24 C.F.R. § 884.123
§ 884.123 Conversions. (24 CFR Part 884)
Operative Text
(a) Conversion of private-owner project to private-owner/PHA project. HUD may request the Owner of a Private-Owner Project and an appropriate PHA to agree, if they are willing, to a conversion of any such project to a Private-Owner/PHA Project if HUD determines that such conversion would promote efficient project administration. (b) Conversion of private-owner/PHA project to private-owner project. The Private Owner and the PHA, in the case of a Private-Owner/PHA Project, may request HUD to agree to a conversion of any such project to a Private-Owner or PHA-Owner Project. HUD shall agree to such conversion if it determines it to be in the best interest of the project.
Section 884.123 establishes a two-way conversion mechanism for certain federally assisted housing projects. Under subsection (a), HUD may initiate a request to shift a privately owned project into a joint private-owner and public housing authority (PHA) structure when HUD concludes that doing so would improve administrative efficiency. Under subsection (b), the private owner and PHA involved in a joint project may jointly ask HUD to convert it back to a solely private-owner or PHA-owner arrangement, and HUD must approve that request if it finds the change serves the project's best interests.
Plain English — not legal advice.
Owners operating under 24 CFR Part 884 § 884.123 should be aware that HUD holds the authority to approach them about converting a Private-Owner Project into a Private-Owner/PHA Project, though any such conversion requires the owner's agreement. Conversely, a private owner participating in a joint Private-Owner/PHA Project can partner with the PHA to formally request a conversion back to a solely private-owner structure. Compliant operators generally maintain clear documentation of their project's administrative structure and stay responsive to HUD communications that may relate to conversion proposals under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in projects subject to 24 CFR Part 884 § 884.123, this provision means the ownership or administrative structure of their housing may change over time through a formal HUD-overseen process. Such a conversion does not eliminate the federal oversight framework that governs the project, and tenants may wish to monitor any notices about changes in project administration. Tenants who have questions about how a conversion might affect their rights or housing assistance can reach out to a local tenant-rights organization or a HUD-approved housing counseling agency for general information.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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