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:  

  1. 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.  
  2. Provides detailed guidance for PHAs disposing of public housing properties through long-term ground leases; and 
  3. Allows for phased applications with staggered relocation timelines, providing more flexibility for redevelopment projects.