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

Summary

The federal housing official can move day-to-day control of public housing from a local public housing agency (PHA) to another manager when the people who live there ask for it and certain problems exist. A majority of the residents must vote for the change. The switch can happen only if the housing has been mismanaged so it needs major repairs, is suffering repeated vandalism or crime, and the residents show that one or more potential managers can fix these problems with reasonable modernization costs. If the PHA is labeled a "troubled agency," residents can ask either that PHA or the federal official and either can approve the change. If the PHA is not troubled, residents must ask the PHA first; if the PHA refuses, they can then ask the federal official. If approved, the federal official signs a contract with the new manager. The PHA must give the manager a fair share of its Capital and Operating Funds under section 1437g for the project, with the exact amount set by the federal official based on the project’s and agency’s needs and the agency’s plan. The manager must follow the agency’s approved plan and share information so the agency can update its plan. The manager can only demolish or sell buildings as the agency’s plan allows. A PHA that is not the manager is not responsible for what the manager or a resident council does. Eligible management entities include nonprofits (including resident management corporations but not the owning PHA), experienced for‑profit owners, state or local governments, or another PHA. "Manager" means an eligible entity that has a contract under this rule. "Specified housing" means the project or part of a project being transferred.