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Under the current rules, there is no federal obligation in Section 18 to replace public housing units lost through disposition or demolition with hard units. However, if Community Development Block Grant (CDBG) funds or HOME funds are used to demolish the public housing or as part of the funding to replace it, the relocation and replacement requirements of Section 104(d) apply and require one for one replacement of units disposed of or demolished. Currently, the replacement units for public housing may include vouchers.
After a PHA obtains approval to demolish or dispose of public housing units, it may apply to HUD for tenant protection vouchers for relocation and replacement housing. Tenants who are displaced are entitled to select as replacement housing, housing of their choice, which may include, but is not limited to, other public housing or a tenant protection voucher. From a tenant’s perspective, tenant protection vouchers are identical to housing choice vouchers. If a PHA receives tenant protection vouchers, the number of authorized vouchers that the PHA has is increased by the number of tenant protection vouchers.
Through 2005, it was HUD policy to provide to PHAs tenant protection vouchers for every public housing unit that HUD approved for demolition or disposition and that was not being replaced as a hard unit. In 2006, HUD changed the policy and limited the number of tenant protection vouchers to occupied units. In 2007, Congress responded to that new policy by declaring, in appropriations acts, that to the extent that funds are available, HUD shall issue tenant protection vouchers for all units that were occupied within the prior 24 months, if the units are now no longer available because of demolition, disposition or conversion.
New HUD Relocation and Replacement Voucher Policy for Public Housing Demolition and Disposition
This April-May 2007 NHLP Housing Law Bulletin article describes and criticizes HUD’s policy to provide vouchers to a public housing agency for HUD approved disposition or demolition limited by the number of occupied units not the number of units that are disposed of or demolished.
Statutes and Regulations
42 U.S.C. § 5304(d)
Provides that if CDBG or HOME funds are used to demolish or convert public housing to uses other than housing for low and moderate income families then there is a one-for-one replacement requirement for units lost.
24 C.F.R. §§ 42.1 and 42.325
Contain the one-for-one replacement requirements that are attached to the CDBG and HOME funding.
Notice, PIH 2007-10 (Apr. 30, 2007) Voucher Funding in Connection with the Demolition and Disposition of Occupied Housing Units
This notice announces a reversal of the policy of providing vouchers for all units lost through demolition or disposition contained in Notice PIH 2001-20, Submission and Processing of Public Housing Agency (PHA) Applications in Fiscal Year (FY) 2001 for Housing Choice Vouchers for Relocation or Replacement Housing Related to Demolition or Disposition (Including Hope VI, and Plans for Removal (Mandatory Conversion) of Public Housing Units Under Section 33 of the U.S. Housing Act of 1037, as Amended), which was reaffirmed in 2002, 2004 and 2005.
Pub. L. No. 110-161 (Dec. 26, 2007), Consolidated Appropriations Act, 2008, Tenant-Based Rental Assistance
This act appropriates $ 200 million for tenant protection vouchers and requires HUD to issue them “for all units that were occupied within the previous 24 months that cease to be available as assisted housing due to demolition, disposition, or conversion, subject only to the availability of funds.”
Pub. L No. 111-8 (Mar. 11, 2009), Omnibus Appropriations Act, 2009, Tenant-Based Rental Assistance
Contains the same language as Pub. L. No. 110-161, though only appropriates $150 million for this purpose.