I
103D CONGRESS
2D SESSION
H. R. 5181
To amend section 18 of the United States Housing Act of 1937 to improve
the program providing for demolition and disposition of public housing.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 5, 1994
Mr. BAKER of Louisiana introduced the following bill; which was referred to
the Committee on Banking, Finance and Urban Affairs
A BILL
To amend section 18 of the United States Housing Act
of 1937 to improve the program providing for demolition
and disposition of public housing.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Public Housing Dis-
position Reform Act’’.
SEC. 2. DEMOLITION AND DISPOSITION OF PUBLIC HOUS-
ING.
Section 18 of the United States Housing Act of 1937
(42 U.S.C. 1437p) is amended to read as follows:
‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING
‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec-
retary may approve an application by a public housing
agency for permission to demolish or dispose of a public
housing project or a portion of a public housing project
only if the Secretary has determined that—
‘‘(1) in the case of—
‘‘(A) an application proposing demolition
of a public housing project or a portion of a
public housing project, the project or portion of
the project is obsolete as to physical condition,
location, or other factors, and it is more cost ef-
fective to replace the project or portion of the
project than to rehabilitate the project or por-
tion of the project; or
‘‘(B) an application proposing the demoli-
tion of only a portion of a project, the demoli-
tion will help to assure the remaining useful life
of the remaining portion of the project;
‘‘(2) in the case of an application proposing dis-
position of real property of a public housing agency
by sale or other transfer—
‘‘(A)(i) the property’s retention is not in
the best interests of the tenants or the public
housing agency because—
‘‘(I) developmental changes in the
area surrounding the project adversely af-
fect the health or safety of the tenants or
the feasible operation of the project by the
public housing agency;
‘‘(II) disposition will allow the acquisi-
tion, development, or rehabilitation of
other properties which will be more effi-
ciently or effectively operated as low-in-
come housing and which will (a) preserve
the total amount of low-income housing
stock available in the community, or (b)
create housing sufficient to address the
needs of the community as described in the
comprehensive housing affordability strat-
egy (under section 105 of the Cranston-
Gonzalez National Affordable Housing
Act), if such needs are less than the
amount needed to preserve the amount of
low-income housing stock; or
‘‘(III) of other factors which the Sec-
retary determines are consistent with the
best interests of the tenants and public
housing agency and which are not incon-
sistent with other provisions of this Act;
and
‘‘(ii) for property other than dwelling
units, the property is excess to the needs of a
project or the disposition is incidental to, or
does not interfere with, continued operation of
a project; and
‘‘(B) the net proceeds of the disposition
will be used—
‘‘(i) for the payment of development
costs for the replacement housing;
‘‘(ii) to the extent that any proceeds
remain after the application of proceeds in
accordance with clause (i), for the retire-
ment of outstanding obligations issued to
finance original development or moderniza-
tion of the project, which, in the case of
scattered-site housing of a public housing
agency, shall be in an amount that bears
the same ratio to the total of such costs
and obligations as the number of units dis-
posed of bears to the total number of units
of the project at the time of disposition;
and
‘‘(iii) to the extent that any proceeds
remain after the application of proceeds in
accordance with clauses (i) and (ii), the
provision of housing assistance for low-in-
come families through such measures as
modernization of low-income housing, or
the acquisition, development, or rehabilita-
tion of other properties to operate as low-
income housing; or
‘‘(3) in the case of an application proposing
demolition or disposition of any portion of a public
housing project, assisted at any time under section
5(j)(2)—
‘‘(A) such assistance has not been provided
for the portion of the project to be demolished
or disposed within the 10-year period ending
upon submission of the application; or
‘‘(B) the property’s retention is not in the
best interest of the tenants or the public hous-
ing agency because of changes in the area sur-
rounding the project or other circumstances of
the project, as determined by the Secretary.
‘‘(b) TENANT INVOLVEMENT
AND REPLACEMENT
HOUSING.—The Secretary may approve an application or
furnish assistance under this section or under this Act
only if the following requirements are met:
‘‘(1) TENANT
CONSULTATION
AND
EMPLOY-
MENT.—The application from the public housing
agency—
‘‘(A) has been developed in consultation
with tenants and tenant councils, if any, who
will be affected by the demolition or disposition;
‘‘(B) includes a plan to employ public
housing tenants in construction or rehabilita-
tion to the extent practicable, pursuant to sec-
tion 3 of the Housing and Urban Development
Act of 1968; and
‘‘(C) contains a certification by appropriate
local government officials that the proposed ac-
tivity is consistent with the applicable com-
prehensive housing affordability strategy.
‘‘(2) RELOCATION ASSISTANCE.—All tenants to
be relocated as a result of the demolition or disposi-
tion will be provided assistance by the public housing
agency and are relocated to other decent, safe, sani-
tary, and affordable housing, which is, to the maxi-
mum extent practicable, housing of their choice, in-
cluding housing assisted under section 8 of this Act.
Housing Act, or other programs for home-
ownership that have program requirements
substantially equivalent to the require-
ments established under section 605 of the
Housing and Community Development Act
of 1987;
‘‘(v) for not more than 10 percent of
the replacement units, affordable housing
homeownership units assisted under title II
of the Cranston-Gonzalez National Afford-
able Housing Act and sold to public hous-
ing tenants;
‘‘(vi) rental units that are assisted
under—
‘‘(I) title II of the Cranston-Gon-
zalez National Affordable Housing
Act 
(notwithstanding 
section
212(d)(2) of such Act), or
‘‘(II) a State or local rental as-
sistance program that provides for
rental assistance that is comparable in
terms of eligibility and contribution to
rent to assistance under section 8;
except that, if such assistance is project-
based, the units shall be provided such as-
sistance for a term of not less than 15
years and, if such assistance is tenant-
based, the units shall be provided such as-
sistance for a term of not less than 5
years;
‘‘(vii) project-based assistance under
any other Federal program, which has a
term of not less than 15 years, including
housing assisted by a tax credit under sec-
tion 42 of the Internal Revenue Code;
‘‘(viii) another method approved by
the Secretary; or
‘‘(ix) any combination of such meth-
ods;
‘‘(B) in the case of an application propos-
ing demolition or disposition of 200 or more
units, shall provide that—
‘‘(i) not less than 50 percent of such
additional dwelling units shall be provided
through the acquisition or development of
additional 
dwelling 
units 
or 
through
project-based assistance; and
‘‘(ii) not more than 50 percent of such
additional dwelling units shall be provided
through tenant-based assistance under sec-
tion 8 having a term of not less than 5
years;
‘‘(C) if providing for the use of tenant-
based assistance under section 8 or otherwise,
may be approved by the Secretary only if—
‘‘(i) the Secretary finds that—
‘‘(I) the supply of private rental
housing available to families who
would receive such assistance under
the plan is sufficient for the total
number of units that will be available
for tenant-based assistance under sec-
tion 8 or otherwise in the programs of
the public housing agency after imple-
mentation of the plan; and
‘‘(II) on the basis of experience
with tenant-based assistance program
in the jurisdiction of the public hous-
ing agency, there is a reasonable ex-
pectation that the families who receive
such assistance will be housed in ac-
cordance with program requirements;
and
‘‘(ii) the finding under clause (i) is
based on factors that the Secretary shall
determine, which shall include the rental
vacancy rate in the market area, the avail-
ability of housing of appropriate quality,
size, and price in the market area, the suc-
cess rate of families receiving such assist-
ance from the public housing agency in
leasing a unit under tenant-based assist-
ance programs, and the overall administra-
tive ability of the agency in administering
such programs;
‘‘(D) may provide that all or part of such
additional dwelling units may be located outside
the jurisdiction of the public housing agency (in
this subparagraph referred to as the ‘original
agency’) if—
‘‘(i) the location is in the same hous-
ing market area as the original agency, as
determined by the Secretary; and
‘‘(ii) the plan contains an agreement
between the original agency and the public
housing agency in the alternate location or
other public or private entity that will be
responsible for providing the additional
units in the alternate location that such al-
tend the implementation of the replace-
ment plan under this subsection; and
‘‘(ii) the demolition or disposition
under the plan can occur in phases nec-
essary to provide for relocation of tenants
under paragraph (2);
‘‘(F) includes a method of ensuring that
the same number of individuals and families
will be provided housing;
‘‘(G) provides for the payment of the relo-
cation expenses of each tenant to be displaced
and ensures that the rent paid by the tenant
following relocation will not exceed the amount
permitted under this Act;
‘‘(H) prevents the taking of any action to
demolish or dispose of any unit until the tenant
of the unit is relocated to decent, safe, sanitary,
and affordable housing; and
‘‘(I) permits the Secretary to intervene and
take any actions necessary to complete the plan
if the public housing agency fails, without good
cause, to carry out its obligations under the
plan.
‘‘(c) LIMITATION
ON DEMOLITION
AND EXEMP-
TION.—
‘‘(1) MAXIMUM
PERCENTAGE.—Notwithstand-
ing subsection (b)(3), 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 and operated by the public
housing agency, without providing an additional
dwelling unit for each such public housing dwelling
unit to be demolished, but only if the space occupied
by the demolished unit is used for meeting the serv-
ice or other needs of public housing tenants or the
demolished unit was beyond repair.
‘‘(2) SITE
AND
NEIGHBORHOOD
STANDARDS
EXEMPTION.—Notwithstanding any other provision
of law, a replacement plan under subsection (b)(3)
may provide for demolition of public housing units
and replacement of such units on site or in the same
neighborhood if the number of replacement units
provided in the same neighborhood is significantly
fewer than the number of units demolished.
‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With
respect to any dwelling units developed, acquired, or leased
by a public housing agency pursuant to a replacement plan
under subsection (b)(3)—
‘‘(1) assistance may be provided under section
9 for such units; and
‘‘(2) such units shall be available for occupancy,
operated and managed in the manner required for
public housing, and shall be subject to the other re-
quirements applicable to public housing dwelling
units.
‘‘(e) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall notify
a public housing agency submitting an application
under this section for demolition or disposition and
replacement of a public housing project or portion of
a project of the approval or disapproval of the appli-
cation not later than 60 days after receiving the ap-
plication. If the Secretary does not notify the public
housing agency as required under this paragraph or
paragraph (2), the application shall be considered to
have been approved.
‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the
Secretary disapproves an application, the Secretary
shall specify in the notice of disapproval the reasons
for the disapproval and the agency may resubmit the
application as amended or modified.
‘‘(3) ANNUAL
REPORT.—The Secretary shall
submit a report to the Congress annually describing
for the year the applications under this section ap-
proved and disapproved, the number, general condi-
tion, and location of units demolished or disposed of,
and the number, general condition, location and
method of provision of units of replacement housing
provided pursuant to this section.
‘‘(f) ACTION WITHOUT APPROVAL
OF APPLICA-
TION.—
‘‘(1) PROHIBITED ACTION.—A public housing
agency shall not take any action to demolish or dis-
pose of a public housing project or a portion of a
public housing project without obtaining the ap-
proval of the Secretary and satisfying the conditions
specified in subsections (a) and (b).
‘‘(2) ALLOWABLE ACTIONS.—If public housing
dwelling units to be demolished or disposed of under
this section are not decent, safe, and sanitary or
public housing dwelling units to be rehabilitated
under section 14 or 24 or the HOPE VI urban revi-
talization demonstration program (pursuant to Pub-
lic Law 102–389 (106 Stat. 1579)) cannot be main-
tained cost-effectively in a decent, safe, and sanitary
condition, the public housing agency may relocate
tenants of such dwelling units into other dwelling
units or cease leasing such units before the approval
of an application under this section for demolition or
disposition of such units or before implementing the
plan for modernization of such units.
‘‘(g) ASSISTANCE FOR REPLACEMENT HOUSING.—
The Secretary may provide assistance under this sub-
section for—
‘‘(1) providing replacement public housing units
pursuant to subsection (b)(3)(A) for units demol-
ished or disposed of pursuant to this section; and
‘‘(2) providing assistance under section 8 for
replacement 
housing 
pursuant 
to 
subsection
(b)(3)(A) for units demolished or disposed of pursu-
ant to this section.
‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME-
OWNERSHIP PROGRAM.—The provisions of this section
shall not apply to the disposition of a public housing
project in accordance with an approved homeownership
program under this Act.
‘‘(i) EXCEPTIONS TO REPLACEMENT HOUSING RE-
QUIREMENT.—
‘‘(1) WAIVER.—The Secretary shall waive the
applicability of the provisions of subsection (b)(3)
and (c)(1) with respect to an application under this
section by a public housing agency for the demolition
or disposition of public housing dwelling units if—
‘‘(A) the Secretary determines, based on
the number of families on the waiting list for
public housing dwelling units of the public
housing agency, vacancy rates, the comprehen-
sive housing affordability strategy (if applica-
ble), and other available information relating to
low-income housing needs within the jurisdic-
tion of the agency, that no need exists for addi-
tional low-income housing in the jurisdiction of
the agency; or
‘‘(B)(i) the Secretary determines, based on
such factors as the vacancy rate for public
housing dwelling units of the agency, the num-
ber of families on the waiting list for public
housing dwelling units of the agency, the avail-
ability of funding under section 14, and the as-
sessment of the management performance of
the agency under section 6(j), that the need for
additional low-income housing in the community
can be met by the agency through the rehabili-
tation of vacant public housing dwelling units in
accordance with section 14; and
‘‘(ii) the application under subsection (a)
includes a commitment by the public housing
agency to rehabilitate the requisite units within
a period consistent with the extent of the pro-
posed demolition or disposition, which period
shall not exceed 6 years, except that the Sec-
retary may, upon a determination of good
cause, approve a commitment for rehabilitation
during a period not exceeding 10 years.
‘‘(2) WAIVER AND ALTERNATIVE REPLACEMENT
HOUSING.—Notwithstanding any other provision of
this section, the Secretary shall waive the applicabil-
ity of the provisions of subsection (b)(3) with respect
to an application under this section by a public
housing agency for the demolition or disposition of
public housing dwelling units if—
‘‘(A) the Secretary determines that the
agency cannot meet some or all of the require-
ments under subsection (b)(3) to provide re-
placement housing with project-based assistance
because of—
‘‘(i) the high cost of acquiring real es-
tate for development or rehabilitation for
low-income housing in areas that are not
racially or economically impacted or are
not impacted by adverse environmental
conditions; or
‘‘(ii) other factors determined by the
Secretary; and
‘‘(B) the agency applies for and the Sec-
retary approves the use of tenant-based assist-
ance under section 8 having a term of not less
than 5 years for any portion of the replacement
housing required under subsection (b)(3) that
the Secretary determines under subparagraph
(A) cannot be provided through project-based
assistance.
‘‘(3) REQUEST FOR WAIVER.—To be eligible for
a waiver under paragraph (1) or (2), a public hous-
ing agency shall submit to the Secretary a request
for a waiver under this subsection that includes—
‘‘(A) a comprehensive plan for demolition,
disposition, and replacement that describes ad-
ditional dwelling units to be made available by
the public housing agency;
‘‘(B) an identification of the dwelling units
for which the waiver is requested; and
‘‘(C) an assessment of the need for replac-
ing such dwelling units including the unit size,
age, general condition, and length of time such
units have been vacant, the condition of the
neighborhood in which the dwelling units are lo-
cated, and the availability of dwelling units af-
fordable to low-income families within the juris-
diction in which the dwelling units are located,
during the implementation of the replacement
plan.
‘‘(4) SUBMISSION TO SECRETARY.—A request
for a waiver under this subsection may be submitted
at any time. The request shall be submitted to the
Secretary by certified mail or any other equivalent
means that provides notification to the public hous-
ing agency making the request of the date of receipt
by the Secretary.
‘‘(5) NOTICE OF DISPOSITION OF REQUEST.—
Except as provided in paragraph (6), the Secretary
shall notify a public housing agency requesting a
waiver under this section of the approval or dis-
approval of the request not later than 45 days after
receiving the request. If the Secretary does not no-
tify the public housing agency as required under this
paragraph or paragraph (6), the request for a waiver
shall be considered to have been approved.
‘‘(6) REQUEST
FOR
ADDITIONAL
INFORMA-
TION.—If the Secretary determines that more infor-
mation is needed to make the determinations re-
quired under paragraph (1) or (2) than has been
provided by the public housing agency, the Secretary
shall notify the agency in writing not later than 30
days after receiving the request for the waiver that
additional information is necessary. Such notice
shall describe specifically the additional information
required for the determinations and establish a
deadline for the submission of the information by
the agency, which shall be determined based on the
difficulty of obtaining the information requested. If
the agency submits such additional information re-
quested before the deadline established in the notice
under this paragraph, the Secretary shall notify the
agency requesting the waiver that the request is ap-
proved or disapproved not later than 30 days after
the submission of such additional information.
‘‘(7) STATEMENT OF REASONS FOR DENYING
OR APPROVING REQUEST.—The Secretary shall in-
clude, in each notice under paragraph (5) or (6) of
the denial or approval of a request for a waiver
under this subsection, the specific reasons for deny-
ing or approving the request. The denial of any re-
quest for a waiver for public housing dwelling units
shall not prejudice the consideration of any other
subsequent request for such a waiver for any of such
dwelling units.’’.
Æ
HR 5181 IH——2