U.S. Department of Housing and Uran Development

Office of Public and Indian Housing

Special Attention of: NOTICE PIH 97-12 (HA)

Secretary\'s Representatives; Issued: March 12, 1997

State/Area Coordinators; Directors,

Public Housing Divisions; Housing Expires: March 31, 1998

Authorities; Resident Management

Corporations; Resident Councils\'

Fair Housing Enforcement Center Cross References:

Directors; FHEO Program Operations

and Compliance Center Directors

Subject: Requirements for Designation of Public Housing Projects

PURPOSE: This Notice supersedes PIH Notice 96-60 , which was

issued on August 5, 1996. It explains the streamlined

requirements for public housing agencies (PHAs) that plan to

designate projects for elderly families only, disabled families

only, or elderly and disabled families. These requirements are

contained in Section 10(a) of the \"Housing Opportunity Program

Extension Act of 1996,\" which permits PHAs to designate projects

after developing a HUD-approved Plan. Section 10(a) of the

Extension Act amended Section 7 of the United States Housing Act

of 1937.

This Notice also explains the impact of the Extension Act on

Allocation Plans that were approved or disapproved under the

previous requirements, as contained in 24 CFR Part 945. In

addition, it describes the revised Plan requirements for PHAs

that plan to designate.

EFFECTIVE DATE: The provisions of Section 10 of the \"Housing

Opportunity Program Extension Act of 1996\" went into effect when

they were signed by the President on March 28, 1996. These

provisions and the information in this Notice apply until the

Department issues regulations revising 24 CFR Part 945,

\"Designated Housing - Public Housing Designated for Occupancy by

Disabled, Elderly, or Disabled and Elderly Families.\" Previous

designated housing regulations, as contained in 24 CFR Part 945

(Revised as of May 1, 1996), no longer apply.

The Department intends to issue revised regulations for 24 CFR

Part 945 in the near future. The public will have an opportunity

to comment on these regulations when they are issued as a

proposed rule. The Department will consider all comments

received before it drafts the final rule.

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NON-DISCRIMINATION REQUIREMENTS: Nothing in this Notice relieves

a PHA from complying with the non-discrimination provisions of

Federal civil rights laws, including but not limited to Section

504 of the Rehabilitation Act and its implementing regulation at

24 CFR Part 8, the Fair Housing Act and its implementing

regulation at 24 CFR Part 100, and Titles II and III of the

Americans With Disabilities Act and their implementing

regulations at 28 CFR Parts 35 and 36.

INFORMATION COLLECTION REQUIREMENT: On December 23, 1996, a

Notice of Proposed Information Collection was published in the

Federal Register for public comment. The proposed information

collection requirements contained in this Notice are being

submitted to the Office of Management and Budget (OMB) for

review, under section 3507(d) of the Paperwork Reduction Act of

1995 (44 U.S.C. Chapter 35). 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.

The information collection, \"Requirements for Designating Public

Housing Projects; Implementing Section 10(a) of the Housing

Opportunity Program Extension Act of 1996,\" applies to public

housing agencies and state and local governments operating public

housing programs.

A PHA wanting to designate projects for elderly families or for

disabled families has to develop a Plan. Under some

circumstances, a PHA may choose to develop a Plan to designate a

project formally for elderly and disabled families (a mixed

population project). However, this is not required.

The information collection is needed to develop the Plan and to

assure that designation satisfies the statutory requirements.

The requirements for the contents of the Plan and the statutory

provisions are contained in this Notice.

We estimate that, each year, there will be 176 PHAs applying for

designation of projects for elderly families, disabled families

or elderly and disabled families. In addition, we estimate that

the development of the Plan will take an average of 21 hours.

The estimated total annual burden will be 3,358.2 hours.

Most of the information a PHA will need to develop its Plan is

gathered as a part of the PHA\'s day-to-day operation.

Information from the Consolidated Plan about housing goals and

from outside sources about housing needs must be obtained

separately.

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APPLICABILITY: This Notice and the requirements it describes

apply only to projects (or portions of projects) operated by PHAs

under the low-income public housing program. They do not apply

to projects operated by Indian Housing Authorities.

NO PLANS REQUIRED TO MAINTAIN MIXED POPULATION PROJECTS: The

Extension Act provides that PHAs may submit plans to formally

designate housing for mixed populations of elderly families and

persons with disabilities. However, HUD is not requiring PHAs to

submit plans if they wish to continue administering their mixed

population housing as housing for mixed populations of elderly

families and persons with disabilities.

REQUIREMENTS FOR DESIGNATION OF PROJECTS: Section 10(a) of the

Extension Act simplifies and modifies the requirements in Section

7 for PHAs planning to designate. In addition, it substitutes

requirements that were not present in the old law.

The major provisions of the revised Section 7 are described

below. The requirements are the same whether a PHA designates a

project for elderly families, for persons with disabilities, or

for mixed populations of elderly families and persons with

disabilities.

1\. Justification for Designation.

Statutory Provisions. Section 7(d) requires a PHA to submit

a Plan to HUD that:

\"(1) establishes that the designation of the project is

necessary \--

\"(A) to achieve the housing goals for the jurisdiction

under the Comprehensive Housing Affordability Strategy

\[CHAS\] under Section 105 of the Cranston-Gonzales

National Affordable Housing Act; and,

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\"(B) to meet the housing needs of the low-income

population of the jurisdiction;\"

HUD Guidance: The statute focuses on the total housing needs

of the low-income population of a community, and not one

group in particular. The above requirements, however, must

be read in the context of the Congressional intent to

streamline the designation process and to provide limited HUD

review.

In most communities, there are substantial unmet housing

needs of both elderly families and persons with disabilities.

For these communities, a public housing authority\'s

demonstration that it will make reasonable efforts to provide

tenant-based assistance or other appropriate resources to the

non-designated group is sufficient basis for designation.

The specific nature of the demonstration of reasonable

efforts will vary across PHAs, depending on circumstances.

In some cases, PHAs can provide the non-designated group with

housing opportunities during the five-year period of the plan

at a level comparable to those that the non-designated group

would have had if there were no designation. (One-for-one

replacement is not required.) However, other cases may exist

in which PHAs will not be able to make available to the non-

designated group a comparable level of housing resources;

documentation of the unavailability of a comparable level of

housing resources would demonstrate that these PHAs have made

reasonable efforts.

PHAs may wish to rely on a range of data sources to describe

the reasonable efforts that they will make to provide for the

housing needs of non-designated groups. PHAs should estimate

vacancies in the project to be designated during the Plan

period, based on past experience and any other relevant

information. PHAs also should use waiting list, admissions,

and certificate/voucher-use data to estimate how many

families from the designated and non-designated groups would

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have filled the vacancies, absent designation. HUD will

allow proposed designations as long as the plans are not

incomplete with respect to significant matters the statute

requires, and do not contain information subject to

substantial challenges based on evidence available to HUD.

When determining which buildings to designate, PHAs should

consider whether the designation will increase minority

concentrations.

2\. Project Description

Statutory Provisions. Section 7(d) requires a Plan that:

\"(2) includes a description of \--

\"(A) the project (or portion of a project) to be

designated;

\"(B) the types of tenants for which the project is to

be designated;

\"(C) any supportive services to be provided to tenants

of the designated project (or portion);

\"(D) how the design and related facilities (as such

term is defined in Section 202 (d)(8) of the Housing

Act of 1959) of the project accommodate the special

environmental needs of the intended occupants; \....\"

3\. Alternative Resources

Statutory Provisions. Section 7(d) requires a Plan that:

\"(2) includes a description of \...

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\"(E) any plans to secure additional resources or

housing assistance to provide assistance to families

that may have been housed if occupancy in the project

were not restricted pursuant to this section.\"

4\. Treatment of Current Tenants Because of Designation.

a\. No Eviction or Lease Termination Due to Designation.

Statutory Provision. Section 7(b) states that:

\"\...any tenant who is lawfully residing in a dwelling

unit in a public housing project may not be evicted or

otherwise required to vacate\...because of the

designation\....\"

b\. Voluntary Relocation Because of the Designation.

Statutory Provision. Section 7(c) states that the PHA

must provide the following to persons and families who

agree to be relocated in connection with a designation:

\"(1) \[A\] notice of the designation and an explanation of

available relocation benefits, as soon as is practicable

for the agency and the person or family.

\"(2) \[A\]ccess to comparable housing (including

appropriate services and design features), which may

include tenant-based rental assistance under Section 8,

at a rental rate paid by the tenant that is comparable to

that applicable to the unit from which the person or

family has vacated.

\"(3) \[P\]ayment of actual, reasonable moving expenses.\"

c\. Inapplicability of Uniform Relocation Assistance and Real

Property Acquisition Policy Act of l970.

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Statutory Provision. Section 7(g) states that:

\"No tenant of a public housing project shall be

considered to be displaced for purposes of the Uniform

Relocation Assistance and Real Property Acquisition

Policy Act of 1970 because of the designation of any

existing project or building or portion thereof.\"

5\. Eligibility of Near-Elderly Families.

Statutory Provision. Section (7)(a)(3) states that:

\"If a public housing agency determines that there are

insufficient numbers of elderly families to fill all the

units in a project (or portion of a project)

designated\...for occupancy by only elderly families, the

agency may provide that near-elderly families may occupy

dwelling units in the project (or portion).

6\. HUD Review and Standards for Determination of Non-Compliance.

Statutory Provisions. Section 7(e)(1) provides that:

\"The Secretary shall conduct a limited review of each plan

to ensure that the plan is complete and complies with the

requirements of subsection (d).\"

Section 7(e)(3) provides that:

The Secretary may determine that a plan does not comply with

the requirements under subsection (d) only if\--

\"(A) the Plan is incomplete in significant matters

required under this subsection; or

\"(B) there is evidence available to HUD that challenges,

in a substantial manner, any information provided in the

plan.\"

7\. Notification of HUD Decision.

a\. Time Frame

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Statutory Provisions. Section 7(e)(1) requires that HUD:

\"\... notify each public housing agency submitting a plan

whether the plan complies\...not later than 60 days after

receiving the plan. If\...\[HUD\]\...does not notify the

public housing agency\..., the plan shall be considered\...to

comply\...and\...\[HUD\]\...shall be considered to have notified

the agency of such compliance upon the expiration of such 60-day
period.\"

b\. Content of Notification Where Plan Does Not Comply

Statutory Provisions. Section 7(e)(2) requires that HUD:

\"\...specify in the notice\...the reasons for the

noncompliance and any modification necessary for the plan

to meet\....\[the\]\...requirements.\"

8\. Duration of Plan and Extensions of Designation.

Statutory Provisions. Section 7(f) states that all

designations are in effect for five years from the date of

HUD\'s notification of approval of the Plan. PHAs may amend

their Plans before the expiration of the five-year period by

submitting a revised Plan to HUD. For revised Plans, the

provisions stated in (6) and (7) above regarding HUD review

and notification of HUD decision continue to apply. Two-year

extensions beyond the five years are permitted when a PHA

submits information needed to update the Plan.

WHERE TO SUBMIT A PLAN

HUD has not delegated authority for approval of plans.

Therefore, the PHA must send the Plan to HUD in Washington, D.C.,

for review and approval or disapproval. The address is HUD,

Office of Public and Assisted Housing Operations, Room 4206, 451

Seventh Street, S.W., Washington, D.C., 20410.

The PHA also should send a copy of the Plan to the unit of its

State or local government that administers the CHAS/Consolidated

Plan. That governmental unit should be informed that, if it

wishes to comment on the PHA\'s Plan to designate PHA housing, it

should send them to HUD, Office of Public and Assisted Housing

Operation, Room 4206, 451 Seventh Street, S.W., Washington, D.C.,

20410\.

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FUNDING AVAILABILITY FOR SECTION 8 CERTIFICATES AND VOUCHERS:

On October 30, 1996 a Federal Register Notice of Funding

Availability (NOFA) announced FY 1996 funding for approximately

4,300 Certificates and Vouchers for PHAs with approved plans to

designate housing. This funding will be available until it is

all obligated. A NOFA announcing availability of additional FY

1997 funds is expected in the future.

PLANS APPROVED OR DISAPPROVED UNDER THE PREVIOUS STATUTE:

1\. Allocation Plans previously approved continue to be in

effect. They do not have to be revised to meet any new

requirements. However, they are now in effect for five years

from the date of approval, not two years.

2\. Allocation Plans that were disapproved, still are

disapproved. If the PHA wants to submit a revised Plan, it

must meet the new statutory requirements.

IF A PHA HAS QUESTIONS ABOUT THE STATUTORY REQUIREMENTS BEFORE OR

DURING ITS PLAN DEVELOPMENT, IT SHOULD CALL FOR TECHNICAL

ASSISTANCE THE MARKETING, LEASING, AND MANAGEMENT DIVISION IN THE

OFFICE OF PUBLIC AND INDIAN HOUSING (IN HUD HEADQUARTERS). THE

TELEPHONE NUMBER IS (202) 708-0744. IN ADDITION, IF QUESTIONS

ARISE AS HUD STAFF REVIEW A PLAN, THEY WILL CONTACT THE PHA.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_/S/\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Kevin Emanuel Marchman, Acting Assistant

Secretary for Public and Indian Housing

APPENDIX - HOW TO PREPARE AN APPROVABLE PLAN

As of the date of this Notice, HUD has received plans from 68

jurisdictions, a substantial majority of which have been

approved. This appendix provides guidance to assist housing

authorities in developing an approvable plan. It addresses some

of the common questions that arise as authorities develop plans.

The appendix is intended to be helpful and is not intended to

impose additional requirements.

Balancing the Needs of the Community \--The statute focuses on

the total housing needs of the low-income population of a

community, and not one group in particular. Successful Plans

strike a balance between the needs of, and resources

available to, designated and non-designated populations.

Fair Housing \-- When determining which buildings to

designate, PHAs should consider whether the designation will

increase minority concentrations.

Sources of Information on the Housing Needs of the Low-Income

Population \-- PHAs may wish to rely on a range of data

sources to assess and describe the housing needs of, and

resources that would have been and can be made available to,

their low-income populations (as required by Section 7(d) of

the statute). Data sources include:

\-- Ongoing analysis of waiting lists, such as the ratio of

disabled families admitted compared to elderly families

admitted before the designation;

\-- Unit assignment data;

\-- Unit turn-over data;

\-- Vacancy data;

\-- Voluntary transfer data;

\-- Near-elderly families data;

\-- Housing Needs Survey;

\-- A PHA jurisdiction\'s Consolidated Plan (includes census

data),

\-- Local advocacy groups; and

\-- Public and private agencies familiar with the needs of

the designated and non-designated populations.

Additional Housing Resources \-- The Plan should describe any

plans to secure additional housing resources that will be

available to families in the non-designated group (as

required by Section 7(d)(2)(E) of the statute). These

resources may include the following:

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\- Existing housing owned or controlled by the PHA or by

private firms or non-profit organizations that are

available and affordable in the appropriate unit sizes.

(In addition, a PHA preference given to the non-designated

group for the remaining public housing units

is a housing resource.)

\- New housing resources created by the PHA.

\- New housing resources created by a PHA adopting a Section

8 local preference for the non-designated group or by

applying for Certificates/Vouchers under the NOFA \"Rental

Assistance for Persons with Disabilities, in Support of

Designated Housing Allocation Plans.\"

\- New housing resources created by private firms or non-

profit organization that will be available and affordable

in the appropriate unit sizes.

PHAs should specify in their Plans the reasonable efforts

they will make to replace the housing resources that will be

newly unavailable to the non-designated group. The specific

nature of the demonstration of reasonable efforts will vary

across PHAs, depending on circumstances.

Accessible Housing \-- In describing how the plan meets the

needs of both the designated and non-designated group, the

plan should address housing options for persons who need

accessible housing. Many communities do not have sufficient

affordable accessible housing in the private market, and

usually, most, if not all, of the accessible one-bedroom

housing in the public housing stock is located in \"mixed\"

buildings. One possible solution to this problem is to

exclude accessible units from designation so that they are

available to persons of any age who need them.

HUD\'s Review of Plans \-- A determination of non-compliance

because of \"challenging\" evidence may result from information

that comes from outside sources. This could include

information from the Consolidated Plan or the CHAS or from

outside groups or individuals.

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PHAs should bear in mind that advocates, residents, and

members of the community may choose to submit comments about

a plan to HUD, which HUD will take into account in its

review.

HUD is fully committed to its responsibility to assist PHAs

that submit non-complying plans. HUD will work with these

PHAs to ensure that the PHA staff understand the

modifications needed for compliance with the statute.