In late December, HUD published Notice PIH 2024-40, modifying previous guidance (Notice PIH 2021-07) regarding how a public housing agency (PHA) can apply to demolish or dispose of public housing under Section 18 of the Housing Act of 1937.
Key Changes:
- Increases the percentage of units that can be converted to Project-Based Vouchers (PBVs) in Rental Assistance Demonstration (RAD)/Section 18 Blend applications to 90 percent if:
- The units are part of a property located in a very high-cost area;
- Are part of a small PHA (less than 250 units); or
- The project entails demolition and redevelopment or transfer of public assistance to a new site under RAD.
- Provides detailed guidance for PHAs disposing of public housing properties through long-term ground leases; and
- Allows for phased applications with staggered relocation timelines, providing more flexibility for redevelopment projects.