
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: 42USC1437z-5]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437z-5. Required conversion of distressed public housing 
        to tenant-based assistance
        

(a) Identification of units

    Each public housing agency shall identify all public housing 
projects of the public housing agency that meet all of the following 
requirements:
        (1) The project is on the same or contiguous sites.
        (2) The project is determined by the public housing agency to be 
    distressed, which determination shall be made in accordance with 
    guidelines established by the Secretary, which guidelines shall take 
    into account the criteria established in the Final Report of the 
    National Commission on Severely Distressed Public Housing (August 
    1992).
        (3) The project--
            (A) is identified as distressed housing under paragraph (2) 
        for which the public housing agency cannot assure the long-term 
        viability as public housing through reasonable modernization 
        expenses, density reduction, achievement of a broader range of 
        family income, or other measures; or
            (B) has an estimated cost, during the remaining useful life 
        of the project, of continued operation and modernization as 
        public housing that exceeds the estimated cost, during the 
        remaining useful life of the project, of providing tenant-based 
        assistance under section 1437f of this title for all families in 
        occupancy, based on appropriate indicators of cost (such as the 
        percentage of total development costs required for 
        modernization).

(b) Consultation

    Each public housing agency shall consult with the appropriate public 
housing residents and the appropriate unit of general local government 
in identifying any public housing projects under subsection (a) of this 
section.

(c) Plan for removal of units from inventories of PHAs

                           (1) Development

        Each public housing agency shall develop and carry out a 5-year 
    plan in conjunction with the Secretary for the removal of public 
    housing units identified under subsection (a) of this section from 
    the inventory of the public housing agency and the annual 
    contributions contract.

                            (2) Approval

        Each plan required under paragraph (1) shall--
            (A) be included as part of the public housing agency plan;
            (B) be certified by the relevant local official to be in 
        accordance with the comprehensive housing affordability strategy 
        under title I of the Housing and Community Development Act of 
        1992; and
            (C) include a description of any disposition and demolition 
        plan for the public housing units.

                           (3) Extensions

        The Secretary may extend the 5-year deadline described in 
    paragraph (1) by not more than an additional 5 years if the 
    Secretary makes a determination that the deadline is impracticable.

                       (4) Review by Secretary

        (A) Failure to identify projects

            If the Secretary determines, based on a plan submitted under 
        this subsection, that a public housing agency has failed to 
        identify 1 or more public housing projects that the Secretary 
        determines should have been identified under subsection (a) of 
        this section, the Secretary may designate the public housing 
        projects to be removed from the inventory of the public housing 
        agency pursuant to this section.

        (B) Erroneous identification of projects

            If the Secretary determines, based on a plan submitted under 
        this subsection, that a public housing agency has identified 1 
        or more public housing projects that should not have been 
        identified pursuant to subsection (a) of this section, the 
        Secretary shall--
                (i) require the public housing agency to revise the plan 
            of the public housing agency under this subsection; and
                (ii) prohibit the removal of any such public housing 
            project from the inventory of the public housing agency 
            under this section.

(d) Conversion to tenant-based assistance

                           (1) In general

        To the extent approved in advance in appropriations Acts, the 
    Secretary shall make budget authority available to a public housing 
    agency to provide assistance under this chapter to families residing 
    in any public housing project that, pursuant to this section, is 
    removed from the inventory of the agency and the annual 
    contributions contract of the agency.

                     (2) Conversion requirements

        Each agency carrying out a plan under subsection (c) of this 
    section for removal of public housing dwelling units from the 
    inventory of the agency shall--
            (A) notify each family residing in a public housing project 
        to be converted under the plan 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 removed from the 
            inventory of the public housing agency; and
                (ii) each family displaced by such action will be 
            offered comparable housing--
                    (I) that meets housing quality standards; and
                    (II) 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) provide any necessary counseling for families displaced 
        by such action;
            (C) ensure that, if the project (or portion) converted is 
        used as housing after such conversion, each resident may choose 
        to remain in their dwelling unit in the project and use the 
        tenant-based assistance toward rent for that unit;
            (D) ensure that each displaced resident is offered 
        comparable housing in accordance with the notice under 
        subparagraph (A); and
            (E) provide any actual and reasonable relocation expenses 
        for families displaced by such action.

(e) Cessation of unnecessary spending

    Notwithstanding any other provision of law, if, in the determination 
of the Secretary, a project or projects of a public housing agency meet 
or are likely to meet the criteria set forth in subsection (a) of this 
section, the Secretary may direct the agency to cease additional 
spending in connection with such project or projects until the Secretary 
determines or approves an appropriate course of action with respect to 
such project or projects under this section, except to the extent that 
failure to expend such amounts would endanger the health or safety of 
residents in the project or projects.

(f) Use of budget authority

    Notwithstanding any other provision of law, if a project or projects 
are identified pursuant to subsection (a) of this section, the Secretary 
may authorize or direct the transfer, to the tenant-based assistance 
program of such agency or to appropriate site revitalization or other 
capital improvements approved by the Secretary, of--
        (1) in the case of an agency receiving assistance under the 
    comprehensive improvement assistance program, any amounts obligated 
    by the Secretary for the modernization of such project or projects 
    pursuant to section 1437l of this title (as in effect immediately 
    before the effective date under section 503(a) of the Quality 
    Housing and Work Responsibility Act of 1998);
        (2) in the case of an agency receiving public housing 
    modernization assistance by formula pursuant to such section 1437l 
    of this title, any amounts provided to the agency which are 
    attributable pursuant to the formula for allocating such assistance 
    to such project or projects;
        (3) in the case of an agency receiving assistance for the major 
    reconstruction of obsolete projects, any amounts obligated by the 
    Secretary for the major reconstruction of such project or projects 
    pursuant to section 1437c(j)(2) of this title, as in effect 
    immediately before the effective date under section 503(a) of the 
    Quality Housing and Work Responsibility Act of 1998; and
        (4) in the case of an agency receiving assistance pursuant to 
    the formulas under section 1437g of this title, any amounts provided 
    to the agency which are attributable pursuant to the formulas for 
    allocating such assistance to such project or projects.

(g) Removal by Secretary

    The Secretary shall take appropriate actions to ensure removal of 
any public housing project identified under subsection (a) of this 
section from the inventory of a public housing agency, if the public 
housing agency fails to adequately develop a plan under subsection (c) 
of this section with respect to that project, or fails to adequately 
implement such plan in accordance with the terms of the plan.

(h) Administration

                           (1) In general

        The Secretary may require a public housing agency to provide to 
    the Secretary or to public housing residents such information as the 
    Secretary considers to be necessary for the administration of this 
    section.

                 (2) Applicability of section 1437p

        Section 1437p of this title shall not apply to the demolition of 
    public housing projects removed from the inventory of the public 
    housing agency under this section.

(Sept. 1, 1937, ch. 896, title I, Sec. 33, as added Pub. L. 105-276, 
title V, Sec. 537(a), Oct. 21, 1998, 112 Stat. 2588.)

                       References in Text

    Title I of the Housing and Community Development Act of 1992, 
referred to in subsec. (c)(2)(B), is title I of Pub. L. 102-550, Oct. 
28, 1992, 106 Stat. 3681. For complete classification of title I to the 
Code, see Tables.
    Section 1437l of this title, referred to in subsec. (f)(1), (2), was 
repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21, 1998, 112 
Stat. 2564.
    Section 503(a) of the Quality Housing and Work Responsibility Act of 
1998, referred to in subsec. (f)(1), (3), is section 503(a) of Pub. L. 
105-276, which is set out as an Effective Date of 1998 Amendment note 
under section 1437 of this title.


                             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.


                               Transition

    Pub. L. 105-276, title V, Sec. 537(c), Oct. 21, 1998, 112 Stat. 
2592, provided that:
    ``(1) Use of amounts.--Any amounts made available to a public 
housing agency to carry out section 202 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (enacted as section 101(e) of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
134; 110 Stat. 1321-279)) [former 42 U.S.C. 1437l note] may be used, to 
the extent or in such amounts as are or have been provided in advance in 
appropriation Acts, to carry out section 33 of the United States Housing 
Act of 1937 [42 U.S.C. 1437z-5] (as added by subsection (a) of this 
section).
    ``(2) Savings provision.--Notwithstanding the amendments made by 
this section [enacting this section and repealing provisions set out as 
a note under section 1437l of this title], section 202 of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 14371 [1437l] 
note) and any regulations implementing such section, as in effect 
immediately before the enactment of this Act [Oct. 21, 1998], shall 
continue to apply to public housing developments identified by the 
Secretary or a public housing agency for conversion pursuant to that 
section or for assessment of whether such conversion is required prior 
to enactment of this Act.''

                  Section Referred to in Other Sections

    This section is referred to in section 1437c-1 of this title.
