§1437w Transfer of management of certain housing to independent manager at request of residents

Summary

Allows the Secretary (head of the federal housing department) to move control of certain public housing from a local public housing agency to another qualified manager when residents ask for it and problems exist. Residents must vote by a majority to ask for the change. If the housing is owned by an agency labeled “troubled” under section 1437d(j)(2), the request can go to that agency or to the Secretary and must be approved. If the agency is not labeled troubled, residents must ask the agency first; if the agency denies the request, they can then ask the Secretary. The Secretary or the agency must find that the housing shows signs of mismanagement (like deferred maintenance or broken major systems), that the area has repeated vandalism or crime, and that residents have identified one or more managers who can fix these problems with reasonable modernization costs. If approved, the Secretary signs a contract with the new manager and requires the old agency to give the manager a fair share of Capital and Operating Funds under section 1437g. The Secretary decides the share based on the housing’s portion of the agency’s total funds and the repair and operating needs of the transferred housing and the agency’s other units, and the agency plan. The manager must follow the approved public housing agency plan, provide needed information to the agency, and may only demolish or dispose of units as the agency plan allows. The original agency is not legally responsible for actions by the new manager or a resident council. Definitions: eligible management entity (types of groups that can manage), manager (the chosen entity under contract), nonprofit (no private profits), private nonprofit organization (a nonprofit incorporated locally with housing goals), public nonprofit organization (a public nonprofit), specified housing (the project or part of a project being transferred).