
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1437p]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437p. Demolition and disposition of public housing


(a) Applications for demolition and disposition

    Except as provided in subsection (b) of this section, upon receiving 
an application by a public housing agency for authorization, with or 
without financial assistance under this subchapter, to demolish or 
dispose of a public housing project or a portion of a public housing 
project (including any transfer to a resident-supported nonprofit 
entity), the Secretary shall approve the application, if the public 
housing agency certifies--
        (1) in the case of--
            (A) an application proposing demolition of a public housing 
        project or a portion of a public housing project, that--
                (i) the project or portion of the public housing project 
            is obsolete as to physical condition, location, or other 
            factors, making it unsuitable for housing purposes; and
                (ii) no reasonable program of modifications is cost-
            effective to return the public housing project or portion of 
            the project to useful life; and

            (B) an application proposing the demolition of only a 
        portion of a public housing project, that the demolition will 
        help to ensure the viability of the remaining portion of the 
        project;

        (2) in the case of an application proposing disposition by sale 
    or other transfer of a public housing project or other real property 
    subject to this subchapter--
            (A) the retention of the property is not in the best 
        interests of the residents or the public housing agency 
        because--
                (i) conditions in the area surrounding the public 
            housing project adversely affect the health or safety of the 
            residents or the feasible operation of the project by the 
            public housing agency; or
                (ii) disposition allows the acquisition, development, or 
            rehabilitation of other properties that will be more 
            efficiently or effectively operated as low-income housing;

            (B) the public housing agency has otherwise determined the 
        disposition to be appropriate for reasons that are--
                (i) in the best interests of the residents and the 
            public housing agency;
                (ii) consistent with the goals of the public housing 
            agency and the public housing agency plan; and
                (iii) otherwise consistent with this subchapter; or

            (C) for property other than dwelling units, the property is 
        excess to the needs of a public housing project or the 
        disposition is incidental to, or does not interfere with, 
        continued operation of a public housing project;

        (3) that the public housing agency has specifically authorized 
    the demolition or disposition in the public housing agency plan, and 
    has certified that the actions contemplated in the public housing 
    agency plan comply with this section;
        (4) that the public housing agency--
            (A) will notify each family residing in a project subject to 
        demolition or disposition 90 days prior to the displacement 
        date, except in cases of imminent threat to health or safety, 
        consistent with any guidelines issued by the Secretary governing 
        such notifications, that--
                (i) the public housing project will be demolished or 
            disposed of;
                (ii) the demolition of the building in which the family 
            resides will not commence until each resident of the 
            building is relocated; and
                (iii) each family displaced by such action will be 
            offered comparable housing--
                    (I) that meets housing quality standards;
                    (II) that is located in an area that is generally 
                not less desirable than the location of the displaced 
                person's housing; and
                    (III) which may include--
                        (aa) tenant-based assistance, except that the 
                    requirement under this clause regarding offering of 
                    comparable housing shall be fulfilled by use of 
                    tenant-based assistance only upon the relocation of 
                    such family into such housing;
                        (bb) project-based assistance; or
                        (cc) occupancy in a unit operated or assisted by 
                    the public housing agency at a rental rate paid by 
                    the family that is comparable to the rental rate 
                    applicable to the unit from which the family is 
                    vacated;

            (B) will provide for the payment of the actual and 
        reasonable relocation expenses of each resident to be displaced;
            (C) will ensure that each displaced resident is offered 
        comparable housing in accordance with the notice under 
        subparagraph (A); and \1\
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    \1\ So in original. The word ``and'' probably should not appear.
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            (D) will provide any necessary counseling for residents who 
        are displaced; and
            (E) will not commence demolition or complete disposition 
        until all residents residing in the building are relocated;

        (5) that the net proceeds of any disposition will be used--
            (A) unless waived by the Secretary, for the retirement of 
        outstanding obligations issued to finance the original public 
        housing project or modernization of the project; and
            (B) to the extent that any proceeds remain after the 
        application of proceeds in accordance with subparagraph (A), 
        for--
                (i) the provision of low-income housing or to benefit 
            the residents of the public housing agency; or
                (ii) leveraging amounts for securing commercial 
            enterprises, on-site in public housing projects of the 
            public housing agency, appropriate to serve the needs of the 
            residents; and

        (6) that the public housing agency has complied with subsection 
    (c) of this section.

(b) Disapproval of applications

    The Secretary shall disapprove an application submitted under 
subsection (a) of this section if the Secretary determines that--
        (1) any certification made by the public housing agency under 
    that subsection is clearly inconsistent with information and data 
    available to the Secretary or information or data requested by the 
    Secretary; or
        (2) the application was not developed in consultation with--
            (A) residents who will be affected by the proposed 
        demolition or disposition;
            (B) each resident advisory board and resident council, if 
        any, of the project (or portion thereof) that will be affected 
        by the proposed demolition or disposition; and
            (C) appropriate government officials.

(c) Resident opportunity to purchase in case of proposed disposition

                           (1) In general

        In the case of a proposed disposition of a public housing 
    project or portion of a project, the public housing agency shall, in 
    appropriate circumstances, as determined by the Secretary, initially 
    offer the property to any eligible resident organization, eligible 
    resident management corporation, or nonprofit organization acting on 
    behalf of the residents, if that entity has expressed an interest, 
    in writing, to the public housing agency in a timely manner, in 
    purchasing the property for continued use as low-income housing.

                             (2) Timing

        (A) Expression of interest

            A resident organization, resident management corporation, or 
        other resident-supported nonprofit entity referred to in 
        paragraph (1) may express interest in purchasing property that 
        is the subject of a disposition, as described in paragraph (1), 
        during the 30-day period beginning on the date of notification 
        of a proposed sale of the property.

        (B) Opportunity to arrange purchase

            If an entity expresses written interest in purchasing a 
        property, as provided in subparagraph (A), no disposition of the 
        property shall occur during the 60-day period beginning on the 
        date of receipt of that written notice (other than to the entity 
        providing the notice), during which time that entity shall be 
        given the opportunity to obtain a firm commitment for financing 
        the purchase of the property.

(d) Replacement units

    Notwithstanding any other provision of law, replacement public 
housing units for public housing units demolished in accordance with 
this section may be built on the original public housing location or in 
the same neighborhood as the original public housing location if the 
number of the replacement public housing units is significantly fewer 
than the number of units demolished.

(e) Consolidation of occupancy within or among buildings

    Nothing in this section may be construed to prevent a public housing 
agency from consolidating occupancy within or among buildings of a 
public housing project, or among projects, or with other housing for the 
purpose of improving living conditions of, or providing more efficient 
services to, residents.

(f) De minimis exception to demolition requirements

    Notwithstanding any other provision of this section, 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 by the 
public housing agency, 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 repair.

(g) Uniform Relocation and Real Property Acquisition Act

    The Uniform Relocation and Real Property Acquisition Policies Act of 
1970 [42 U.S.C. 4601 et seq.] shall not apply to activities under this 
section.

(h) Relocation and replacement

    Of the amounts appropriated for tenant-based assistance under 
section 1437f of this title in any fiscal year, the Secretary may use 
such sums as are necessary for relocation and replacement housing for 
dwelling units that are demolished and disposed of from the public 
housing inventory (in addition to other amounts that may be available 
for such purposes).

(Sept. 1, 1937, ch. 896, title I, Sec. 18, as added Pub. L. 98-181, 
title II, Sec. 214(a), Nov. 30, 1983, 97 Stat. 1184; amended Pub. L. 
100-242, title I, Secs. 112(b)(9), 121, 170(f), Feb. 5, 1988, 101 Stat. 
1824, 1837, 1867; renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 
1988, 102 Stat. 681; Pub. L. 101-625, title IV, Sec. 412, title V, 
Secs. 512(a), 513(b), (c), 572, Nov. 28, 1990, 104 Stat. 4159, 4194-
4196, 4236; Pub. L. 102-550, title I, Secs. 111(b)(2), 116(a)-(c), Oct. 
28, 1992, 106 Stat. 3688, 3693, 3694; Pub. L. 104-19, title I, 
Sec. 1002(a), July 27, 1995, 109 Stat. 235; Pub. L. 104-134, title I, 
Sec. 101(e) [title II, Sec. 201(b)(2)], Apr. 26, 1996, 110 Stat. 1321-
257, 1321-278; renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 
1996, 110 Stat. 1327; Pub. L. 105-276, title V, Sec. 531(a), Oct. 21, 
1998, 112 Stat. 2570.)

                       References in Text

    The Uniform Relocation and Real Property Acquisition Policies Act of 
1970, referred to in subsec. (g), probably means the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, Pub. L. 
91-646, Jan. 2, 1971, 84 Stat. 1894, as amended, and which is classified 
principally to chapter 61 (Sec. 4601 et seq.) of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 4601 of this title and Tables.


                               Amendments

    1998--Pub. L. 105-276 amended section generally. Prior to amendment, 
subsec. (a) required the Secretary to make certain determinations before 
approving the demolition or disposition of all or part of a public 
housing project; subsec. (b) required public housing agency consultation 
with tenants and provision of relocation assistance; subsec. (c) 
authorized financial assistance using section 1437c contributions; 
subsec. (d) provided that agency would not be prevented from 
consolidating occupancy within or among buildings or projects; subsec. 
(e) provided set-asides for replacement housing in fiscal years 1993 and 
1994; subsec. (f) authorized construction on original site if number of 
new units would be less than number of demolished units; and subsec. (g) 
declared that this section did not apply to dispositions in accordance 
with approved homeownership program under subchapter II-A of this 
chapter.
    1996--Subsec. (f). Pub. L. 104-134 inserted at end ``No one may rely 
on the preceding sentence as the basis for reconsidering a final order 
of a court issued, or a settlement approved, by a court.''
    1995--Subsec. (b)(1). Pub. L. 104-19, Sec. 1002(a)(1), inserted 
``and'' after ``housing assistance plan;''.
    Subsec. (b)(2). Pub. L. 104-19, Sec. 1002(a)(2), substituted ``, and 
the public housing agency provides for the payment of the relocation 
expenses of each tenant to be displaced, ensures that the rent paid by 
the tenant following relocation will not exceed the amount permitted 
under this chapter and shall not commence demolition or disposition of 
any unit until the tenant of the unit is relocated.'' for ``; and''.
    Subsec. (b)(3). Pub. L. 104-19, Sec. 1002(a)(3), struck out par. (3) 
which made approval conditional upon development of plan for provision 
of additional unit for each unit to be demolished or disposed of.
    Subsec. (c). Pub. L. 104-19, Sec. 1002(a)(4), (5), struck out par. 
(1) designation and text of par. (2), which read as follows: ``The 
Secretary shall, upon approving a plan under subsection (b)(3) of this 
section, agree to commit (subject to the availability of future 
appropriations) the funds necessary to carry out the plan over the 
approved schedule of the plan. As part of each annual budget request for 
the Department of Housing and Urban Development, the Secretary shall 
submit to the Congress a report--
        ``(A) outlining the commitments the Secretary entered into 
    during the preceding year to fund plans approved under subsection 
    (b)(3) of this section; and
        ``(B) specifying, by fiscal year, the budget authority required 
    to carry out the commitments specified in subparagraph (A).''
    Subsec. (d). Pub. L. 104-19, Sec. 1002(a)(6), inserted before period 
at end ``: Provided, That nothing in this section shall prevent a public 
housing agency from consolidating occupancy within or among buildings of 
a public housing project, or among projects, or with other housing for 
the purpose of improving the living conditions of or providing more 
efficient services to its tenants''.
    Subsec. (e). Pub. L. 104-19, Sec. 1002(a)(7), which directed the 
striking of ``under section (b)(3)(A) of this section'' each place it 
occurred, was executed by striking out ``under subsection (b)(3)(A) of 
this section'' before ``for units demolished or disposed of'' in two 
places, to reflect the probable intent of Congress.
    Subsecs. (f), (g). Pub. L. 104-19, Sec. 1002(a)(8), (9), added 
subsec. (f) and redesignated former subsec. (f) as (g).
    1992--Subsec. (a)(3). Pub. L. 102-550, Sec. 111(b)(2), added par. 
(3).
    Subsec. (b)(1). Pub. L. 102-550, Sec. 116(a), inserted ``of the 
project or portion of the project covered by the application'' after 
``tenant cooperative''.
    Subsec. (b)(3). Pub. L. 102-550, Sec. 116(b)(5), inserted at end 
``except that, 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 service or other 
needs of public housing residents.''
    Subsec. (b)(3)(A)(ii). Pub. L. 102-550, Sec. 116(b)(1)(A), inserted 
before semicolon at end ``to the extent available; or if such assistance 
is not available, in the case of an application proposing demolition or 
disposition of 200 or more units, the use of available project-based 
assistance under section 1437f of this title having a term of not less 
than 5 years''.
    Subsec. (b)(3)(A)(iii). Pub. L. 102-550, Sec. 116(b)(1)(B), inserted 
before semicolon at end ``to the extent available; or if such assistance 
is not available, in the case of an application proposing demolition or 
disposition of 200 or more units, the use of available project-based 
assistance under other Federal programs having a term of not less than 5 
years''.
    Subsec. (b)(3)(A)(v). Pub. L. 102-550, Sec. 116(b)(1)(C), inserted 
before semicolon ``to the extent available; or if such assistance is not 
available, in the case of an application proposing demolition or 
disposition of 200 or more units, the use of tenant-based assistance 
under section 1437f of this title (excluding vouchers under section 
1437f(o) of this title) having a term of not less than 5 years''.
    Subsec. (b)(3)(B). Pub. L. 102-550, Sec. 116(b)(4), added subpar. 
(B). Former subpar. (B) redesignated (C).
    Subsec. (b)(3)(C) to (F). Pub. L. 102-550, Sec. 116(b)(3), 
redesignated subpars. (B) to (E) as (C) to (F), respectively. Former 
subpar. (F) redesignated (G).
    Subsec. (b)(3)(G). Pub. L. 102-550, Sec. 116(b)(3), redesignated 
subpar. (F) as (G). Former subpar. (G) redesignated (H).
    Pub. L. 102-550, Sec. 116(b)(2), substituted ``tenant's choice;'' 
for ``tenant's choice.''
    Subsec. (b)(3)(H). Pub. L. 102-550, Sec. 116(b)(3), redesignated 
subpar. (G) as (H).
    Subsecs. (e), (f). Pub. L. 102-550, Sec. 116(c), added subsec. (e) 
and redesignated former subsec. (e) as (f).
    1990--Subsec. (a)(2)(A)(i). Pub. L. 101-625, Sec. 572(2), 
substituted ``low-income housing'' for ``lower income housing'' wherever 
appearing.
    Subsec. (a)(2)(B). Pub. L. 101-625, Sec. 572, substituted ``low-
income families'' for ``lower income families'' and ``low-income 
housing'' for ``lower income housing'' wherever appearing.
    Pub. L. 101-625, Sec. 512(a), inserted before first comma ``, 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 disposed of bears to the total number 
of units of the project at the time of disposition''.
    Subsec. (b)(1). Pub. L. 101-625, Sec. 412(a), substituted 
``disposition, and the tenant councils, resident management corporation, 
and tenant cooperative, if any, have been given appropriate 
opportunities to purchase the project or portion of the project covered 
by the application,'' for ``disposition''.
    Subsec. (c)(2). Pub. L. 101-625, Sec. 513(b), inserted at end ``As 
part of each annual budget request for the Department of Housing and 
Urban Development, the Secretary shall submit to the Congress a report--
'', and added subpars. (A) and (B).
    Subsec. (c)(3). Pub. L. 101-625, Sec. 513(c), struck out par. (3) 
which read as follows: ``The Secretary shall, in allocating assistance 
for the acquisition or development of public housing or for moderate 
rehabilitation under section 1437f(e)(2) of this title, give 
consideration to housing that replaces demolished public housing units 
in accordance with a plan under subsection (b)(3) of this section.''
    Subsec. (e). Pub. L. 101-625, Sec. 412(b), added subsec. (e).
    1988--Subsec. (a)(1). Pub. L. 100-242, Sec. 121(a), substituted 
``and'' for ``or'' after ``purposes,''.
    Subsec. (b). Pub. L. 100-242, Sec. 170(f), inserted ``or'' after 
``under this section''.
    Subsec. (b)(3). Pub. L. 100-242, Sec. 121(b), added par. (3).
    Subsec. (c). Pub. L. 100-242, Sec. 121(c), designated existing 
provisions as par. (1) and added pars. (2) and (3).
    Pub. L. 100-242, Sec. 112(b)(9), substituted ``contributions 
authorized under section 1437c'' for ``annual contributions authorized 
under section 1437c(c)''.
    Subsec. (d). Pub. L. 100-242, Sec. 121(d), added subsec. (d) and 
struck out former subsec. (d) which read as follows: ``The provisions of 
this section shall not apply to the conveyance of units in a public 
housing project for the purpose of providing homeownership opportunities 
for lower income families capable of assuming the responsibilities of 
homeownership.''


                    Effective Date of 1998 Amendment

    Pub. L. 105-276, title V, Sec. 531(c), Oct. 21, 1998, 112 Stat. 
2574, provided that: ``This section [amending this section and section 
1437aaa-3 of this title and enacting provisions set out as a note under 
section 1437aaa-3 of this title] shall take effect on, and the 
amendments made by this section are made on, and shall apply beginning 
upon, the date of the enactment of this Act [Oct. 21, 1998].''


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-19 effective for applications for 
demolition, disposition, or conversion to homeownership of public 
housing approved by the Secretary, and other consolidation and 
relocation activities of public housing agencies undertaken on, before, 
or after Sept. 30, 1995 and on or before Sept. 30, 1998, see section 
1002(d) of Pub. L. 104-19, as amended, set out as a note under section 
1437c of this title.


                    Effective Date of 1990 Amendment

    Section 512(b) of Pub. L. 101-625 provided that: ``The amendment 
made by this section [amending this section] shall apply to any 
scattered-site public housing project or portion of such project 
disposed of after the date of the enactment of this Act [Nov. 28, 
1990].''


                Replacement Housing Demonstration Program

    Section 513(a) of Pub. L. 101-625 directed Secretary of Housing and 
Urban Development to carry out a program to demonstrate the 
effectiveness of replacing public housing dwelling units eligible for 
demolition or disposition with 5-year certificate assistance provided 
under 42 U.S.C. 1437f, with Secretary to carry out the demonstration 
only with respect to public housing dwelling units owned or operated by 
the public housing authority for Saint Louis, Missouri, that before the 
termination of the demonstration program under this subsection are 
approved for demolition or disposition, and with the demonstration 
program to terminate at end of Sept. 30, 1992.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437c-1, 1437d, 1437t, 
1437v, 1437z-4, 1437z-5, 1437bbb-4 of this title.
