Title 42 — The Public Health and WelfareRelease 119-73
§1437t Authority to convert public housing to vouchers
Title 42 › Chapter CHAPTER 8— - LOW-INCOME HOUSING › Subchapter SUBCHAPTER I— - GENERAL PROGRAM OF ASSISTED HOUSING › § 1437t
Summary
A public housing agency may convert a public housing project (or part of one) into tenant-based assistance (vouchers), but only after doing a required assessment. The assessment must compare costs using net present value and new budget authority to see if vouchers are cheaper than keeping the project for its remaining useful life. It must look at the property’s market value before and after rehab and conversion, study the local rental market to see if enough decent, safe homes rent at or below the agency’s voucher payment standard, check the conversion’s effect on the neighborhood, and include a plan saying what the agency would do. Each agency must do and send these assessments to the Secretary not later than 2 years after the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998. The Secretary can waive or require a simpler assessment. A conversion can go forward only if the assessment shows it will not cost more than continuing public housing, will mainly benefit the residents, the agency, and the community, and will not reduce affordable housing in the area. The agency must have a conversion plan the Secretary has not rejected. That plan must be made with local officials and strong resident participation, be part of the agency plan, describe future use and community impact, give residents 90 days’ notice before displacement (except for imminent health or safety threats), offer displaced families comparable housing that meets quality standards and is in a location not less desirable (which may include vouchers, project-based help, or a similar PHA unit), provide counseling, allow residents to stay and use vouchers in their unit if it remains housing, and pay reasonable relocation costs. Any proceeds from the conversion must be used under the limits in section 1437p(a)(5). To the extent the Secretary approves, funds used for tenant-based assistance will be added to the agency’s annual contribution contract.
Full Legal Text
Title 42, §1437t
The Public Health and Welfare — Source: USLM XML via OLRC
(a)A public housing agency may convert any public housing project (or portion thereof) owned by the public housing agency to tenant-based assistance, but only in accordance with the requirements of this section.
(b)(1)To convert public housing under this section, a public housing agency shall conduct an assessment of the public housing that includes—
(A)a cost analysis that demonstrates whether or not the cost (both on a net present value basis and in terms of new budget authority requirements) of providing tenant-based assistance under section 1437f of this title for the same families in substantially similar dwellings over the same period of time is less expensive than continuing public housing assistance in the public housing project for the remaining useful life of the project;
(B)an analysis of the market value of the public housing project both before and after rehabilitation, and before and after conversion;
(C)an analysis of the rental market conditions with respect to the likely success of the use of tenant-based assistance under section 1437f of this title in that market for the specific residents of the public housing project, including an assessment of the availability of decent and safe dwellings renting at or below the payment standard established for tenant-based assistance under section 1437f of this title by the agency;
(D)the impact of the conversion to tenant-based assistance under this section on the neighborhood in which the public housing project is located; and
(E)a plan that identifies actions, if any, that the public housing agency would take with regard to converting any public housing project or projects (or portions thereof) of the public housing agency to tenant-based assistance.
(2)Not later than 2 years after the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, each public housing agency shall conduct an assessment under paragraph (1) or (3) of the status of each public housing project owned by such agency and shall submit to the Secretary such assessment. A public housing agency may otherwise undertake an assessment under this subsection at any time and for any public housing project (or portion thereof) owned by the agency. A public housing agency may update a previously conducted assessment for a project (or portion thereof) for purposes of compliance with the one-year limitation under subsection (c).
(3)At the discretion of the Secretary or at the request of a public housing agency, the Secretary may waive any or all of the requirements of paragraph (1) or (3) or otherwise require a streamlined assessment with respect to any public housing project or class of public housing projects.
(c)A public housing agency may convert a public housing project (or portion thereof) owned by the agency to tenant-based assistance only pursuant to a conversion assessment under subsection (b) that one year 11 So in original. and that demonstrates that the conversion—
(1)will not be more expensive than continuing to operate the public housing project (or portion thereof) as public housing;
(2)will principally benefit the residents of the public housing project (or portion thereof) to be converted, the public housing agency, and the community; and
(3)will not adversely affect the availability of affordable housing in such community.
(d)A public housing project may be converted under this section to tenant-based assistance only as provided in a conversion plan under this subsection, which has not been disapproved by the Secretary pursuant to subsection (e). Each conversion plan shall—
(1)be developed by the public housing agency, in consultation with the appropriate public officials, with significant participation by the residents of the project (or portion thereof) to be converted;
(2)be consistent with and part of the public housing agency plan;
(3)describe the conversion and future use or disposition of the project (or portion thereof) and include an impact analysis on the affected community;
(4)provide that the public housing agency shall—
(A)notify each family residing in a public housing project (or portion) 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 (or portion) 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;
(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)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; and
(D)provide any actual and reasonable relocation expenses for families displaced by the conversion; and
(5)provide that any proceeds to the agency from the conversion will be used subject to the limitations that are applicable under section 1437p(a)(5) of this title to proceeds resulting from the disposition or demolition of public housing.
(e)The Secretary shall disapprove a conversion plan only if—
(1)the plan is plainly inconsistent with the conversion assessment for the agency developed under subsection (b);
(2)there is reliable information and data available to the Secretary that contradicts that conversion assessment; or
(3)the plan otherwise fails to meet the requirements of this section.
(f)To the extent approved by the Secretary, the funds used by the public housing agency to provide tenant-based assistance under section 1437f of this title shall be added to the annual contribution contract administered by the public housing agency.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 503(a) of the Quality Housing and Work Responsibility Act of 1998, referred to in subsec. (b)(2), 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.
Amendments
1998—Pub. L. 105–276 amended section generally. Prior to amendment, section related to award of grants to public housing agencies to adapt public housing to help families gain better access to educational and job opportunities, use of funds for supportive services, development of facilities to accommodate them, and employment of service coordinators, applications, selection for grants, reports to Secretary and Congress, and appropriations for fiscal years 1993 and 1994. 1992—Subsec. (k). Pub. L. 102–550 amended subsec. (k) generally, substituting present provisions for provisions authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in fiscal year 1992.
Statutory Notes and Related Subsidiaries
Effective Date
of 1998 AmendmentAmendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with
Savings Provision
, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title.
Savings Provision
Pub. L. 105–276, title V, § 533(b), Oct. 21, 1998, 112 Stat. 2578, provided that: “The amendment made by subsection (a) [amending this section] shall not affect any contract or other agreement entered into under section 22 of the United States Housing Act of 1937 [42 U.S.C. 1437t], as such section existed immediately before the
Effective Date
under section 503(a) of the Quality Housing and Work Responsibility Act of 1998 [Pub. L. 105–276, set out as an
Effective Date
of 1998 Amendment note under section 1437 of this title].” Public Housing One-Stop Perinatal Services Demonstration Pub. L. 101–625, title V, § 521, Nov. 28, 1990, 104 Stat. 4205, as amended by Pub. L. 102–550, title I, § 125, Oct. 28, 1992, 106 Stat. 3710, which directed Secretary of Housing and Urban Development to carry out program to demonstrate effectiveness of providing grants to public housing agencies to assist such agencies in providing facilities for making one-stop perinatal services programs available for pregnant women residing in public housing, set forth preferences, limitation on grant amount, and program requirements, and required report to Congress not later than 1 year after amounts were first made available setting forth findings and conclusions and including recommendations with respect to establishment of permanent program, was repealed by Pub. L. 105–276, title V, § 582(a)(9), Oct. 21, 1998, 112 Stat. 2644.
Reference
Citations & Metadata
Citation
42 U.S.C. § 1437t
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73