42 USC 1437w - Transfer of management of certain housing to independent manager at request of residents

U.S Code last checked for updates: Oct 16, 2024

§ 1437w.

Transfer of management of certain housing to independent manager at request of residents

(a)

Authority

The Secretary may transfer the responsibility and authority for management of specified housing (as such term is defined in subsection (h)) from a public housing agency to an eligible management entity, in accordance with the requirements of this section, if—

(1)

a request for transfer of management of such housing is made and approved in accordance with subsection (b); and

(2)

the Secretary or the public housing agency, as appropriate pursuant to subsection (b), determines that—

(A)

due to the mismanagement of the agency, such housing has deferred maintenance, physical deterioration, or obsolescence of major systems and other deficiencies in the physical plant of the project;

(B)

such housing is located in an area such that the housing is subject to recurrent vandalism and criminal activity (including drug-related criminal activity); and

(C)

the residents can demonstrate that the elements of distress for such housing specified in subparagraphs (A) and (B) can be remedied by an entity or entities, identified by the residents, that has or have a demonstrated capacity to manage, with reasonable expenses for modernization.

(b)

Request for transfer

The responsibility and authority for managing specified housing may be transferred only pursuant to a request made by a majority vote of the residents for the specified housing that—

(1)

in the case of specified housing that is owned by a public housing agency that is designated as a troubled agency under section 1437d(j)(2) of this title—

(A)

is made to the public housing agency or the Secretary; and

(B)

is approved by the agency or the Secretary; or

(2)

in the case of specified housing that is owned by a public housing agency that is not designated as a troubled agency under section 1437d(j)(2) of this title—

(A)

is made to and approved by the public housing agency; or

(B)

if a request is made to the agency pursuant to subparagraph (A) and is not approved, is subsequently made to and approved by the Secretary.

(c)

Capital and operating assistance

(d)

Contract between Secretary and manager

(1)

Requirements

(2)

Terms

(e)

Compliance with public housing agency plan

(f)

Demolition and disposition by manager

(g)

Limitation on PHA liability

(h)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Eligible management entity

The term “eligible management entity” means, with respect to any public housing project, any of the following entities:

(A)

Nonprofit organization

A public or private nonprofit organization, which may—

(i)

include a resident management corporation; and

(ii)

not include the public housing agency that owns or operates the project.

(B)

For-profit entity

(C)

State or local government

(D)

Public housing agency

The term does not include a resident council.

(2)

Manager

(3)

Nonprofit

(4)

Private nonprofit organization

The term “private nonprofit organization” means any private organization (including a State or locally chartered organization) that—

(A)

is incorporated under State or local law;

(B)

is nonprofit in character;

(C)

complies with standards of financial accountability acceptable to the Secretary; and

(D)

has among its purposes significant activities related to the provision of decent housing that is affordable to low-income families.

(5)

Public nonprofit organization

(6)

Specified housing

(Sept. 1, 1937, ch. 896, title I, § 25, as added Pub. L. 105–276, title V, § 534, Oct. 21, 1998, 112 Stat. 2579.)

cite as: 42 USC 1437w