
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1437w]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437w. Transfer of management of certain housing to 
        independent manager at request of residents
        

(a) Authority

    The Secretary may transfer the responsibility and authority for 
management of specified housing (as such term is defined in subsection 
(h) of this section) from a public housing agency to an eligible 
management entity, in accordance with the requirements of this section, 
if--
        (1) a request for transfer of management of such housing is made 
    and approved in accordance with subsection (b) of this section; and
        (2) the Secretary or the public housing agency, as appropriate 
    pursuant to subsection (b) of this section, determines that--
            (A) due to the mismanagement of the agency, such housing has 
        deferred maintenance, physical deterioration, or obsolescence of 
        major systems and other deficiencies in the physical plant of 
        the project;
            (B) such housing is located in an area such that the housing 
        is subject to recurrent vandalism and criminal activity 
        (including drug-related criminal activity); and
            (C) the residents can demonstrate that the elements of 
        distress for such housing specified in subparagraphs (A) and (B) 
        can be remedied by an entity or entities, identified by the 
        residents, that has or have a demonstrated capacity to manage, 
        with reasonable expenses for modernization.

(b) Request for transfer

    The responsibility and authority for managing specified housing may 
be transferred only pursuant to a request made by a majority vote of the 
residents for the specified housing that--
        (1) in the case of specified housing that is owned by a public 
    housing agency that is designated as a troubled agency under section 
    1437d(j)(2) of this title--
            (A) is made to the public housing agency or the Secretary; 
        and
            (B) is approved by the agency or the Secretary; or

        (2) in the case of specified housing that is owned by a public 
    housing agency that is not designated as a troubled agency under 
    section 1437d(j)(2) of this title--
            (A) is made to and approved by the public housing agency; or
            (B) if a request is made to the agency pursuant to 
        subparagraph (A) and is not approved, is subsequently made to 
        and approved by the Secretary.

(c) Capital and operating assistance

    Pursuant to a contract under subsection (d) of this section, the 
Secretary shall require the public housing agency for specified housing 
to provide to the manager for the housing, from any assistance from the 
Capital and Operating Funds under section 1437g of this title for the 
agency, fair and reasonable amounts for the housing for eligible capital 
and operating activities under subsection (d)(1) and (e)(1) of section 
1437g of this title. The amount made available under this subsection to 
a manager shall be determined by the Secretary based on the share for 
the specified housing of the aggregate amount of assistance from such 
Funds for the public housing agency transferring the housing, taking 
into consideration the operating and capital improvement needs of the 
specified housing, the operating and capital improvement needs of the 
remaining public housing units managed by the public housing agency, and 
the public housing agency plan of such agency.

(d) Contract between Secretary and manager

                          (1) Requirements

        Pursuant to the approval of a request under this section for 
    transfer of the management of specified housing, the Secretary shall 
    enter into a contract with the eligible management entity.

                              (2) Terms

        A contract under this subsection shall contain provisions 
    establishing the rights and responsibilities of the manager with 
    respect to the specified housing and the Secretary and shall be 
    consistent with the requirements of this chapter applicable to 
    public housing projects.

(e) Compliance with public housing agency plan

    A manager of specified housing under this section shall comply with 
the approved public housing agency plan applicable to the housing and 
shall submit such information to the public housing agency from which 
management was transferred as may be necessary for such agency to 
prepare and update its public housing agency plan.

(f) Demolition and disposition by manager

    A manager under this section may demolish or dispose of specified 
housing only if, and in the manner, provided for in the public housing 
agency plan for the agency transferring management of the housing.

(g) Limitation on PHA liability

    A public housing agency that is not a manager for specified housing 
shall not be liable for any act or failure to act by a manager or 
resident council for the specified housing.

(h) Definitions

    For purposes of this section, the following definitions shall apply:

                   (1) Eligible management entity

        The term ``eligible management entity'' means, with respect to 
    any public housing project, any of the following entities:

        (A) Nonprofit organization

            A public or private nonprofit organization, which may--
                (i) include a resident management corporation; and
                (ii) not include the public housing agency that owns or 
            operates the project.

        (B) For-profit entity

            A for-profit entity that has demonstrated experience in 
        providing low-income housing.

        (C) State or local government

            A State or local government, including an agency or 
        instrumentality thereof.

        (D) Public housing agency

            A public housing agency (other than the public housing 
        agency that owns or operates the project).

    The term does not include a resident council.

                             (2) Manager

        The term ``manager'' means any eligible management entity that 
    has entered into a contract under this section with the Secretary 
    for the management of specified housing.

                            (3) Nonprofit

        The term ``nonprofit'' means, with respect to an organization, 
    association, corporation, or other entity, that no part of the net 
    earnings of the entity inures to the benefit of any member, founder, 
    contributor, or individual.

                 (4) Private nonprofit organization

        The term ``private nonprofit organization'' means any private 
    organization (including a State or locally chartered organization) 
    that--
            (A) is incorporated under State or local law;
            (B) is nonprofit in character;
            (C) complies with standards of financial accountability 
        acceptable to the Secretary; and
            (D) has among its purposes significant activities related to 
        the provision of decent housing that is affordable to low-income 
        families.

                  (5) Public nonprofit organization

        The term ``public nonprofit organization'' means any public 
    entity that is nonprofit in character.

                        (6) Specified housing

        The term ``specified housing'' means a public housing project or 
    projects, or a portion of a project or projects, for which the 
    transfer of management is requested under this section. The term 
    includes one or more contiguous buildings and an area of contiguous 
    row houses, but in the case of a single building, the building shall 
    be sufficiently separable from the remainder of the project of which 
    it is part to make transfer of the management of the building 
    feasible for purposes of this section.

(Sept. 1, 1937, ch. 896, title I, Sec. 25, as added Pub. L. 105-276, 
title V, Sec. 534, Oct. 21, 1998, 112 Stat. 2579.)


                            Prior Provisions

    A prior section 1437w, act Sept. 1, 1937, ch. 896, title I, Sec. 25, 
as added Pub. L. 102-550, title I, Sec. 121(b), Oct. 28, 1992, 106 Stat. 
3701; amended Pub. L. 104-330, title V, Sec. 501(b)(10), Oct. 26, 1996, 
110 Stat. 4042, known as the Choice in Public Housing Management Act of 
1992, related to choice in public housing management, prior to repeal by 
Pub. L. 105-276, title V, Secs. 503, 534, Oct. 21, 1998, 112 Stat. 2521, 
2579, effective and applicable beginning upon Oct. 1, 1999, except as 
otherwise provided, with provision that Secretary may implement repeal 
before such date, and with savings provision.


                             Effective Date

    Section effective and applicable beginning upon Oct. 1, 1999, except 
as otherwise provided, with provision that Secretary may implement 
section before such date except to extent otherwise provided, see 
section 503 of Pub. L. 105-276, set out as an Effective Date of 1998 
Amendment note under section 1437 of this title.
