![](media/image1.wmf){width="0.5659722222222222in"
height="0.5493055555555556in"} **U. S. Department of Housing and Urban
Development**

**Public and Indian Housing**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Special Attention of: Notice** PIH 2007-10 (HA)

Public Housing Office Directors;

Public Housing Agencies (PHAs) Issued: April 30, 2007

Expires: April 30, 2008

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Cross References: Supercedes Notice PIH 2005-15 (HA) issued April 26,
2005

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Subject:**
**Voucher Funding In Connection with the Demolition or Disposition of
Occupied Public Housing Units**

**[1. Purpose.]{.underline}** The purpose of this notice is to describe
the funding process for providing housing choice vouchers ("vouchers")
in connection with the demolition or disposition of occupied public
housing units. This notice applies to PHAs seeking vouchers for
relocation or replacement housing related to demolition or disposition
(including HOPE VI), and plans for removal (required and voluntary
conversion under section 33 of the U.S. Housing Act of 1937, as amended,
and mandatory conversion under section 202 of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996) of public housing units.

**[2. Background.]{.underline}** The regulatory requirements for
demolition or disposition of public housing are contained in 24 CFR part
970. The regulatory requirements for required and voluntary conversions
of public housing developments to tenant-based assistance are contained
in 24 CFR part 972.

**[3. Tenant Eligibility.]{.underline}** Tenants residing in units
approved for demolition/disposition are eligible for housing choice
voucher assistance, subject to other HUD requirements. A public housing
resident displaced by a federally declared disaster may not receive both
Disaster Voucher Program (DVP) assistance and demolition/disposition
voucher assistance under this notice for the same period of time.

**[4. PHA Funding Requirements.]{.underline}** In order for a PHA to
receive demolition/disposition voucher funding under this notice, the
following funding requirements must be met:

a\. HUD has (i) approved the demolition/disposition application, the
HOPE VI Revitalization Plan containing a demolition approval, or the
conversion plan containing a demolition or disposition approval, or (ii)
acknowledged that the PHA provided notification of a "de minimis
demolition" of the lesser of not more than five public housing units or
five percent of the total dwelling units owned by the PHA. (Prior HUD
approval is not required for a "de minimis demolition." The regulation
at 24 CFR 970.27(e) requires PHAs to submit certain information for
record keeping purposes.)

b\. The PHA has not previously received voucher or other relocation or
replacement funding for these units, as further described in section 6
of this notice.

**[5. Demolition/Disposition Voucher Funding Eligibility.]{.underline}**
The following demolition/disposition actions are eligible for voucher
funding:

a\. Public housing demolition/disposition in connection with HOPE VI
Revitalization Plans, required conversions to tenant-based assistance,
and other displacement actions determined by the Assistant Secretary for
Public and Indian Housing.

PHAs may submit an application for these demolition/disposition vouchers
as soon as the PHA receives written HUD approval of the demolition or
disposition application, the HOPE VI Revitalization Plan, or the
conversion plan. These demolition/disposition voucher funding
applications will be funded based on the date of HUD approval of the
demolition/disposition application in the order of submission of the
demolition/disposition voucher funding application.

b\. Public housing demolition/disposition in connection with voluntary
conversions to tenant-based assistance.

PHAs may submit an application for these demolition/disposition vouchers
as soon as the PHA receives written HUD approval of the conversion plan.
PHA voluntary conversion demolition/disposition voucher applications
will be funded in the order of receipt of acceptable (as determined by
HUD) applications. In most cases, funding will be made available for
these applications during the period of August 1 to August 31.

c\. Public housing demolition/disposition in conjunction with a "de
minimis demolition" and any other demolition/disposition actions.

PHAs may submit an application for these demolition/disposition vouchers
as soon as the PHA receives written acknowledgement of the "de minimis
demolition" action from HUD's Special Applications Center (SAC) or the
written HUD approval of the demolition or disposition application. PHA
demolition/disposition voucher applications will be funded based on the
date the SAC received the demolition/disposition application or PHA
notice of the "de minimis demolition." PHAs with the earliest receipt
date will be funded first. In most cases, funding will be made available
for these applications during the period of August 31 to September 30.

**[6. Maximum Voucher Request.]{.underline}** The maximum number of
demolition/disposition vouchers for which a PHA may be eligible is based
upon the number of occupied units that will be demolished, sold or
otherwise disposed of minus the number of families that will move to
other public housing units. For example, assume a 500-unit complex is
going to be demolished and at the time of the PHA's application for
vouchers under this notice, 300 of the 500 units were occupied. Two
hundred families indicated a preference for vouchers and 100 families
indicated a preference for moving to other public housing units. In this
example, the PHA may be eligible for 200 vouchers. In this scenario, the
number of vouchers requested could be increased if 100 public housing
units will not be available to those families that indicated a
preference for such units.

In addition, demolition/disposition voucher funding will only be
provided for public housing units if the PHA has not already received
relocation or replacement funding for these same units under the voucher
or certificate programs, public housing development, vacancy
consolidation, Major Reconstruction of Obsolete Projects, HOPE VI, or
capital funds. For example, if a PHA received public housing development
funds or tenant-based funding several years ago to replace a demolished
public housing unit, the PHA is not eligible to receive additional
demolition/disposition voucher funding for the same unit.

**[7. Reduction of Maximum Vouchers for Underutilization.]{.underline}**
A PHA may request a smaller budgetary allocation than it is eligible for
under this notice if the PHA has a significant accumulation of housing
assistance payment funds in its undesignated fund balance that can fund
rental assistance under the voucher program for families affected by the
actions addressed in this notice. Likewise, because the PHA is expected
to use these available funds for rental assistance, HUD may, at its
discretion, reduce the budgetary allocation if the PHA has a significant
accumulation of housing assistance payment funds in its undesignated
fund balance.

**[8. PHA Submission of Application for Demolition/Disposition Voucher
Funding.]{.underline}** A PHA interested in requesting
demolition/disposition voucher funding must submit the following
information to the local Field Office Director of the Office of Public
Housing:

a.  A cover letter stating: (1) the name and project number of the
    affected public housing development; (2) the number of occupied
    units in the affected public housing development at the time of the
    PHA's application for voucher funding under this notice; (3) the
    number of demolition/disposition vouchers requested; (4) the funding
    eligibility category (i.e.; HOPE VI, required conversion, voluntary
    conversion, "de minimis demolition," or "other"); and (5) a
    narrative describing other relocation or replacement funding
    previously provided for the public housing development by funding
    date and funding category (see section 6 of this notice), or a
    statement that no other such funding has been previously provided,
    and the amount of housing assistance payment funds in its
    undesignated fund balance. This information will be used solely to
    determine the amount of funding provided to eligible PHAs.

b.  Form HUD-52515, Voucher Funding Application.

c.  A leasing schedule that identifies the number of vouchers that will
    be leased on a quarterly basis during the calendar year in which the
    voucher funding is requested. If lease-up will span more than one
    calendar year, the PHA will need to submit a separate Form HUD-52515
    and leasing schedule for each calendar year.

d.  A copy of one of the following: (1) HUD approval letter for the
    demolition or disposition application, (2) HUD approval letter for
    the HOPE VI Revitalization Plan that contains a demolition
    approval, (3) HUD approval letter of the mandatory or voluntary
    conversion plan or (4) letter of acknowledgement from the SAC
    regarding a "de minimis demolition."

**[9. Field Office Processing of Applications and Notification of PHA
Deficiencies.]{.underline}** On a rolling basis, the local HUD Field
Offices will process applications for demolition/disposition voucher
funding. The technical review of a PHA\'s application must be completed,
and the PHA notified in writing of any deficiencies (information either
missing or requiring correction) or the basis for lack of funding
eligibility, no later than 15 days following the date of receipt of the
PHA\'s application. The PHA must promptly submit the missing or
corrected information to the local HUD Field Office within 15 days of
the date of the deficiency notification letter. The Field Office review
of the application must be coordinated with counterparts in the Office
of Fair Housing and Equal Opportunity (FHEO) to determine the PHA's
compliance with all fair housing and civil rights laws, statutes,
regulations and executive orders as enumerated in 24 CFR Section 5.105.
The PHA's application may be rejected for non-compliance with FHEO
requirements.

**[10. Notification of Eligible Applications.]{.underline}** The local
HUD Field Office must advise the Housing Voucher Financial Management
Division (HVFMD) in Headquarters by electronic mail of the PHAs that are
eligible for voucher funding under this notice. The electronic
notification must be sent to the HVFMD's general mailbox at:
PIH_Conversion_Actions. The fax number is (202) 401-3726.

For each eligible PHA, the Field Office shall provide the HVFMD with (1)
all of the PHA submitted information required in section 8 of this
notice, except for the funding application, (2) the Congressional
notification memorandum required in section 12, and (3) written Field
Office confirmation that the demolition/disposition voucher funding is
being requested for eligible occupied public housing units and that the
number of units requested does not exceed the maximum allowed, in
accordance with this notice.

**[11. Funding of Applications.]{.underline}** Subject to available
funding, Headquarters will fund all eligible applications from PHAs.
Funds will only be provided for vouchers that will be leased in the
calendar year during which the funding application is submitted. Funding
for vouchers to be leased in the next calendar year will be deferred
until that calendar year.

**[12. Notification of Office of Congressional and Intergovernmental
Relations.]{.underline}** The local HUD Field Office shall include with
each application from an eligible PHA the Congressional notification
memorandum for appropriate concurrences and the signature of the
Assistant Secretary, Office of Public and Indian Housing (PIH). Budget
authority and units should be left blank; this data will be entered by
the HVFMD. PIH will then provide the memorandum to the Assistant
Secretary for Congressional and Intergovernmental Relations for purposes
of obtaining a Congressional release date. Two sample Congressional
notifications are attached to this notice.

**[13. PHA Notification of Approved Demoliton/Disposition Voucher
Funding Application.]{.underline}** Following receipt of a release date,
the local HUD Field Office shall promptly notify the PHA by letter of
its eligibility for funding. The HUD Field Office shall provide a copy
of the PHA eligibility letter to the Section 8 Financial Management
Center (FMC). Upon receipt of the PHA eligibility letter from the local
HUD Field Office, the FMC will proceed to contract the funds in HUDCAPS
and transmit the Annual Contributions Contract (ACC) Amendment to the
PHA.

**[14. Voucher Issuance and Lease-Up.]{.underline}** Upon receipt of the
eligibility letter, the PHA should commence issuance of the
demolition/disposition vouchers and provide sufficient time for families
to lease units in accordance with the leasing schedule submitted with
the PHA's application. The effective dates of the funding increment(s)
on the ACC Amendment will reflect the leasing schedule submitted with
the application. These effective dates may be prior to the actual
transmittal date of the ACC Amendment to the PHA.

HUD will track the leasing of demolition/disposition vouchers through
the Public and Indian Housing Information Center (PIC). The code for
demolition/disposition vouchers on line 2n of the Family Report (form
HUD-50058) is PHRR. Vouchers that are not leased within 12 months of the
date of the ACC amendment may be subject to reallocation by HUD.

**[15. Unfunded Approvable Applications.]{.underline}** Eligible PHAs
that remain unfunded due to a lack of funding availability will be
funded at a later time, subject to Congressional appropriations for
demolition/disposition vouchers.

**[16. Paperwork Reduction Act Statement.]{.underline}** The information
collection requirements contained in this notice have been approved by
the Office of Management and Budget (OMB) under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB control number
2577-0169. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a valid control number.

[/s/]{.underline}

Orlando J. Cabrera, Assistant Secretary for

Public and Indian Housing

**SAMPLE CONGRESSIONAL NOTIFICATION MEMO FOR NON-HOPE VI
DEMOLITION/DISPOSITION VOUCHERS**

![](media/image2.wmf){width="0.65625in"
height="0.6458333333333334in"}**US DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT**

**WASHINGTON, D.C. 20410-5000**

OFFICE OF THE ASSISTANT SECRETARY FOR

PUBLIC AND INDIAN HOUSING

**MEMORANDUM FOR:** L. Carter Cornick, General Deputy Assistant
Secretary

for Congressional and Intergovernmental Relations, J

**FROM:** Orlando J. Cabrera, Assistant Secretary, Office of Public and
Indian Housing, P

**SUBJECT:** Housing Choice Vouchers Awarded in Connection with Public
Housing Demolition/Disposition

**The following award has been prepared for release:**

**Applicant:** Anywhere Housing Authority (MA000)

**State:** MA

**Amount Funded:** \$X,XXX,000

**Vouchers Funded:** 450

**Project Highlights:**

The Anywhere Housing Authority has been awarded 450 housing choice
vouchers for families in Anyhow Apartments, a public housing development
that is scheduled for demolition in connection with the HUD-approved
demolition/disposition plan (or conversion plan).

**Status:** All statutory, regulatory and administrative requirements
have been met.

**Contact:** Hallie Very

Anywhere Housing Authority

2100 New Road

Anywhere, MA 70000

\(617\) 988-8888

**HUD Contact:** David Vargas, Director, Office of Housing Voucher
Programs, (202) 708-2815

**Congressional Representative:** John Doe

**Congressional District:** 9^th^

**Senators:** Mary Doe

Joseph Jones

**SAMPLE CONGRESSIONAL NOTIFICATION MEMO FOR HOPE VI
DEMOLITION/DISPOSITION VOUCHERS**

![](media/image2.wmf){width="0.65625in"
height="0.6458333333333334in"}**US DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT**

**WASHINGTON, D.C. 20410-5000**

OFFICE OF THE ASSISTANT SECRETARY FOR

PUBLIC AND INDIAN HOUSING

**MEMORANDUM FOR:** L. Carter Cornick, General Deputy Assistant
Secretary

for Congressional and Intergovernmental Relations, J

**FROM:** Orlando J. Cabrera, Assistant Secretary, Office of Public and
Indian Housing, P

**SUBJECT:** Housing Choice Vouchers Awarded in Connection with HOPE VI
Revitalization Grant

**The following award has been prepared for release:**

**Applicant:** Anywhere Housing Authority (MA000)

**State:** MA

**Amount Funded:** \$X,XXX,000

**Vouchers Funded:** 450

**Project Highlights:**

The Anywhere Housing Authority has been awarded 450 housing choice
vouchers for families in Anyhow Apartments, a public housing development
that is scheduled for demolition in connection with the HUD-approved
Hope VI Revitalization Grant.

**Status:** All statutory, regulatory and administrative requirements
have been met.

**Contact:** Hallie Very

Anywhere Housing Authority

2100 New Road

Anywhere, MA 70000

\(617\) 988-8888

**HUD Contact:** David Vargas, Director, Office of Housing Voucher
Programs, (202) 708-2815

**Congressional Representative:** John Doe

**Congressional District:** 9^th^

**Senators:** Mary Doe

Joseph Jones