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Demolition/Disposition

Uncategorized February 20, 2019

Demolition/Disposition

De Minimis Demolition

In accordance with Section 18(f) of the U.S. Housing Act of 1937 (1937 Act), in any 5-year period PHA may demolish not more than the lesser of 5 dwelling units or 5 percent of the total public housing dwelling units owned by the PHA, but only if the space occupied by the demolished unit is used for meeting the service or other needs of public housing residents or the demolished unit was beyond rep

Demolition

  • For the demolition of an entire development, the development is obsolete as to physical condition, location, or other factors, making it unsuitable for housing purposes, and no reasonable program of modifications is cost-effective to return the public housing project or portion of the project to its useful life.
  • For the demolition of a portion of a development, that portion of the development is obsolete as to physical condition, location, or other factors, making it unsuitable for housing purposes, and no reasonable program of modifications is cost-effective to return that portion to its useful life, and the demolition will ensure the viability of the remaining portion of the development by reducing density to permit better access by emergency, fire, or rescue services, or improving the marketability by reducing density to that of the neighborhood or other developments in the PHA’s inventory.

Disposition:

  • Due to a change in the neighborhood, the location of the development is no longer conducive to residential use.
  • The land on which the development was built is sufficiently valuable that the PHA can replace the existing development with an improved development at no cost to HUD.
  • Leasing the development to another entity, or transferring the title of the development via a sales contract, may be determined to be more cost-effective or efficient way for the development to be used for low-income or mixed-income housing, because that party will have access to funds not available to the PHA. (Note that a lease of more than one year is considered to be a disposition by HUD.)
  • The development includes vacant land or non-dwelling structures that exceeds the need of the development (after Date of Full Availability–DOFA).
  • The development includes vacant land or non-dwelling structures that are incidental to, or do not interfere with, the continued operation of the remaining portion of the development.
  • The PHA has otherwise determined that the disposition is appropriate for reasons that are consistent with its goals of the PHA and its PHA Plan and that are otherwise consistent with the U.S. Housing Act of 1937.
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