Title 42 — The Public Health and WelfareRelease 119-73not60
§1437t Authority to Convert Public Housing to Vouchers
Title 42 › Chapter 8— LOW-INCOME HOUSING › Subchapter I— GENERAL PROGRAM OF ASSISTED HOUSING › § 1437t
Summary
A public housing agency may change a public housing project (or part of it) into tenant-based assistance under section 1437f, but only after doing a careful assessment. The assessment must compare costs (including net present value and new budget needs) of vouchers versus keeping the project. It must look at the project’s market value before and after rehab and conversion, the local rental market and whether decent, safe units exist at or below the agency’s payment standard, the effect on the neighborhood, and a plan saying what actions the agency might take. Each agency had to do or submit such assessments for every project 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 simplify these assessment rules and an agency may update an assessment to meet the one-year limit. A conversion can only go forward if the assessment (no more than one year old) shows the change won’t cost more than keeping the project, will mainly help the residents, the agency, and the community, and won’t reduce affordable housing in the area. The agency must write a conversion plan with resident input and local officials, include it in the agency plan, describe future use and community impact, give 90 days’ notice before displacing families (except in emergencies), offer comparable housing that meets quality standards and is in a similar area (which may include tenant- or project-based assistance), provide counseling, let residents stay and use tenant-based help in their unit if possible, pay reasonable relocation costs, and follow limits on proceeds. The Secretary may only disapprove a plan for limited reasons. Approved funds for tenant-based help are 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 5, 2026
Release point: 119-73not60