§1437w Transfer of Management of Certain Housing to Independent Manager at Request of Residents

Summary

The Secretary can move management of certain public housing from the local housing agency to another manager when most residents ask for it and specific problems exist. A majority of the residents must vote for the change. The housing must have been mismanaged so repairs are delayed or major systems are failing, or it must be in an area with repeated vandalism or crime. Residents must name one or more managers who have shown they can fix these problems with reasonable modernization costs. If the housing agency is officially labeled “troubled,” the residents’ request can go to the agency or to the Secretary and must be approved. If the agency is not troubled, the request goes to the agency and must be approved, or the residents can ask the Secretary if the agency denies it. If approved, the Secretary signs a contract with the chosen manager. The manager will get a fair share of the agency’s capital and operating funds for that housing based on need and the agency’s plan. The manager must follow the agency’s approved plan and give information the agency needs. The manager can only demolish or sell housing as allowed by that plan. The original agency is not responsible for acts by the manager or the resident council. Eligible managers include public or private nonprofits (including resident management corporations but not the owning agency), experienced for-profit housing providers, state or local governments, or other public housing agencies. “Specified housing” means the project or part of a project that residents want to transfer.