24 C.F.R. § 93.203
§ 93.203 HTF funds and public housing. (24 CFR Part 93)
Operative Text
(a) HTF funds may be used for new construction or rehabilitation of public housing units only in accordance with the following: (1) HTF funds may be used for new construction of public housing as part of the Choice Neighborhoods (Choice) program under a HUD appropriation act or for new public housing units that have been allocated and will receive low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42). (2) HTF funds may be used for the rehabilitation of existing public housing units in which the public housing assistance will be converted and used at the properties under the Rental Assistance Demonstration (RAD) program under HUD's 2012 Appropriations Act (Pub. L. 112-55, 125 Stat. 552, approved November 18, 2011) or subsequent statutes. HTF funds may also be used for the rehabilitation of existing public housing under the Choice program, and of existing public housing units that have been allocated and will receive low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42). (b) The public housing units constructed using funds under this part must replace units that were removed from a public housing agency's public housing inventory as part of a Choice program grant, or as part of a mixed-financed development under section 35 of the 1937 Act. The number of replacement units cannot be more than the number of units removed from the public housing agency's inventory. The public housing units constructed or rehabilitated using funds under this part must receive Public Housing Operating Fund assistance (and may receive Public Housing Capital Fund assistance) under section 9 of the 1937 Act. These units cannot receive operating costs assistance or operating cost assistance reserves under this part. (c) Except as provided in paragraph (b) of this section, HTF-assisted housing may not receive Operating Fund or Capital Fund assistance under section 9 of the 1937 Act during the HTF period of affordability. (d) Consistent with § 93.200(c), HTF funds may be used for affordable housing in a project that also contains public housing units, provided that the HTF funds are not used for the public housing units and HTF funds are used only for eligible costs, in accordance with this part.
Under 24 CFR Part 93 § 93.203, Housing Trust Fund (HTF) money can flow into public housing projects only under narrow, defined circumstances—primarily through the Choice Neighborhoods program, the Rental Assistance Demonstration (RAD) program, or projects paired with Low-Income Housing Tax Credits under IRC § 42. When HTF dollars are used to build new public housing, the resulting units must replace units previously removed from a public housing agency's inventory, and the replacement count cannot exceed the number removed. Mixed projects that include both public housing units and HTF-assisted units are permitted, but the HTF dollars must be kept strictly separate from the public housing portion and applied only to eligible costs.
Plain English — not legal advice.
Operators and grantees working under 24 CFR Part 93 § 93.203 generally ensure that any HTF expenditures touching public housing are tied to a qualifying program—such as Choice Neighborhoods, RAD, or an IRC § 42 tax-credit allocation—before committing funds. In mixed-finance developments, compliant operators maintain clear cost-allocation records that demonstrate HTF dollars were spent exclusively on non-public-housing units and eligible activities. Tracking the unit-count limits for replacement housing is also a standard part of project underwriting under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 93.203 of 24 CFR Part 93 shapes which public housing developments can receive HTF investment, which in turn affects the availability and affordability of units in Choice Neighborhoods, RAD conversions, and tax-credit projects. Residents of public housing undergoing HTF-assisted rehabilitation or replacement may have rights tied to the specific program involved—such as RAD or Choice Neighborhoods—and tenant-rights organizations familiar with HUD programs can help explain what those program rules mean for occupants. If a development appears to be using HTF funds in ways that conflict with § 93.203's restrictions, tenants can raise concerns with the relevant HUD field office or a local housing advocacy organization.
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 5, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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