disabilities, and ensuring that information about
their programs is disseminated in a manner that is accessible to persons with disabilities. For example, special
communication systems (e.g., TTY for persons who are hearing or speech impaired, materials on tape or in Braille)
can greatly increase the effectiveness of outreach and ongoing communication.


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                  agreements, judgments, decrees, or orders and relevant statutory or regulatory
                  authorities.
      viii.       Rescreening procedures upon entrance into the HCV program.
   F) A description of how conversion will benefit residents, the PHA, and the community.
   HUD will neither process nor approve an application for conversion under this Notice
   without a certification from the PHA that is has complied with these requirements. The PHA
   may be required to submit sufficient information to its local HUD Field Office of Public
   Housing in order to allow that office to determine that the PHA has complied with these
   requirements.
8) Required Elements of Conversion Plan
   A) A PHA that intends to pursue conversion under this Notice must develop a conversion
      plan with significant participation by the residents of the project. The PHA must also
      consult with local government and other appropriate public officials about the
      conversion. The PHA must obtain a certification of consistency with the applicable
      Consolidated Plans in accordance with HUD’s regulations at 24 CFR 91.2 and 903.15. In
      its conversion plan, a PHA must summarize resident comments received and describe
      how it took these comments into account in finalizing its conversion plan.
   B) An applicant PHA with an approved Capital Fund Financing Program transaction,
      Section 30 PHA Mortgaged Transaction, or Operating Fund Financing Program must
      identify such financing to HUD as part of its conversion plan and indicate how it plans to
      retire such debt. The PHA must work with the respective HUD program office to assure
      all such financial obligations are satisfied prior to any conversion.
   C) As described at 24 CFR 972.218(c), the conversion plan must include an analysis of the
      likely success of public housing residents in using tenant-based assistance in the rental
      market, taking into account the particular characteristics of such residents (such as large
      households or the presence of elderly or disabled family members).
   D) For an applicant PHA that does not administer HCV assistance, the conversion plan must
      include a signed copy of the agreement between the PHA and the HCV agency that will
      be administering the HCV assistance (as described in paragraph (5)), pursuant to HUD’s
      approval of the conversion plan.
   E) All voluntary conversion plans must include a description of the PHA’s intended plans
      for the project (physical asset and underlying land) after the public housing subsidy
      attached to the units is converted to tenant-based assistance. Depending on the project’s
      location, condition, and other factors, the PHA may request to do one of the following
      with the project:
         i.       Dispose of the project to another entity (e.g., a non-profit or a Low-
                  Income Housing Tax Credit (LIHTC) entity) via a negotiated sale,
                  lease, or other transfer at or below the project’s FMV so that the
                  project can be maintained as rental housing for low-income families
                  (i.e., families at or below 80 percent of area medium income (AMI)).
                  The disposition requirements of section 18 of the 1937 Act and 24
                  CFR part 970 will apply. Because the conversion plan submitted to


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           HUD will include all of the information HUD needs to process a
           disposition action, no separate disposition application will be
           required. HUD will use the same review criteria to ensure section 18
           compliance that is provided in HUD regulations and notices
           governing disposition of public housing. HUD will impose conditions
           on the use of disposed-of assets in its written approval of the
           disposition proposal. HUD will generally require the PHA to execute a
           use restriction or a similar recorded document in a form acceptable to
           HUD that assures the use of the project for a period of not less than 30
           years. Typically such use restriction is recorded in a first-priority
           position against the property and survives the foreclosure of any
           mortgages or other liens on the property;
  ii.      Pursue HUD approval to retain the ownership of the project free and
           clear of all federal restrictions (i.e., request that HUD release the
           Declaration of Trust). Although under this action PHAs are generally
           required to compensate HUD for a project’s value (HUD’s
           participation in the cost of the original purchase as a percentage of the
           FMV) (24 CFR 85.31(c)(1)), 24 CFR 85.6(c) authorizes HUD to
           grant an exception to this requirement. HUD will generally grant such
           an exception if the project will be used as housing for low-income
           families after conversion, provided a use restriction is recorded
           against the property, as described in paragraph (i) above; or
 iii.      Dispose of the project to another entity via public bid at FMV with no
           requirement that the project be maintained as rental housing for low-
           income families. Proceeds from the disposition will be restricted to
           uses authorized under section 18(a)(5) of the 1937 Act, 42 U.S.C.
           1437p(a)(5). The disposition requirements of section 18 of the 1937
           Act and 24 CFR part 970 will apply. No separate disposition
           application will be required.
Any of these proposed future uses will be subject to Environmental Review.
Prior to taking action to implement its plans for the project, the PHA must submit
sufficient information to its local HUD Field Office of Public Housing in order to
allow that office to indicate that one of the following has occurred: (1) the
Environmental Review was completed by HUD under 24 CFR part 50 for the
proposed action, and the action is environmentally acceptable; (2) the
Environmental Review was completed by a Responsible Entity under 24 CFR
part 58, and HUD has approved a Request for Release of Funds; or (3) a
Responsible Entity under 24 CFR part 58 has made a determination that the
project or activity is exempt under 24 CFR 58.34(a)(12) because the project or
activity is categorically excluded under 24 CFR 58.35(a)(4) or (5) and none of
the related environmental laws is triggered.
PHAs are reminded that the PHA’s plans for reuse of the public housing property
or site, the use of tenant-based assistance in a special housing type under 24 CFR
982 subpart M, or the proposed PBV housing, is subject to site and neighborhood


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        standards established pursuant to Title VI of the Civil Rights Act and the Fair
        Housing Act.4
    F) The conversion plan must include a relocation plan that contains all information
       identified in 24 CFR 972.230(g)(1)–(4). To the extent that tenants are displaced
       as a direct result of the demolition, acquisition, or rehabilitation of real property
       for a project that receives HCV tenant-based assistance through the voluntary
       conversion of public housing as described in this Notice, the requirements of the
       Uniform Relocation Assistance and Real Property Acquisition Policies Act of
       1970, as amended (42 U.S.C. 4601–4655), and the implementing regulations at
       49 CFR part 24, apply. For purposes of this paragraph, the term “project” is
       defined at 49 CFR 24.2(a)(22); the URA may therefore apply even if federal
       funds do not pay for the demolition, acquisition, or rehabilitation that causes
       displacement.5 If voluntary conversion as described in this Notice is subject to
       the URA, then the PHA must also comply with the requirements in 24 CFR
       972.230(g)(5). In preparing their relocation plans, applicant PHAs should refer to
       HUD Handbook 1378 for guidance regarding HUD real estate acquisition and
       relocation policy and procedures. Specifically, Chapter 3 contains guidance on
       providing relocation assistance for families and individuals and includes some
       guidance on accessibility requirements and reasonable accommodations for
       displaced persons with disabilities.
    G) The conversion plan must include a statement of compliance with all applicable
       nondiscrimination and equal opportunity requirements, including but not limited to those
       specified in HUD’s regulations at 24 CFR 5.105(a).
9) Resident Services and CFCF Program. The information in this paragraph applies to any
   applicant PHA that operates a Public Housing Family Self-Sufficiency (PH FSS), Resident
   Opportunities and Self-Sufficiency – Service Coordinator (ROSS-SC), or Capital Fund
   Education and Training Community Facilities (CFCF) program:
    A) The following requirements apply to an applicant PHA that operates a PH FSS program:
           i.        No later than the effective date of conversion,6 the applicant PHA must
                     disburse escrow funds (in accordance with 24 CFR 984.305(c)) to
                     participating families that have met their obligations under their Contract of
                     Participation or otherwise completed their contract (see 24 CFR 984.303(g))
                     and are welfare-free.
          ii.        For participating families that have not met their obligations and are not
                     welfare-free as of the effective date of conversion, HUD encourages any
                     applicant PHA that operates a PH FSS program to honor its Contracts of
                     Participation by transferring participating residents to an HCV FSS program.
                     For example, an applicant PHA that does not operate an HCV FSS program

4
  For more information, see HUD’s regulations (e.g., 24 CFR 905.602(d) and 983.57).
5
  URA resources and guidance, including contact information for HUD’s Regional Relocation Specialists, are
available on HUD’s Real Estate Acquisition and Relocation Web site at http://www.hud.gov/relocation.
6
  The effective date is the date in IMS/PIC that indicates when the units have been removed from the PHA’s ACC
public housing inventory and DOT.


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                  has the option of either establishing such a program or transferring
                  administration of its HCVs to a PHA that operates an HCV FSS program. If
                  an applicant PHA is unable to transfer participating families to an HCV FSS
                  program, then the PHA must, upon conversion to the HCV program, terminate
                  the family’s participation in the PH FSS program. In accordance with section
                  23(d)(2) of the 1937 Act, the Secretary has determined that in this case there
                  is good cause and an exception is warranted to permit the disbursement of the
                  escrowed funds to the family, regardless of whether the family has completed
                  its Contract of Participation and is welfare-free.
        iii.      An applicant PHA may continue to serve PH FSS families using already-
                  granted funds until the participants’ Contracts of Participation have been
                  completed.
       An applicant PHA that has converted its assistance pursuant to this Notice may not enroll
       new participants in its PH FSS program following conversion.
   B) If the applicant PHA operates a ROSS-SC program, program grants would need to be
      closed in accordance with their grant terms. Applicant PHAs have more than one option
      for operating these grants until close-out:
          i.      The applicant PHA may continue to operate its program until the agreement is
                  closed out, but it may not apply for new ROSS-SC program funding.
         ii.      The applicant PHA may transfer its program to another PHA. PHAs who are
                  interested in pursuing this option should contact their local HUD Field Office
                  of Public Housing for guidance.
   C) If the PHA was awarded a CFCF grant, then the PHA must return the grant amount prior
      to conversion or complete the project. After completion of the project, HUD will require
      recordation of a 40-year use agreement at conversion before termination of the Annual
      Contributions Contract (ACC) Amendment. If conversion under this Notice results in the
      applicant PHA being unable to fulfill the purpose for which the grant was awarded, then
      the grant amount shall be returned to HUD through either a section 18 disposition or in
      accordance with 24 CFR 85.31.
10) Submission, Review, and Approval of Application and Conversion Plan. A PHA
    applying for conversion under this Notice must submit the materials described below no later
    than close of business on September 30, 2014 (5:00 PM Eastern Daylight Time):
   A) The PHA must submit its conversion application and plan to HUD via the Inventory
      Removals Sub-module of the Inventory Management System/PIH Information Center
      (IMS/PIC). Each PHA must complete the questions on the electronic application (HUD-
      52860), including the required certification (supported by attachments, as applicable).
   B) Completion of the HUD-52860-E addendum is not required; instead, documentation
      demonstrating fulfillment of the conversion plan and public and resident consultation
      requirements, described in paragraph (8) above, must be included as attachments with the
      PHA’s electronic submission.
   C) All applications received by close of business on September 30, 2014, will be reviewed
      initially by the Special Applications Center (SAC) for completeness. HUD will not


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       process an application/voluntary conversion plan found to be deficient on a substantial
       item or incomplete. If a PHA submits an application that is deficient or incomplete, the
       SAC will reject the application in a formal letter to the PHA and register the application’s
       status as “inactive” in IMS/PIC. An application that is determined to be complete will be
       considered an “eligible application.”
   D) Once a PHA’s application is determined to be eligible, PIH will notify the Office of Fair
      Housing and Equal Opportunity (FHEO) that the electronic application and attachments
      are available for a front-end civil rights review. The purpose of the review is to identify
      and address outstanding civil rights matters, including but not limited to identifying
      active fair housing and other civil rights–related complaints or reviews; ensuring that
      appropriate parties maintain or assume the responsibility for satisfying the terms of a civil
      rights agreement or order; and ensuring compliance with the PHA’s obligations under the
      Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act,
      Titles II and III of the Americans with Disabilities Act, and other applicable
      nondiscrimination and equal opportunity authorities.
   All eligible applications will be reviewed for compliance with the requirements of this
   Notice, including any applicable requirements described in Appendix B. HUD will
   disapprove an eligible application/conversion plan that fails to meet such requirements.
   Subject to the availability of appropriations, applications that meet the requirements of this
   Notice will be funded on a first-come, first-serve basis until the 1,000 TPVs have been
   exhausted. The Department may, subject to the availability of appropriations, make available
   additional TPVs, for example to provide for full funding of the final application, if funding
   that application will push TPV issuance above the 1,000 TPV threshold.
   A PHA must obtain written approval of its conversion plan from HUD Headquarters before
   proceeding to implement the plan.
11) Troubled Agencies. A PHA that is designated “troubled” under the Public Housing
    Assessment System is eligible to apply to convert a project under this Notice.
12) Income Eligibility and Family Screening. In order to receive a TPV, a family must be a
    low-income family. A low-income family is a family whose annual income does not exceed
    80 percent of the median income for the area as determined by HUD.
   In addition, the PHA must screen families for eligibility of assistance consistent with the
   requirements in 24 CFR 982.552 and 982.553. The screening of families and decisions to
   deny admissions to the voucher program must be the same as the PHA policy for screening
   of regular admissions of families from the PHA waiting list.
   The PHA must provide a family with an opportunity for an informal review if it denies the
   family admission to the voucher program in accordance with 24 CFR 982.554.
13) Right to Remain. Under section 22 of the 1937 Act, a PHA’s conversion plan must “ensure
    that, if the project (or a portion) converted is used as housing after conversion, each resident
    may choose to remain in the dwelling unit in the project and use the tenant-based [voucher]
    for rent.” In this case, if a family meets the requirements noted in paragraph (12) of this
    Notice and receives a voucher, then the owner must accept the voucher and lease the unit to
    the family. The voucher assistance must be administered by the PHA (or the voucher PHA



                                                  9
   that agrees to administer the assistance pursuant to paragraph (5) of this Notice) in
   accordance with the requirements in 24 CFR Part 982.
   In all cases, residents of a project undergoing conversion may voluntarily accept a PHA’s
   offer to move permanently to another assisted unit, and thereby waive their right to remain or
   return to the redeveloped property after rehabilitation or redevelopment is completed. If a
   resident is temporarily relocated for a period that exceeds 12 months and the relocation is
   subject to the URA, the PHA would be required to offer permanent relocation assistance to
   the resident, including a referral to a comparable replacement unit. The PHA would be
   prohibited from asking the resident to waive their relocation assistance (though the resident
   may voluntarily choose not to accept the offered assistance). It should be noted that the URA
   does not require a right of return policy.
14) Termination of Annual Contributions Contract. Since conversion actions under this
    Notice will convert all of a PHA’s remaining public housing to HCVs, the action will
    terminate the PHA’s public housing ACC with HUD. The PHA must comply with all HUD
    requirements to close-out its public housing program, including those pertaining to the
    Operating Fund, the Capital Fund, and Audits. In addition, the PHA will be ineligible for
    Demolition and Disposition Transitional Funding under 24 CFR Part 905. Units approved by
    HUD for voluntary conversion are ineligible for an Asset Repositioning Fee.
   If a PHA that intends to terminate its public housing ACC owns any non-dwelling property
   (e.g., vacant land, playgrounds, administrative buildings, community buildings) that it
   acquired, maintained, or operated with 1937 funds (and is under an ACC and Declaration of
   Trust (DOT) in favor of HUD), then the PHA must request, as part of its voluntary
   conversion application, to either dispose of such property in accordance with Section 18 of
   the 1937 Act or retain it free from federal restrictions in accordance with 24 CFR Part 85.
   The PHA must identify any tangible or personal property acquired with 1937 Act funds that
   are included as part of the request.
Paperwork Reduction Act. The information collection requirements contained in this Notice
are approved by the Office of Management and Budget (OMB) under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520). The OMB control numbers are 2577-0075, 2577-0169,
2577-0226, and 2577-0276.



                                                     ______________/s/____________________
                                                     Sandra B. Henriquez, Assistant Secretary for
                                                            Public and Indian Housing



 Appendices
 Appendix A
 Appendix B




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